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"Time is Money: New Thinking on Digital Book Pricing" - Nathan Maharaj (Kobo, Inc.) at BookNet Canada's Tech Forum (BookNet 101) - March 5, 2014.
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Time is Money: New Thinking on Digital Book Pricing
March 5, 2014
Nathan MaharajDirector, Merchandising
Beard grooming & maintenance
eBook Pricing
KOBO CONFIDENTIALPAGE 5
The eBook pricing landscape0.
01 -
0.99
1 - 1
.99
2 - 2
.99
3 - 3
.99
4 - 4
.99
5 - 5
.99
6 - 6
.99
7 - 7
.99
8 - 8
.99
9 - 9
.99
10 -
10.9
9
11 -
11.9
9
12 -
12.9
9
13 -
13.9
9
14 -
14.9
9
15 -
15.9
9
16 -
16.9
9
17 -
17.9
9
18 -
18.9
9
19 -
19.9
9
20 -
20.9
9
21 +
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
KWL (Sales Weighted) KWL (Volume) Market (Sales Weighted)
KOBO CONFIDENTIALPAGE 6
Free 1st in serieses
3/1/
2013
3/3/
2013
3/5/
2013
3/7/
2013
3/9/
2013
3/11
/201
33/
13/2
013
3/15
/201
33/
17/2
013
3/19
/201
33/
21/2
013
3/23
/201
33/
25/2
013
3/27
/201
33/
29/2
013
3/31
/201
34/
2/20
134/
4/20
134/
6/20
134/
8/20
134/
10/2
013
4/12
/201
34/
14/2
013
4/16
/201
34/
18/2
013
4/20
/201
34/
22/2
013
4/24
/201
34/
26/2
013
4/28
/201
34/
30/2
013
5/2/
2013
5/4/
2013
5/6/
2013
5/8/
2013
5/10
/201
35/
12/2
013
5/14
/201
35/
16/2
013
5/18
/201
35/
20/2
013
5/22
/201
35/
24/2
013
5/26
/201
35/
28/2
013
5/30
/201
36/
1/20
136/
3/20
136/
5/20
136/
7/20
136/
9/20
136/
11/2
013
6/13
/201
36/
15/2
013
6/17
/201
36/
19/2
013
6/21
/201
36/
23/2
013
6/25
/201
36/
27/2
013
6/29
/201
37/
1/20
13
0
5
10
15
20
25
0
100
200
300
400
500
600
700
800
900
Paid Titles (Series A) Paid Titles (Series B) Paid Titles: Author's Catalogue (Excluding Series A & B)Free Title: Series A Free Title: Series B
What’s the value of a book?
What’s the value of reading?
KOBO CONFIDENTIALPAGE 10
Coming up…
1. Bought! Now what?
2. The wages of reading
3. Serial study
1. Bought! Now what?
Picture
Picture
KOBO CONFIDENTIALPAGE 16
What can we measure?
• % Opened• % Completed• # sessions & session duration
KOBO CONFIDENTIALPAGE 17
And the award goes to…
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0
10
20
30
40
50
60
% Opened % Completed Avg. Sessions to Complete
Picture
Picture
And the award goes to…
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0
10
20
30
40
50
60
% Opened % Completed Avg. Sessions to Complete
2. The wages of reading
KOBO CONFIDENTIALPAGE 24
Value for money?
Bio/Autobio
Gladwellian Big Ideas
Myst/Detective
Romance
Lit Fic
Erotica
CGN & Manga
$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Avg. Abandon Avg. Cost/Hr ASP
70%
KOBO CONFIDENTIALPAGE 25
Reader engagement among those who finished?
Bio/Autobio
Gladwellian Big Ideas
Myst/Detective
Romance
Lit Fic
Erotica
CGN & Manga
- 5.00 10.00 15.00 20.00 25.00 30.00
Avg. Session Length Avg. # Sessions
3. Serial Study
Picture
KOBO CONFIDENTIALPAGE 30
$1.99 at a time
Jan Feb March
Part 1 Part 2 Part 3 Part 4 Part 5 Part 6
KOBO CONFIDENTIALPAGE 31
Value for money?
Bio/Autobio
Gladwellian Big Ideas
Myst/Detective
Romance
Lit Fic
Erotica
CGN & Manga
$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00
ASP
$8.11
KOBO CONFIDENTIALPAGE 33
When did they stop buying?
27.5%
8.4%5.1%
2.9%0.2%
55.9%
Part 1 Part 2 Part 3 Part 4 Part 5 Part 6
?
KOBO CONFIDENTIALPAGE 35
Completion %
0%
10%
20%
30%
40%
50%
60%
70%
80%
70%73%
70% 71%73% 74%
Book 1 Book 2 Book 3 Book 4 Book 5 Book 6
Picture
KOBO CONFIDENTIALPAGE 37
Now we know…
• <100% of readers open the ebooks they buy.• And <100% of ebooks opened are read to the
end.• Big Ideas come with a relatively big price tag
for an evening’s amusement. • Serial publication drives sales and builds
readership.
37
KOBO CONFIDENTIALPAGE 38
More to explore
• What’s the impact of promotional pricing on completion %?
• If/when customers read outside their core interest area, how is completion % affected?
• What do bestsellers with extreme completion rates have in common?
• How can publishers ensure their books are bought and read? (does it matter?)
38
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