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           m


Trends, Success Stories &
Emerging eBook Business
Models




                                    Sameer Shariff
                                    Founder & CEO
                                    Impelsys Inc.
www.ipublishcentral.com


Agenda




         Trends & Challenges                    Case Studies of
                                                Success




     Formulating your Strategy                   iPublishCentral
www.ipublishcentral.com




Who we are?
• From inception till 2009, Impelsys has powered more than
  2000 projects for billion dollar publishers to small million
  dollar publishers
• We have spent millions of dollars on our core technologies,
  iPlatform, VirtualPages and iDAMS. We have built them
  over the past 4 years and the technologies are serving
  millions of readers worldwide
• We launched iPublishCentral (ipublishcentral.com) as a
  Software as a Service (SaaS) model leveraging our years of
  experience. The goal is to bring down costs of delivery so
  that any publisher can build an online strategy
www.ipublishcentral.com



We serve 200+   publishers across geographies & segments.
www.ipublishcentral.com


Key takeaways from this presentation




       Experiment                  Discoverability




            Control                        Relationship
www.ipublishcentral.com




                          Trends
www.ipublishcentral.com




Trends in reading
                                            Reading and buying trends of
                                            books not encouraging
                                             3.2 % increase from 2006 with a compound growth
                                             rate of 2.5 % per year since 2002




                                           This increase, the highest in the last 26 years, is still
                                           insignificant when compared to video games (19%)
                                           and movies (5.3%)




   (Source: AAP, http://www.publishers.org/main/IndustryStats/indStats_02.htm)
www.ipublishcentral.com




Trends in reading


                        Availability of these different
                        types of media - vying for
                        reader's attention and
                        dollars
www.ipublishcentral.com




Trends in reading

                        How do you get to understand
                        your customers?
                        The web is changing
                        consumption and your future
                        markets will change.
www.ipublishcentral.com




Web is changing reader behavior
                                                Trend is towards searching
                                                and foraging for information
                                                Increased use of Google and
                                                Wikipedia for reading and
                                                research
                                                Bits and pieces of information are
                                                weaved together from multiple
                                                sources like scent trails




 (Source: Xerox PARC, http://www-users.cs.umn.edu/%7Eechi/papers/chi2000/scent.pdf)
www.ipublishcentral.com




Web is changing reader behavior
                     Is making content visible the
                     first step in the solution?

                     Will it provide a strong enough
                     “scent” for people to browse
                     and ultimately buy?

                     Google Book Search
www.ipublishcentral.com




Web is changing reader behavior

                        You must give the consumers
                        what they need/require

                        Provide content and
                        not “books”
www.ipublishcentral.com




                                                 Search
                                                 trends
                                                 The number of people searching
                                                 to know more about ebooks has
                                                 doubled in the last 4 years
                                                 according to google trends.




Source: Google Trends (http://www.idpf.org/doc_library/industrystats.htm)
www.ipublishcentral.com




Reference reader trends
Do you prefer using online resources or print for your research, class presentation
and instruction? No. of respondents 831




          1 in 2 people or around 50% prefer doing research reading online.
           (Source: Global Faculty eBook Survey, 2007, February
           (http://www.surveymonkey.com/s.aspx?sm=wS8CU8W9N_2fIwRuMq5gNMsw_3d_3d)
www.ipublishcentral.com




Market trends




   Source: IDPF Industry Statistics (http://www.idpf.org/doc_library/industrystats.htm)
www.ipublishcentral.com




Consumer expectation


                        Interactive:                         Participative:
                        audio, video, animations             “I matter and so does my opinion”




                     Cost:                                        Available:
                                                                  Anywhere, Anytime
                     micro-payments




 (source: www.idpf.org/events/presentations/Frankfurt08/FBF08_RandomHouseUK_Duggan.ppt - )
www.ipublishcentral.com




                          Trends



               Challenges
www.ipublishcentral.com




Challenges of going e




Multiple formats, hardware devices, software
Which one will win? What formats?
www.ipublishcentral.com




