NAVIGATING THE EBOOK LANDSCAPE AND BUILDING A

STRATEGY FOR YOUR BUSINESSPresented By:

Marie KetnerTechnology ManagerSheridan Books, Inc.

March 28, 2012

THE EBOOK LANDSCAPE

3

EVOLUTION OF THE WEB EBOOK

Social Connectivitylow high

Knowledge

high

low

eBooks 3.0The Semantic eBook

Making eBooks readableby machines. Enrichment

of content.

eBooks 4.0The Symbiotic eBook

Machines that can learn and reason as humans.

eBooks 1.0Just ‘eBooks’

Connecting real people with content to read.

Content was pushed out.

eBooks 2.0The Participatory

eBookCreating value from user

participation. User to user sharing.

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2

EBOOK PURCHASES (US)

9%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Source: The Book Industry Study Group, Inc, R.R. Bowker, 2012

% book buyers who purchased an e-book (US)

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2

TOP EBOOK SALES BY GENRE

13.7%

20.9%22.9%

3.1%

14.0%

8.5%

13.1%

Qtr 12009

Qtr 22009

Qtr 32009

Qtr 42009

Qtr 12010

Qtr 22010

Qtr 32010

Qtr 42010

Qtr 12011

Qtr 22011

Fiction Romance

Fiction Mystery

Graphic Novels

Biographies

Cooking

Young Adult

Source: © 2012, the Book Industry Study Group, Inc, R.R. Bowker

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BOOKS READ IN A YEAR

0

5

10

15

20

25

0 1-2 3-5 6-10 11-20 21+

%

# of Books

Non-eReader User Linear (Non-eReader User)

% of Books Read in a Year on eReader Devices

Source: Harris Interactive, September 2011

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BOOKS READ IN A YEAR

0

5

10

15

20

25

30

35

0 1-2 3-5 6-10 11-20 21+

%

# of Books

eReader User Non-eReader User Linear (eReader User)

% of Books Read in a Year on eReader Devices

Source: Harris Interactive, September 2011

19%8%

Power Buyers

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KEY POINTS

eBooks are not replacing print eBook purchases are increasing slowly, but steadilty Gained popularity in specific genres eReader sales have moved beyond early adopters into

early majority Power-buyers are the largest consumers of eBooks

FORMATSTHE EBOOK LANDSCAPE

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CONSUMER DEVICE OWNERSHIP & PREFERENCE

0% 10% 20% 30% 40% 50% 60%

iTouch

iPhone

iPad

Netbook

Kindle (original or DX)

Kindle Touch

Other eBook Reader

Nook

Nook Color

Kindle Fire

Currently Owns Considering Purchase

Source: The Book Industry Study Group, Inc, R.R. Bowker, 2012

Devices/platforms that consumers own or are considering purchase.

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TARGET DEVICES & PLATFORMS

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

PC / Mac

Amazon Kindle

Single-Function EPUB Devices(Nook, Sony Reader, Kobo)

Apple iBookstore

The Apple Store

Android-Based Tablets

The Android Platform

Other Tablet Devices

Android-Based Smartphones

Other Smartphones

Blackberry

Devices/platforms that publishers are targeting for their eBooks.

Source: Aptara – Uncovering eBooks’ Real Impact: Aptara’sThird Annual eBook Survey of Publishers (Sep 2011)

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Standard format for eBooks

Representation of the printed book

Amazon Kindle eBook format

Pros • Flowable text• Hyperlinking• Navigation• Widely supported• XML Based

• Widely supported• Page layout and image

handling

• Flowable text• Navigation• Hyperlinking

Cons • Poor image/table/figure support

• Limited layout capabilities

• Cannot be sized to the device

• Not optimal for eReaders

• Can only be read on theKindle

• Very limited capabilities• Poor image/table/figure

support

EBOOK FORMATS

13

CapsDrop-Caps

Image Border

Lists

Links

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Newest version of EPUB KF8 - New Amazon Format for KindleFire (Replaces

Mobipocket)

Structured file format and schema

Pros • Multimedia(Video/Audio)

• MathML• CSS3 / HTML5• Remote resources• XML-Based

• CSS3 / HTML5• Fixed layouts• Improved layout/design

capabilities

• Structured Content• Human & Machine

Readable• Standardized format• Cross-platform

compatible

Cons • Not fully supported by devices

• No definitive timeline for market release

• Kindle’s proprietary format• Does not support the depth

of features in EPUB 3.0

• Cannot be used in its raw form without formatting and styles

• Costly start-up

EBOOK FORMATS (Cont.)

3.0

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Fixed Layout Enhanced eBooks

eBooks that match the layout of the printed publication

Interactive eBooks

Pros • Searchable text• Beautiful design• High-quality graphics• Looks like the print book

• Video• Audio• Pop-up graphics• 3-D images• Animations

Cons • Expensive• Not suited for all types of publications• Must create a separate eBook file for

each application/device• Not supported on all devices

• Multimedia content can be expensive• Must create a separate eBook file for

each application/device• Early stages of development• Not supported on all devices

Best For • Graphic novels• Illustrated books• Children’s books• Comic books

• Publications with access to relevant multimedia material

EBOOK FORMATS (Cont.)

