Dan Poynter - Mark Coker Presentation: Print Books to Ebooks

ParaPub.comParaPub.com

Creating Digital Reading

© 2009 Dan Poynter Mark Coker

Dan Dan Poynter’sPoynter’s


66 lbs & 26” of Shelf Space66 lbs & 26” of Shelf Space30 kg & 66 cm30 kg & 66 cm

S: Someone printed out the whole thing?


Congratulations onCongratulations on

Attending the Publishing UniversityAttending the Publishing University Deciding to wring more value out of your Deciding to wring more value out of your

work.work. pBooks to eBookspBooks to eBooks


PollPoll

How many have aHow many have a Kindle?Kindle? Sony Reader?Sony Reader? iPhone?iPhone? PocketPC?PocketPC? Other reader?Other reader?

How many publish eBooks?How many publish eBooks?

Still write letters and buy stamps?


Chapter FourteenChapter FourteenProvide a Choice of FormatProvide a Choice of Format

9 editions of the same Work


My HistoryMy History

Selling downloadable documents since Selling downloadable documents since 19961996

Speaking on eBook since early 1990sSpeaking on eBook since early 1990s Reader of eBooksReader of eBooks

eBook author, publisher & readereBook author, publisher & reader


pBook Must Come FirstpBook Must Come First

For credibilityFor credibility For promotionFor promotion

ReviewsReviews To opinion moldersTo opinion molders

S: Cape Town


Who Reads eBooks?Who Reads eBooks?

People on the movePeople on the move PortablePortable Less weight & volumeLess weight & volume

Think outside the (paper) bookThink outside the (paper) book

My travels


Why eBooks?Why eBooks?

Less expensive Less expensive No typesettingNo typesetting No printingNo printing No inventoryNo inventory No wrappingNo wrapping No physical shippingNo physical shipping

Quicker to marketQuicker to market Speed of lightSpeed of light

S: Spm-2 editions


Think GloballyThink Globally

The World is your potential marketThe World is your potential market We are selling information—not hard goodsWe are selling information—not hard goods Distribute via the InternetDistribute via the Internet

No cost to shipNo cost to ship No import dutyNo import duty No sales taxesNo sales taxes Instant deliveryInstant delivery


50,000 Reading Devices50,000 Reading Devices

Amazon Kindle books to iPhone. Amazon Kindle books to iPhone. 500,000 Kindles. 38 million iPhones and 500,000 Kindles. 38 million iPhones and

iPOD Touches.iPOD Touches.

More hardware is coming. Kindle DX, Apple More hardware is coming. Kindle DX, Apple reader, Plastic Logic eReader, FirstPaper, reader, Plastic Logic eReader, FirstPaper,

Some reading devices are large enough to Some reading devices are large enough to replace newspapers and magazines. replace newspapers and magazines.


ContentContent

Amazon Kindle books to iPhone. Amazon Kindle books to iPhone. 275,000 current eBook titles275,000 current eBook titles

B&N and FictionwiseB&N and Fictionwise Lots of current titles. Great site. Lots of current titles. Great site.

Sony and GoogleSony and Google Out-of-print booksOut-of-print books Available to iPhoneAvailable to iPhone

Must give people what they Must give people what they wantwant to read to read


Who is Taking a Piece of the Action?Who is Taking a Piece of the Action?

Distributor* 66% ($13.17)Distributor* 66% ($13.17) Publisher 34%Publisher 34% ($6.78) ($6.78)

Wholesaler* 55% ($10.97)Wholesaler* 55% ($10.97) Publisher 45% ($8.98)Publisher 45% ($8.98)

Bookstore 40% ($7.98)Bookstore 40% ($7.98) Publisher 60% ($11.97)Publisher 60% ($11.97)

Reader 0% ($19.95) Publisher 100% ($19.95)Reader 0% ($19.95) Publisher 100% ($19.95)

Buyer Discount Nets Publisher Retains Nets

Cutting out the gatekeepers in the middle

Based on Book’s List Price: $19.95


How are eBooks Selling?How are eBooks Selling?

tg/stores/d


Digital Rights ManagementDigital Rights ManagementWhat What NeedsNeeds Protection? Protection?

