Presentation from BISG's "What College Students Think: Making Information Pay for Higher Ed Publishing" Conference, held Feb 9, 2011 in NYC. TITLE: (OPENING KEYNOTE) Findings from BISG's Student Attitudes Toward Content in Higher Education Survey (and what it means for your business) DESCRIPTION: It's still a textbook world according to the first fielding of BISG's Student Attitudes Toward Content in Higher Education. Despite their fondness for social networking and cell phones, most college students say they prefer textbooks in printed rather than e-text form. That said, survey respondents find textbooks overpriced and are aggressively seeking more affordable options. In this Opening Keynote, Steve Paxhia will review findings from the inaugural BISG research survey and contrast the rapid growth of e-book sales in the consumer market with the more modest growth of e-texts in the education markets. Moreover, Steve will reflect on how this new data clarifies both the opportunities and risks encountered by publishers en route to a successful digital content strategy.

1. Book Industry Study Group’s
Student Attitudes Toward
Content in Higher Education
Seeking high value content
at the lowest possible cost
© 2011, the Book Industry Study Group 1

2. Overview
 The semi-annual online survey focuses on college
student perceptions related to educational content and
presentation media in the higher education market.
 It is powered by Bowker's PubTrack™ Consumer.
 The data reported today comes from the first survey in
VOLUME ONE.
 The second survey in VOLUME ONE will be fielded later
this month.
© 2011, the Book Industry Study Group www.bisg.org 2

3. Overview
 Survey questions were developed in partnership with a
variety of publishers and other companies working in the
higher education market place.
 For the first survey in VOLUME ONE, 1505 college
students drawn from a nationally representative panel
were polled.
 The online Real-Time Reporting service is a great
research tool.
© 2011, the Book Industry Study Group www.bisg.org 3

4. Considerations
 Why do students prefer printed textbooks?
 How do students define value?
 How do students seek value?
 What students are most likely to acquire their content
via “illicit behaviors”?
 How are next generation products perceived by
students?
© 2011, the Book Industry Study Group www.bisg.org 4

5. Sample
Demographics
The sample had
appropriate levels of
participation by:
Age
Class year
Gender
Type of institution
Fulltime vs. part-time students
© 2011, the Book Industry Study Group www.bisg.org 5

6. Course
Demographics
Students were asked to answer a
series of questions based upon the
first course they attend on Tuesday.
Courses were categorized by:
Academic discipline
Required vs. elective
Student interest in class material
Major/minor
Taught on campus vs. online
© 2011, the Book Industry Study Group www.bisg.org 6

7. Key Findings
What did we learn from
the student responses?
© 2011, the Book Industry Study Group 7

8. Key Finding:
Print vs. E-Textbooks
 21% of students had purchased an
e-textbook Graphics are
 75% of students preferred available as
traditional printed textbooks part of the
over digital replica e-textbooks. purchased
° Like the look and feel of print
° Potential for permanence of
study.
ownership
° Opportunity for resale Visit
http://www.bisg.org/
 Online courses use many more e- publications/product.
textbooks php?p=22&c=437
for options.
© 2011, the Book Industry Study Group www.bisg.org 8

9. Do readers really
prefer print?
Other publishing segments have asked the same question…
 Newspapers
° 61% of people now read news everyday on the Internet
vs. 50% who read newspapers [Pew Project]
 Magazines
° 3 years ago only 1.5% of subscribers selected digital
replica consumer magazines
° Now 38% of iPad owners are reading digital
magazines [Changewave research]
© 2011, the Book Industry Study Group www.bisg.org 9

10. Do readers really
prefer print?
 Trade Publishing
° Four years ago almost no penetration
° Now more than 10% and doubling annually
 Only 17% say that they prefer print
 And 17% say that they were not satisfied with the
digital display.
© 2011, the Book Industry Study Group www.bisg.org 10

11. What
consumers
really like to
do…
Replica digital Newspapers
Replica e-Magazines
Replica e-books on PC’s
© 2011, the Book Industry Study Group www.bisg.org 11

12. Students reported
low satisfaction with
Replica E-Textbooks Graphics are
 Current e-textbook available as
offerings have yet part of the
to achieve purchased
consistently high study.
levels of
satisfaction Visit
http://www.bisg.org/
publications/product.
php?p=22&c=437
for options.
© 2011, the Book Industry Study Group www.bisg.org 12

13. What
consumers
really do like…
Digital Products that:
Make good use of the digital platform
Offer features and value above and
beyond printed versions
Offer better prices
© 2011, the Book Industry Study Group www.bisg.org 13

14. Student Value
Proposition
How do students perceive
the value that they are
receiving from their
course materials?
© 2011, the Book Industry Study Group 14

15. Decision factors
 Price and availability
are currently reported
Graphics are
as the key decision available as part of
factors. It appears the purchased study.
that students view
Visit
content as a http://www.bisg.org/publication
commodity that should s/product.php?p=22&c=437
be acquired efficiently. for options.
© 2011, the Book Industry Study Group www.bisg.org 15

16. Acquisition methods
 Only 62% of students reported
that they were purchasing the
traditional print version of the
Graphics are
current edition (new and
used). available as part of
the purchased study.
 The growth of previous edition
sales suggests that students Visit
and faculty are tiring of short http://www.bisg.org/publication
revision cycles. s/product.php?p=22&c=437
for options.
 Rentals continue to increase.
 Note the increase in
borrowing and sharing.
© 2011, the Book Industry Study Group www.bisg.org 16