Challenges of going e




Cost and Risk
Cost of experimenting and risk of competition
www.ipublishcentral.com




Challenges of going e




Conversion costs
Tagging/Metadata (how deep?)
Time to Market
www.ipublishcentral.com




Challenges of going e



Challenges in depending on others
Who controls it?
Who is gaining insights into user behavior?
Who understands the market needs?
Who can develop products that meet these needs?
www.ipublishcentral.com




                      Success
                      Stories
www.ipublishcentral.com




                          Experiments:
                          World Bank
                          e-Library
www.ipublishcentral.com




World bank bought back XML files                           Today, they have the
from Netlibrary to develop their                           external channels and their
own strategy along with being                              own program as well.
present on other channels.



                                                        Experiments: World Bank e-Library




 Today, they have the
 external channels       They have effectively implemented
                                                                         And the results
 and their own           discoverability through Google
                                                                          are visible in
 program as well.        Book Search, reach through
                                                                         their numbers
                         multiple channels, control and
                         insight into their market through
                         their own program.
www.ipublishcentral.com


Experiments: World Bank Results and Sales
Contribution




   Source: Channels for Online Publishing: The Experience of World Bank Publications, Valentina Kalk, 2008
             (http://www.editoresmadrid.org/Seminario%20STM/Intervencion_Kalk_Valentina.pdf)
www.ipublishcentral.com




                          Experiments:
                          Harper Collins
                          Browse Inside
www.ipublishcentral.com




Harper Collins                          It brings powerful features            Amazon, who pioneered offering
launched their Browse                   that retail aggregators, like          samples on a large scale in
Inside program in 2006,                 Amazon, offer on their site            2003, reported about 9%
becoming one of the                                                            increase of print sales across
first publisher to do so                                                       120,000 titles in 5 days after the
                                                                               Search Inside capability was
                                                                               available on their site
                                                                               (
                                                                               http://findarticles.com/p/articles/mi_m0EIN/is_/ai_1094
                                                                               )

                                                                             Experiments: Harper Collins Browse
                                                                             Inside




Harper Collins had a similar experience with sales                                       They were also able to
                                                                                         gain valuable insights into
Harper Collins reported print sales increase of 30% and 250%                             what the market wants
for specific titles using their Browse Inside functionality
(http://www.idpf.org/events/presentations/digitalbook08/lHulse08.pdf)
www.ipublishcentral.com


Experiments: Harper Collins Browse Inside
                                        Browse Inside                           PDF Free Download

Visitors                                83,102                                  20,000
Visits                                  85,867                                  30,000
Downloads                               0                                       15,000
Page Views                              3,827,306

Avg Page Views per Visit                46

Avg. Visit Duration                     15:55

Clicks on Buy Link                      1,177

Emailed to a Friend                     16,236

(Source: Experiments with free digital content, presented at IDPF Digital Book 2008 by Leslie Hulse, VP Digital Business
            Development, Harper Collins, http://www.idpf.org/events/presentations/digitalbook08/lHulse08.pdf)
www.ipublishcentral.com




                          Experiments:
                          O’Reilly Safari
                          and Beyond
www.ipublishcentral.com




O'Reilly Media has been at the         Started in 2001 as a web based
forefront in experimenting with        subscription model, it is now the #2
different models of electronic         channel behind Amazon for O'Reilly
delivery                               in sales
                                       (Source:
                                       http://radar.oreilly.com/2009/01/competition-in-the-ebook-marke.html
                                       )




                                                      Experiments: o’Reilly Safari and Beyond




                                                  They also experimented with
Offering a NetFlix-like model of                  various tools like SafariU that
lending books, it remains DRM                     allowed custom mash-up
free offering as many prints and                  publishing of books for
copies a subscriber wants to make                 University professors
www.ipublishcentral.com




O'Reilly now offers books                   They service various channels
in PDF, Mobi and ePUB                       like Kindle, iPhone and Stanza
formats as direct
downloads



                                                      Experiments: o’Reilly Safari and Beyond




      This has resulted in a strong market expansion strategy
      where O'Reilly now meets the needs of all types of
      customers
www.ipublishcentral.com




                          Experiments:
                          Harper Collins
                          Case Study:
                          Browse Inside
                          MIT Press
www.ipublishcentral.com




MIT Press, started on
iPublishCentral early on - as a beta
customer.

