Print Media in the Knowledge Economy Era ““New Landscape for Digital Society””

presented by

Richardus Eko Indrajit indrajit@post.harvard.edu

About Knowledge Economy

  4M: –  Money (Modal) –  Man (Manusia) –  Machine (Mesin) –  Materials (Material)

–  Information (Informasi) à Knowledge (Pengetahuan)

  Three Main Dominant Laws –  Speed (Moore) –  Network (Metcalfe) –  Economy (Coase)

Mass Media Defined by Paul Traudt

  Mass Media is ““the range of print, electronic, filmic [and digital?] opportunities supported by multiple platforms for presentation and consumption [of information and entertainment] by a mass audience[?]””

The Four Generation Cohort

Veterans

Baby Boomers

Xers

Millenials

<1946

1946-1964

1964-1980

>1980

From ““close”” to ““open”” environment:   Society   Communication   Market   Mind   Behavior   Value

CONNECTING or CONFLICTING

?

Generation Characteristics

VETERANS < 1946

BABY BOOMERS 1946-1964

XERS 1965-1980

MILLENIALS >1981

Dedicated to a job Live to work Work to live Live in the moment

Respectful of authority

Sense of optimism

Contract Technology savvy

Duty before pleasure

Champions of causes

Pragmatic world Consistent expectations

Patience is a virtue

Go into debt Self-reliant Street smart

Honor and integrity

Team and process oriented

Attached to the edge

Fun is a must

Reluctant to change

Personal gratification

Authority is casual

Give respect if they are

respected Patriotic Nostalgic of

youth Versatility of skills Diverse in nature

Changing Mass Media

Characteristics   Faster   Cheaper   Easier (user friendly)   Smaller (miniaturization)   Better (quality)   More powerful   Similar

Changing Mass Media

Television   Less Logical   Image dominant   Less verbal   Faster cutting and pace   Surrealistic   Dependent on special effects   Structured montage

Changing Mass Media

Newspapers   Meaner and leaner   Profit driven   On line   Paperless?   Electronically composed/edited More graphic   Competitive   Entertainment oriented

MEDIA EFFECTS

How much do the media affect our lives?   Strongly (over estimation)   Gradually (subconsciously)   Indirectly (over time)   Selectively, (over time)   It depends on what the source is…….   It depends on the audience’s background….   It depends on the consumers beliefs & values   Not at all? (under estimation)

About the Print Media

Knowledge Provider   Fact   Data   Information   Knowledge   Wisdom

Sense Trigger   See   Hear   Feel   Smell   Taste

Content Sources and Communication Media

The Role of Print Media

Learning Lifestyles enemy: Don’’t like to write

Don’’t like to read enemy: Entertainment

Materialism

What’’s the Print Media For ?

+

““Increasing the Quality of Personal and People Life””

Media Utilization

Media Revenue

Change Landscape

Market Analysis 1

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  More people are willing to read online newspaper and magazine - a trend for reading online material

Customer’s habit of reading online newspaper

Market Analysis 2

  Is there a market for selling e-books?   Statistics shows that there are spaces for the customers to change their

reading conventions from traditional books to the electronic one   Providing a convenient way to read book is essential

00 1100 2200 3300 4400 5500 6600

Time for readinge-Books

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Market Analysis 3

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90% cheaper

70-80% cheaper

50-60% cheaper

30-40% cheaper

10-20% cheaper

  We estimate that e-books reduce the production cost by 50% , at least

  E-books selling prices are in the range of customers’ acceptable price

  E-books are competitive with traditional books!

Market Analysis 4

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  Each category equally shares the number of customers   A wide variety of books should be provided to fulfill customers’

needs

Customer’s choice of books

2/3 of US Pages are I-Commerce

At Least US$85 Billion in I-Commerce Pages

Start of the Digital Wave: Print-On-Demand

  The publishing industry is transforming: More than a shift in products and production methods… moving to a digital infrastructure.

–  Traditional to Digital Asset Management. –  Dramatic impacts on the supply chain, and for the role of traditional players.

