The Future of Books - Creating New Value from Reading

THE SOUND HORIZON

BOOKS 2.0:
CREATING NEW VALUE FROM
READING

Dominic
Pride

19
March
2010

ABOUT THE SOUND HORIZON
ight,
T ranslating ins
nd
intelligence a
to things
innovation in
!
people use.
Fast!
!

Dominic
Pride:
Managing

Director
/

Principal
Consultant
Some
of
our
Clients

• Strategic
change

• Innova5on
management

• Product
marke5ng

• Mobile
and
converged
service

development

• Experience
with
operators,
handsets,
agencies,

content
brands,
labels,
associa5ons

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
1

TODAY’S SESSION
How to transform the desire for change into reality

1.Dawn of 2. Welcome 3. Your new 4. From 5. The
digital reading to the digital ecosystem books to change
ecosystem partners Reading 2.0 agenda

@thesoundhorizon

#books20

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
2

1. THE DAWN OF DIGITAL READING

DIGITAL READING GOES MAINSTREAM
CES: 20+ E-
reading devices
on show

The iPad: “ideal canvas” with
No. of books
rich user interface
overtakes games
in iPhone App
Store*

The
digital
reading
use
case
is
becoming
widely
understood

*Source: Mobclix http://blog.mobclix.com/ :
March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
4

BUT SERIOUS CHALLENGES LIE AHEAD
Digital behaviours established
by other services
Consumer backlash
Pricing and margin in App Today’s rich UI will begun?
Stores become tomorrow’s
hygiene factor
Growth potential for
reading beyond e-readers
Competition for
authors’ content
from other media.
VCs and
disruptive startups
targeting reading
Disintermediation by self-
publishing platforms

Perpetual, accelerating
pace of innovation Competition for
audience and
revenue in “reading”
category.
March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
5

FROM BOOKS 1.0 VALUE CHAIN …

Actor Author
Agent
Publisher
Distributor
Retailer

Create
Maximise

Manage
risk
Deliver

Sell
book

Role
work
revenues
Market
book
book

• Wri5ng
• Finding
/
• Edi5ng
• Storage
• Store

• Revising
developing
• Prin5ng
• Transport
mgmt

• Promo5on
/
placing
• Product
Marke5ng
(incl.
• Billing

Activity
talent
• Release
management
returns)
• Customer

• Royalty
• Account
service

collec5on
mgm.t

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
7

…TO BOOKS 2.0 VALUE ECOSYSTEM

Authors

Auto-‐
VCs
mo5ve
Content
Agents

Consumer

Electronics

Developers

Book

Publishers
Mobile

Magazine
Networks
Consumers

Film

Publishers

App
Stores

TV

Content
Newspaper

Brands

ISPs
Social

Networks

Owners
Publishers

Agencies
Digital
Retail

Games

Music

Publishers

Radio

Portals

Analy5cs
Providers

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


Authors

Auto-‐
VCs
mo5ve
Revenue
Agents

Consumer

Electronics

Developers

Book

Publishers
Mobile

Magazine
Networks
Consumers

Film

Publishers

App
Stores

TV

Content
Newspaper

Brands

ISPs
Social

Networks

Owners
Publishers

Agencies
Digital
Retail

Games

Music

Publishers

Radio

Portals

Analy5cs
Providers

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
9


Authors

Auto-‐
VCs
mo5ve
Attention /
Agents

Engagement
Consumer

Electronics

Developers

Book

Publishers
Mobile

Magazine
Networks
Consumers

Film

Publishers

App
Stores

TV

Content
Newspaper

Brands

ISPs
Social

Networks

Owners
Publishers

Agencies
Digital
Retail

Games

Music

Publishers

Radio

Portals

Analy5cs
Providers

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
10


  Linear
  Open

  Closed
  Dynamic
and
sensitive

  Values
only
end-‐user
  Can
visualise
ﬂows
of

revenue,
not
other
new
generatives

value
created
  Recognises
customers

  Customer
as
source
of
as
adding
value

revenue
only
  Can
identify
new

  Measures
value
added
niches

to
physical
product,
  Helps
determine

not
digital
service
design

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

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
12

THE SOUND HORIZON

3.YOUR NEW ECOSYSTEM PARTNERS

YOUR NEW ECOSYSTEM PARTNERS
What do they need and what do you expect in return ?