17. Relative Satisfaction
 Textbooks are highly
developed products with
many rich features that are Graphics are
optimized for print. Yet only available as part of
41% of students report high the purchased study.
satisfaction with these well
established products. Visit
http://www.bisg.org/publication
 Less mature products and s/product.php?p=22&c=437
features have lower levels of for options.
highly satisfied students.
© 2011, the Book Industry Study Group www.bisg.org 17

18. Key Finding:
Value Perceptions
 Students don’t yet fully
Graphics are
understand the benefits of
premium digital offerings like available as part of
MyLabs, Connect, and Wiley the purchased study.
Plus [see red bar at right].
Visit
 How do premium digital http://www.bisg.org/publication
s/product.php?p=22&c=437
offerings escape the ancillary
for options.
perception?
© 2011, the Book Industry Study Group www.bisg.org 18

19. Finding the value
proposition
 Value equals low price, high usage and rich pedagogy
 Students found textbooks to be more valuable
° When they were used extensively by their instructors
° In their major
° When they had a personal interest in the course material
© 2011, the Book Industry Study Group www.bisg.org 19

20. Platforms and Devices
What devices are
students currently using
and planning to
purchase?
© 2011, the Book Industry Study Group 20

21. E-Reader devices
 For faculty, the size of the
installed base is essential if
Graphics are
they are to adopt digital
content for their courses. available as part of
the purchased study.
 Over the last 10 years,
computers have achieved a Visit
large installed base, http://www.bisg.org/publication
especially when s/product.php?p=22&c=437
for options.
supplemented by campus
computing centers.
© 2011, the Book Industry Study Group www.bisg.org 21

22. Key Finding:
E-reader purchase
intent
Graphics are
 While there are many
available as part of
interesting new devices
coming to market, most lack the purchased study.
the computing power and
Visit
applications required by http://www.bisg.org/publication
students. s/product.php?p=22&c=437
for options.
 Most students are unlikely to
purchase and carry multiple
devices.
© 2011, the Book Industry Study Group www.bisg.org 22

23. Illicit Behaviors
Why do students seek
alternatives in content
and acquisition?
© 2011, the Book Industry Study Group 23

24. Key Finding:
Illicit Behavior
Graphics are
 There are a range of illicit
available as part of
content acquisition strategies
that have been enabled by the purchased study.
the Internet.
Visit
 The student reports were http://www.bisg.org/publication
s/product.php?p=22&c=437
quite forthcoming indicating for options.
that this behavior is growing
and becoming more
pervasive.
© 2011, the Book Industry Study Group www.bisg.org 24

25. Key Finding:
Illicit Behavior
(by age)
Graphics are
 Older students report more
available as part of
of these types of activities
than younger students. This the purchased study.
data suggests that older
Visit
students may be more frugal http://www.bisg.org/publication
because they are spending s/product.php?p=22&c=437
for options.
their own salaries on content
acquisitions.
© 2011, the Book Industry Study Group www.bisg.org 25

26. Key Finding:
Illicit Behavior
(by school year)
Graphics are
 Based upon the school year
data, it appears that
available as part of
students learn from their the purchased study.
colleagues about alternate
Visit
content acquisition http://www.bisg.org/publication
strategies. s/product.php?p=22&c=437
for options.
© 2011, the Book Industry Study Group www.bisg.org 26

27. Key Finding:
Illicit Behavior
(by payment source)
Graphics are
 Students who report that
their parents are paying are
available as part of
less inclined towards the purchased study.
engaging in illicit content
Visit
acquisition behaviors. http://www.bisg.org/publication
s/product.php?p=22&c=437
for options.
© 2011, the Book Industry Study Group www.bisg.org 27

28. Key Finding:  While it seems logical that
students who were satisfied
Illicit Behavior with the price of books
(by overall price would be less likely to
engage in illicit behaviors,
satisfaction) the study data indicates that
the reverse is true. The
students who are most
satisfied with prices are the
most likely to use alternative
acquisition strategies.
Maybe that’s why they’re
satisfied with the price...
© 2011, the Book Industry Study Group www.bisg.org 28

29. Key Finding:
Illicit Behavior
(by value perception)
Graphics are
 It’s value that students are
striving for. When students
available as part of
reported finding the core the purchased study.
textbook to be valuable, they
Visit
are less likely to engage in http://www.bisg.org/publication
illicit behaviors. s/product.php?p=22&c=437
for options.
© 2011, the Book Industry Study Group www.bisg.org 29

30. Conclusions
© 2011, the Book Industry Study Group 30

31. Conditions for rapid
market expansion
Value
+ Innovative Platforms and Devices
+ Enthusiastic Channel Partners
= Rapid Market Expansion
© 2011, the Book Industry Study Group www.bisg.org 31

32. Value
Value for students =
low price
+ high usage in the course
+ and rich pedagogy
© 2011, the Book Industry Study Group www.bisg.org 32

33. New devices and
platforms
 PCs are the preferred platform today
o Ubiquitous
o Processing power
o Necessary apps- word processing,
spreadsheet, etc.
 New devices are emerging but the
perfect mobile educational device
has yet to be released
© 2011, the Book Industry Study Group www.bisg.org 33

34. Channel partners
 Apple iStore
o iPad apps
 Amazon
o Using their 25% market share
 Barnes and Noble
o Establishing the NOOKcolor
 CourseSmart, CafeScribe, and Xplana
 College stores?
© 2011, the Book Industry Study Group www.bisg.org 34

35. Illicit behaviors
 When students don’t perceive value
commensurate with price, they will
find other ways to obtain their
content.
o Copying
o International editions
o Old editions
 Next generation digital courses have
the potential to change the value
equation.
© 2011, the Book Industry Study Group www.bisg.org 35

36. Thank you!
For more information
contact the BISG office
at 646-336-7141 or
info@bisg.org.
© 2011, the Book Industry Study Group 36