EntertainmentEntertainment Information Information

MusicMusic FictionFiction NonfictionNonfictionAppeals to manyAppeals to many Appeals to someAppeals to some Appeals to fewAppeals to fewUsed repeatedlyUsed repeatedly Used OnceUsed Once Kept as referenceKept as referenceOften sharedOften shared Occasionally shared Occasionally shared Rarely sharedRarely sharedNot revisedNot revised Not revisedNot revised RevisableRevisableMultitaskMultitask Single taskSingle task Single taskSingle task

Protection schemes penalize paying customers. Weigh the Protection schemes penalize paying customers. Weigh the value.value.

Amazon.com provides a locking deviceAmazon.com provides a locking device


Pricing Your BookPricing Your Book Pricing pBooks Pricing pBooks

Top-down: Additional method.Top-down: Additional method. What will the traffic bear?What will the traffic bear?

Bottom-up: Traditional method. Bottom-up: Traditional method. 8x printing and trucking costs8x printing and trucking costs

(After your initial 500 books)(After your initial 500 books)

Pricing eBooksPricing eBooks Top-down only ($4-$8)Top-down only ($4-$8)

No investment in printing, etc.No investment in printing, etc.


eBook ReaderseBook Readers

Amazon Kindle Sony Amazon Kindle Sony ReaderReader


Read Books on Your iPhoneRead Books on Your iPhone

See the video demo at See the video demo at http://www.fictionwise.com/http://www.fictionwise.com/help/iphonefaq.htmhelp/iphonefaq.htm


eBook Reader: Pocket PCeBook Reader: Pocket PC Stores 10,000+ booksStores 10,000+ books Text is one Newspaper-Column Text is one Newspaper-Column WideWide

Type size is adjustableType size is adjustable Address bookAddress book CalendarCalendar

Synchronizes with PCSynchronizes with PC BacklightedBacklighted WirelessWireless WiFi & SkypeWiFi & Skype Stores 3 audiobooksStores 3 audiobooks Google Maps and GPS NavigatorGoogle Maps and GPS Navigator


1. Write Your Book1. Write Your Book

MS-WordMS-Word


2. Convert to Various eBook 2. Convert to Various eBook FormatsFormats

Smashwords.com Smashwords.com (Actually a Publishing Platform & Online Store)(Actually a Publishing Platform & Online Store)

PubDimensions.comPubDimensions.com DetailsPlease.com/eBookDetailsPlease.com/eBook eChapterOne.comeChapterOne.com codeMantra.comcodeMantra.com eBookApp.comeBookApp.com IngramDigital.comIngramDigital.com ScrollMotion.com ScrollMotion.com Shortcovers.com Shortcovers.com

N: More converters


More ConvertersMore Converters

Amazon.comAmazon.com ElectronicAndDatabasePub.comElectronicAndDatabasePub.com ReadHowYouWant.comReadHowYouWant.com Texterity.comTexterity.com


DIY Conversion ProgramsDIY Conversion Programs DropBookDropBook Blackman’s eBook ConverterBlackman’s eBook Converter FeedBooks.comFeedBooks.com eReader.comeReader.com Stanza.lexcycle.comStanza.lexcycle.com Adobe InDesignAdobe InDesign CalibreCalibre BookGlutton.comBookGlutton.com


3. Submit3. Submit

Smashwords.com Smashwords.com LightningSource.comLightningSource.com Amazon.comAmazon.com B&N.comB&N.com

Fictionwise.comFictionwise.com

BookLocker.com (PDF only)BookLocker.com (PDF only)


4. Sell4. Sell

Downloading from your own site is not Downloading from your own site is not recommendedrecommended They handle the order processingThey handle the order processing Dealers have more customers/trafficDealers have more customers/traffic Customer Service expensesCustomer Service expenses


Unique ISBN for Each “Edition”Unique ISBN for Each “Edition”

Get a Block of 100 ISBNsGet a Block of 100 ISBNs

http://www.ISBN.org


Introducing Mark CokerIntroducing Mark Coker


Books are preciousBooks are precious

Receptacles for capturing, Receptacles for capturing, sharing and immortalizing sharing and immortalizing knowledgeknowledge cultureculture

Promote cross-cultural Promote cross-cultural understanding and knowledge understanding and knowledge sharingsharing

We must save booksWe must save books


Are books endangered?Are books endangered?

