Rob Reynolds, Ph.D.Director of Product Designand Research, Xplana

The Future of Textbooks Publishing in the U.S.

Distributor and Online Retailer for 830 Partner Educational InstitutionsDistribute Digital Textbooks for More than 50 Publishing PartnersLeading Online Retailer in For-Profit, Career, and Distance Education Markets

Digital ContentSocial LearningFree Content

Track 180 News and Information Sites Daily

Publish Daily Newsletter on Industry Trends

Publish Annual Report on Future of Textbooks in Higher Ed

Publish Reports on Student and Institutional Trends

The Xplanation

Growth of the For-Profit and Distance Education Industries

The Mobile Revolution

The Continued Rise of E-books in the Trade Market

Online Retail and Deferred Purchase Patterns

Social Networking

New Publishing Competition and Textbook Paradigms in Higher Education

Number of for-profit institutions:909 1,215

Percentage of all institutionsthat are for-profit:

20.7% 26.2%For-profit as a

percentage of all students5.1% 9.1%

20% + annual growth

For-Profits 2005-2010

Distance Education

More people will access the Internet via Smartphones than desktop or laptop computers by the end of this year

1/3 of the U.S. will be tablet users by 2015

Amazon shipped 7.1 million e-readers last year and will sell as many as 35 million by 2012

Apple has registered more than 10 billion app downloads

The price of e-readers may drop as low as $79 by 2013 and robust tablets will be available for under $200

We predict a tablet market penetration in Higher Education of 15%-20% by the end of 2012

Trade e-books garnered 9%+ of the U.S. book market in 2010 (an increase of over 160%)

Trade e-books will represent 20%+ in 2012

56% of students purchased some or all books from online stores

5%increase in the number of students purchasing all of their textbooks online

Over a third of students deferred textbook purchase this Fall semester. This has increased from 27.8 percent in 2008 and 30.1 percent in 2009.

10% of students shared at least 1 book with a classmate instead of purchasing

4-5% getting by without buying textbooks

Facebook now has more than 600 million users

Leading social media site and emerging as largest photo sharing site

Facebook ranks second in online video

Digital-First Publishers

Google

Amazon

Open Textbook Initiatives(Washington State and Orange Grove)

$2 Billion Grant for OERs

10% of market will be open textbooks and/or free digital content by 2014

25% of textbook market in Higher Education will be digital by 2015

Significant new business modelsDisaggregated contentEverything will go mobile faster than you thinkProduct prices will fall precipitously

Digital content and digital production will be the focus moving forward

Content business models will evolve and content services will gain importance

Content service players will become important integration partners

Content resources

Content tagging

Content authoring

Content distribution

Content sharing

Content integration

What to Look For

04/10/2023 Confidential MBS | Xplana14