the future of books - creating new value from reading

THE SOUND HORIZON THE SOUND HORIZON THE SOUND HORIZON

BOOKS 2.0: ��CREATING NEW VALUE FROM

READING

Dominic Pride 19 March 2010

ABOUT THE SOUND HORIZON

March 19, 2010 1

Translating insight,

intelligence and innovation into things

people use. !

Dominic Pride: Managing Director / Principal Consultant

• Strategic change • Innova5on management • Product marke5ng • Mobile and converged service development • Experience with operators, handsets, agencies, content brands, labels, associa5ons

Some of our Clients

Fast!!

Dominic Pride -‐ The Future of Books. Some rights reserved.

TODAY’S SESSION

March 19, 2010 2

How to transform the desire for change into reality

1.Dawn of digital reading

2. Welcome to the digital ecosystem

3. Your new ecosystem partners

5. The change agenda

4. From books to

Reading 2.0


@thesoundhorizon #books20

1. THE DAWN OF DIGITAL READING

DIGITAL READING GOES MAINSTREAM

March 19, 2010 4

The iPad: “ideal canvas” with rich user interface No. of books

overtakes games in iPhone App Store*

*Source: Mobclix http://blog.mobclix.com/ :

CES: 20+ E-reading devices on show

The digital reading use case is becoming widely understood


BUT SERIOUS CHALLENGES LIE AHEAD

March 19, 2010 5

Perpetual, accelerating pace of innovation Competition for

audience and revenue in “reading”

category.

Growth potential for reading beyond e-readers

Digital behaviours established by other services

Pricing and margin in App Stores

VCs and disruptive startups targeting reading

Competition for authors’ content

from other media.

Disintermediation by self-publishing platforms

Today’s rich UI will become tomorrow’s

hygiene factor

Consumer backlash begun?


TO THE DIGITAL ECOSYSTEM

FROM BOOKS 1.0 VALUE CHAIN …

Author Agent Publisher Distributor Retailer

March 19, 2010 7

Actor

Role

Activity

Create work

Maximise revenues

Manage risk Market book

Sell book Deliver book

• Wri5ng • Revising • Promo5on

• Finding / developing / placing talent • Royalty collec5on

• Edi5ng • Prin5ng • Product Marke5ng • Release management

• Store mgmt • Billing • Customer service

• Storage • Transport (incl. returns) • Account mgm.t


Authors

Agents

Content Owners

Book Publishers

Magazine Publishers

Newspaper Publishers

Games Publishers

Radio

Music

TV

Film App Stores

Consumer Electronics

Mobile Networks

Auto-‐mo5ve

ISPs

Consumers

Analy5cs Providers

VCs

Portals

Agencies

Developers

Brands

Digital Retail

Social Networks

Content

…TO BOOKS 2.0 VALUE ECOSYSTEM

March 19, 2010 8 Dominic Pride -‐ The Future of Books. Some rights reserved.


March 19, 2010 9

Authors

Agents

Content Owners

Book Publishers

Magazine Publishers


Games Publishers

Radio

Music

TV

Film App Stores


Mobile Networks

Auto-‐mo5ve

ISPs

Consumers

Analy5cs Providers

VCs

Portals

Agencies

Developers

Brands

Digital Retail

Social Networks

Revenue


Authors

Agents

Content Owners

Book Publishers

Magazine Publishers


Games Publishers

Radio

Music

TV

Film App Stores


Mobile Networks

Auto-‐mo5ve

ISPs

Consumers

Analy5cs Providers

VCs

Portals

Agencies

Developers

Brands

Digital Retail

Social Networks

Attention / Engagement




"   Linear "  Closed "  Values only end-‐user

revenue, not other value created

"  Customer as source of revenue only

"  Measures value added to physical product, not digital

"  Open "  Dynamic and sensitive "  Can visualise flows of

new generatives "  Recognises customers

as adding value "  Can identify new

niches "  Helps determine

service design March 19, 2010 11 Dominic Pride -‐ The Future of Books. Some rights reserved.

WHAT IT MEANS FOR YOU

•  You are connected to everything – You are exposed to disruptive innovation – Your offering will have to respond to this

•  Control will be impossible – Finding niches, collaboration and symbiosis become important

•  You will have different models for partners – Each channel has specific needs and drivers



3. YOUR NEW ECOSYSTEM PARTNERS

YOUR NEW ECOSYSTEM PARTNERS

March 19, 2010 14

What do they need and what do you expect in return ?

