DIGITAL PRODUCTS

.: an overview :.

HOW WILL WE INTERACT

WITH CONTENT IN 10 YEARS?

3

.:did you know:.

WHY IS DIGITAL SO IMPORTANT?

• We are raising a generation of ―digital natives‖ – future

customers who live and breathe digital media

• Digital can be a cost-effective marketing tool in a very

crowded marketplace

– Digital content enhancements can add perceived value to products

we already produce

• A way to reach a whole new group of customers through

word-of-mouth and social networking

• Digital is expected to reach 25-50% of print sales by 2015

So . . . what’s ePub??

(a.k.a. . . . What the Hell is XML?)

• A highly flexible and open ―content container‖ that separates the

formatting of the content from the content itself

• ePub XML is the basic starting point for many digital projects –

eBooks, apps, websites, etc.

• ePub allows you to ―flow‖ the same content to many different

templates or formats, without making changes to the content

itself

Most Digital Editions start life as an ePub file

MOBILE APPLICATION DEVELOPMENT DEFINED

• Wikipedia says: Mobile application development is the process by which applications are developed for small low-power handheld devices such as personal digital assistants, enterprise digital assistants or mobile phones. These applications are either pre-installed on phones during manufacture, or downloaded by customers from app stores and other mobile software distribution platforms.

• Simply stated: Mobile apps are like teeny, tiny crosses between a desktop application (MS Word) and a website that you can download onto your Apple, Droid, or BlackBerry mobile device to perform very specific tasks or functions.

8

.: digital business models :.

DIGITAL BUSINESS MODELS

• Devotional

• Group or Individual Bible Study

• Game

• Enhanced eBook/Vook

• Planning Resources

• Reference

• Audio

Digital is a delivery mechanism – yet one more way for

customers to consume content.

Dracula

Alice

Sports Illustrated

The Daily

EBOOK vs. APP?

•Why eBooks (are)n’t apps

•Does reading an eBook on a mobile

phone make the eBook an app?

The Daily

– The first built-from-scratch content engine, updated throughout the

day with original content ONLY for the iPad

– Full color content enhanced with interactive and scalable

video, audio, and images

– 100 full time journalists providing original content

– Apple programmers created the app (so they should fully

understand the platform and potential)

– Will allow ―subscription‖ to content without full app updates

(critical for user experience)

– Enables social sharing of original content with your network

– Consumer price is only $0.99/week or $40/year

AND YET . . .

– App reportedly cost News Corp. $30 million to create (which they

wrote off as startup costs)

– The current average rating on The Daily app is 2-1/4 stars, with

122 1-star ratings out of 257 total ratings

– The Daily needs 500,000 weekly subscribers at $0.99/day to break

even

– Running costs are ―less than half a million a week‖

– Downloads are massive – between 250-500 500 Mb of data to be

downloaded EVERY DAY

– Yearly budget for The Daily is around $30 million

SUSTAINABLE??

ENHANCED EBOOKS AREN’T GAME

CHANGERS . . . YET

• Magazines/newspapers for tablets are often little more than PDFs with photo

slideshows and video thrown in

• Huge download files (upwards of 250Mb)

• No web links (essentially ―walled gardens‖)

• Few opportunities to share content

• Same content as the print edition

• JUST LIKE PRINT: Out of date as soon as they’re published (TechCrunch

says: A “daily” already sounds too slow)

• Not social enough – we want to see what our friends like and are reading or

discussing

• Kindles and Sony eReaders won’t handle the uber-enhanced multi-media and

interactive content

FLIPBOARD

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.:late-breaking news:.

Android market started selling eBooks

YESTERDAY -- Feb 24, 2011

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.: the market :.

KNOW YOUR COMPETITIONA competitor for

digital resources isn’t

necessarily an analog

or print resource . . .

it could be something

else entirely.

Like YouTube, or

audio books, or even

Angry Birds--which

has over

10

MILLION downloads

at $0.99 each

(you do the math!)

Smartphone vs. Feature phone

• 28% of U.S. mobile market in Q3 2010 have Smartphones

• In the last six months, 41% of people purchasing a new phone chose a

Smartphone rather than a standard feature phone (up 6% from last

quarter)

• Mobile handset market expected to reach $341.4 billion by 2015

• Smartphones expected to triple in sales over the next four years

APPLE vs. ANDROID

• What’s the difference, where are our apps found (and why)?– Apple and Android are the two dominant mobile platforms in the

US market

– Currently, UMPH apps are all Apple-only

– Can add Android functionality for a separate charge (needs to be built into the business plan)

– Android is quickly closing the gap, but Apple store is still considered ―The Place To Be‖

– Easy, one-click ordering from iTunes store makes it one of the best customer experiences—driving more sales

How big is the mobile app market? (Yeah, I know these numbers are probably wrong)

• Worldwide iPhones

– Jan 2008: 3.7 million

– Jan 2009: 17.3 million

– Jan 2010: 42.4 million

– Apr 2010: 50 million

– Jan 2011: 90 million (TOTAL IPHONES SOLD TO DATE)

• Worldwide iPads

– 14.8 million in 2010

– Projected to sell 40 million MORE in 2011

• Worldwide Android phones

– 71 million (???)

– Supposedly 300,000 plus Android phones are activated per day

Do apps really sell?

• In a recent survey of the mobile app industry (all averages):

– Total number of units sold: 101,024

– Time frame: 261 days (about 9 months)

– Units per day 387

– Most common price $0.99

– Number of updates 3.89

– Cost $6,453 (not including developer’s personal time)

So….an ―average‖ app would make $101,024 on an investment

of $6,453 in around 9 months.

Is 2011 the tipping point?• Smartphones will likely blow away traditional computers in 2011 as

the way most of the world gains access to the internet

• Likely half a billion Smartphones will be sold in 2011

• eBooks are expected to reach at least 25% of print book revenue in

2011

• Smartphone prices (for Android-based phones) are expected to sell at

retail for below $100 (and maybe below $75) in 2011

The US population is around 308 million people

iPads, iPhones, & Android-based devices alone

will sell around 216 million units in 2010/2011

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.:more late-breaking news:.

As of Tuesday, Feb 22nd

Amazon.com now offers thousands of TV shows

and movies FREE as an added-value to Amazon

Prime members

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.:a case study:.

24 Hours That Changed the World

• Hardcover Book

• DVD with Leader guide

• Student guide

• Younger children study

• Older children study

• Youth study

• Spanish edition

• 40 Days of Reflection

Have you seen these versions

of 24 Hours?

FREE vs. PAID

• Why it pays to make an app or eBook free

– Way to help customers decide between types of curriculum (VBS app)

– Drive sales for a related for-sale product (Hallmark Jingle All the Way)

– Free-for-a-time promotion to drive sales can wildly successful

You have to provide solid value to the customer

even if the app is free

if you want to be gain evangelists

How can you decide the best

digital format for your content?

Why different types of products make great

eBooks, great apps, or great “other”

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.:in conclusion:.

• Mobile is the next step in content evolution

• The same content can work with different

delivery mechanisms without conflict

• Websites are NOT the same as apps

• Digital is a wild frontier

What comes next??