Print books are too expensivePrint books are too expensive Books face increased competition from Books face increased competition from

alternative mediaalternative media Overall book industry sales in declineOverall book industry sales in decline Many publishers struggling to surviveMany publishers struggling to survive Many talented book trade professionals Many talented book trade professionals

out of workout of work Risk losing bookmaking brain trust?Risk losing bookmaking brain trust?


Will Ebooks Replace Print Will Ebooks Replace Print Books?Books?


eBooks will save publishingeBooks will save publishing

Image credit: movie poster for “Smiley Face,” directed by Gregg Arakihttp://www.imdb.com/video/imdb/vi565313817/


Ebooks are similar to print Ebooks are similar to print books and stone tabletsbooks and stone tablets

Each offers lovingly prepared Each offers lovingly prepared packaged units of wordspackaged units of words

Each delivers words on a substrate Each delivers words on a substrate mediummedium

Each represents a different way to Each represents a different way to enjoy a bookenjoy a book


eBooks failed in the late eBooks failed in the late 1990s, left for dead1990s, left for dead

Paper reading vastly superior to screen Paper reading vastly superior to screen readingreading

OverpricedOverpriced DRM=confusion, frustrationDRM=confusion, frustration Limited selectionLimited selection … … yet the demise of ebooks was greatly yet the demise of ebooks was greatly

exaggerated exaggerated


Wholesale Ebook Revenues Wholesale Ebook Revenues Surpass $100 millionSurpass $100 million

0

20000000

40000000

60000000

80000000

100000000

120000000

2002 2003 2004 2005 2006 2007 2008

Data: AAP http://www.publishers.org/documents/S12008Final.pdf58% compound annual growth for 6 years vs. 1.6% all books


Annual growth rates, p- & e-Annual growth rates, p- & e-

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

2003 2004 2005 2006 2007 2008

All Books

Ebooks

Data: AAP http://www.publishers.org/documents/S12008Final.pdf


Monthly growth, y-o-y eBook Monthly growth, y-o-y eBook vs. overall marketvs. overall market

Data: AAP http://www.publishers.org/

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

All book sales

Ebooks only


Do eBooks Really Matter?Do eBooks Really Matter?

$113,220,000 (ebooks)

$24,225,025,000 (all books)

= 0.467%AAP sales data 2008


Do eBooks Really Matter?Do eBooks Really Matter?

= 0.6%

Source: 2008 Bowker PubTrack Consumer survey of book-buying behavior


Yes eBooks Matter!Yes eBooks Matter!

Q1 2009

= 2.4%Up from 0.6% for all of 2008

Source: Bowker's PubTrack Consumer survey of book-buying behavior


Stats understate results of Stats understate results of early ebook participantsearly ebook participants

Build it and they will comeBuild it and they will come For books available in both e- & For books available in both e- &

p-, in Feb ‘09 Amazon reported p-, in Feb ‘09 Amazon reported that 10% of sales were ebooksthat 10% of sales were ebooks


Why ebooks are hotWhy ebooks are hot

Screen reading (almost) rivals paperScreen reading (almost) rivals paper Amazon + OprahAmazon + Oprah iPhone (Stanza 1.8 million users)iPhone (Stanza 1.8 million users) Free books are gateway drugFree books are gateway drug Greater content selectionGreater content selection Prices coming downPrices coming down Digital shelves appearing everywhereDigital shelves appearing everywhere Impulse buyingImpulse buying Early adopters new evangelistsEarly adopters new evangelists DRM on its way out?DRM on its way out?


Why eBooks will become Why eBooks will become moremore popular than paper popular than paper

Ebooks will offer superior reading experienceEbooks will offer superior reading experience Screens will become Screens will become betterbetter than paper than paper Changeable font sizeChangeable font size Portable & compactPortable & compact Library in the cloudLibrary in the cloud

eBooks as hubs and spokes within richer, more eBooks as hubs and spokes within richer, more immersive experiencesimmersive experiences

Huge selectionHuge selection Ebooks are cheapEbooks are cheap


eBook opportunity for eBook opportunity for publisherspublishers

Publishers become more importantPublishers become more important curators of contentcurators of content

