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Presentation Title: "A Time of Great Change: Insights from top publishing executives on the future of our business". Presented May 7, 2009 at BISG's 6th annual Making Information Pay conference (http://www.bisg.org/conferences/mip6.html).
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© 2009 Outsell, Inc. All rights reserved.
Book Industry Study Group
Making Information Pay 2009
May 7, 2009
Leigh Watson Healy
Chief Analyst
A Time of Great Change: Insights from top publishing executives on the future of our business
22© 2009 Outsell, Inc. All rights reserved.
About Outsell
• Global team of 50+ professionals• Tracks information sectors in the US, Europe, and Asia • Fact-based analysis of markets, companies, trends,
technology• Actionable advice to private and public institutions• Subscription, membership, and custom consulting services
The only worldwide syndicated research and advisory firm serving the media and information industry.
33© 2009 Outsell, Inc. All rights reserved.
Insights from Industry Leaders
•How is the industry faring?•What is good performance in 2009?•What are publishing leaders doing?
44© 2009 Outsell, Inc. All rights reserved.
What’s Going On Out There
55© 2009 Outsell, Inc. All rights reserved.
Meltdown
• Industries get wake-up calls• Ego-driven, unhealthy vs.
transparent, accountable•Mass markets vs. long-tail• Industrial age vs. knowledge age•Recession accelerating structural
change•Not on the other side yet
66© 2009 Outsell, Inc. All rights reserved.
Signs Appearing
In•Conservation•Barter & saving• Transparency• Shared voices• Small• Living in moment
Out• Consumption• Spending & credit• Secrecy• Authoritative• Big• Living in future
77© 2009 Outsell, Inc. All rights reserved.
Longer Term
•World is global for knowledge•National & local for physical goods• Sustainability & citizenship are in• “Trust is the new greed”• “Flat is the new up”• Change always takes longer
88© 2009 Outsell, Inc. All rights reserved.
What Is Good Performance in 2009?
99© 2009 Outsell, Inc. All rights reserved.
Segment Performance, 2009
• BISG data confirms flat is the new up• Book publishing revenues flat in 2009• Adult & juvenile trade – flat to slight growth• Professional, scholarly – slight growth• Elhi and college – single-digit decline
follows 2008 growth• Religious – decline less steep in 2009
1010© 2009 Outsell, Inc. All rights reserved.
Companies Doing Well
•Market share/brand leaders• Innovators and boutiques•Real-time data/work-flow solutions• Tactical support or lead generation•Digital DNA•Cash positive and building
1111© 2009 Outsell, Inc. All rights reserved.
Benchmarks & Innovation Metrics
•Revenues on par or better than segment growth• 55%+ gross margins• 10%+ net income• $215K+ revenue per employee• 13% revenue from new products•New product cycles – 2 to 9 months • Price increases 5% or less
Respondent Base: 62
1212© 2009 Outsell, Inc. All rights reserved.
What Publishing Leaders Are Doing
1313© 2009 Outsell, Inc. All rights reserved.
Leader Sentiment
• Expect return to growth by Q2 2010• Staying head-count neutral•Salary freezes & reductions•Exiting poor performers
• 3 budget scenarios•Recession as opportunity
1414© 2009 Outsell, Inc. All rights reserved.
Top Planned Investments
• Sales & marketing•New product development• Technology – digital tipping point• Staffing (editorial, IT)• Process & infrastructure redesign•Global expansion
1515© 2009 Outsell, Inc. All rights reserved.
Innovation: Remains Essential
Source: CartoonStock
1616© 2009 Outsell, Inc. All rights reserved.
“We’re moving from a physical war fought with weapons to an economic war fought with information. We must restructure our business to fight this
war and challenge our business models, cost models, etc.
It is all shifting.”
1717© 2009 Outsell, Inc. All rights reserved.
Five Key Themes for 2009
•Content/platform & experience execution•Business model focus & execution• Social media/community execution• Strategic marketing & product
marketing execution•Operational execution
1818© 2009 Outsell, Inc. All rights reserved.
No Guts, No Glory
1919© 2009 Outsell, Inc. All rights reserved.
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