Digital Books and the New Subscription Economy: Results of BISG Research

BISG/NISO Changing Standards Landscape ForumALA Annual Conference 2015

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SALLY DEDECKER

ENTERPRISES

DOMINANT SUBSCRIPTION MODELSThe subscription economy

What is a subscription?

Defined collection of content Access (as opposed to ownership) Limitations on use Potential for recurring payments

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Subscription Models

Purchase for Perpetual Access Rental, Short-Term Loan Patron-Driven Acquisition All-You-Can-Eat Token Freemium

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DOMINANT SUBSCRIPTION MODELS

Breadthvs.

Depth

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Accessvs.

Ownership

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What Do Publishers Think?

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Subscription is inevitable…

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Subscription is inevitable…

and mostly positive!

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Top 5 Benefits

1. Reach customers in a new way2. Increased usage of existing

content3. Source of meaningful revenue4. New consumer insights5. Improved student outcomes

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Top 5 Concerns

1. Customer preference for ownership2. Difficulty marketing directly3. Difficulty processing royalties4. Cannibalization of one-time sales5. Devaluation of books sold

individually

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Impact Across the Industry

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It’s our duty to explore asmany avenues as possible to

make the maximum amount of money for our authors.

Chantal Restivo-AlessiHarperCollins Publishers

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Impact Across the Industry

Compensation for authors and publishers: Net sale model: portion of list price

paid after threshold is reached Shared pool model: payment based

on share of titles accessed

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We’ve seen a steady increasein total reading activity as we

add more and more titles. Subscription services encourage

[all] readers to read more.Andrew Weinstein

Scribd

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Thank you!

Nadine VassalloProject Manager, Research & Information

Book Industry Study Groupnadine@bisg.org

@BISG