Presentation Title: "A Time of Great Change: Insights from top publishing executives on the future of our business". Presented May 7, 2009 at BISG's 6th annual Making Information Pay conference (http://www.bisg.org/conferences/mip6.html).

1. A Time of Great Change:
Insights from top publishing executives on the
future of our business
Book Industry Study Group
Making Information Pay 2009
May 7, 2009
Leigh Watson Healy
Chief Analyst
lhealy@outsellinc.com
© 2009 Outsell, Inc. All rights reserved.

2. About Outsell
The only worldwide syndicated research and advisory firm
serving the media and information industry.
• Global team of 50+ professionals
• Tracks information sectors in the US, Europe, and Asia
• Fact-based analysis of
markets, companies, trends, technology
• Actionable advice to private and public institutions
• Subscription, membership, and custom consulting services
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© 2009 Outsell, Inc. All rights reserved.

3. Insights from Industry Leaders
• How is the industry faring?
• What is good performance in 2009?
• What are publishing leaders doing?
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4. What’s Going On Out There
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5. Meltdown
• Industries get wake-up calls
• Ego-driven, unhealthy vs.
transparent, accountable
• Mass markets vs. long-tail
• Industrial age vs. knowledge age
• Recession accelerating structural
change
• Not on the other side yet
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6. Signs Appearing
Out In
• Consumption • Conservation
• Spending & credit • Barter & saving
• Secrecy • Transparency
• Authoritative • Shared voices
• Big • Small
• Living in future • Living in moment
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7. Longer Term
• World is global for knowledge
• National & local for physical goods
• Sustainability & citizenship are in
• “Trust is the new greed”
• “Flat is the new up”
• Change always takes longer
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8. What Is Good Performance
in 2009?
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9. Segment Performance, 2009
• BISG data confirms flat is the new up
• Book publishing revenues flat in 2009
• Adult & juvenile trade – flat to slight growth
• Professional, scholarly – slight growth
• Elhi and college – single-digit decline
follows 2008 growth
• Religious – decline less steep in 2009
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10. Companies Doing Well
• Market share/brand leaders
• Innovators and boutiques
• Real-time data/work-flow solutions
• Tactical support or lead generation
• Digital DNA
• Cash positive and building
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11. Benchmarks & Innovation Metrics
• Revenues on par or better than
segment growth
• 55%+ gross margins
• 10%+ net income
• $215K+ revenue per employee
• 13% revenue from new products
• New product cycles – 2 to 9 months
• Price increases 5% or less
Respondent Base: 62
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12. What Publishing Leaders
Are Doing
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13. Leader Sentiment
• Expect return to growth by Q2 2010
• Staying head-count neutral
•Salary freezes & reductions
•Exiting poor performers
• 3 budget scenarios
• Recession as opportunity
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14. Top Planned Investments
• Sales & marketing
• New product development
• Technology – digital tipping point
• Staffing (editorial, IT)
• Process & infrastructure redesign
• Global expansion
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15. Innovation: Remains Essential
Source: CartoonStock
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16. “We’re moving from a physical war
fought with weapons to an economic
war fought with information. We must
restructure our business to fight this
war and challenge our business
models, cost models, etc.
It is all shifting.”
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17. Five Key Themes for 2009
• Content/platform & experience
execution
• Business model focus & execution
• Social media/community execution
• Strategic marketing & product
marketing execution
• Operational execution
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18. No Guts, No Glory
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19. Come By and Visit Us
Outsell, Inc.
330 Primrose Road, Suite 510
Burlingame, CA 94010
Tel. 650.342.6060
25 Floral Street, Suite 1.02
London, WC2E 9DS
Tel. +44 (0)20 8090 6590
http://www.outsellinc.com
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© 2009 Outsell, Inc. All rights reserved.