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Aer.io: Building a New Bookselling Ecosystem (epubsummit 2016)

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Aer.io: Building a New Bookselling Ecosystem (epubsummit 2016)

  1. 1. Building a New Bookselling Ecosystem Ron Martinez @ronmartinez www.aer.io inventionarts.co ingramcontent.com
  2. 2. Illustrated, interactive paperback by Aer.io founder, Ron Martinez. Bantam, 1984.
  3. 3. MOBILE SOCIAL MEDIA COMMERCE RIGHTS
  4. 4. Large Scale Innovation Projects
  5. 5. Karole Irene Cofondatrice
  6. 6. ILLUSTRATED GRAPHICAL INTERACTIVE BOOKS 2013
  7. 7. Design Palette = Device Capabilities Text, Some Images Networked: Some Sharing Cool, but limited. ;)
  8. 8. Text and Images Rich media: Animation, video Any kind of interactivity Sensors: geo- location, orientation Media Creation: Camera, Mic Networked: live data, social sharing Tactile, Touchable Local Storage Communication: voice, text, email Design Palette = Device Capabilities
  9. 9. “We’re gonna need a bigger boat.”
  10. 10. ILLUSTRATED MEDIA RICH OPTIONALLY INTERACTIVE…
  11. 11. Photography
  12. 12. Comics, Manga, Graphic Novels
  13. 13. Graphically Complex Books
  14. 14. Children’s Read-Aloud Storybooks
  15. 15. Art Books
  16. 16. Culinary/Cookbooks
  17. 17. Illustrated Non-Fiction
  18. 18. Fan Books,Television Catch-up Guides
  19. 19. Michael Tamblyn’s (of Kobo) Observation: 30% of print books are illustrated. A small fraction are eBooks.
  20. 20. BEHOLD! THE ERA OF ILLUSTRATED MEDIA RICH MAYBE EVEN INTERACTIVE eBOOKS!
  21. 21. BEHOLD! ILLUSTRATED MEDIA RICH MAYBE EVEN INTERACTIVE eBOOKS!
  22. 22. BECAUSE INCOMPATIBLE PROPRIETARY FORMATS AND DEVICE CAPABILITIES
  23. 23. Apple iBooks: Most Capable EPUB3, Static, FXL, JS, CSS3, Multi-Touch Kindle KF8: Mostly Static Static FXL, No JS, CSS3, PanelView,Text zoom Nook: Static or Proprietary (Kids) PagePerfect (PDF), Nook Kids (proprietary) Kobo: Static, Supports Readaloud EPUB3 FXL, media overlays, no JS Google Play: Static Static FXL, no JS or media overlays
  24. 24. and NUMEROUS OTHER IMPEDIMENTS Format Fragment- ation Hefty Retailer Fees High Friction Processes, (Lots of Rigmarole) Little/No Customer Information Loss of Business Control to Platforms Product Dev Costly, Conversions Tricky No Use Metrics or Analytics Customers Ignore Ads, Live in Social Streams
  25. 25. CREATE or CONVERT PRODUCT PACKAGE MULTIPLE FORMATS PRICE and add SOCIAL DRM DISTRIBUTE, SHARE and PREVIEW Aerbook addresses these problems. Roadmap: Print on Demand
  26. 26. SELL DIRECTSELL in STORES
  27. 27. POST DIRECTLY or in AFFILIATE VENUES Within LinkedIn (Web) Relevant Web and Social Properties can Easily Earn Retail Revenue by Posting Links Within StumbleUpon Preview, checkout, and fulfillment in posts native to each network. Affiliate venues deliver potential buyers, visibility in exchange for revenue share.