  Prospects for the digital future are strong: Only gets better from here… –  POD: The threshold cost for publishing has been substantially reduced. Consumers are

enjoying better selection. On Demand Print is becoming important for Publishers and Retailers.

–  eBook: More than half of consumers from age 15 to 55 say they want to use digital media

  By 2005: –  28 million people are expected to adopt devices for eBook reading for consumer trade

alone –  A wealth of “professional applications” will develop, greatly expanding market size –  Electronic content is expected to represent almost 10% of the total publishing market

10%

Electronic Content

New Book Supply Preposition

Digital

Conversion

Com

merce

Engines

eBook

Delivery

Content M

gt &

Content H

osting

Digital R

ights M

anagement

“On D

emand”

Printing

Content

Re-purposing

Complete Answer for digital content management and fulfillment:

Ø Turnkey approach for Publishers and Retailers alike for the digital print (POD) and digital display (ebook) of content. (Make it easy, make it effective) Ø Infrastructure- wide range of services for publishers and retailers

““You give us the content, and we do the rest.””

Traditional Book Supply Chain

Today –  Approximately 2/3 of all books delivered direct by publishers –  ““Returns”” remain as high as 30% –  Inventory management and service level issues

Retail Channels

Author Publisher

-------------------- Warehouse

Printer

Book Clubs

Internet

Academic

Libraries

Chains

Independent Bookseller

Publisher Distribution

---------------------- Wholesale Distributor

Digital Book Supply Chain

Operation: –  Publisher never ““touches the book”” once it is entered into the Digital Library –  No inventory is required in the system –  Improved service levels

Retail Channels Author Publisher

Book Clubs

Internet

Academic

Libraries

Chains

Independent Bookseller

Lightning ----------------------

Wholesaler

Publisher enters book into Lightning Digital Library (one-time event)

Publisher receives monthly statement and ““a check”” from Lightning

Hard Copy: Print on Demand Electronic Display: eBook

Integrated logistics system to deal

with all aspects of digital content delivery

Who’’s Following Who ?

Amazon

B & N

Borders

Books A

Million

Varsity

eCampus One Bookstreet

Rainy Day

Books Now

Harvard

Buy.com

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Bookseller Leaders

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Books on Demand

Books stored in a Digital Warehouse (Digital Library)

Books are ““produced and delivered”” when ordered (true one at a time), either in Physical book form (POD) or e-book formats

Ordered from Retail Channels, Publishers Direct, or Libraries

Optimize inventory management

Publishers

Publishers are looking at variety of choices to make their products available electronically while protecting their rights

See (Barnes & Noble), Powells, GemStar and (NetLibrary) list

of publishers –  McGraw-Hill –  Random House –  Simon & Schuster –  Time Warner

The Economy of e-Books are Very Different

  The relationship between libraries, booksellers, publishers and end users will change

  Financial transactions –  outright purchase –  subscriptions and short-term leasing –  pay-per-output

  Content delivery –  ‘‘complete’’ individual e-books –  subject bundles –  chapters; sub-sections

Minimal Barriers to Entry into Publishing e-Book

–  1st Books –  BiblioBytes –  Book Locker –  Buy Books on the Web –  FatBrain – Mighty Words (eMatter) –  NightKitchen –  Online Originals –  Spirit Virtual Books –  TK3 by Night Kitchen –  Universal Publishers –  Xlibris

Example: Lightning Source

  http://www.lightningsource.com   Lightning Source Inc., a subsidiary of Ingram Industries

Inc. is "The Digital Content Connection"SM –  Print-on-demand –  Vanity publishing

Example: Vanity Publishing Plus

–  Alex Catalog of Etexts   http://www.infomotions.com/alex

–  BookonWeb - http://www.bookonweb.com/ –  (Contentville) – closed this month –  Fictionwise – http://www.fictionwise.com –  KnowBetter.com – http://www.knowbetter.com –  The Library Place (informata.com)

Example: e-Book on Demand and Audio Book

There are minimal barriers to entry into publishing electronic books as opposed to becoming a print publisher

–  Mightywords http://www.mightywords.com –  St. Barthelemy Press http://www.stbarthelemypress.com/