Digital Retail

Agencies and Brands

Access Partners


• Volume • Margin

• Differentiation • Brand Loyalty • Support retail proposition

• Acquisition • Retention • ARPU

• Inventory • Audience • Engagement

They need

You need

Your business models and proposi5ons will change depending on partner

• Volume • Margin

• Distribution • Placement • Activation

• Distribution • Activation • Billing

• Data share • Conversation • Feedback


AND HOW THEY COMMUNICATE

March 19, 2010 15

Content packaged as part of mix of access, services, communica5ons and discovery


16

Your new partners are

selling

• access

• hardware

• inventory

They need services.

What’s the future of

your products in this

environment?


4. FROM E-BOOKS TO READING 2.0

BOOKS TO E-BOOKS: 1.0 to 1.1?

•  [publishers should] turn from the disruptive innovations of ebooks and ereaders to the creation of sustaining innovations that improve those technologies. Ania Wieckowski -‐Harvard Business Review Feb 2010

March 19, 2010 18

“the ebook [doesn’t] really have that much to offer consumers over a physical book”


BECOMING WEB AND CONTENT 2.0

March 19, 2010 19

• Read-‐write • Two-‐way • (Co-‐) Authored by users • Decentralised • Syndica5on • “content comes to users”

• Read-‐only • One-‐way • Authored by webmaster • Centralised • Des5na5on sites • “users go to content”

WEB 2.0 WEB 1.0

The Broadcast Web The Social Web


Digital content is not a format or a replacement for a physical

product.

20 March 19, 2010 Dominic Pride -‐ The Future of Books. Some rights reserved.

3Cs VALUE CREATION FRAMEWORK

March 19, 2010 21

Context: • What device? • Where? • When? • Why?

Community: • How does it bond me with my friends? • How does it confer status on me? • How does it enable me to make new friends?

Content at the heart of the experience but only one of three vital elements for customer value



SERVICE CONCEPTS AND STIMULUS

CLOUD SERVICE – SUCCESS FACTORS  Accessible from /

independent of multiple devices

 Value in the service /access and the content

 Optimised for device  Abundance of content  Highly personal  Social elements


CLOUD SERVICE – LAST.FM

March 19, 2010 24

Mobile app

Widget

Lifestream

iTunes Plugin

RSS reader

Website

Xbox 360


CLOUD SERVICE – WHY NOT READING?

March 19, 2010 25

•  All my reading in the cloud

•  Optimised for all of my devices and locations •  and

therefore reading styles!

•  My reading comes with me when I change devices

•  Personal Investment rewarded e.g. by recommendations

Mobile / Handheld

E-reader

In-Car

Tablet

Shared

Syndicated

Netbook Dominic Pride -‐ The Future of Books. Some rights reserved.

SOCIAL READING – THE CASE FOR

•  Reading is highly personal –  Formative –  Creates social capital

•  Reading is highly social –  Clubs

•  Arouses strong emotions –  potential for sharing at

“point of inspiration”

•  Digital natives: –  Use trust networks first –  Instinctively share

content –  Expect sharing in the

product


SOCIAL READING IN ACTION

March 19, 2010 27

@Eleanorjb has just got to the wedding bit, but she’s reading a paper book. LOL!

Should be revising Bronte but

halfway through #Eclipse instead. Just got to the bit where they kiss. hfp://bit.ly/df


• Content • Context • Community

• Audience • Awareness • Desire?

API MODEL: LEARNING FROM TWITTER

•  50K applications / services use API

•  “Firehose” now for commercial customers

•  Usage enabled by open platform, not service

•  Why not a books API?



5. THE CHANGE AGENDA

CREATE THE VISION OF READING 2.0

•  Define, own and communicate the Future of Books –  Inspire your partners, your authors, your readers

•  Lead everyone toward the new – Defending the old has predictable consequences

March 19, 2010 30

*Source: Billboard Magazine - 19 Nov 2005

*

The future of publishing must be defined by what it will be, not what it won’t


START TO EARN AND OWN ALL 3Cs

•  Enable conversations / relationships around your content –  service features which let readers talk:

•  to each other via trust networks •  to you •  to your authors

•  Recognise / measure new metrics •  KPIs for:

–  audience –  engagement & usage

March 19, 2010 31

Don’t wait 5ll the value of content = 0


FOSTER AN INNOVATION CULTURE

Innovation within •  Evangelism from CEO down •  Involve everyone •  Innovation framework

–  Create a home for ideas –  A structure to manage –  Bring to life –  Build on knowledge

•  Become agile –  iterate

Innovation outside •  Position publishers as open

to innovative partners •  Visible innovation

figurehead •  Encourage partnerships

•  hack days •  workshops •  collaboration with partners

March 19, 2010

Your most powerful weapon for capturing ideas!

32

Publishers must invest in sustaining innova5on as they would in crea5ve talent


Innovation will take place with or without you



Thank You!

[email protected] www.thesoundhorizon.com

@thesoundhorizon

Books 2.0