E-book industry in S.Korea

Team8 Gaee | Jihee | Jaehoon

E-book industry in S.Korea

eBook Industry in S.Korea

2nd Trimester | Internet Business Professional Engagement Project

Contents

1.  Domestic eBook market situation 2. eBook failed in Korea 3. Business Opportunity and threats 4. Solutions

Domestic eBook Market

The domestic market

Stagnation

o  In 1999, Booktopia came out

o  With many problems, the company broke down

o  → Stagnation for a decade

o  Sales of e-book is going up in online market

Domestic eBook market

In 1999, Booktopia came out !

With many problems, the company broke down → Stagnation for a decade

Sales of e-book is going up in online market

The domestic market

Domestic eBook market

Foreign market Domestic market

Growing market magnitude, Fluctuation of growth rate over 6 years

The domestic market

Domestic eBook market

Market share ratio by genre and customer age group

Value Chain

Domestic eBook market

Value chain comparison with existing publishing players

Failure of eBook in the past

Domestic eBook market

Why did eBook fail?

ü  Lack of contents

ü  Legal battles for fixed book prices

ü  Difficult to sell devices due to stiff market

ü  Reduce investment after falling of BookTopia

ü  Fail to release new model

ü  Low demand in B2B market

ü  Lack of active participation with publisher

Business Opportunity

Analysis

Opportunities

Domestic market

Growth of Domestic eBook Market 1. Increasing number of mobile device users

0  

500  

1000  

1500  

2000  

2500  

3000  

3500  

4000  

2010   2011   2012  

Number  of  users  

Smartphone   Tablet  PC  

Business Opportunity Analysis

Opportunities

Domestic market Year 2004 2005 2006 2007 2008 2009 2010

Number 31,194 3,281 45,029 6,987 246,882 2,034,961 360,840

Korea Electronic Publishing Association, 2010

3. Diversification of E-Book Contents

Comics ü  SF ü  Literature ü  Novel

4. Support from Government

60 billion won, during 5 years (MCST)

2,228 billion won for eTextbook, 2015 (MOE)

Growth of Domestic eBook Market 2. Increasing number of eBook contents

Business Opportunity Analysis

Problems in eBook market

Domestic market

•  Cannibalization of paper book

•  Cost of E-Book and paper book

•  No standard E-Book technology

ePub from IDPF (International Digital Publishing Forum)

DRM (Digital Rights Management) related problems

Customer’s inconvenience

On the process of paradigm shift Problems in Transitional period

Business Opportunity Analysis

Problems in eBook market

Business Opportunity Analysis

Domestic market

Too many, varied eBook apps

Proposal For the Breakthrough in eBook market

Activating Multimedia based eBook

o  Increased accessibility through various devices

o  More than reading , Listening, watching and feeling

Proposal For the Breakthrough

Proposal

Kids’ Book

Cook Book

News &

Magazines

Story books

No.1

Integrated platform, Necessity of eBook agency

Proposal For the Breakthrough

Proposal

Contents

creation

Print &

Distribution

Whole-

saler

o  Stakeholders all at one place

No.2

Contents

Packaging

Retailer

Purchase &

Delivery

o  Difference from the conventional chain

Contents creation

Contents Packaging

Print & Distribution

Wholesaler

Purchase & Delivery

Retailer

o  Scattered contents, bad UI

o  Scattered contents, bad UI

Proposal For the Breakthrough

Proposal

Contents

creation

Print &

Distribution

Whole-

saler

Contents

Packaging

Retailer

Purchase &

Delivery

o  Stakeholders all at one place

Contents provider

Publishing & Revising

Data Rights Management

Distribution Channels

eBookreader devices

Sales

Publishing Distribution

Integrated platform, Necessity of eBook agency

Proposal For the Breakthrough

Proposal

Contents

creation

Print &

Distribution

Whole-

saler

o  Stakeholders all at one place

No.2

Contents

Packaging

Retailer

Purchase &

Delivery

Integrated platform, Necessity of eBook agency

Proposal For the Breakthrough

Proposal

Contents

creation

Print &

Distribution

Whole-

saler

o  Benchmarking : ISSUU.COM No.2

Contents

Packaging

Retailer

Purchase &

Delivery

ü  Social Curation ü  UI design with high usability ü  Customizable book stacks

o  Fruitfulness of Contents : Crowd sourcing

ü  Individual writers who needs literary career

Proposal For the Breakthrough

Problems in eBook market

ü  The importance of unified DRM|Data Rights Management Developing universal file format

Integrated platform, Necessity of eBook agency

No.2

ü  Sustainable profit structure Adequate pricing / payment system from the end users Efficient contract strategy with existing publishing companies

o  Further considerations

eBook Industry in S.Korea Text and design copyright ⓒ2013 InternetBusiness Limited

First published in 2013 by Team8, 2nd Trimester Internet Business course UNIST, Banyeon-li, Eunyang-eup, Ulju-gun, Ulsan metropolitan city

This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publishers prior written consent in any form of cover or binding other than that in which it is published and without a similar condition including this condition, being imposed upon the subsequent purchaser.

All rights reserved.

SID 20101611| 20101677 | 20111302

Publishing Manager : Gaee Kim Domestic Market Specialist : Jihee Shim Market analyst : Jaehoon Song Production: Gwangwook Kang

Thank you Course price : invaluable