Digital opens worldwide marketDigital opens worldwide market Lower cost = higher per-unit margin Lower cost = higher per-unit margin

lower cost = larger available marketlower cost = larger available market No inventoryNo inventory No product returnsNo product returns No shippingNo shipping

Digital enables serendipitous discovery Digital enables serendipitous discovery Digital shelves everywhereDigital shelves everywhere instant samplinginstant sampling impulse purchasesimpulse purchases

Supply chain disintermediationSupply chain disintermediation


How eBooks will impact book How eBooks will impact book supply chain for publisherssupply chain for publishers

printerP-publisher Shipper/w/d customerbookseller

E-publisher customerebookseller

E-publisher customerebooksellerE-distributor

E-publisher customer

E-publisher affiliateebooksellerE-distributor customer


Winners and losers in new Winners and losers in new ebook supply chainebook supply chain

WinnersWinners Publishers and authors!Publishers and authors! Ebook distributors/e-retailers/digital shelf owners/tool makersEbook distributors/e-retailers/digital shelf owners/tool makers Readers!Readers! Ebook reading device makersEbook reading device makers

LosersLosers Tree growers, tree pulpers, ink/glue/printing press makers, Tree growers, tree pulpers, ink/glue/printing press makers,

printers, warehousers, truckers, oil producers, box makers, printers, warehousers, truckers, oil producers, box makers, remainderers, remainderers,

slow-to-adapt print publishers, print bookstores slow-to-adapt print publishers, print bookstores


Amazon eats lunch of big box Amazon eats lunch of big box bookstoresbookstores

10 year percentage change in stock price, Amazon, B&N, Borders


How the market values How the market values Borders, B&N, AmazonBorders, B&N, Amazon

Market capsMarket caps Borders: $130 millionBorders: $130 million Barnes & Nobel: $1.2 billionBarnes & Nobel: $1.2 billion Amazon: $32 billionAmazon: $32 billion

AMZN 246X more valuable than Borders, 26X more valuable than AMZN 246X more valuable than Borders, 26X more valuable than B&NB&N

P/S ratiosP/S ratios Borders: .04Borders: .04 Barnes & Nobel: .24Barnes & Nobel: .24 Amazon: 1.62Amazon: 1.62

Every AMZN sales dollar 40x more valuable than Borders, 7X Every AMZN sales dollar 40x more valuable than Borders, 7X more valuable than B&Nmore valuable than B&N


Amazon positioned to control Amazon positioned to control ebook marketebook market

Power over publishersPower over publishers Devicemaker - KindleDevicemaker - Kindle Mobile ebooks - Acquired Lexcycle (Stanza)Mobile ebooks - Acquired Lexcycle (Stanza) Amazon as publisher - Amazon Encore/Digital Text Amazon as publisher - Amazon Encore/Digital Text

Platform/Booksurge/CreateSpacePlatform/Booksurge/CreateSpace Amazon as community provider - Amazon.com, Shelfari Amazon as community provider - Amazon.com, Shelfari

acquisitionacquisition Amazon audio books - Audible acquisitionAmazon audio books - Audible acquisition Amazon as after-market aggregator - acquired AbebooksAmazon as after-market aggregator - acquired Abebooks Big squeeze - eliminated Kindle books from affiliate programBig squeeze - eliminated Kindle books from affiliate program Proprietary lock in - Requires their DRMProprietary lock in - Requires their DRM


Survival strategy for Survival strategy for independent publishersindependent publishers

Work with AmazonWork with Amazon Develop alternative channelsDevelop alternative channels Build closer relationship with customersBuild closer relationship with customers

direct customers to publisher-friendly e-retailersdirect customers to publisher-friendly e-retailers offer incentives for customers to form relationship with youoffer incentives for customers to form relationship with you

coupons for registration datacoupons for registration data exclusive sneak peeks, author eventsexclusive sneak peeks, author events

Learn to think like a software companyLearn to think like a software company


Publishers in the software Publishers in the software business nowbusiness now

eBooks = softwareeBooks = software selling digital bitsselling digital bits

low cost duplicationlow cost duplication no shipping costsno shipping costs no after marketno after market high profit marginshigh profit margins different ways to market, price and sell contentdifferent ways to market, price and sell content

dealing with piracydealing with piracy Multi-format is essential (see next slide)Multi-format is essential (see next slide)


