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Foto de Alicia Martín: http://www.trinta.net/artista.php?id=42

Is Pricing Going to Be the First Issue in the Competition with New Players?

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Javier Celaya warns STM publishers about a different competition coming from new players. Is pricing going to be the first issue?

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Page 1: Is Pricing Going to Be the First Issue in the Competition with New Players?

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Page 2: Is Pricing Going to Be the First Issue in the Competition with New Players?

Why Amazon, Apple, Google, Microsoft, etc. are interested in your business?

Page 3: Is Pricing Going to Be the First Issue in the Competition with New Players?

Because they believe that there are huge business opportunities in digital education

Page 4: Is Pricing Going to Be the First Issue in the Competition with New Players?

Rationale behind B&N / Microsoft operation

Estimated potential value of education market in the USA

Valued at 1,7 billion USD

Twice the value of B&N

Page 5: Is Pricing Going to Be the First Issue in the Competition with New Players?

Impact of their arrival in the STM market

Accelerate the demand for digital content

Page 6: Is Pricing Going to Be the First Issue in the Competition with New Players?

Predatory pricing strategy

Page 7: Is Pricing Going to Be the First Issue in the Competition with New Players?

and great online services

Page 8: Is Pricing Going to Be the First Issue in the Competition with New Players?

How to compete against them?

Must innovate new services, processes, technologies, etc.

Page 9: Is Pricing Going to Be the First Issue in the Competition with New Players?

Publishers must embrace innovation as a service to their customers

“Innovation is the creation of better or more effective products, processes, services, technologies, or ideas…”

Page 10: Is Pricing Going to Be the First Issue in the Competition with New Players?

Users are more willing to pay for services than for content

Page 11: Is Pricing Going to Be the First Issue in the Competition with New Players?

What do I mean by services?

Fragmentation of content Self-publishing services Recommendations systems based on real

affinities rather than purchase Perpetual access to reader’s comments and

aggregated notes Access to knowledge communities Track record of purchase history Reading behaviour feedback Assessment and evaluation tools

Page 12: Is Pricing Going to Be the First Issue in the Competition with New Players?

From a unit sale and license business model to a fragmented one

Page 13: Is Pricing Going to Be the First Issue in the Competition with New Players?

Must offer “Slice & remix” services

Page 14: Is Pricing Going to Be the First Issue in the Competition with New Players?

Create your own materials – Remix content

http://academicpub.sharedbook.com/academicpub/

Page 15: Is Pricing Going to Be the First Issue in the Competition with New Players?

Platforms to sell fragmented content

http://www.comunicacion-cultural.com/2010/04/27/lectura-de-contenidos-fragmentados/

Page 16: Is Pricing Going to Be the First Issue in the Competition with New Players?

Growing demand of fragmented content

New reading and writing habits USD1,12 million in just 3 months

Page 17: Is Pricing Going to Be the First Issue in the Competition with New Players?

Develop technologies that fragment content

http://www.comunicacion-cultural.com/2012/06/14/citia-reinventando-la-forma-de-leer/

Page 18: Is Pricing Going to Be the First Issue in the Competition with New Players?

Embrace self-publishing

Do not ignored it- Don’t make the same mistake the trade sector did

Page 19: Is Pricing Going to Be the First Issue in the Competition with New Players?

Wolters Kluwer is allready in the game

Page 20: Is Pricing Going to Be the First Issue in the Competition with New Players?

Amazon Education KDP and textbook rentals

Page 21: Is Pricing Going to Be the First Issue in the Competition with New Players?

Apple is creating the tools for teachers

Page 22: Is Pricing Going to Be the First Issue in the Competition with New Players?

As well as MS and Google

Page 23: Is Pricing Going to Be the First Issue in the Competition with New Players?

And oustanding “outsiders”

http://www.inkling.com/

Page 24: Is Pricing Going to Be the First Issue in the Competition with New Players?

Impact of open access, fragmented books and selfpublishing

Page 25: Is Pricing Going to Be the First Issue in the Competition with New Players?

More content = less visibility of your products

Page 26: Is Pricing Going to Be the First Issue in the Competition with New Players?

Must invest in discoverability services

Page 27: Is Pricing Going to Be the First Issue in the Competition with New Players?

Today we search for books this way

Page 28: Is Pricing Going to Be the First Issue in the Competition with New Players?

Tomorrow (today) we will search this way

400% increase in web searches via smartphones

Search is done at point of sale (bookstores, libraries, etc.)

Results are shared in Social Networks

44% europeans have smartphone / devices

Page 29: Is Pricing Going to Be the First Issue in the Competition with New Players?

Is your website mobile friendly?

Do you know how many readers access your site via mobile devices?

Page 30: Is Pricing Going to Be the First Issue in the Competition with New Players?

Add QR codes and NFC chips to your content Beyond promotional use, inteligent e-commerce

http://www.dosdoce.com/articulo/opinion/3754/comercio-electronico-movil/

Page 31: Is Pricing Going to Be the First Issue in the Competition with New Players?

Before: More information about the book / author

Page 32: Is Pricing Going to Be the First Issue in the Competition with New Players?

Now: Borrow / buy the digital version of the book

Page 33: Is Pricing Going to Be the First Issue in the Competition with New Players?

Beyond the purchase variable“Customers who bought this book also bought…”

Page 34: Is Pricing Going to Be the First Issue in the Competition with New Players?