  28. 28. MARKET, SELL in SOCIAL STREAMS: NATIVE RETAIL Within Twitter App Within Facebook App Like Fast-Growing Native Advertising, But Posts are Buyable Products
  29. 29. Publishers Channel Partners International Content eBook/App Stores Affiliate Venues Native Retail Product Gross Revenue Net Revenue Service Fees Less Affiliate Rev Share Retail in any online, social venue. Aerbook Native Retail Network: VALUE FLOW
  30. 30. RETAIL AS A SERVICE Build Once, Export to Multiple Formats Keep More Retail Revs (15% vs 30% or more) Reduced Friction, No Rigmarole Get eMail Addresses, Customer Information End-to-End Control of Your Business Spend Less, Easily Make, Convert Product GetVisibility, Metrics, Use Analytics Preview/Sell Products in Right Social Streams
  31. 31. NOT A PRODUCT PROBLEM IT’S AN ECOSYSTEM PROBLEM
  32. 32. Make any point of interest a point of sale. Get your own bookstore in minutes. Millions of titles to choose from. Or add your own. Visit http://Aer.io
  33. 33. A new, decentralized, independent, bookselling ecosystem.
  34. 34. Aer.io is not a retailer. Aer.io is a trusted 3rd party providing Retail as a Service
  35. 35. How it works.
  36. 36. Who is it for?
  37. 37. A new kind of retail network, where anyone can act as a seller, a buyer, a supplier, or all three.
  38. 38. The network itself is a retail ecosystem… Media/Publishers Influencers Destinations Brick & Mortar Organizations Cosmo, Disney, DailyDot, Book pubs,TED, etc. YouTubers, celebrities, authors, pastors, players Hotels, sporting events, museums, tourism Bookstores, comic shops, lifestyle, Starbucks Sierra Club, church groups, causes, schools Websites Social streams Media streams Locations Native Apps Sellers Channels Content, context, audience with need for new rev sources. Multiple points of presence & engagement.
  39. 39. Why do we need a new retail ecosystem?
  40. 40. Bookselling has become overly centralized. The sale of too many books is in the hands of too few companies.
  41. 41. Buyers Sellers Platform Rise of the Winner Take All Platforms
  42. 42. Network Effects: Winner Take All More Demand More Drivers More Geographic Coverage/ Saturation Faster Pickups Lower Prices Less Driver Downtime
  43. 43. The faster it goes… …the faster it goes. Like a Ramjet
  44. 44. Fun Fact: The Ramjet was invented in 1913 by René Lorin in France. The 1947 Leduc Ramjet Aircraft
  45. 45. BooksAuthors Readers User Data Interests Cards/Wallet Permissions $! BooksAuthors Readers BooksellerDistributorPublisher Lifetime CustomerValue! User Data Interests Cards/Wallet Permissions Lifetime CustomerValue! Books, meet Ramjet.
  46. 46. More Demand More Suppliers (Including Self-Publishing) More Books Lower Prices Within Fewer Categories More Choices Bookselling Network Effects
  47. 47. Other retailers are choked off Suppliers Squeezed (Profit Margins Decimated) Less budget available for books outside narrowing categories Self-publishing booms…(more, cheaper supply) …but tends toward genre fiction “The Filter Bubble” But: This is a Winner Take All Market A platform, not a conventional retailer.
  48. 48. • Algorithms guess what users would like to see based on information about them (e.g. location, search history, friends). • Users become isolated in their own cultural or ideological bubbles as the algorithm does not present diverse information.
  49. 49. • Algorithms guess what users would like to see based on information about them (e.g. location, search history, friends). • Users become isolated in their own cultural or ideological bubbles as the algorithm does not present diverse information.
  50. 50. So let’s build a new ecosystem!
  51. 51. • Vast catalog of print and ebooks, + gifts, videos, toys, more • Fully self-service plus high volume enterprise workflows • Distributed branding, curation, pricing, customer relationships • DRM choice: for publishers, authors, readers • Industry standards: no proprietary eBook formats • Built on trusted 3rd party bedrock: (e.g. Ingram Content Group) • Sell anywhere: existing sites, social streams, real world • Attractive economics: supporting profitability • A true retail network: universal cart, accounts Not so fast, Buddy.