Why Multi-Format MattersWhy Multi-Format Matters


How to do eBooks rightHow to do eBooks right

New thinking requiredNew thinking required ebooks consumed differently than print booksebooks consumed differently than print books liberate text from complex formatting and layoutliberate text from complex formatting and layout

don’t try to make e- look like p-don’t try to make e- look like p-

Straight form narrative works bestStraight form narrative works best picture books, complex layout, more challengingpicture books, complex layout, more challenging

Use DRM-free as competitive advantageUse DRM-free as competitive advantage lead the change, don’t be victimized by itlead the change, don’t be victimized by it

Explore new options for pricing, marketing and sellingExplore new options for pricing, marketing and selling


Ebook pricingEbook pricing

Rethink fixation on list price and “revenues”Rethink fixation on list price and “revenues” Profit matters moreProfit matters more

Simple economicsSimple economics High price = limited marketHigh price = limited market Lower price = larger marketLower price = larger market

Ebooks enable lower prices, higher per-unit Ebooks enable lower prices, higher per-unit profits, larger available marketsprofits, larger available markets


The power (and danger) of The power (and danger) of FREEFREE

FREE as a strategy for sampling, seeding and FREE as a strategy for sampling, seeding and audience buildingaudience building Eliminates frictionEliminates friction Gets buyers closer to your product and brandGets buyers closer to your product and brand Conversion opportunitiesConversion opportunities Builds goodwillBuilds goodwill

But don’t go overboard!But don’t go overboard!


Ebook marketing modelsEbook marketing models

Go viral with social media marketingGo viral with social media marketing community reviews (Librarything, Goodreads)community reviews (Librarything, Goodreads) social networks (Twitter, Facebook, LinkedIn)social networks (Twitter, Facebook, LinkedIn) blogsblogs give customers tools to do your marketing for yougive customers tools to do your marketing for you

widgets (shareable, interactive ads)widgets (shareable, interactive ads) couponscoupons sample sharingsample sharing


Ebook samplingEbook sampling

Sampling, seeding, audience buildingSampling, seeding, audience building percentage samplingpercentage sampling

via online readersvia online readers via file downloadsvia file downloads make samples shareablemake samples shareable

free booksfree books


Ebooks selling modelsEbooks selling models

Multiple selling models possibleMultiple selling models possible a la cartea la carte buffetbuffet hors d'oeuvreshors d'oeuvres subscriptionsubscription Radiohead - pay what you wantRadiohead - pay what you want shareware - pay on the honor systemshareware - pay on the honor system free?free?


Final wordsFinal words

Develop and implement an ebook strategy nowDevelop and implement an ebook strategy now late movers face permanent disadvantagelate movers face permanent disadvantage experimentexperiment

launch quick, iterate frequentlylaunch quick, iterate frequently

rethink pricingrethink pricing

Physical shelves disappearingPhysical shelves disappearing leverage community to build digital shelves everywhereleverage community to build digital shelves everywhere

Diversify distributionDiversify distribution Get closer to your customerGet closer to your customer


QuestionsQuestions

““Electronic books are not Electronic books are not goinggoing anywhere—they are already here." anywhere—they are already here."

4

Is there anything we can clarify for you?

Where to find Mark Coker:

Web: www.smashwords.com

Blog: blog.smashwords.com

Twitter: @markcoker

Email: [email protected]

Where to find Dan Poynter:

Web: www.parapub.com

Sign up for the FREE Publishing Poynters ezine

Twitter: @danpoynter

Email: [email protected]


Coming AttractionsComing Attractions

Luncheon Keynote. Luncheon Keynote. 12:00 – 2:00 P.M. Today12:00 – 2:00 P.M. Today

Give the E-Readers What They Want—Content Give the E-Readers What They Want—Content Delivery in a Digital FutureDelivery in a Digital Future

Presented by Presented by Mark Coker, SmashwordsMark Coker, SmashwordsNeelan Choksi, Lexcycle Neelan Choksi, Lexcycle Daniel Albohn, Sony Daniel Albohn, Sony Tricia Roth, ReadHowYouWantTricia Roth, ReadHowYouWant

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Dan Poynter - Mark Coker Presentation: Print Books to Ebooks