1. Lightspan.com Virtual Community E-commerce Kimberly Malone
Kimberly Saxton
Lin Lee
Daisuke Ichihara
Ho-Jun Bin

2. Contents Background Education Market & Internet Web-site Demo
Business Model
Competitors Analysis
Pros & Cons
Future Outlook

3. The Lightspan Partnership
Founded in 1993 by Josten Learning Corp veterans John Kernan and Carl Zeiger
Achieve Now software aimed at K-6 market released in January 1996
The Lightspan Network online subscription service launched in 1997
Lightspan PageOne introduced December 1999
lightspan.com portal launched February 16, 2000

4. LSPN Financial Data IPO February 9, 2000 at $12 a share
Current market capitalization $769MM
Key investors include Cinar, Microsoft, Gateway

5. The Education Market and the Internet
U.S. education market over $700 billion
Comparison: 1999 global e-commerce spending $111 billion
K-12 market the largest segment
110,472 public schools
53 million students
3.1 million teachers

6. The Education Market and the Internet
95% of schools have internet access
63% of classrooms are wired

7. K-12 Market Revisited
7,605 schools use lightspan.com products and services
2,375 schools use Achieve Now software and services
1,231 schools subscribe to the Lightspan Network
11.4 million 2-12 years old are currently online (expected to double by 2003)
110,472 public schools
53 million students
3.1 million teachers

8. Lightspan.com Lightspan.com My Class Online Page
Your School Online sample
The Lightspan Network
Lightspan Achieve Now

9. Business Model Virtual Community Product / Service Development
E-commerce
Advertising
Contents
Product / Service
Development
Virtual
Community

10. Business Model Lightspan’s Business Revenue Stream
Lightspan provides educational tools and platform for students, teachers, and parents to help develop students’ skills using computers and network.
Revenue Stream
Product Sales (Lightspan Achieve Now)
Subscription Fee (Lightspan Network)
Transaction Fee (smarterkids.com)
Advertisement

11. Competitors Major Content Unique Services Community Structure
E-Commerce
- pre-selected 13,000 educational sites
- free H/W, S/W and broad-band Internet connectivity by satellites
- extending its N/W into home
- school supplies
- network equip.
(established in 1995)
- research service
- state-wide assessment
- connecting to elibrary, ProQuest & Webed
- national wide
- local community
- by interests, topic, & region
(established in 2000)
- school/classroom homepages
- curriculum activities
- extensive lesson plans
- educational search engine
- segments dedicated to parents, teachers, and kids
- The Learning Store in association with SmarterKids.com
(established in 1993)

12. Pros and Cons Pros: Cons:
Establish strong brand image in the traditional educational market
Strong investors
Early mover in online education networks (1997)
Cons:
Highly competitive market (easy to replicate online community)
Unclear pricing from user’s perspective
Potential Barrier
Financial (School Budget)
fRegulatory scrutiny
Resistance to adopt new technology

13. Future Outlook Enhance the visibility in the market
Continue to build user base
Continue to improve contents of educational material available online in order to sustain revenue

14. Questions?