  52. 52. Reader SellerPublisher Serve Three Constituencies
  53. 53. • Attractive economics • Digital and Print, Industry Standards • Mobile, social, native: “ambient” • Built on trusted 3rd party bedrock Requirements: All ReaderSellerPublisher
  54. 54. BUILT ON OPEN STANDARDS, BUILT TO SCALE JavaScript 3
  55. 55. • Self-service & volume enterprise workflows • Varied approaches to market: direct + easy path to buyer’s preferred retailer • Preview and sell anywhere • DRM choice, including “hard” DRM Requirements: Publisher Publisher
  56. 56. Aer.io Master Account: Administration Client Client Account
  57. 57. Aer.io Retail, Plus, Flyer
  58. 58. Share and Preview in App or Browser The book will show in native post format within any social stream or app, and open up to a commerce-ready preview. Link to book opened in browser.
  59. 59. Sample and Description Detailed description and selected sample of the book may be set by the author or publisher. Link to book opened in browser.
  60. 60. Read in Any Device. Book may be optionally downloaded, in ePub or automatically-generated .mobi for Kindle. Link to book opened in browser.
  61. 61. Fully equipped for Sharing, Likes, Tweets, more. Reader may also follow the book, the author, the publisher, email to a friend, or comment. Link to book opened in browser.
  62. 62. Commenting on Facebook. Comments will appear on reader’s Facebook stream along with the book, whether on Web, or in the Facebook mobile app. Link to book opened in browser.
  63. 63. Book appears in Facebook timeline. Books appear as Facebook posts.Tap to read, share, buy.
  64. 64. Pinterest
  65. 65. Order Now within a tweet.
  66. 66. Readium Sample Embedded in the Page
  67. 67. A Word about Social Metadata
  68. 68. Original Web Metaphor User is visitor to a destination….
  69. 69. …to user IS the destination for media flowing in streams organized around interests and relationships.
  70. 70. What role does DRM, and approaches like SDRM play in supporting a diverse ecosystem?
  71. 71. Three kinds of DRM
  72. 72. Hard DRM Soft DRM Proprietary DRM
  73. 73. Hard DRM Proprietary DRM + = Roadblock to alternative retail ecosystems.
  74. 74. Simple illustration: If you require HARD DRM, you cannot sell direct to a Kindle user, cutting your available market in half.
  75. 75. But key publishers require Hard DRM Current Options: LCP, Sony, Adobe, Other…
  76. 76. Hard DRM TBD SDRM No DRM
  77. 77. • Self-service & volume enterprise workflows • Vast catalog of print and ebooks, + merch • Distributed branding, curation, pricing, customer relationships • Sell anywhere: sites, social, real world Requirements: Sellers Seller
  78. 78. Select from 14MM products.
  79. 79. Top publishers, brands:14MM items live. Publishers can add their own books and eBooks
  80. 80. Set the price. Customize product listings.
  81. 81. Aerbook Retail Network Example Retail Network Economics Description 30.00 List price Publisher’s list price. 30.00 Selling Price Discount off list by 0.0% % discount purchase off purchase price (set by Retail Partner) 18.00 Wholesale, list discounted by 40% Wholesale price, per publisher-set percentage. May vary. 0.30 Flat card transaction fee 0.30 Card processing flat fee 0.65 Pick Pack Ship 0.65 Pick, Pack, and Ship by Ingram 4.50 Aer.io Service Fee 15.0% Aer.io service fees, including credit card processing (2.9%) 24.10 Total Cost of Sale Total cost of sale 5.90 Net Sale Net 5.90 To Native Retail Venue 100% Percentage split to Partner Venue 0.00 To Aerbook 0% Percentage split to Aerbook 30.00 Checksum (Validate numbers) 19.67% Percentage of Sale Price to Venue Revenue share to partner. Compare to Amazon affiliate share
  82. 82. Beautiful.
  83. 83. Responsive.
  84. 84. Multi-format. Socially rich. Embed any media.
  85. 85. Squarespace BookLaunch.io Tumblr… Embed anywhere with a line of code. …and more. Or use Aer.io’s freestanding store pages. WordPress
  86. 86. • Attractive economics. (Good Prices.) • Reasons to Buy • Simplicity: Micah’s “post-file” experience • Reliability: built on bedrock, user’s ebooks are not going to disappear Requirements: Reader (Buyer) Reader
  87. 87. A new, decentralized, independent, bookselling ecosystem.
  88. 88. Illustrated, interactive paperback by Aer.io founder, Ron Martinez. Bantam, 1984.

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