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Through the Looking Glass: The Past, Present and Future of Children’s Publishing Launch Kids, Digital Book World March 2016 Dominique Raccah, Publisher and CEO

Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

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Page 1: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Through the Looking Glass:The Past, Present and Future of

Children’s Publishing Launch Kids, Digital Book World March 2016

Dominique Raccah, Publisher and CEO

Page 2: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The book transformation

Page 3: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Online Distribution/Retail

Print

Digital

Brick and Mortar Retail Online Retail

Form

at/C

onte

nt

Page 4: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The first Kindle goes on sale in November 2007

The Kindle DX Graphite debuts in July 2010

Page 5: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The iPad1 first ships in April 2010

Page 6: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

eBooks Growth: 2008 – 2013

Page 7: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Borders

Page 8: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The impact

Page 9: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The Demise of Borders + eBooks—Total Books

-­‐24%  

+10%  

Source: Nielsen Bookscan (omitting week 53)

 -­‐        

 100,000    

 200,000    

 300,000    

 400,000    

 500,000    

 600,000    

 700,000    

 800,000    

 900,000    

 YTD   YTD      YTD   YTD      YTD   YTD      YTD   YTD    

2008   2009   2010   2011   2012   2013   2014   2015  

Series1  

2012  

Page 10: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The Demise of Borders + eBooks — Children’s + YA

-­‐24%  

+10%  

Source: Nielsen Bookscan (omitting week 53)

 -­‐        

 100,000    

 200,000    

 300,000    

 400,000    

 500,000    

 600,000    

 700,000    

 800,000    

 900,000    

 YTD   YTD      YTD   YTD      YTD   YTD      YTD   YTD    

2008   2009   2010   2011   2012   2013   2014   2015  

Series1  

Series2  

-­‐9%  

2012  

+25%  

Page 11: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

What we’re seeing today

Page 12: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Expanded Children’s Books Offering at Retail

Page 13: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The Continuing Momentum of YA

Page 14: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

90%  of  teens  read  physical  

books  

40%  of  teens  EXCLUSIVELY  read  physical  

books  

Source: Nielsen Books & Consumers Children’s Deep Dive, June 2015

1 of the surprises

Page 15: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Book Based Media Tie-Ins

Page 16: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Today children are playing Minecraft, watching YouTube and playing with apps—but they’re also still reading books, watching TV and playing with toys. Kids are

more digital, but that doesn’t mean they’re abandoning traditional sources of entertainment.

The Guardian, YouTube, apps and Minecraft: digital kids and the future of children’s media

Page 17: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The Persistence of Physical Books

Page 18: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Ebooks and

learning Apps

YouTube YA stars

Reinvention of libraries

Social reading +

writing platforms

Page 19: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Evolution of children’s books at Sourcebooks

Page 20: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Sourcebooks Children’s Bestsellers Entering 2011

Page 21: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Children’s Book Sales 2011 - 2015

3.5x growth

Page 22: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Young Adult Book Sales 2011 - 2015

7.5x growth

Page 23: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Sourcebooks Sales by Piece of Business 2015

Page 24: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Growth Continuing in 2016 (up 23%)

Page 25: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016
Page 26: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016
Page 27: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Jab-Fire Starred Reviews

2014  2013   2015  2012  2011   2016  

Page 28: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Personalized Content

Page 29: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The Opportunity: Books Are Great Gifts

$15.72 billion!2014 U.S. trade book sales (AAP Snapshot)

$2.36 billion!The opportunity in the books-as-gifts market

43%!For children 12 and

under (Nielsen)

15%!Trade books bought as gifts in the U.S. (Nielsen)

And personalized books can create extraordinary gift experiences

Page 30: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Self-published books developed for personalization

Page 31: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Author + content driven

Marianne Richmond

Greg Lang

Page 32: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Could you create additional revenue for bestselling authors and brands

through personalized books?

Page 33: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The #1 Personalized Books Site in

America

Page 34: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Our Bestselling License Partners

Page 35: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Bestselling Author Brands Come from book publishing and are author/creator driven

Lemony Snicket Bestselling author of the Series of

Unfortunate Events, we are creating personalized hilarity with his All The

Wrong Questions series.

Nationally known gift product and novelty book author brings

her new picture books to Sourcebooks & PMITS.

