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DIGITAL PRODUCTS
.: an overview :.
HOW WILL WE INTERACT
WITH CONTENT IN 10 YEARS?
3
.:did you know:.
WHY IS DIGITAL SO IMPORTANT?
• We are raising a generation of ―digital natives‖ – future
customers who live and breathe digital media
• Digital can be a cost-effective marketing tool in a very
crowded marketplace
– Digital content enhancements can add perceived value to products
we already produce
• A way to reach a whole new group of customers through
word-of-mouth and social networking
• Digital is expected to reach 25-50% of print sales by 2015
So . . . what’s ePub??
(a.k.a. . . . What the Hell is XML?)
• A highly flexible and open ―content container‖ that separates the
formatting of the content from the content itself
• ePub XML is the basic starting point for many digital projects –
eBooks, apps, websites, etc.
• ePub allows you to ―flow‖ the same content to many different
templates or formats, without making changes to the content
itself
Most Digital Editions start life as an ePub file
MOBILE APPLICATION DEVELOPMENT DEFINED
• Wikipedia says: Mobile application development is the process by which applications are developed for small low-power handheld devices such as personal digital assistants, enterprise digital assistants or mobile phones. These applications are either pre-installed on phones during manufacture, or downloaded by customers from app stores and other mobile software distribution platforms.
• Simply stated: Mobile apps are like teeny, tiny crosses between a desktop application (MS Word) and a website that you can download onto your Apple, Droid, or BlackBerry mobile device to perform very specific tasks or functions.
8
.: digital business models :.
DIGITAL BUSINESS MODELS
• Devotional
• Group or Individual Bible Study
• Game
• Enhanced eBook/Vook
• Planning Resources
• Reference
• Audio
Digital is a delivery mechanism – yet one more way for
customers to consume content.
Dracula
Alice
Sports Illustrated
The Daily
EBOOK vs. APP?
•Why eBooks (are)n’t apps
•Does reading an eBook on a mobile
phone make the eBook an app?
The Daily
– The first built-from-scratch content engine, updated throughout the
day with original content ONLY for the iPad
– Full color content enhanced with interactive and scalable
video, audio, and images
– 100 full time journalists providing original content
– Apple programmers created the app (so they should fully
understand the platform and potential)
– Will allow ―subscription‖ to content without full app updates
(critical for user experience)
– Enables social sharing of original content with your network
– Consumer price is only $0.99/week or $40/year
AND YET . . .
– App reportedly cost News Corp. $30 million to create (which they
wrote off as startup costs)
– The current average rating on The Daily app is 2-1/4 stars, with
122 1-star ratings out of 257 total ratings
– The Daily needs 500,000 weekly subscribers at $0.99/day to break
even
– Running costs are ―less than half a million a week‖
– Downloads are massive – between 250-500 500 Mb of data to be
downloaded EVERY DAY
– Yearly budget for The Daily is around $30 million
SUSTAINABLE??
ENHANCED EBOOKS AREN’T GAME
CHANGERS . . . YET
• Magazines/newspapers for tablets are often little more than PDFs with photo
slideshows and video thrown in
• Huge download files (upwards of 250Mb)
• No web links (essentially ―walled gardens‖)
• Few opportunities to share content
• Same content as the print edition
• JUST LIKE PRINT: Out of date as soon as they’re published (TechCrunch
says: A “daily” already sounds too slow)
• Not social enough – we want to see what our friends like and are reading or
discussing
• Kindles and Sony eReaders won’t handle the uber-enhanced multi-media and
interactive content
19
.:late-breaking news:.
Android market started selling eBooks
YESTERDAY -- Feb 24, 2011
20
.: the market :.
KNOW YOUR COMPETITIONA competitor for
digital resources isn’t
necessarily an analog
or print resource . . .
it could be something
else entirely.
Like YouTube, or
audio books, or even
Angry Birds--which
has over
10
MILLION downloads
at $0.99 each
(you do the math!)
Smartphone vs. Feature phone
• 28% of U.S. mobile market in Q3 2010 have Smartphones
• In the last six months, 41% of people purchasing a new phone chose a
Smartphone rather than a standard feature phone (up 6% from last
quarter)
• Mobile handset market expected to reach $341.4 billion by 2015
• Smartphones expected to triple in sales over the next four years
APPLE vs. ANDROID
• What’s the difference, where are our apps found (and why)?– Apple and Android are the two dominant mobile platforms in the
US market
– Currently, UMPH apps are all Apple-only
– Can add Android functionality for a separate charge (needs to be built into the business plan)
– Android is quickly closing the gap, but Apple store is still considered ―The Place To Be‖
– Easy, one-click ordering from iTunes store makes it one of the best customer experiences—driving more sales
How big is the mobile app market? (Yeah, I know these numbers are probably wrong)
• Worldwide iPhones
– Jan 2008: 3.7 million
– Jan 2009: 17.3 million
– Jan 2010: 42.4 million
– Apr 2010: 50 million
– Jan 2011: 90 million (TOTAL IPHONES SOLD TO DATE)
• Worldwide iPads
– 14.8 million in 2010
– Projected to sell 40 million MORE in 2011
• Worldwide Android phones
– 71 million (???)
– Supposedly 300,000 plus Android phones are activated per day
Do apps really sell?
• In a recent survey of the mobile app industry (all averages):
– Total number of units sold: 101,024
– Time frame: 261 days (about 9 months)
– Units per day 387
– Most common price $0.99
– Number of updates 3.89
– Cost $6,453 (not including developer’s personal time)
So….an ―average‖ app would make $101,024 on an investment
of $6,453 in around 9 months.
Is 2011 the tipping point?• Smartphones will likely blow away traditional computers in 2011 as
the way most of the world gains access to the internet
• Likely half a billion Smartphones will be sold in 2011
• eBooks are expected to reach at least 25% of print book revenue in
2011
• Smartphone prices (for Android-based phones) are expected to sell at
retail for below $100 (and maybe below $75) in 2011
The US population is around 308 million people
iPads, iPhones, & Android-based devices alone
will sell around 216 million units in 2010/2011
28
.:more late-breaking news:.
As of Tuesday, Feb 22nd
Amazon.com now offers thousands of TV shows
and movies FREE as an added-value to Amazon
Prime members
29
.:a case study:.
24 Hours That Changed the World
• Hardcover Book
• DVD with Leader guide
• Student guide
• Younger children study
• Older children study
• Youth study
• Spanish edition
• 40 Days of Reflection
Have you seen these versions
of 24 Hours?
FREE vs. PAID
• Why it pays to make an app or eBook free
– Way to help customers decide between types of curriculum (VBS app)
– Drive sales for a related for-sale product (Hallmark Jingle All the Way)
– Free-for-a-time promotion to drive sales can wildly successful
You have to provide solid value to the customer
even if the app is free
if you want to be gain evangelists
How can you decide the best
digital format for your content?
Why different types of products make great
eBooks, great apps, or great “other”
34
.:in conclusion:.
• Mobile is the next step in content evolution
• The same content can work with different
delivery mechanisms without conflict
• Websites are NOT the same as apps
• Digital is a wild frontier
What comes next??
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