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Case Study
Andy Harris is a published author and professor at Indiana University/Purdue University
A way for monthly subscribers to discover, read, and share eBooks – anywhere.
Goals
Provide customers pay-per use access to eBooks at competitive prices
Provide a platform for readers to connect with other readers
Increase literacy around the world
Cooperate with distributors and publishers to enhance the user experience
To be a secure system and protect the intellectual property on the service
What people want
17.6 Million active eBook customers in 2010 (Forrester Research)
Better browsing
Netflix movies, rDio music subscription, Pandora radio
70% of eBook users are interested in all-you-can-read service (Elasticpath Research)
Publisher contracts
Publishers receive up to 60% of value of book
When a book is sold, publishers receive 70% of the value
Executive Summary
6
10
Key Competition: Library service Potential Entrants
• Almost free (requires library card)
• Libraries pay cost to lend book
• Digital scarcity
• Limit on books out at a time
• Available for dedicated eReaders
(Nook, Kindle, etc.)
• Develop simple, clean, extensive
all you can read model
• Expand library programs to
eliminate digital scarcity and time
restrictions
• Big publishers team to offer direct
service
• No time limits on checkouts
• No digital scarcity
• Greater revenue opportunity
for publishers
• Pending patent on Discover
• Athina is a community
• Develop Athina for dedicated
eReaders
• Users want the most selection
Athina’s competitive advantage and response
Competition analysis
11
Major publishers refuse to
offer content on Athina.
Royalty expenses exceed the
revenue.
Why not offer a free model
for users where revenue is
generated by advertising?
• Small publishers have expressed a serious
interest
• Thousands of independent authors
• Users clearly demanding convenience and
price
• Subscribers notified of increase in price and
reason
• Expand service to selling eBooks
• Adjust contracts with publishers
• No conclusive research on potential revenue
• Facebook generates < $6/user annually
• Beta test potential
Scenario Analysis
11
Sales Forecast
12
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12
Annual
Totals
Subscribers 10000 16300 30970 50481 82284 134123 218621 356352 580854 946792 1543270 2515531 6485578
Monthly Price 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99
Monthly Total 79,900 130,237 247,450 403,344 657,451 1,071,645 1,746,781 2,847,253 4,641,022 7,564,866 12,330,731 20,099,091 51,819,770
17 Million eBook customers in 2010
35% of consumers are “Very interested”
46% of consumers mainly use Kindle
3.2 Million consumers available now