Here is an "extended remix" of today's keynote from the World E-Reading Summit in London.

1. THE SOUND HORIZON
Ex
Sl te
R ide nde
em s d
ix har
e
WHEN CREATIVE INDUSTRIES MEET
CONNECTED CONSUMERS
Dominic'Pride
World'E/Reading'Congress'
16'May'2012
@thesoundhorizon

2. TODAY...
Publishers'/'Where'are'you'now?
What'can'we'learn'from:
Recorded'Music
Focus'on:'Spotify
TV
Focus'on:'Top'Gear
Games
Focus'on:'Cityville
Creating'new'value

3. WHERE ARE YOU NOW?

4. “NAPSTER MOMENT” AVOIDED?
World’s(largest(recorded(music(market(lost(2/3(of(consumer(spend(since(filesharing(began.
1999:
Napster
2003:
-64%
iTunes
Source: Michael DeGusta: The Understatement http://ow.ly/aJixq Inflation and population adjusted
Quoted in: Silicon Alley Insider Feb. 18, 2011 http://ow.ly/aJiC5

5. DIGITISATION: MISSION ACCOMPLISHED?

6. Click this
bubble to see
the YouTube
Video
From ASDF Movie 4 YouTube: http://ow.ly/aJYj8

7. Your customers You’re
are “doing a
“doing an book.”
internet.”

8. READING IS BEING DEMATERIALISED
Physical Digital
✓Visible X"Visible
✓Tangible X"Tangible
✓Valuable ?"Valuable

9. UG
C
S e lf-
P ub
Co
Cu n
sto nec
me ted
rs
Ha So
rd ftw
wa a
AND CAUSING DISRUPTION
re re
Se
ar
ch

10. SO WHAT CAN WE LEARN FROM
OTHER INDUSTRIES?

11. 1. DIGITISATION CREATES A VALUE GAP
Keane
Strangeland
Album Guardian
MP3 iPad edition
£4.99 monthly Call of Duty
subscription Black Ops
£9.99 Zombies App
£4.99
Keane
Strangeland
Album
3 CD The
Guardian
£8.99 Print edition:
Mon-Sat for 4
weeks: Call of Duty
£32.40 Black Ops PS3
£23.99

12. 2. WE ALL PLAY ON THE SAME PITCH
Digital Book
Stores /
Services
News &
Social
Print
Networking
Media
Personal
Games Media
TV and Movies
Personal Utilities
Media
UGC

13. 3. DIGITAL DISRUPTION NEVER ENDS
Digitisation'is'not'a'one/
time'process.
/Digital'does'not'
“replace”'physical ne ve r
/Digitisation'takes'us'into'
permanent'change
/Takes'us'from'closed'
value'chain'to'open'
ecosystem

14. 4. DIGITAL CHANGES CONSUMER NEEDS
Physical Digital
• Ownership • Access
• Objects • Experiences
• Consumption • Interaction

15. WHAT CAN WE LEARN FROM....
RECORDED MUSIC ?

16. WHAT’S GOING ON?
• Downloads'provide'slow'growth
– Albums'become'“unbundled”
– iTunes'dominates'
• Cloud'&'Streaming'models'emerge
– Unlimited'access'
– Service'and'community/led
• New'generatives
– Brand'deals'proliferate
– 360'deals'for'new'revenues'

17. FOCUS ON...SPOTIFY
Streaming(music(service(capturing(audience,(mindshare(and(revenue
Wide"range"of"mobile"apps Desktop"software Deep"2Dway"Facebook"integration

18. FOCUS ON... SPOTIFY
Streaming(music(service(capturing(audience,(mindshare(and(revenue
Spo$fy'In'Numbers
Ac#ve&Users 15m
20%
Premium&Subscribers 3m
No.of&songs 16m
Facebook&Shares 1.5bn
Paid&to&rights&owners $250m
Source; Spotify Fast Facts, Spotify CEO Daniel EK The Next Web 18 April http://ow.ly/aKpMg

19. WHAT DOES SPOTIFY TELL US?
ng:
Learni
Early
1. Engage
rst,
: Aud ience Fi
2. Freemium
etise
them mon
vice
3. Value in Ser

20. WHAT CAN WE LEARN FROM....
TV & FILM ?

21. WHAT’S GOING ON?
• EPG'Breakdown
– Catch/up,'on'demand'erode'schedules
– “Appointment'to'view”'goes'social
• Over'The'Top
– Web'='TV'='Web
– Challenges'to'cable'and'monetisation
• Mobile'distraction
– Mobile'/'tablet'interaction'
– Tablet'as'consumption'platform

22. FOCUS ON.. TOP GEAR
BBC(Worldwide’s(top(motoring(programme(has(achieved(ubiquity(in(digital(channels((
From'scheduled'TV'
programming..
..to'social'media'
interactions...
..to Google Play and
...to website and online ..to iPlayer and YouTube iOS apps, games,
games... programming... podcasts, books,
audiobooks..

23. WHAT DOES TOP GEAR TELL US?
ng:
Learni
nition
brand = recog
1. Strong
ce
ollow s audien
2. C ontent f
vant
ise w here rele
3 . Monet

24. WHAT CAN WE LEARN FROM....
GAMES?

25. WHAT’S GOING ON?
• Disruption'in'platforms
– mobile'challenging'handheld'&'console
– Steam'dominates'PC
• Connected'gamers
– challenge'of'“big'data”
– games'in'“permanent'beta”
• Rise'of'social'gaming
– Facebook'as'destination
– mobile'extends'social

26. FOCUS ON...CITYVILLE
Zynga’s(Cityville(exemplifies(social(gaming(with(40m+(monthly(users(
Cityville'In'Numbers
Daily&Ac#ve&Users 6m
Monthly&Ac#ve&Users 39.7m
Likes&on&Facebook 24.9m
Zynga&average&daily&
$0.055
bookings&per&ac#ve&user
Inherently"social"activity"embedded"in"social"platform In"D"game"monetisation"
through"virtual"goods
Sources: Appdata, Chicago Tribune Feb 1 2012 http://ow.ly/aKvD8, Zynga Q1 results http://ow.ly/aKyjj

27. WHAT DOES CITYVILLE TELL US?
ng:
Learni
tions
ts = Destina
1. SocNe
nt of
isation at poi
2 . Monet
ion
inspirat ges
ectiv ity chan
3. Conn
games:
e
-dialogu
beta
-per manent

28. TAKEAWAYS FOR PUBLISHERS
Physical Digital
• Innovate'and'partner'with'services'as'early'as'possible
• Create'and'extend'strong'author/led'and'curatorial'brands'
• Enable'user<>user'and'user<>author'dialogue

29. 3Cs - FRAMEWORK FOR VALUE CREATION
Community
– Bonds"with"friends
– Social"capital
– Wisdom"of"crowds
Context
– Time"
– Device"/"Environment
– Location
Content
– Media
– UserDgenerated
– Metadata
30

30. Why just do an
(e-)book?
when your users
expect “an
internet?”

31. THE SOUND HORIZON
Thank You!
dominic@thesoundhorizon.com
slideshare.net/thesoundhorizon
@thesoundhorizon
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