Internationally renowned photographer Anne Geddes has joined Sourcebooks

with both personalized and non-personalized product.

Marianne Richmond

Cornerstone Sourcebooks and Put Me In The Story author with more than 2

million books sold.

Nancy Tillman New York Times bestselling author and

illustrator.

Page 36: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Creating extraordinary customer + book experiences…

Your child as narrator Your child’s name woven into Illustration

Play “I Spy” with your child’s face

Page 37: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

An Adoption Story “Safe and sound, you’re here with

me now, and that’s all I’ll ever need.”

11 Year Old with Asperger’s “I got this book for my 11 year old

daughter with Aspergers. She absolutely loves it and reads it over and over. It’s

helped bring some positive interactions into every day, days often filled with frustration. I’m going to order her a second one. This

is the best gift I’ve ever gotten her.”

100’s of Different Use Cases How customers use Put Me In The Story

Deployed Daddy “My boys love this book, especially my

3 year old. Daddy is deployed, so whenever he misses him he can look through the book and find Daddy’s

smiling face on every page.”

Page 38: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Coming to Put Me in the Story from Harper Collins

Page 39: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Creating additional revenue for bestselling authors and brands

Page 40: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

NEW revenue for bestselling books + licensed content partners

Page 41: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

…nothing says 'transformation' more than revenue sources you didn’t used to have. —Mike Shatzkin, ideolog, Nov. 5, 2015

Page 42: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

2015: Put Me in the Story adds significant additional revenue

0.00%  

10.00%  

20.00%  

30.00%  

40.00%  

50.00%  

60.00%  

70.00%  

80.00%  

90.00%  

100.00%  

0   10   20   30   40   50   60   70   80   90  

PMITS  %  of  Sales  

PMITS  %  of  Sales  

AVERAGE  36%  

On average Put Me in the Story adds

36% NEW units

Page 43: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

At the beginning…

Page 44: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Creating an Additional Revenue Stream for Books: Experimenting with Non-Book Product

Plush 1.  Sleepytime Elmo 2.  My Favorite Teddy Bear 3.  Cozy Polar Bear Plush 4.  Sesame Street Elmo Plush

Personalized Gifts 1.  Santa is coming placemat 2.  I Love You placemat 3.  Lil Owl Nightlight 4.  Little Sweetheart Pillowcase 5.  Whooo Loves You Placemat

Page 45: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Barnes and Noble: Immediate in-store experience : Espresso Machine

Page 46: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Barnes and Noble: experimenting with in-store

211 stores across the

country

Page 47: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Barnes and Noble: Online

Page 48: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

The #1 Personalized Books Site in

America

Creating an extraordinary

customer experience

Page 49: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

There are no secrets to

success. It is the result of preparation, hard work,

and learning from failure.

Colin Powell

The future of children’s books —

physical books and read aloud will not change

Page 50: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Every author is a potential brand, every brand is a potential license; every book has multiple format and

market opportunities. What is great about children’s publishing and media is that there is both lateral opportunity—formats, series, tv, movies, games,

licenses, toys, etc.—and potential for ubiquity and longevity that happens in the adult market only rarely.

—Lorraine Shanley, 2016

Page 51: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Creating New Revenue Streams for Authors + Brands Around Personalized Books As Gifts

Personalized Book

Personalized versions of print or digital books.

Personalized Gifts based on books

Personalized non-book gifts include puzzles, placemats, wall

art and more.

Non-Personalized Gift Non-personalized, non-book gifts

include things like plush, to be bundled with book product.

Non-Personalized Book

The trade version of a book, in print or digital. The same product that could be purchased in stores.

non-

pers

onali

zed

pers

onali

zed

physical + digital book non-book gifts

CONFIDENTIAL

Page 52: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Ingram sees personalized publishing as a strong growth area both for trade publishing

and also for our print and fast distribution capabilities.

In creating Put Me In The Story, Dominique Raccah and her Sourcebooks colleagues foresaw this trend, locked up premium

content with licenses, and have started an unbelievable franchise that is only scratching

the surface of its potential.

—John Ingram, March 2016

Page 53: Through the Looking Glass: The Past, Present and Future of Children's Publishing - Digital Book World 2016

Questions? Thoughts. Comments.

[email protected] @draccah