Key Trends in Cross Media Publishing

1. Key Trends in Cross Media Publishing Steve Paxhia Director- Publishing Practice The Gilbane Group Bill Rosenblatt Senior Analyst The Gilbane Group

2. About Gilbane Group • Consulting and market research firm • New research initiatives on various aspects of digital publishing • Collaboration • Beyond the E-Book - Cross-Media Publishing Strategies • Digital Magazine and Newspapers • Enterprise Rights Management

3. Outline • Research Study Highlights • Digital Magazines and Newspapers • Collaboration • Cross-Media Publishing • Strategic Trends in Cross-Media Publishing • Search and Discovery • E-Books and Devices • Content Infrastructure • Conclusions

4. Strong Growth in Digital Periodicals Key Statistics • Number of titles and page views grew better than 40% • The number of pages read and the average length of sessions grew more than 100% • The number of links clicked grew than 100% • Number of Unique readers grew more than 150%

5. Industry projecting significant growth • All vendors projecting growth between 30-50% in all categories this year and next • Growth is expected to continue in new titles, new digital readers, and time per session • The rate of active linking is strong and is expected to get even stronger

6. Trends • Digital editions and websites becoming complementary • Search becoming an important reason for preferring digital environment • Prediction- more publications will offer archiving • Prediction- Publications will begin to work together to allow their readers to find more information on topics of keen interest

7. Collaboration and Community in Book Publishing • Already an important force in Reference Publishing • Learning Communities in Higher Ed • Note Sharing and online interactions with faculty growing very rapidly • Café Scribe, VitalSource • Merlot, Digital Marketplace • Digital Initiatives growing in K-12 • Curriki • SAP Netweaver Forum • Near-Time O’Reilly • Libre Digital Mash-ups

8. Collaboration Data Summary

9. Trends • Collaboration and community technology being deployed to connect customers with the publication and with each other… • Advertisers report being happy with the creative avenues being provided by digital advertising and also like the measurability and rapid feedback

10. Search & Discovery Trends • The Discovery Paradox • Professionally selected, edited, produced content generally not findable online • Leads users to “good enough” free alternatives (Wikipedia) • SEO • Constant expense, black art • Arms race with diminishing returns • Limited impact anyway

11. Search & Discovery: Rights • Key obstacle in solving Discovery Paradox • Not the same thing as “DRM” • Hugely complex problem • Solutions can be expensive, disruptive • Many publishers still in denial • Solutions • Technical (ACAP, text fingerprinting) • Ad hoc licensing • Litigation

12. Search & DiscoveryPredictions • Text fingerprinting will drive licensing deals • Web crawling, recognition of publishers’ content on websites • Standards face long road ahead • Little incentive for search engines to play • Incentives will come from search startups that want to index premium content • Rights Information Management will grow and help • Publishers build rights information databases • Use to inform automated licensing arrangements

13. E-BooksLessons from Music Industry • Fragmented device market • Amazon Kindle could become iPod of publishing, but… • Fragmentation impedes growth • Device makers try for lock-in • Proprietary DRM exacerbates this • Economic incentives need to be aligned • Customers want to share • Needs to be much easier • Cannot be done without device maker cooperation

14. Cross-Media Infrastructure • CMI 1.0 • Install centralized content management system • (that’s it… hope it works… usually fails) • CMI 2.0 • Federated technology infrastructure • 80/20 rule on enterprise-level functionality • Investment in process, organization, and skill changes • Content creation treated independently from output format (not just XML…)

15. CMI Example: • Before: • Consumer Reports magazine editorial staff • Ad hoc repurposing for books, website • Very limited product set • Media Neutral initiative • Reorganization of editorial by subject matter • Publication groups become “customers” of editorial groups • Cross-media content development the norm, not the exception • Technology mostly unchanged • After: • New product development much easier • A thousand online flowers bloom • Next up: technology, now that processes and organization are in place!

16. Cross-Media InfrastructurePredictions • Growing awareness of product planning • Product/feature plans drive requirements • No more “build it and they will come” • Editorial will lead the way • Processes, organization, skills first • Technology close second • Metadata problem taken more seriously • “MLS” skill set • Taxonomies • Tools and processes

17. Prediction • Publishers will soon seek to be involved in the reader’s complete information cycle • Browse • Search in context • Link to related data • Present new information based on algorithms that analyze past information consumption • Use Geography data to present more pertinent info

18. Giving Readers the Best Choices • Paper and Digital • Functionality that fits the media • New products for New readers • Communities that work • Business models that fit the product and media