  Audible –  http://www.audible.com

Example: Digital Textbooks

  Digital textbooks, offer a learning environment for a new generation of students by combining the strength of great academic content with the exciting capabilities of the personal computer and the Internet! Digital textbooks encourage integration, creative exploration, and active investigation

  Wizeup – http://www.wizeup.com   Addison-Wesley – http://www.aw.com   Metatext - http://www.metatext.com   Thomson eLearning (http://www.archipelago.com/)   Jones Knowledge.com http://www.jonesknowledge.com   Blackboard, etc. http://www.blackboard.com

Example: Sampling Textbook Publishing

  Web sites for supplementary materials, workbooks, exercises, case studies, exams, teachers manuals, prefaces, and bibliographies

  Easy updating   A few players

–  Addison Wesley – statistics   http://www.aw.com/stats/   http://www.awlonline.com/triola

–  Allyn & Bacon/Longman (Pearson)   http://vig.abacon.com/

–  Southwestern Publishing http://www.swcollege.com/ –  Thomson Learning http://www.thomsonlearning.com/

Example: Library Community

  Going to the publisher world and converting output to digital format those things that began life as print –  NetLibrary http://www.netlibrary.com –  Questia http://www.questia.com –  Ebrary http://www.ebrary.com –  MeansBusiness

http://www.meansbusiness.com

Technology Development

+

Technology Components

  e-book hardware   e-book software   converting   e-publishers and

booksellers   digital textbooks   library community products   standards   rights management   copyright/security issues   future trends

Tablet PC: RCA REB1200

HP CapShare 910 Appliance

  Capture: Uses freeform motion to electronically capture documents in seconds

  Store: Stores and displays 50 letter-sized documents with 4 Mbytes of built-in memory and LCD display

  Portable: Fits in the palm of your hand, uses off the shelf AA batteries. Lightweight (12.5 ounces including batteries) and rugged

  Fast: Captures typical text page in under 6 seconds

HP CapShare 910 Appliance and HP Digital Sender

  Share: One button sends documents to laptops, desktop PCs, printers or smart wireless handheld devices.

  Email and PDF standards.   JetSend direct communication

with peripherals.

  Write in standard ink on standard paper   Upload handwritten material directly to PC   Store as image for each page   Optional character recognition   Familiarity of standard pen & paper

Portable Digital Notepad

Internet Publishing

E-Book Appliances

  Handheld reader for digital content

  Browse, search, annotate, highlight, bookmark, link, & reference

  Paperback-book size, 20 oz.

  Capacity: 4,000 pages

  Price: Under $500 (not finalized)

  High-contrast, high-resolution, back-lit black & white touchscreen

  Reader-selectable fonts

  Long-lasting, rechargeable battery

  Capacity: 4,000 pages

  Investors: Barnes & Noble, Bertelsmann

Everybook Inc.

Everybook can download periodical subscriptions overnight, including ads

Softbook

SoftBook investors include Random House and HarperCollins

Librius

  Portable Personal Library Systems

  Bellevue, WA-based   Millennium Reader (avail. Q4 1998) Light,

compact, low-cost (< $200) reading device -- easy to operate, easy to read in bright light or semi-darkness

  Purchase & download books over the Internet

"By 2000, Librius expects that it will cost less than $1 to make and distribute a title, including all corporate overhead, storage and download costs."

- Don Bottoms, Librius President

Delivering the News with NewsPad from the Acorn Group

MIT e-Book Prototype

Electronic Book

The Trend: Sony Glasstorn

Small Personal Powerful

  Image=52-inch TV at 6-1/2 feet   Various viewing modes   Indoor/outdoor use   Stereo headphones   Plug into VCR, DVD Player, Video

Walkman, Camcorder using standard phono connections

  Sugg. retail $799

Key to Success

Micro adjustment

Quality of customers spending

Lower taxes and cost of

capital

Business redefinition and reengineering

Low costs

Better risk x return

Greater demand and

output

More investment

Increase competition

Raise efficiency Lower risk

Thank You

Richardus Eko Indrajit

http://www.indrajit.org

eko@stibanas.ac.id indrajit@post.harvard.edu