O'Reilly Tools of Change 2013.
Panel: The Elusive Netflix for Books
Introduction of 24symbols and its standpoint re: the present and future of subscription-based services for ebooks.
7. When talking about “Netflix for Books”, “Spotify
for Books” or “Subscription Services for
eBooks”, we should not circunscribe ourselves
to the revenue model. The business model will
only work as long as other key elements take
the most of what technology, reading devices
and specific approaches to how people find and
read books provide to us.
12. First key element is “books on the cloud”
For readers: no worries about where books are,
simplicity in how books are found, accessed and
kept
For publishers: DRM becomes a non-issue; real-
time analytics dashboard becomes a real asset
Evolution of books: in some cases, books need
to evolve continuously.
20. Readers will mainly want to read books. Of
course.
But potential readers have many other
entertainment opportunities
There are many other ways to increase
engagement
• Social Reading is one
• Recommendations is another
But there are many more:
• Mining the content of books
• Linking the content of books
21. Of course, the obvious: share with your friends.
But much more: communication among
readers, first step towards a better
recommendation system based on friends and
tastes, beyond “purchases”
And it must happen inside and outside of the
service
This is the “engagement” side of the equation.
Critical.
22. Breaking
the wall
between the
book and
the
readers…
27. … not just for fun…
■ Edition, Author and
Publisher Pages
■ Sharable in
Facebook, Twitter,
Google+ (virality)
■ Organic positioning
in search engines
31. But that’s a huge challenge for MOST
publishers… and for readers
Big Publisher
I just wanted
to read a
book…
Great Publisher
Cool Publisher
32. D2C is a clear opportunity for publishers
But it is also a huge challenge: most publishers
lack a brand
• People look for authors, books, categories, but not for
publishers
• Many publishers are generalists
That’s where getting the most of a publishing
hub makes sense
33. “Book as a Service” provides a real HUB
for readers, publishers and authors
47. Subscription models look for ways to increase
revenues, but in a different way:
• Offer a great service
• Offer great content
• Pay once, FORGET ABOUT IT
• Have new stuff everytime readers come back
• In summary: create value, constantly
How do you avoid the initial chasm?
• Our approach: FREEMIUM!!!
49. Freemium =
Free: read ebooks, free and with non-
intrusive ads
Premium: ad-free, even without
Internet connection. Price by
subscription
Affiliation: we redirect traffic to your
site or wherever you sell your printed
books
50. Income model
24symbols income is based on advertising and
subscriptions.
70 % of this revenue is shared equally among the
total number of pages read.
70% Income Publisher's
Publisher’s = x
Income Pages Read
Total Pages Read
52. 1. Freemium increases engagement
Free
Users
Conversion
Rate
Delayed subscription
(test the service & engage)
Premium
Lower entry ratio Time
Then, work on conversion
57. A subscription service on the cloud is the best
fit for an ebook platform
A place where readers can read, and other
companies can create added-value services for
their customers: recommendations, content
mining, book interlinking, … imagination is the
limit
And potentially open for standards, research,
etc.
58.
59. So, elusive? Nah, I don’t think so
110000
100000
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@justohidalgo
60. Just a typical adoption lifecycle
http://toc.oreilly.com/2013/02/the-four-stages-of-the-spotify-for-ebooks-adoption-model.html
61. Thanks for your time!
Justo Hidalgo
jhidalgo@24symbols.com
@justohidalgo