They helped us refine the system
and have been partners in trying
out what works and what does not.
www.ipublishcentral.com




They went live about 1.5 months
back and offer 400 niche titles for
sale in the electronic form through
iPublishCentral.
www.ipublishcentral.com




All that MIT Press needed to
launch was their title PDF, ONIX
metadata and book covers.
www.ipublishcentral.com




They now have an electronic
book store through which they
can sell to institutions and
individual subscribers.

They also offer free content
samples that can travel as
widgets.
www.ipublishcentral.com



Since launch, towards the end of March...

Nearly 18000+ pages have been previewed
www.ipublishcentral.com




Since launch, towards the end of March...

Visitors from about 180 countries have viewed
widgets
www.ipublishcentral.com




Since launch towards end of March...

Visitors from nearly half these countries have clicked
on the widgets to see book preview pages
www.ipublishcentral.com




Since launch towards end of March...

Total time spent on the book preview
pages is 462:34:59 hours
www.ipublishcentral.com




Since launch towards end of March...

Average time spent per visit is about
4.5 mins
www.ipublishcentral.com




Since launch towards end of March...

Google alone has crawled through the
sample pages about 3500 times,
apart from other search engines
www.ipublishcentral.com




Since launch towards end of March...

Nearly 2% of unique visitors who saw
the preview pages have ended up
buying a title
www.ipublishcentral.com




Formulating
your
strategy
www.ipublishcentral.com




    Why should you experiment?
•   Others are doing it, so should
    you
•   Run your own program, along
    with other existing strategies – it
    does not hurt
•   It helps in gaining visibility and
    establishing a relationship with
    your readers
•   The world is changing and you
    can leverage this change
•   Your networks are your future
    currency
www.ipublishcentral.com




    Increase visiblity
•   Increase visibility by being
    available where your
    readers are
•   Be relevant and useful
•   Introduce your books and
    create brand awareness
•   Increase page views to gain
    SEO and SEM
•   Get insight into what your
    readers are doing
•   Offer value to potentially
    increase sales
www.ipublishcentral.com




    Establish relationships
•   Relationships matter
•   Listen, understand and
    respond
•   Own your readers and their
    mind share
•   Reach out to readers with
    news and updates
•   Word-of-Mouth works and
    social media is the easiest
    way to get it started
•   Targeted marketing is better
    than broadcast advertising
www.ipublishcentral.com




    Control
•   Who controls these
    relationships?
•   Is it sufficient to have
    retailers like Amazon and
    search engines like
    Google manage them?
•   How do you build your
    infrastructure for the
    future - the investment
    does not have to be great
www.ipublishcentral.com




Introducing iPublishCentral
www.ipublishcentral.com




            • iPublishCentral is low-cost and low-
              risk Software as a Service (SaaS)
              focussed on publishing
            • It helps publishers to formulate, run
              and control their own E-Strategy
            • The vision of iPublishCentral is to
              help publishers through a self-serve
              model to market, distribute and
              deliver content online
            • Launched during Frankfurt Book
              Fair 2008, we currently have more
              than 150 publishers on it
www.ipublishcentral.com




             • It helps publishers convert capital
               expenditure plans to revenue
               expenditure – with a pay-as-you-go
               model
             • It takes away the need for up-front
               investments in installations,
               operations, support, maintenance and
               training
             • Automated content workflow and
               ready-to-go functionality offers zero-
               conversion costs and quicker time to
               market
             • Fully backed with a SLA
             • It's entirely self service, but for
               publishers short on time and resources
               – support on a T&M basis
Widgets
www.ipublishcentral.com



Portals
www.ipublishcentral.com


Key takeaways from this presentation




 Experiment                  Discoverability




 Control                     Relationship
www.ipublishcentral.com




  Thank You.
  Tools like iPublishCentral, make these experiments possible


  “iPublishCentral is a self-service model that allows us to deploy viral tools across our
  70+ web sites, giving us the opportunity to quickly market content, increase sales and
  engage our online community” - Sara Domville, President of F+W Media.