Shared reading (education) will help students discover new content

Page 35: Is Pricing Going to Be the First Issue in the Competition with New Players?

Tecnologies that discover you other students with same needs / problems

Page 36: Is Pricing Going to Be the First Issue in the Competition with New Players?

Discover other books within a book

Page 37: Is Pricing Going to Be the First Issue in the Competition with New Players?
Page 38: Is Pricing Going to Be the First Issue in the Competition with New Players?

From a text based world to a more visual learning environment

Page 39: Is Pricing Going to Be the First Issue in the Competition with New Players?

Need to provide visual discoveries = satisfaction rate

Page 40: Is Pricing Going to Be the First Issue in the Competition with New Players?

Invest in new ways to explain knowledge

http://www.comunicacion-cultural.com/2011/12/14/cowbird-herramienta-colaborativa-para-contar-historias/

Page 41: Is Pricing Going to Be the First Issue in the Competition with New Players?

Images that talk to us

http://www.fotobabble.com/

Page 42: Is Pricing Going to Be the First Issue in the Competition with New Players?

Discover new books via note sharing

http://www.comunicacion-cultural.com/2011/11/03/todas-las-notas-y-parrafos-de-interes-en-un-unico-lugar-con-findings/

Page 43: Is Pricing Going to Be the First Issue in the Competition with New Players?

Working groups within the textbook

http://www.youtube.com/watch?v=4WeSSoDBcuw&feature=youtu.be

Page 44: Is Pricing Going to Be the First Issue in the Competition with New Players?

Different discoverability doors into the world of knowledge

Page 45: Is Pricing Going to Be the First Issue in the Competition with New Players?

What do all these technologies have in common?

Page 46: Is Pricing Going to Be the First Issue in the Competition with New Players?
Page 47: Is Pricing Going to Be the First Issue in the Competition with New Players?

Metadata beyond articles and books

Metadata to link images, tables, fragmented content, user generated content, behavioural analytics, etc

Page 48: Is Pricing Going to Be the First Issue in the Competition with New Players?

Impact of metadata in sales

http://www.nielsenbookdata.co.uk/uploads/3971_Nielsen_Metadata_white_paper_A4%281%29.pdf

Page 49: Is Pricing Going to Be the First Issue in the Competition with New Players?

Must add enriched metada fields

Short description, long description, review / comments y author bio

Page 50: Is Pricing Going to Be the First Issue in the Competition with New Players?

Competitive advantage in the XX

Page 51: Is Pricing Going to Be the First Issue in the Competition with New Players?

Competitive advantage in the XXI century

Data mining and management

Page 52: Is Pricing Going to Be the First Issue in the Competition with New Players?

Your e-book is reading you

http://online.wsj.com/article/SB10001424052702304870304577490950051438304.html?KEYWORDS=amazon

Page 53: Is Pricing Going to Be the First Issue in the Competition with New Players?

In the digital economy, you must know your client behaviour to service their needs

http://www.flickr.com/photos/29890539@N07/4648496819

Must extract the patterns of connection among people

Page 54: Is Pricing Going to Be the First Issue in the Competition with New Players?

Day / hour of the week discoverability takes place

Page 55: Is Pricing Going to Be the First Issue in the Competition with New Players?

Day / time book purchase

Page 56: Is Pricing Going to Be the First Issue in the Competition with New Players?

Learning behaviour in an Android device

Page 57: Is Pricing Going to Be the First Issue in the Competition with New Players?

Learning behaviour in an iPad

Page 58: Is Pricing Going to Be the First Issue in the Competition with New Players?

Mixed readings

Page 59: Is Pricing Going to Be the First Issue in the Competition with New Players?

Must track & analyze social reading practices

Page 60: Is Pricing Going to Be the First Issue in the Competition with New Players?

To provide services based on REAL satisfaction and needs (demands)

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Page 61: Is Pricing Going to Be the First Issue in the Competition with New Players?

Dynamic pricing strategy

Based on offer / demand

No longer annual contracts

Page 62: Is Pricing Going to Be the First Issue in the Competition with New Players?

Dynamically priced ebookstore

Page 63: Is Pricing Going to Be the First Issue in the Competition with New Players?

To compete with Amazon, Apple, Google, etc

Economies of scale are very important

Page 64: Is Pricing Going to Be the First Issue in the Competition with New Players?

Do not work in silos

Page 65: Is Pricing Going to Be the First Issue in the Competition with New Players?

Must share resources & efforts

http://www.comunicacion-cultural.com/2012/05/16/educacion-compartida-para-la-era-digital/

Page 66: Is Pricing Going to Be the First Issue in the Competition with New Players?

Create an alternative open ecosystem

DRM free platform with all formats

Page 67: Is Pricing Going to Be the First Issue in the Competition with New Players?

Pottermore case

DRM free, all languages, export

Page 68: Is Pricing Going to Be the First Issue in the Competition with New Players?

New digital export opportunities

Internet has no frontiers

Page 69: Is Pricing Going to Be the First Issue in the Competition with New Players?

Think about technology as a service

Page 70: Is Pricing Going to Be the First Issue in the Competition with New Players?

But to compete in the digital age, you need a tech partner

Page 71: Is Pricing Going to Be the First Issue in the Competition with New Players?

Javier Celaya [email protected] Tel: +34.606.367.708

Web: www.dosdoce.com Twitter: @javiercelaya LinkedIn: www.linkedin.com/in/javiercelaya

Grazie mille / Thank you