Digital Content: Where are Publishers Investing

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Marc Rubner Vice President, Product Marketing
Digital Content Where are Publishers
Investing What Challenges Will They Need to
Overcome?
www.innodata.com
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Rapid Digital Adoption

• 100 million iPads by YE 2012
• 300 million tablet by 2015
• The iPad is a disruptive technology
• Content consumption behavior is being altered
• Revenue models are in disarray
• Content will be wrapped in software

Gartner
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Key Future Trends

• Content Aggregation
• Recent study conducted by LexisNexis reports that
  while 100 of respondents use search engines for
  work tasks, only 4 can access all the content
  they need for work task through free web
  searching
• Platform Wars
• Tablets over eReaders
• Price will matter
• Growing share of information content viewed on
  tablets and mobile devices
• Portability will drive tablet and mobile
  consumption
• Interoperability among different tablets, mobile
  devices and web browser on a laptop
• Common look and feel of the app and content
  rendering on all devices

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Resulting Challenges for Publishers

• Real time, always on, just for me
• Small packaging required
• Rapid time to market
• Content is no longer stand alone
• Devices do not exist in isolation
• Platform and business model disruption
• Managing increasing volumes of analytical data
• Delivering similar experiences across platforms

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Keeping Up

• 76 of media executives say launching new
  products and services will be a key drive of
  growth over the next 3-5 years
• Putting their money where their mouths are
• 73 say they will invest in product development
• 63 say they will invest in new talent
• 62 say they will invest in new technologies

Jordan Edmiston Survey of 500 media executives,
2011
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Transformations Demanded by Rapid Digital Adoption

1. New Product Development
2. Incorporate Software Technology
3. Organize for Continuous Change

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Survey

• Surveyed 366 media executives (online survey)
• Sample from Digital Book Worlds subscriber list
• Conducted in April, 2012
• Objective To understand what plans are in place
  to launch new paid digital products and to
  identify the challenges along the way

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Respondent Profile

• 31 from adult trade, the rest represent a mix of
  other segments including
• Childrens trade
• Academic
• K-12 Education
• STM
• Others
• 54 of respondents are from small(ish) publishing
  companies (1-49 employees)
• 17 are from medium size organizations (50-99
  employees)
• 37 are from larger organizations (100
  employees)
• 29 list their title as President, CEO or other
  C-level executive
• 47 list their title as Manager or Director

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CONTENT Which of the following do you plan to
DEVELOP and/or LAUNCH in the coming year?
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CONTENT With which of the following INITIATIVES
have you experimented?
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APPLICATIONS Which of the following do you plan
to DEVELOP and/or LAUNCH in the coming year?
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SYSTEMS/PLATFORMS Which of the following do you
plan to DEVELOP and/or LAUNCH in the coming year?
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TABLETS Which of the following do you plan to
DEVELOP and/or LAUNCH in the coming year?
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INVESTMENT How much do you plan to invest in
developing paid digital content in 2012 compared
to 2011?
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INVESTMENT How much do you plan to creating
applications, systems or platforms to support
digital products in 2012 compared to 2011?
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INVESTMENT Where are these investments in
applications, systems or platforms likely to be
made? (Open-ended comments)

• Mobile Apps
• XML Content Management
• Content Management Systems
• Digital Rights Management

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CHALLENGES How much does each of these factors
LIMIT your companys ability to move forward when
it comes to DEVELOPING DIGITAL PRODUCTS? ( top 3
box)
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CHALLENGES How much does each of these factors
LIMIT your companys ability to move forward when
it comes to DEVELOPING PLATFORMS, SYSTEMS OR
TECHNOLOGY to support digital content? ( top 3
box)
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CHALLENGES How many people do you plan to hire
or assign to develop digital content or create
applications, systems or platforms to support
digital products this year?
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CHALLENGES Will you be seeking help from a
third-party company to develop DIGITAL
CONTENT/PRODUCTS and SYSTEMS/PLAFORMS/TECHNOLOGIES
?
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CHALLENGES Thoughts on the limiting factors to
developing systems, platforms, technologies to
support digital content? (Open-ended comments)

• People
• It is not our core competency so we will work
  with outside vendors.
• Legacy employees with tenure who show little or
  no interest in non-print, in any form
• Systems
• Archaic/legacy information systems are
  significant barrier to speed and flexibility

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CHALLENGES Thoughts on the limiting factors to
developing digital products? (Open-ended comments)

• Wait and see?
• We are watching the market and educational
  consumer very closely and pacing ourselves to
  their demand. We have pilots going on demand in
  K-12 is fragmented and funding unclear for
  anything beyond web-based applications.
• Some of us are extremely aggressive about
  digital development others (the companys
  owners) are still dragging their heels, sticking
  to the sidelines to see how well other companies
  fare.
• Waiting for Standards
• Shakeout of industry standards
• Too many platforms, OSs and software. Can we
  standardize?
• Shifting markets, technology, changes
  practically overnight cause ambivalent decision
  making lets develop some standards!
• Lack of sync with various eReader brands

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Transformations Demanded by Rapid Digital
AdoptionAre Publishers Prepared?

1. New Product Development
2. Yes New product development is being planned
   and funded
3. Digital First is gaining momentum
4. Incorporate Software Technology
5. Not enough focus on technology
6. Too few are planning to invest in platforms and
   systems to support digital content
7. Organize for Continuous Change
8. Most organizations struggle with internal digital
   content expertise
9. Many organizations will hire at least 1 person to
   support digital products this year
10. Most will seek help from third-parties

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Contact Information

• Marc Rubner, Vice President Innodata
• email mrubner_at_innodata.com
• Tel [phone]
• www.innodata.com

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• Q A