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Scott Gray
Officially change the name of this talk: “Adding enough value to digital content to actually make money.”   to  “Here’s what I’m thinking”
“I want my movies to make a lot of money because I want to make more movies” – Steven Spielberg “ It’s easy to make money if all you want to do is make money” – Citizen Kane
[object Object],[object Object],[object Object],[object Object]
O’Reilly is at the Forefront of publishing  ,[object Object],[object Object],[object Object],[object Object]
Analogy: B to C Online market = Serengeti plain Different body types evolved to take advantage of different opportunities
Review of Publishing Business
Sales curves for individual books Not such a bad thing: Shows Market saturation
Google (free) is forcing publishers hand to digital content
Google is a herd of Wildebeest
Arguments for digital content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Big numbers online!
O’Reilly has been out exploring the  Serengeti with different species (different kinds of business Models)
O’REILLY statistics via Hitbox ROI, conversion ratios, revenue, and traffic analysis.
Online Business Models (ways to collect revenue) ,[object Object],[object Object],[object Object]
Advertising (lifted from Tim) ,[object Object],[object Object],[object Object],Building a $10 million dollar division.
Video Ads (lifted from Nat’s Radar post) ,[object Object],[object Object],[object Object]
Revenue = P*C*N P = Price C = Conversion Rate N = Number of Visitors E-Commerce C = is virtually the same, and independent of P N = is less for High P
Revenue = P*C*N Higher  Returns Lower  Returns
The short head Vs. the long tail  for digital content. These graphs Don’t intersect!
[object Object],[object Object],[object Object],Let’s do some Math ( Goal $10M) Suppose you’re conversion rate on your  own  site is 1%
[object Object],[object Object],[object Object],[object Object],[object Object],Let’s do some math (Goal $10M) suppose it’s half (.5%) for higher priced products
Subscription Model (raises P) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Can we go from free to subscription? Sports sites for example
Other Advantages of premium online ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Most of the nutrient rich food for B to C publishers is up high in the trees.
Ways to increase P (premium business) ,[object Object],[object Object],[object Object],[object Object]
Be Patient, it takes a while to grow premium business
 
Online School offering courses and  certificate programs in Information  Technology and Systems. In partnership with
E-Learning Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some examples of how different the business models are: Skillsoft – 6,000,000 users @ $40/user (hr managers choose) Capella – 16,000 users @ $16,000/user. (end users choose)
 
Good Value @ $5000!
How we add value
OST is different ,[object Object],[object Object],[object Object],[object Object]
Growth of a online course series Lack of saturation, and inefficient market
Go online, but don’t forget about the giraffes

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Adding Enough Value To Digital Content To Actually Make Money Presentation

  • 2. Officially change the name of this talk: “Adding enough value to digital content to actually make money.” to “Here’s what I’m thinking”
  • 3. “I want my movies to make a lot of money because I want to make more movies” – Steven Spielberg “ It’s easy to make money if all you want to do is make money” – Citizen Kane
  • 4.
  • 5.
  • 6. Analogy: B to C Online market = Serengeti plain Different body types evolved to take advantage of different opportunities
  • 8. Sales curves for individual books Not such a bad thing: Shows Market saturation
  • 9. Google (free) is forcing publishers hand to digital content
  • 10. Google is a herd of Wildebeest
  • 11.
  • 13. O’Reilly has been out exploring the Serengeti with different species (different kinds of business Models)
  • 14. O’REILLY statistics via Hitbox ROI, conversion ratios, revenue, and traffic analysis.
  • 15.
  • 16.
  • 17.
  • 18. Revenue = P*C*N P = Price C = Conversion Rate N = Number of Visitors E-Commerce C = is virtually the same, and independent of P N = is less for High P
  • 19. Revenue = P*C*N Higher Returns Lower Returns
  • 20. The short head Vs. the long tail for digital content. These graphs Don’t intersect!
  • 21.
  • 22.
  • 23.
  • 24. Can we go from free to subscription? Sports sites for example
  • 25.
  • 26. Most of the nutrient rich food for B to C publishers is up high in the trees.
  • 27.
  • 28. Be Patient, it takes a while to grow premium business
  • 29.  
  • 30. Online School offering courses and certificate programs in Information Technology and Systems. In partnership with
  • 31.
  • 32. Some examples of how different the business models are: Skillsoft – 6,000,000 users @ $40/user (hr managers choose) Capella – 16,000 users @ $16,000/user. (end users choose)
  • 33.  
  • 34. Good Value @ $5000!
  • 35. How we add value
  • 36.
  • 37. Growth of a online course series Lack of saturation, and inefficient market
  • 38. Go online, but don’t forget about the giraffes