NFAIS MOBILE workshop

MARCH 16, 2012

Read 2.0 is mobile (and global)

This morning’s presentation2

A mobile contextGlobal trendsCurrent options for mobile content

consumptionImplications for content creation and

management

Mobile content consumption: core take-aways

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Expanding rapidlyGlobal implicationsDedicated and multi-function devicesContent forms evolving along with the

platforms

Headlines (begin to) tell the tale4

Things are changing fast, and faster

Smartphone use grew an estimated 40% in 2011

Social networking on mobile devices grew 240% in a single year

Tablet sales doubled in 201172% of the U.S. workforce is “already mobile”Mobile is expected to “trump laptops and

desktops” and become the “first screen” for web access by 2013

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Source: Chief Content Officer

Mobile is busting out all over

US leads the waySignificant expansion expected in UK, FranceEmerging: Spain, Germany, NetherlandsRegional rights sales can be a challenge

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Digital reading in major markets

Sources: Barclays Capital, PwC, Magellan analysis

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Digital reading in emerging markets

Sources: Barclays Capital, PwC, Magellan analysis

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How do you qualify emerging markets?

Affordable, attractive eReading devicesWide range of content (okay if it’s trade)Perceived price competitivenessStraightforward interfaces… and maybe see if your content is being

pirated

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Keys to mobile reading success10

Wireless coverageSeamless transactionsExtensive content librariesDevice reliabilityContent interoperability

Adapted from work by Andrew Brenneman, Book Business

Technology: changing the reading landscape

Content forms are evolving as platforms emergeToday: web, text, apps, search, (some) adsNew options are emerging

Location-based services (LBS)

QR codes

Near-field communication (NFC)

Dedicated eReaders and multifunction devicesTablets may supplant other devices for reading

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Already: iPad eating away at print news

University of Missouri survey of 1,600 iPad users

84.4% cited “following current events” as a primary use for their iPad [good news]

Almost half claimed an hour or more per day is spent reading news

Of those heavy news consumers, 58% said they were likely to cancel print; 10% had already cancelled

Key factor: price [bad news]

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Sources: Journalism Institute at the University of Missouri; Macworld March 2011

The appeal of mobile reading13

PortableSearchableBroader selection“In the moment” (immediate, interactive,

relevant, updated)Increasingly “webby”: open, social, linked

A cross-section of digital content models

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Typically supported using web-based

wireless applications

Opportunity to develop and

implement device-based apps

Source: Alisa Bowen, Thomson-Reuters; Magellan analysis

Mobile reading segments: a range …15

• Sony Reader

• Amazon Kindle

• BN Nook

• Kobo Reader

• … and many more

• iPhone (Apple)

• Blackberry (RIM)

• Android (Google)

• Microsoft (Windows)

• Apple iPad

• Samsung

• Motorola

• RIM

• Kindle Fire

• Nook Color

• Kobo

… with differing use profiles16

Source: Nielsen, February 2011

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Source: Forrester Research; Magellan research

Part of an evolving e-reading value chain

Designing for mobile is “the new black”

Desired: a consistent user experience across multiple digital channels

“Fat-finger” challengesSearch options must be omnipresentSpeed matters (so, optimize for the platform)Sharing matters (“likes”, recommendations,

reviews)Increasingly, geo-location features matter

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A significant challenge: formats19

Today: Device + Format +

Discovery + Acquisition +

Installation + DRM = “Confusion”

“Confusion” courtesy Peter Brantley, Internet Archive

Proliferation of file types and DRM options

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Segment Options

File types RTF and PDFBBeB.lit, mobi and AZWPDB and FB2HTML, RB, CHM and OEB… and EPUB

Digital rights management

Microsoft ReaderAdobe Digital EditionseReaderMobiApple FairPlayDNL… and others

Adapted from work by Neelan Choksi

Salvation in the cloud?21

Platforms, devices and carriers22

Apple iPhone OS

Android

Windows

Blackberry

Leading platforms

Market share for smartphone platforms

Platform Nov 2010 Nov 2011 Change

Android 26.0% 47.0% +21.0

Blackberry RIM 33.5% 6.0% -27.5

Apple iOS 25.0% 43.0% +18.0

All other 15.5% 4.0% -11.5

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Source: Nielsen

Because mobile devices are replaced often, market shares can shift quickly…

Platform share among “recent acquirers”

Platform Share of recent acquirers

Android 46.9%

Apple iOS 44.5%

RIM Blackberry 4.5%

All other 4.1%

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Source: Nielsen Mobile Insights (December 2011)

Shifts like these can affect the willingness of app developers to work with a given platform.

