Interactive Publishing Sector Snapshot
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Transcript of Interactive Publishing Sector Snapshot
Q1, 2012
Sector Snapshot
Troy Centazzo
Oh, What a Year! – Publishing, Edutainment and Technology
34M Americans used a tablet in
‘11; 90M expected by 2012.
Smart phones surpass 50%
market share. Digital
content tops e-commerce
purchases at 26%. Mobile paid
advertising/search surpassed
email and social media. Apps
are exploding. $38B market
by 2015. Trends are
global.
Interactive Publishing:
Still in its Infancy
• App Store has 25,000
book apps
• iBook Store has
hundreds of
enhanced books
• B&N offers 600 for the
Nook
• Few break-out hits;
continued risk of “busts”
• What’s a “book”? An
“app”? ** EPUB3 **
Any Impact?
$300M in the following
digital book start-ups:
It Finally Was The
Year of Mobile!
Interactive Publishing– Still Early, But Lots of Activity and Momentum
The Big Six (Plus) – Now Aggressively Pursuing Interactive Business and Industry Partnerships
E-Book Sales
Double in
2011 for
Penguin;
20% of US
Rev; Plans
strategic
investments
Oh, What a Year! – Publishing, Edutainment and Technology
US E-Book Revs up 117% in 2011 Total Trade: $5,860M (-4.1% YoY)
E-Books (non religious): $970M (+117%)
S&S digital
revenue
doubled in
2011; juiced up
income
Digital = 1/3
of all Revenue
at Pearson
$1B in US!
Royalty Rates
on the Rise
MORE TRANSMEDIA PARTNERSHIPS
THAN EVER BEFORE
Children’s Mobile Digital Content- “Rapidly Evolving” is an Understatement
Nine Top iOS Children’s
Storybooks in 2011
Oh, What a Year! – Publishing, Edutainment and Technology
TO COME
150 e-books; 25 apps
How to Market to and Develop an
Audience?
1 Million Dr. Seuss
Downloads in 2 years
2M Minutes
Played on FP
Apps in Dec
2011
Licensing agreements with Hasbro, Crayola, SeaWorld, The Wiggles,
Cyberchase and Dino Dan
Safari Books (JV of Pearson
Education and O’Reilly Media )
acquires Threepress (Ibis
Reader) January
Our Bottom Line on the Industry –
And That’s Only Positive for Emerging Companies’ Prospects
Chaos at Enterprise-Level Companies
6
Digital Media “Value Stack” for Emerging Firms
• Do you have a massive number of active buyers? Massive Number of Users /
Readers with Direct Relationship
• Do you have the “secret sauce” on how to publish a top-seller? Control of Useful Data
• Have you built a publishing toolkit that provides an advantage? Can it become the industry standard? Protected Development Tools
• How many successful titles have you developed, published and marketed? In-House (Owned) Titles
• How far “out in front” are you? Competition? Massive Market Leader
• Long-term agreements with A-level content owners Locked License Business
• High margin business for industry leaders. Market share. Project Business for Premier
Firms
• Can you grow 100 miles per hour in the current environment? Infrastructure to Scale Rapidly
• Are you the technology leader? Who’s catching up? Demonstrated Technical
Superiority
About the Author
Troy is an Engagement Partner at GT Securities/Growthink, where he leads investment banking and consulting engagements for the firm’s clients. He focuses on convergence media. Troy brings to GT more than 20 years of experience advising corporations at all stages of development, from start-up firms to Fortune 500 companies.
Troy joins Growthink’s Los Angeles office after serving as the founding Principal of MBL, an advisory and investment firm that assisted clients in all areas of business, including developing their strategies and raising capital. Also a seasoned entrepreneur, he helped found, manage and invest in several start-up companies, primarily in the consumer products, technology and New Media sectors while at and before MBL. Troy additionally worked as an Associate in the Investment Banking and Merchant Banking Divisions at Donaldson, Lufkin & Jenrette (DLJ, now CS First Boston). His first job after college was serving as the founding Director of the RI Enterprise Zone Program. Education • JD, Law School; MBA, Darden School, University of Virginia (Winner, The Faculty Award; Raven Society) • BA, Brown University (Honors; Class Co-President)
Troy Centazzo Engagement Partner
Digital Media Expert
Contact:
Cell: (202) 369-2188