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E-Book Rental Model Nick Ruffilo TOC Frankfurt 2010.

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Presentation on theme: "E-Book Rental Model Nick Ruffilo TOC Frankfurt 2010."— Presentation transcript:

1 E-Book Rental Model Nick Ruffilo TOC Frankfurt 2010

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3 *Source: FeedFliks.com

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5 ~750k ~1.1M ~2M/ 1.25M ~2.5M/ 4.5M ~1.5M/ 7.5M

6 ~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

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

8 49% of e-reader owners claim to buy more books 7% of e-reader owners claim to buy less Source: L.E.K. Consulting

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10 The Right of First Sales Doctrine

11 No Right of First Sale

12 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

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

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

21 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


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