Market share for leading devices

Device 3Q 2010 3Q 2011 Change

Nokia 28.2% 23.9% -4.3

Samsung 17.2% 17.8% +0.6

LG 6.6% 4.8% -1.8

Apple 3.2% 3.9% +0.7

ZTE 1.9% 3.2% +1.3

RIM 3.0% 2.9% -0.1

HTC 1.6% 2.7% +1.1

Motorola 2.1% 2.5% +0.4

All others 36.3% 38.1% +1.8

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Source: Gartner, November 2011

Although Apple trails in the share of leading devices, it outpaces all providers in revenue earned from its mobile

devices.

Mobile platforms vary widely by country

Platform USA Canada UK France Spain Germany

Apple 35% 77% 42% 64% 56% 59%

Blackberry

28% 8% 35%

Android 27% 8% 12% 19% 20% 21%

Nokia 6% 14% 8%

Other* 11% 7% 12% 11% 9% 12%

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Source: iCrossing, February 2011

These figures reflect operating systems for all mobile devices in use. “Other” includes Nokia and Blackberry in markets where they are not

broken out.

Four carriers dominate the U.S. market

Carrier Market share (2010)

Verizon 37%

AT&T 31%

Sprint 16%

T-Mobile 11%

All others 5%

Total mobile subscribers

290 million

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Source: Wireless Industry News

Practical implementation advice

Know the devices your audience usesTrack usage behaviors and be ready to adjustCreate and align user-experience “maps”

across platforms (web, mobile, apps)Set usage and engagement goals that track

across multiple platformsRemember that a bad app is worse than no

app

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Source: Publishing Executive; Association Media & Publishing

Preparing for new digital models

Be sure that rights are well-tracked and up to date

Know where your files are (ideally, in-house)Align your metadata with partner

requirementsIf you want to sell content components, plan

aheadThink globally

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If you are just getting started

Think EPUBSimple before enhancedIf enhanced, think platform

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If you are prepared to go global

Direct sales? Devices and markets are complex

Partners can helpIf geographically focused, you can chooseWorldwide rights gaining in value

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Either way: “Look Homeward, Angel”

Subscription and component salesCost containment and agile contentPiracy can point out demandKeep up with VATBuy and use eReaders

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Publisher options for rich-media strategies

Consider using one of the digital magazine vendors

Market broadly (print, digital mag, app) and let the audience choose the format

Don’t just give away content Limit web-based content to a subset until registered

Limit app-based access until log-in/subscribe

Where applicable, sell cross-platform advertising

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Source: Publishing Executive

Mobile content consumption: core take-aways

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Expanding rapidlyGlobal implicationsDedicated and multi-function devicesContent forms evolving along with the

platforms

Looking ahead

“What matters is trying to figure out how to work with the audience and how to help them find out what it is they want to find. People, I think, will pay for that.”

- Nick Bilton, NYT.com

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Source: Associations Now

For more information36

Book Industry Study Group (www.bisg.org) , “Consumer Attitudes Toward Digital Publishing” (two-volume study)

A mobile bibliography, http://bit.ly/9iaZPQ

Livres Canada Books, “Exporting digital books: A guide to best practices”

Barclays Capital, “eBooks – Digital positive for once?”

Outsell, “Worldwide eBooks market size and forecast report”

PwC, “Turning the page: The future of eBooks”

The Bookseller’s “FutureBook” annual surveys (2009 – 2011)

brian.oleary@magellanmediapartners.com