16

Searchable Text

Fixed Layout

Audio on Click

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CONVERSION & WORKFLOWTHE EBOOK LANDSCAPE

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SOURCE FILES

38%

21%

18%

7%

5%

3%

2%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40%

PDF

Adobe InDesign

XML

Microsoft Word

QuarkXpress

Hard Copy

Other

Unsure

Source: Aptara – Uncovering eBooks’ Real Impact: Aptara’sThird Annual eBook Survey of Publishers (Sep 2011)

Primary source file formats for eBooks

“We think that XML is the most flexible”

“Today, PDF, in nine months, XML”

“Learning how to edit XML so it can be the foundation file”

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FILE CONVERSIONS

IN-HOUSE47% of publishers create eBooks in-house

Improved quality Cost savings

53% of publishers use outside technology partners

Lack of internal capability and resources

Cost savings Volume capacity

OUTSOURCE OTHER TOOLS

Source: Aptara – Uncovering eBooks’ Real Impact: Aptara’sThird Annual eBook Survey of Publishers (Sep 2011)

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EBOOK WORKFLOW EXAMPLEP

UB

LIS

HE

RV

EN

DO

R

Print Book

Define Spec &

Metadata

Build eBook*

eBook Review

Review Meeting

(for complex changes)

Review Spec(for

complex titles)

Edit eBook**

(If needed)

Final Review & Approval

1 2

3

4

5

6

7

8

Example of an eBook Production Workflow using an External Conversion Provider

* Mobipocket creation typically occurs after the ePub is complete.** Steps 5-7 can repeat as necessary until a final approved file is created.

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21

INTERNAL EBOOK WORKFLOW EXAMPLE

ED

ITO

RIA

L / D

ES

IGN

TEC

H T

EAM

Print Book

Define Spec &

Metadata

Build eBook*

eBook Review

Review Meeting

(for complex changes)

Review Spec(for

complex titles)

Edit eBook**

(If needed)

Final Review & Approval

1 2

3

4

5

6

7

8

Example of an eBook Production Workflow using Internal Resources

* Mobipocket creation typically occurs after the ePub is complete.** Steps 5-7 can repeat as necessary until a final approved file is created.

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DISTRIBUTIONTHE EBOOK LANDSCAPE

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EBOOK DISTRIBUTION

18%

16%

13%

11%

10%

8%

8%

7%

2%

0% 5% 10% 15% 20%

Amazon.com

Our own eCommerce site

Barnes & Noble eBook Store

Apple iBookstore

Other

Kobo/Borders

Sony eBook Store

Apple iTunes

Unsure

Source: Aptara – Uncovering eBooks’ Real Impact: Aptara’sThird Annual eBook Survey of Publishers (Sep 2011)

STM, College, K–12, and Corporate

publishers sell their titles through their own

eCommerce sites at double and almost triple

the rate of Trade publishers (11%).

Primary distribution channels for eBooks

24

STANDARD DISTRIBUTION CHANNELS

Publisher Submits

• Metadata (ONIX or CSV)

• ePDF• ePub• MobiPocket• Cover Image

?

?

25

DIRECT TO CONSUMER

PROS CONS

Not all shopping cart systems support download fulfillment

Costs of custom development

DRM

Retain revenue Manage assets in a

single place Gather customer data

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ALTERNATIVE CHANNELS

And more…

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ALTERNATIVE SELLING METHODS

Subscriptions • Allow readers to subscribe to your content• Perfect for Book Series

Content Chunking • Offer the purchase of chapters or sections • Repurpose content to create custom publications

Bundling • Bundle eBooks with the Printed Copy

Partnerships • Partner with retailers that sell similar products• Find partners that are integrated with existing channels

(e.g. Subtext and Google eBooks)Author Websites • Leverage your authors and create a brand for them

• Great opportunity to reach targeted audience

STEPS TO SUCCESSBUILDING A STRATEGY FOR YOUR BUSINESS

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TRAIN/HIRE INTERNAL STAFF

KNOWLEDGE OF: eBook File Formats HTML / CSS XML

HOW: Webinars Conferences Technology Partners Hands-On Practice

1

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INVEST IN A DEVICE LAB

Device Type Examples

DedicatedeReader

Kindle, Nook, Sony Reader

eReader Tablet KindleFire, Nook Tablet

iPad iPad2, iPad3

Android-BasedTablet

Motorola Xoom, Samsung Galaxy

Smartphone iPhone, iTouch, Android-based smartphone, Blackberry

“Students who engage in hands-on learning activities, outperform their peers significantly.”

2

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KNOW YOUR AUDIENCE

Research ebook buying behaviors of your audience demographic, gender and generation

Customer surveys Pilot tests in the

marketplace

3

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SELLING & MARKETING STRATEGY

Choose Channels that fit your Audience

It’s not necessary to Sell to the Masses

Use Social Media Outlets

Leverage Authors Think Creatively!

4

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CONVERSION STRATEGY

In-house or external partners

Front list / back list Standard, fixed layout, or

enhanced eBooks Define quality standards

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CREATE ACHIEVABLE MILESTONES

Q1 2012 Q2 2012• Train/Hire Staff• Invest in a Device Lab• Research Your Audience• Create Milestones

• Define Quality Standards• Define Conversion Strategy• Evaluate External Partners

Q3 2012 Q4 2012• eBook conversions• Define selling strategy

• 3rd Party Distribution• Direct to Consumer Selling Solution

Q1 2013 Q2 2013• Implement XML Workflow • TBD

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CREATE CONTENT FOR THE FUTURE

1. Digital Workflows2. Multimedia3. Semantic Tagging4. Structured Content5. Relational Data6. Discoverability

7

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STEPS TO SUCCESS1 Train/Hire Staff

2 Invest in a Device Lab

3 Know Your Audience

4 Selling & Marketing Strategy

5 Conversion Strategy

6 Create Achievable Milestones

7 Think Future, Think Digital!

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