E-Book Rental Model Nick Ruffilo TOC Frankfurt 2010.

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Presentation transcript:

E-Book Rental Model Nick Ruffilo TOC Frankfurt 2010

*Source: FeedFliks.com

~750k ~1.1M ~2M/ 1.25M ~2.5M/ 4.5M ~1.5M/ 7.5M

~9M based on sample size of FeedFliks.com Users Netflix has ~16M Subscribers Netflix spent $117M in the first 6 months of 2010 on streaming

Other Industries With Rental: Movies Video Games Cars Fashion Accessories TV Shows (through iTunes) Christmas Trees

49% of e-reader owners claim to buy more books 7% of e-reader owners claim to buy less Source: L.E.K. Consulting

The Right of First Sales Doctrine

No Right of First Sale

Goal of Publishing: Make a Profit 1 sale at $1,000 = 10 sales at $100 = 100 sales at $10 = 1,000 sales at $1 = 10,000 sales at $0.10

Cost Saving: Physical Inventory Average 4 uses per copy amongst complete catalog

Rental Shifts the Long Tail 33% of rentals are from the bottom 80% of the catalog

Goal of Publishing: Make a Profit 1 sale at $1,000 = 10 sales at $100 = 100 sales at $10 = 1,000 sales at $1 = 10,000 sales at $0.10