  “Impelsys is the company to watch over the next few years” - Steve Paxhia, Seybold
  Report


  “iPublishCentral is poised at the right place at the right time because it encourages
  publishers, big and small, to experiment with web technologies” - Marisa Peacock,
  CMSWire.



To see how iPublishCentral can make a difference to your business, sign up at www.ipublishcentral.com

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Trends, Success Stories & Emerging eBook Business Models

  • 1. www.ipublishcentral.co m Trends, Success Stories & Emerging eBook Business Models Sameer Shariff Founder & CEO Impelsys Inc.
  • 2. www.ipublishcentral.com Agenda Trends & Challenges Case Studies of Success Formulating your Strategy iPublishCentral
  • 3. www.ipublishcentral.com Who we are? • From inception till 2009, Impelsys has powered more than 2000 projects for billion dollar publishers to small million dollar publishers • We have spent millions of dollars on our core technologies, iPlatform, VirtualPages and iDAMS. We have built them over the past 4 years and the technologies are serving millions of readers worldwide • We launched iPublishCentral (ipublishcentral.com) as a Software as a Service (SaaS) model leveraging our years of experience. The goal is to bring down costs of delivery so that any publisher can build an online strategy
  • 4. www.ipublishcentral.com We serve 200+ publishers across geographies & segments.
  • 5. www.ipublishcentral.com Key takeaways from this presentation Experiment Discoverability Control Relationship
  • 7. www.ipublishcentral.com Trends in reading Reading and buying trends of books not encouraging 3.2 % increase from 2006 with a compound growth rate of 2.5 % per year since 2002 This increase, the highest in the last 26 years, is still insignificant when compared to video games (19%) and movies (5.3%) (Source: AAP, http://www.publishers.org/main/IndustryStats/indStats_02.htm)
  • 8. www.ipublishcentral.com Trends in reading Availability of these different types of media - vying for reader's attention and dollars
  • 9. www.ipublishcentral.com Trends in reading How do you get to understand your customers? The web is changing consumption and your future markets will change.
  • 10. www.ipublishcentral.com Web is changing reader behavior Trend is towards searching and foraging for information Increased use of Google and Wikipedia for reading and research Bits and pieces of information are weaved together from multiple sources like scent trails (Source: Xerox PARC, http://www-users.cs.umn.edu/%7Eechi/papers/chi2000/scent.pdf)
  • 11. www.ipublishcentral.com Web is changing reader behavior Is making content visible the first step in the solution? Will it provide a strong enough “scent” for people to browse and ultimately buy? Google Book Search
  • 12. www.ipublishcentral.com Web is changing reader behavior You must give the consumers what they need/require Provide content and not “books”
  • 13. www.ipublishcentral.com Search trends The number of people searching to know more about ebooks has doubled in the last 4 years according to google trends. Source: Google Trends (http://www.idpf.org/doc_library/industrystats.htm)
  • 14. www.ipublishcentral.com Reference reader trends Do you prefer using online resources or print for your research, class presentation and instruction? No. of respondents 831 1 in 2 people or around 50% prefer doing research reading online. (Source: Global Faculty eBook Survey, 2007, February (http://www.surveymonkey.com/s.aspx?sm=wS8CU8W9N_2fIwRuMq5gNMsw_3d_3d)
  • 15. www.ipublishcentral.com Market trends Source: IDPF Industry Statistics (http://www.idpf.org/doc_library/industrystats.htm)
  • 16. www.ipublishcentral.com Consumer expectation Interactive: Participative: audio, video, animations “I matter and so does my opinion” Cost: Available: Anywhere, Anytime micro-payments (source: www.idpf.org/events/presentations/Frankfurt08/FBF08_RandomHouseUK_Duggan.ppt - )
  • 17. www.ipublishcentral.com Trends Challenges
  • 18. www.ipublishcentral.com Challenges of going e Multiple formats, hardware devices, software Which one will win? What formats?
  • 19. www.ipublishcentral.com Challenges of going e Cost and Risk Cost of experimenting and risk of competition
