The education market has been a solid market for publishers for years, but with the arrival of digital books, the market has become more challenging and confusing for educators and publishers. However, some companies are finding an expanding market and new opportunities for organic growth. During this session, Todd Brekhus, President of Capstone Digital will describe the huge success of myON reader. MyON reader has added over 25 publishers to the platform and grown to attain over 1.4 million readers. The myON platform, a personalized literacy platform, has over 4,000 interactive titles available from the cloud or through iPad and Android Apps. Terri Soutor will share the early success of Brain Hive, which has wowed the school market with its innovative pay-per-use model, enabling affordable ebook access to schools. With free membership and open, unlimited access to 3,000+ titles from educational and trade publishers, Brain Hive has created a reader-driven ebook lending program for schools and a creative option for publishers to grow digital revenue and access insightful data about e-reading habits and demand. Terri and Todd will provide insight into developments and trends in educational technologies, the evolving use of digital content and mobile technology in the classroom, and what publishers can do to attract and reach education buyers.

1. THE EXPANDING EDUCATION
MARKET FOR DIGITAL BOOKS
Lisa Holton, Moderator
Terri Soutor, @terrisoutor
Todd Brekhus, @toddbrekhus

2. Children’s Publishing Goes Digital
Terri Soutor, VP

3. Digital Shift in Schools
• $42M spent on eBooks in U.S. schools last year
• 47% of school libraries currently use eBooks
and 25% plan to use with next year
– 62% of high schools
– 50% of middle schools (fastest growing segment)
– 39% of elementary schools
• Avg. # of eBooks ↑ 83% (HS avg. 438 titles)
• eReader, mobile & tablet use in schools is HOT
– iPad sold just under one million units to the
education market in the Q3-2012
• Top eBook adoption motivators:
– Keeping up-to-date with technology
– Educational trends/best practices
– Portability, flexibility in curriculum
• Barriers: budget, complexity, access
Data Sources:
1) The New Normal—Survey of Ebook Penetration &
Use in U.S. School (K-12) Libraries, 2012, published
by School Library Journal and Library Journal.
2) 2011 SLJ Technology Survey.

4. An eBook Alternative for Schools
Schools want to meet growing eBook demand, offer
relevant digital content, and take advantage of all the
benefits eBooks provide for teaching and learning.
Yet, the purchasing models available today are often
complex and cost prohibitive for schools leaving them
searching for an alternative.
Brain Hive™
offers a solution that breaks down the financial
and eBook access barriers to digital adoption in
K-12 schools and school libraries

5. What We Do
• An online eBook service for K-12 schools offering
unlimited access to a $150,000 eBook collection.
• 3,700+ curated titles, plus downloadable teaching
resources and online Accelerated Reader Quizzes for
reading assessment.
• Membership is free for schools—no up-front
investment, no long-term commitment.
• An “on demand” service—members get unlimited
access to eBooks. The school pays a $1
for each 14-day checkout.
• The school isn’t buying eBooks that don’t circulate!
They only pay for what kids are reading – a reader-
driven model with safety nets and spending controls for
the school.
• Goodreads-like experience for kids with book sharing,
reader ratings, favorites, recommendations, and book
clubs.
• Business model = rental. Revenue is created from
volume of individual eBook circulations across
hundreds of schools.

6. Our Publishing Partners

7. Marketing Brain Hive
• Two marketing drivers—school
enrollments & eBook circulation/usage
• Primarily a direct marketing play.
Finding early marketing success with
email marketing and telemarketing
to drive enrollment.
• Large Addressable Market:
There are 90,000 U.S. public schools
(and another 20,000+ private/Catholic
schools) that are prospective Brain
Hive members and 48.5 million
prospective readers of your books!

8. Publisher Benefits
• Low risk. No product development investment.
• Earn new revenue in an underserved market niche; incremental
revenue on existing and new eBooks
(BTW…your titles should be everywhere!)
• Benefit from positive brand perception among educators and parents;
helping to solve an education need = a PR win and you’re reaching book
consumers
• Gain new “preview” opportunities for titles with diminishing retail shelf-
space
• Gain access to quantitative data about e-reading habits and demand for
your titles – valuable data for digital and editorial planning

9. Todd Brekhus
President, Capstone Digital

10. EDUCATION TECHNOLOGY MARKET

11. THE STAKES ARE ENORMOUS:
• 67 percent of 4th graders can’t read at their
grade level
• Kids who don’t read well by 4th grade are
4 times more likely to drop out of school
• Half of these struggling students end up on
welfare

12. TRADITIONAL CONTENT
AND PLATFORMS AREN’T ENOUGH:
• Libraries have long wait lists for popular titles
• Kids have their own tastes,
and encounter many books too hard or easy to
read
• Integrating instructional practices and
online assessment – very difficult

14. myON knows kids individually—age, interests, reading level, books
they’ve read—and suggests other books they might like, at their reading
level

15. Over 4,000 enhanced digital books from over 26 publishers—70%
nonfiction and over 10% Spanish
All books over 1,000 Lexiles have actor read-aloud

16. ADDITIONAL PUBLISHER BUNDLES
AVAILABLE

17. 24/7 unlimited, anytime, anywhere access, available on desktops, laptops,
tablets, and mobile devices

19. “The amount of time that students spent reading because of
technology and access is huge. With our community-wide
Read on myON Project we have achieved 21 years of
reading in just over six months.
This can’t happen at your traditional library.”
MaryEllen Elia, Superintendent
Hillsborough County Public Schools, Florida

20. Building communities of confident readers
Aligning to curriculum and program goals

21. With myON students can track their reading growth and challenge
themselves to strive higher.

23. WHY PUBLISHERS ARE WORKING WITH MYON…
New non-exclusive revenue streams
Dedicated Sales Team, Direct Marketing, and Inside Sales Support – Large
Investment in District Level Relationships
Becoming part of the curriculum through Professional Services and Project
Management
Metrics and data to support publishing efforts

24. MAGIC INSIDE. METRICS INCLUDED.™
www.TheFutureinReading.com