Digital Consumer Access Agencies
Retail Electronics Partners and Brands

They • Volume • Differentiation • Acquisition • Inventory
• Margin • Brand Loyalty • Retention • Audience
need • Support retail • ARPU • Engagement
proposition
You
need • Volume • Distribution • Distribution • Data share
• Margin • Placement • Activation • Conversation
• Activation • Billing • Feedback

Your
business
models
and
proposi5ons
will
change
depending
on
partner

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
14

AND HOW THEY COMMUNICATE

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
15

e
n ers ar
w part
e
Your n
selling
ss
• acce are
w
• hard y
• inv entor ervices.
s
need u re o f
They t
s the fu in this
What’ ducts
o
your pr ent?
m
e nviron

16

THE SOUND HORIZON

4. FROM E-BOOKS TO READING 2.0

BOOKS TO E-BOOKS: 1.0 to 1.1?
“the
ebook

[doesn’t]
really

have
that
much

to
oﬀer

consumers
over

a
physical

book”

•  [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
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
18

BECOMING WEB AND CONTENT 2.0

WEB 1.0 WEB 2.0

• Read-‐only
• Read-‐write

• One-‐way
• Two-‐way

• Authored
by
webmaster
• (Co-‐)
Authored
by
users

• Centralised
• Decentralised

• Des5na5on
sites
• Syndica5on

• “users
go
to
content”
• “content
comes
to
users”

The Broadcast Web The Social Web

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

Digital
content
is

not
a
format
or

a
replacement

for
a
physical

product.

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

3Cs VALUE CREATION FRAMEWORK
Content at the heart of the experience but only one of three vital elements for customer value

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?

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
21

THE SOUND HORIZON

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
23

CLOUD SERVICE – LAST.FM
Widget
Lifestream

iTunes Plugin
Xbox 360 RSS reader

Mobile
Website app

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
24

CLOUD SERVICE – WHY NOT READING?
Syndicated
•  All

my
reading
in

the
cloud

•  Optimised
for
all

Shared of
my
devices
and

locations

•  and

therefore

reading

Mobile / Handheld Tablet styles!

In-Car •  My
reading
comes

with
me
when
I

change
devices

•  Personal

Investment

rewarded
e.g.
by

recommendations

E-reader Netbook
March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
25

SOCIAL READING – THE CASE FOR

•  Reading
is
highly
•  Digital
natives:

personal
–  Use
trust
networks
ﬁrst

–  Formative
–  Instinctively
share

–  Creates
social
capital
content

•  Reading
is
highly
social
–  Expect
sharing
in
the

product

–  Clubs

•  Arouses
strong

emotions

–  potential
for
sharing
at

“point
of
inspiration”

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
26

SOCIAL READING IN ACTION

Should
be
revising

Bronte
but

@Eleanorjb
has
just

halfway
through
#Eclipse

got
to
the
wedding
bit,
but
she’s

instead.
Just
got
to
the

reading
a
paper
book.
LOL!

bit
where
they
kiss.

hfp://bit.ly/df

• Content

• Context

• Community

• Audience

• Awareness

• Desire?

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
27

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?

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
28

THE SOUND HORIZON

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

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

*Source: Billboard Magazine - 19 Nov 2005
March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
30

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

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
31

FOSTER AN INNOVATION CULTURE
Innovation
within
Innovation
outside

•  Evangelism
from
CEO
down
•  Position
publishers
as
open

•  Involve
everyone
to
innovative
partners

•  Innovation
framework
•  Visible
innovation

–  Create
a
home
for
ideas
ﬁgurehead

–  A
structure
to
manage

Y
•  Encourage
partnerships

our
–  Bring
to
life
pow most •  hack
days

er
weap ful
–  Build
on
knowledge
o
capt n for
•  workshops

u
ideas ring •  collaboration
with
partners

•  Become
agile
!

–  iterate

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

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
32

Innovation will take
place with or without
you

March
19,
2010
Dominic
Pride
-‐
The
Future
of
Books.
Some
rights
reserved.
33

THE SOUND HORIZON

Thank You!

dominic@thesoundhorizon.com

www.thesoundhorizon.com

@thesoundhorizon

Books
2.0

The Future of Books - Creating New Value from Reading

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