  • 20. www.ipublishcentral.com Challenges of going e Conversion costs Tagging/Metadata (how deep?) Time to Market
  • 21. www.ipublishcentral.com Challenges of going e Challenges in depending on others Who controls it? Who is gaining insights into user behavior? Who understands the market needs? Who can develop products that meet these needs?
  • 22. www.ipublishcentral.com Success Stories
  • 23. www.ipublishcentral.com Experiments: World Bank e-Library
  • 24. www.ipublishcentral.com World bank bought back XML files Today, they have the from Netlibrary to develop their external channels and their own strategy along with being own program as well. present on other channels. Experiments: World Bank e-Library Today, they have the external channels They have effectively implemented And the results and their own discoverability through Google are visible in program as well. Book Search, reach through their numbers multiple channels, control and insight into their market through their own program.
  • 25. www.ipublishcentral.com Experiments: World Bank Results and Sales Contribution Source: Channels for Online Publishing: The Experience of World Bank Publications, Valentina Kalk, 2008 (http://www.editoresmadrid.org/Seminario%20STM/Intervencion_Kalk_Valentina.pdf)
  • 26. www.ipublishcentral.com Experiments: Harper Collins Browse Inside
  • 27. www.ipublishcentral.com Harper Collins It brings powerful features Amazon, who pioneered offering launched their Browse that retail aggregators, like samples on a large scale in Inside program in 2006, Amazon, offer on their site 2003, reported about 9% becoming one of the increase of print sales across first publisher to do so 120,000 titles in 5 days after the Search Inside capability was available on their site ( http://findarticles.com/p/articles/mi_m0EIN/is_/ai_1094 ) Experiments: Harper Collins Browse Inside Harper Collins had a similar experience with sales They were also able to gain valuable insights into Harper Collins reported print sales increase of 30% and 250% what the market wants for specific titles using their Browse Inside functionality (http://www.idpf.org/events/presentations/digitalbook08/lHulse08.pdf)
  • 28. www.ipublishcentral.com Experiments: Harper Collins Browse Inside Browse Inside PDF Free Download Visitors 83,102 20,000 Visits 85,867 30,000 Downloads 0 15,000 Page Views 3,827,306 Avg Page Views per Visit 46 Avg. Visit Duration 15:55 Clicks on Buy Link 1,177 Emailed to a Friend 16,236 (Source: Experiments with free digital content, presented at IDPF Digital Book 2008 by Leslie Hulse, VP Digital Business Development, Harper Collins, http://www.idpf.org/events/presentations/digitalbook08/lHulse08.pdf)
  • 29. www.ipublishcentral.com Experiments: O’Reilly Safari and Beyond
  • 30. www.ipublishcentral.com O'Reilly Media has been at the Started in 2001 as a web based forefront in experimenting with subscription model, it is now the #2 different models of electronic channel behind Amazon for O'Reilly delivery in sales (Source: http://radar.oreilly.com/2009/01/competition-in-the-ebook-marke.html ) Experiments: o’Reilly Safari and Beyond They also experimented with Offering a NetFlix-like model of various tools like SafariU that lending books, it remains DRM allowed custom mash-up free offering as many prints and publishing of books for copies a subscriber wants to make University professors
  • 31. www.ipublishcentral.com O'Reilly now offers books They service various channels in PDF, Mobi and ePUB like Kindle, iPhone and Stanza formats as direct downloads Experiments: o’Reilly Safari and Beyond This has resulted in a strong market expansion strategy where O'Reilly now meets the needs of all types of customers
  • 32. www.ipublishcentral.com Experiments: Harper Collins Case Study: Browse Inside MIT Press
  • 33. www.ipublishcentral.com MIT Press, started on iPublishCentral early on - as a beta customer. They helped us refine the system and have been partners in trying out what works and what does not.
  • 34. www.ipublishcentral.com They went live about 1.5 months back and offer 400 niche titles for sale in the electronic form through iPublishCentral.
  • 35. www.ipublishcentral.com All that MIT Press needed to launch was their title PDF, ONIX metadata and book covers.
