1. Changes in the Markets Changes in the Technologies therefore Changes in the Publishing Industry New Business Models in a rapidly evolving World Robert E. Baensch Director, Publishing Programs SUNY Global Center, New York

2. Three mega trends driving China

3. Changes in the Market Rising number of Consumers Urbanization of China Competition for time/attention Changing Consumer Habits Transition from Print to media – digital delivery

4. Urbanization in the Market The largest migration in human history 300 million people have moved to cities 350 million more will be moving to cities 160 cities have population of one million 14 cities have population of more than five million Shanghai – 23.9 million McKinsey&Company, China, April 2014

5. Rising number of consumers China is unique in the global market 300 million people entered the consumer market over past 30 years 200 more million will enter middle class by 2026 – market growth McKinsey&Company, China, April 2014

6. Affluence rising with large scale Urban Growth

7. China grows in Urban Population

8. CHINA: World’s most mobile population

9. Changes in the Technologies Changing Consumer Habits Transition from Print to media – digital delivery Mobile phone - SmartPhone

10. Internet users in selected countries 2014(million) Major growth potential for China Country Population Internet Users Penetration % population USA 322.8 279.8 86.7 % UK 63.4 57.0 89.9 % Germany 82.3 71.7 86.0 % France 64.6 55.4 85.7 % S. Korea 49.5 45.3 91.5 % Japan 126.9 109.2 86.0 % China 1,393.8 641.6 46.0 % Source: Internet World Stats News, May 5, 2014, Number 079.

11. Transition from Print to Digital “Digital will soon reach half of all time spent on media in China, up from just a third of time spent two years ago.” --Zenith Optimedia September 2014

12. Digital replaces Physical Print the only constant is change

13. Digital’s growing Dominance: Nearly half of Content Spending will be for Digital Products by 2017

15. Mobile devices proliferate in China 95% Own a Cellphone 37% Own a SmartPhone 69% Age 18-29 Own a SmartPhone Source: Pew Research Center, February 2014

18. Traditional media are losing attention rapidly Convergence of print, images, audio, video multi media

19. “The certain – actual SHIFT”

20. Changes in the Publishing Industry Competition for time/attention Changing Consumer Habits Transition from Print to multi media – digital delivery

21. Book Publishing in China is expected to have sustained growth. Source: Datamonitor March 2013 21

22. But… major changes are underway 22

26. Publishers compete for attention and time

27. Challenges Number copies sold of more new print book titles published has declined Ratio of digital readers to print readers is growing, changing marketing and distribution practices Information is consumed differently and the race for audience share is intensifying –Broadcast v. cable v. internet –Blogs and online magazines v. print newspapers and print magazines –New Role of the mobile phone 95% Own a Cellphone 37% Own a SmartPhone 69% Age 18-29 Own a SmartPhone Source: Pew Research Center, February 2014

28. Building Audience: Choice Audiences today have unprecedented access to high-quality content across a variety of platforms and devices. Being platform agnostic is essential to serving our audience.

29. AUDIENCE AUGMENTING AUDIENCE FRAGMENTING Platform “AGNOSTIC” versus Platform “SPECIFIC”

30. Uses of mobile: 2013 vs 2018

31. Publishers need to learn that every sector of our business is related to technology and changes

32. Technologies evolve much more quickly than markets There is a lack of: Consumer research during this transition Making connection with readers in an information overload world Consistency in how content is displayed across different devices Efficient workflows in managing digital text, images, sound, media content- lack of standards Experience marketing new formats via new channels – each medium has its own unique requirements Flexibility to respond to change – be proactive to changes

33. ‘Skills’ was named as the most pressing obstacle to growth in mobile sectors Obstacles to growth Question: What are the biggest barriers to growth of mobile communications in Asia-Pacific? (Pick up to three) Citations (% total respondents)

34. Top 10 New Jobs Mobile Applications Developer Search Engine Optimization Specialist Sustainability Expert Web Content Strategist Information Services Coordinator Source: Thinkopolis Report, Second Edition, The Future of Students and the Workplace, 2013 Digital Marketing Manager Big Data Analyst Privacy Officer User Experience Designer Cloud Services Specialist

35. Summary Defining your customer of today and tomorrow Defining distribution and retail channels Develop many different ways to package and sell digital based content (multi media) Developing new goals which will demand new strategies – digital business models are not static Focus on good management, good people and good publishing programs Unified and integrated data will allow immediate analysis – analytics to measure change and growth Quality Content is the real value for long term success

36. 谢谢！ THANK YOU

37. THANK YOU 谢 谢 Robert E. Baensch