“Secrets of Digital Publishing”

February 2010

Agenda• About Us

• Fresh Facts

• “The Secrets”

Secrets of Digital Publishing“They” Don’t Want You To Know About

About Us

The Perseus Books Group is an independent company committed to enabling independent publishers to reach their potential whether those publishers are Perseus-owned, joint ventures or owned by third parties. Member publishing programs include Avalon Travel, Basic Books, Civitas. Da Capo, Lifelong Books, Running Press, Seal Press, Vanguard Pressand Westview Press, as well as partnerships with Public Affairs andNation Books and joint ventures with Weinstein Books and The Daily Beast (Beast Books).

Through Consortium, Perseus Distribution, and Publishers Group West, the Perseus Books Group is also the leading provider of sales, marketing, and distribution services to independent publishers. For more information, visit our website at http://www.perseusbooksgroup.com.

Ask us about Constellation Digital Services:

http://www.perseusdigital.com/constellation

Presented by:

Rick Joyce, Chief Marketing Officer

Rick.Joyce@perseusbooks.com

Peter Costanzo, Director of Online Marketing

Peter.Costanzo@perseusbooks.com

Fresh Facts:Independent Publishers Attitudes towards Digital Issues

• Survey Conducted in February 2010

• Presented to Independent Publishers

• Clients of PGW, Consortium, Perseus Distribution

• 70 Publisher Respondents

• Broad representation by Size, Geography, and Publishing Focus

2010: More eBooks, More Social Media, More Direct

eBooks Social Direct to All of the Enhanced Other Media Consumer Above eBooks

eBooks for 2010? 50/50

eBook Barriers - Many Rivers to Cross

Poor fit Piracy Retailer Cost of Waiting Poor Confusion Need forOf titles w/ Pricing Conversion for eBook Handling About a Digital Device Market to of Color Technology, PartnerCapabilities Develop Standards,

Further or Process

43% “Simultaneous Print & Digital” Strategy

Simultaneous Wait & Other Experiment WindowPrint & eBook See w/Windows

Pdf still predominates

Promotion – Everything Everywhere

Promote all Promote Dedicated None of Formats Physical eBook the aboveEverywhere Primarily Marketing

Piracy: Opinions on Vary W i d e l y

Requires A Form of It’s a Dangerous Unsure PrimarilyMonitoring Trial, Can Fairly & Growing, a TechnicalProcess Lead to Small Must Be FixChanges & Consumer Problem AggressivelyEducation Awareness Addressed

6.5%

38.7%

iPad – Unsure Meets Hope

Too Soon Will Be A Will Be a Will Take Unsure/ To Tell Significant Powerful Awhile to Other Reading Platform, Achieve

Platform But Reading Broad Secondary Penetration

Agency Model? Too Soon to Tell.

Unsure Yes at Yes at Other No Yes Unless 70%+ 50 to 70% Price Ceilinged

48.3%

Freedom to Price at Will (or at least over $10)

No Fixed $9.99 to $14.99 to Bundle Other $.99 to Over $20 Pricing $14.99 $19.99 w/Print $9.99

“Shhhhhhhhhh” (The secrets)

Enhanced = Organic (= Hard)

• Rethinking Page Layout• Click-to-show illustrations• Animating the right sequences• Non-navigation navigation• What wants to be audio?• Casting “the Shake”• Adding relevant hotlinks• Keeping your Spot• Getting the Voice Right

Click Image for Video Demo

Less is More, Different is Good

Snapshots• Bite Size Chapters• Popular Sections• Repurposed Content• Built on Digital Databases• Mix, Match, Mash• Digital Print, Digital Editions

iPhone Apps• The Louvre• The Musee D’Orsay• Versailles

Building for Speed & TimelinessMay 2008: Book hits #1 on NYT list,Digital only solution to meet demand.

June 2009: Instant book created in 48 hours at Perseus BEA Booth in all formats, print, digital, and audio.

January 2010: e-Book released.February 2010: p-Book released.Total production time = 3 months

Prepare for Pricing

Pricing Old World – Before Publication

• Acquisition P&L Analysis, comps, etc.

• Page count, trim size, special effects, etc.

• List price

• Retailer Decision

Pricing New World – Before & After Publication• Monitor Retailer Pricing• Version Pricing• Monitoring, Analyzing, Testing• Dynamic Pricing

Deep on Devices

• Wait and See = Let Others Learn• Devices will Keep Changing• Successful Features in Unsuccessful Devices• Capabilities Can Inform the Product• Understanding User Experiences

QA is the New Edit - Times 10

• Test title on each device

• Test what happens to rendering at each font size

• Test each live link

• Test each functional action

• Test product discovery

• Test purchase

• Give it to a newbie & re-run

• Who will the customer complain to if it doesn’t work properly?

Fail Better

• Newton iPad

• DOS Windows

• Experiments Insights

• The New starts unprofitably

• Sneakerware Success starts inefficient

• Scaling success changing ourselves

Thanks!