  • 36. www.ipublishcentral.com They now have an electronic book store through which they can sell to institutions and individual subscribers. They also offer free content samples that can travel as widgets.
  • 37. www.ipublishcentral.com Since launch, towards the end of March... Nearly 18000+ pages have been previewed
  • 38. www.ipublishcentral.com Since launch, towards the end of March... Visitors from about 180 countries have viewed widgets
  • 39. www.ipublishcentral.com Since launch towards end of March... Visitors from nearly half these countries have clicked on the widgets to see book preview pages
  • 40. www.ipublishcentral.com Since launch towards end of March... Total time spent on the book preview pages is 462:34:59 hours
  • 41. www.ipublishcentral.com Since launch towards end of March... Average time spent per visit is about 4.5 mins
  • 42. www.ipublishcentral.com Since launch towards end of March... Google alone has crawled through the sample pages about 3500 times, apart from other search engines
  • 43. www.ipublishcentral.com Since launch towards end of March... Nearly 2% of unique visitors who saw the preview pages have ended up buying a title
  • 45. www.ipublishcentral.com Why should you experiment? • Others are doing it, so should you • Run your own program, along with other existing strategies – it does not hurt • It helps in gaining visibility and establishing a relationship with your readers • The world is changing and you can leverage this change • Your networks are your future currency
  • 46. www.ipublishcentral.com Increase visiblity • Increase visibility by being available where your readers are • Be relevant and useful • Introduce your books and create brand awareness • Increase page views to gain SEO and SEM • Get insight into what your readers are doing • Offer value to potentially increase sales
  • 47. www.ipublishcentral.com Establish relationships • Relationships matter • Listen, understand and respond • Own your readers and their mind share • Reach out to readers with news and updates • Word-of-Mouth works and social media is the easiest way to get it started • Targeted marketing is better than broadcast advertising
  • 48. www.ipublishcentral.com Control • Who controls these relationships? • Is it sufficient to have retailers like Amazon and search engines like Google manage them? • How do you build your infrastructure for the future - the investment does not have to be great
  • 50. www.ipublishcentral.com • iPublishCentral is low-cost and low- risk Software as a Service (SaaS) focussed on publishing • It helps publishers to formulate, run and control their own E-Strategy • The vision of iPublishCentral is to help publishers through a self-serve model to market, distribute and deliver content online • Launched during Frankfurt Book Fair 2008, we currently have more than 150 publishers on it
  • 51. www.ipublishcentral.com • It helps publishers convert capital expenditure plans to revenue expenditure – with a pay-as-you-go model • It takes away the need for up-front investments in installations, operations, support, maintenance and training • Automated content workflow and ready-to-go functionality offers zero- conversion costs and quicker time to market • Fully backed with a SLA • It's entirely self service, but for publishers short on time and resources – support on a T&M basis
  • 54. www.ipublishcentral.com Key takeaways from this presentation Experiment Discoverability Control Relationship
  • 55. www.ipublishcentral.com Thank You. Tools like iPublishCentral, make these experiments possible “iPublishCentral is a self-service model that allows us to deploy viral tools across our 70+ web sites, giving us the opportunity to quickly market content, increase sales and engage our online community” - Sara Domville, President of F+W Media. “Impelsys is the company to watch over the next few years” - Steve Paxhia, Seybold Report “iPublishCentral is poised at the right place at the right time because it encourages publishers, big and small, to experiment with web technologies” - Marisa Peacock, CMSWire. To see how iPublishCentral can make a difference to your business, sign up at www.ipublishcentral.com