Digital Publishing Opportunities and Challenges Presented by the Tablet PC

1
Digital Publishing Opportunities and Challenges
Presented by the Tablet PC

• Steve Potash
• President
• Open eBook Forum
• steve_at_overdrive.com

2
What we have learned at the Open eBook Forum

• Moderate but steady growth of eBook market as
  reported by publishers and technology vendors
• OeBF Consumer survey results
• Observing eReading adoption for PCs and PDAs in
  the market
• Issues targeted by OeBF Working Group and SIGs
• Where the Tablet PC can leverage opportunities
  for digital publishing based on where we are today

3
Major Trade Publishers Report Growth of eBook
Sales

• Published sales reports by Open eBook Forum
  include significant gains in 2002 by
• AOL Time Warner Book Group
• McGraw-Hill
• Simon Schuster
• Random House
• HarperCollins
• Plus many others

4
eReading Technologies Grow in Use and Adoption

• Microsoft Reader
• Desktop, Pocket PC, Tablet PC (millions of
  downloads)
• Adobe Acrobat Reader
• Extends business models to library and
  institutional markets
• Palm Digital Media
• Growing PDA market for reading applications
• Maturing Digital Rights Management solutions

5
Commercial Retail and Distribution Channels Grow

• Commercial eBook products available with DRM _at_
  40,000 (Microsoft, Adobe, Palm)
• Content Reserve supports global distribution for
  400 publishers
• OverDrive eBook retailers reporting sales data
  _at_50 (Barnesandnoble.com, WHSmith Online, Follett
  Corporation, OfficeMax, Fictionwise, eBooks.com
  and others US and abroad)
• Hundreds of commercial sites content selling in
  various formats

6
Consumer Survey on Electronic Books

• Published October 31, 2002
• Written by Harold Henke, Ph.D.
• Sponsored by the Open eBook Forum
• Full report available at www.openebook.org or by
  contacting nbogaty_at_openebook.org

7
Survey population was similar to the demographics
of the overall US population based on the 2000
Census

• Key demographics
• 55 were female 45 were male
• median age was 42
• median income was 46,000 to 65,000
• 86 had earned a bachelor degree or higher.
• Key data points
• 81 reported they owned a computer
• 41 owned a handheld organizer, laptop, or
  personal digital assistant
• 86 of the people read magazines and news
  articles daily on their computer daily
• 85 access the Internet daily.

8
Table 6 Participants Definition of EBooks
9
Table 7 Participants Reasons for Buying EBooks
10
Digital Publishing Enables Multiple Channels and
Business Models

• Major Retail and Independent booksellers
• Publishers are selling direct
• Institutional license and corporate use models
• Library and lending models
• Subscription
• Book Club
• Pay per view
• Bundles with print and cross-promotions
• Promotional and eGalley programs

11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
Mobile, Wireless PDA Shoppers
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
(No Transcript)
30
(No Transcript)
31
(No Transcript)
32
(No Transcript)
33
(No Transcript)
34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
(No Transcript)
38
(No Transcript)
39
(No Transcript)
40
Factors for Digital Publishing Success for the
Tablet PC

• Channels to market are growing retail and
  content portals adding digital media
• Mobility of Tablet PCs will encourage digital
  content production
• Always connected users
• Educational and professional markets
• Capabilities to support new media formats (audio,
  video)
• Corporate communications

41
Challenges to Exploit Tablet PC Digital
Publishing Potential

• Expectations are high for Tablet PC to solve the
  limitations of PDA and ePublishing
• Production workflow for digital formats
• Digital Asset Management of all content and art
• New digital products and publications will
  require better metadata and digital identifiers
• Still challenges for access to content

42
Challenges to Exploit Tablet PC Digital
Publishing Potential

• Digital Rights Management (DRM) Business models
  not fully supported
• Consumer education and acceptance of DRM
  limitations
• Patent IP issues
• DMCA
• Tasini Rights clearance issues
• Defining paid subscription audited circulation
  (ABC/BPA)

43
OeBF Working Groups Leadership
Metadata and Identifiers WG Chair Liisa
McCloy-Kelley Random House Vice Chair Rebecca
Guenther Library of Congress Publication
Structure WG. Chair Allen Renear, University of
Illinois at Urbana-Champaign Vice Chair Jerry
Dunietz, Microsoft Corporation Rights and Rules
WG Chair Amanda Kimmel, Random
House Vice-Chair Tom Diaz, Adobe Systems
Inc. Accessibility SIG Chair Janina Sajka,
American Foundation for the Blind Vice Chair
George Kerscher, Daisy Consortium Business
SIG Chair Pamela Turner, OverDrive, Inc.
44
Initiatives of special interest for Tablet PC
Digital Publishers

• PRISM Metadata Specification
• Describe magazine content, via XML, in a
  consistent and predictable way
• Maximize the accessibility of content to future
  users and provide
•         - Superior search capability
•         - Easier mapping to other data frameworks
  
•         - Tools for managing rights and
  permissions

45
The Key Markets for Digital Publishing for the
Tablet PC

• OEM and Microsoft are targeting power users,
  corridor warriors, professionals
• Price points today comparable to high-end
  notebooks
• Trade, Professional and Reference publishers
  already in the market
• Business travelers, doctors, PDA users already
  proving to be a viable market
• Magazines, periodicals, journals

46
Maine's program of equipping every seventh
grader with an iBook is already making a
difference. Even after just a month or so, the
teacher-student experience is being fundamentally
changed. It is way beyond anyone's expectations.
This incredible tool has exploded the educational
process in Maine. The students are engaged."
47
Anna Bragg, an English teacher at William S.
Cohen Middle School in Bangor, who has 20 years
experience in the classroom "I'm using the
computers a lot for our writing program. One of
the neat things is the kids can do a piece of
writing. I can retrieve it, make suggestions,
make corrections, give it back to them and we
haven't used any paper."
48
Palm Education Pioneer Technology grants

• Palm donated more than 2.3 million in equipment
  to participating schools.
• "It was helpful because it allowed for more
  efficient information gathering, fact checking --
  and for interfacing with the production computer
  . . .They could compare information with each
  other, compare quotes and use the dictionary."
  (teacher advisor to student newspaper)

49
Education will be HUGE for Tablet PC Publishing

• Extending the success of PC/Notebook adoption in
  higher and early education
• Taking advantage of all the hardware and software
  capabilities of the platform
• Supporting Active Reading for all ages and
  markets
• Corporate, government and enterprise trainers
  will also exploit mobility and interactive
  features

50
For more information

• www.openebook.org
• www.overdrive.com
• steve_at_overdrive.com
• Thank you.