1. Copyright © 2010 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-1 ELC 200 Day 23

2. Agenda Questions? Assignment 8 Posted  Due Dec 1 @ 11:05 AM  ELC 200 assignment 8.pdf ELC 200 assignment 8.pdf Optional Assignment 9 posted  Due Dec 8 @ 11:05 AM Final Paper and presentations  Due Dec 16 @ 10 AM  initiative framework guidlines.pdf initiative framework guidlines.pdf Finish Discussion on Online Content

3. Rest of Semester Nov 21  Chap 10 Nov 28 & Dec 1  Chap 11  Course Evaluations Dec 5  Chap 12 Dec 8  Exam 3  Optional assignment 9 Due Drop lowest assignment grade Dec 16 @ 10 AM  Ecommerce initiative papers and presentations due. Copyright © 2010 Pearson Education, Inc. Slide 9-3

4. Copyright © 2011 Pearson Education, Inc.Copyright © 2010 Pearson Education, Inc.Slide 10-4 Chapter 10 Online Content and Media Copyright © 2011 Pearson Education, Inc.

5. Objectives Identify the major trends in the consumption of media and online content. Discuss the concept of media convergence and the challenges it faces. Describe the five basic content revenue models. Discuss the key challenges facing content producers and owners. Explain the key factors affecting the online publishing industry. Explain the key factors affecting the online entertainment industry. Copyright © 2011 Pearson Education, Inc.Slide 10-5

6. Copyright © 2011 Pearson Education, Inc. E-books Evolution  Project Gutenberg (1970s) Project Gutenberg  Voyager’s books on CD (1990s)  Adobe’s PDF format Types of commercial e-books  Web-accessed e-book http://my.safaribooksonline.com/http://my.safaribooksonline.com/  Web-downloadable e-book http://books.google.comhttp://books.google.com  Dedicated e-book reader Kindle, Sony, Nook  General purpose PDA reader  Print-on-demand books (academic texts & Self-publish) http://www.lulu.com Slide 10-6

7. Copyright © 2011 Pearson Education, Inc. Book Audience Size and Growth Americans read about 10 books per year per person; spend $106/year on trade books E-book sales  2% of book sales in 2010  Will grow to 10% by 2014 Fastest growing delivery platform for text content Slide 10-7

8. Copyright © 2011 Pearson Education, Inc. Growth of E-Book Revenues 2009-2014 Slide 10-8 SOURCES: Based on data from Assoc. of American Publishers, 2010; authors’ estimates. Figure 10.9, Page 680

9. Copyright © 2011 Pearson Education, Inc. E-book Industry Revenue Models Pay-for-download  Publishers selling electronic versions of print books to online intermediaries such as Barnesandnoble.com and Amazon Licensing of entire e-libraries of content  Similar to subscription model, monthly or annual fee  Customers typically major institutions, libraries Online research databases http://www.umfk.edu/library/ Advertising-supported model  Distributor (e.g. Google) arranges for rights to display book, shares ad revenues with publishers Slide 10-9

10. Copyright © 2011 Pearson Education, Inc. Convergence in Publishing Industry Technological convergence slowed by: 1. Poor resolution of computer screens 2. Lack of portable reader devices to compete with book 3. DRM concerns 4. Lack of standards Potential solutions  Sub-pixel display technologies  Electronic ink technology  DRM software  Emerging standards: OEB, ONIX Slide 10-10

11. Copyright © 2011 Pearson Education, Inc. Convergence in Publishing Industry(cont’d) Content  E-books in media integration stage XML and large-scale online text/graphic storage systems have transformed book production and made it more efficient OEB and ONIX Industry structure  Industry still dominated by a few titans  Some challenges from: Google, Microsoft in indexing copyrighted books Barnes & Noble move into publishing Self-publishing Slide 10-11

12. Copyright © 2011 Pearson Education, Inc. Online Entertainment Industry Major players:  Television, radio, Hollywood films, music, video games Undergoing a transformation brought about by Internet, aided by:  iPod/iPhone video and music platform  Digital cellular networks  Social networking platforms  Viable business models in music subscription services  Widespread growth of broadband  Business models that eliminate need for DRM Slide 10-12

13. Copyright © 2011 Pearson Education, Inc. The Five Major Players in the Entertainment Industry Slide 10-13 Figure 10.10, Page 687 SOURCE: Based on data from U.S. Census Bureau, 2010; NPD Group, 2010, authors’ estimates.

14. Copyright © 2011 Pearson Education, Inc. Online Entertainment Audience Size Online “traditional” entertainment (films, music, games):  Music downloads, followed by online games and TV, radio User-generated content:  Substitutes for and complements traditional commercial entertainment  Two dimensions: User focus User control  Sites that offer high levels of both will grow Slide 10-14

15. Copyright © 2011 Pearson Education, Inc. Projected Growth in Traditional Online Entertainment (In Millions) Slide 10-15 SOURCES: Based on data from eMarketer, 2010, Stevenson, 2010; authors’ estimates. Figure 10.11, Page 689

16. Copyright © 2011 Pearson Education, Inc. User Role in Entertainment Slide 10-16 Figure 10.12, Page 690

17. Copyright © 2011 Pearson Education, Inc. Content Internet has greatly changed packaging, distribution, marketing, sales of traditional entertainment Greatest impact: Music  From CD of 12-15 songs to single-song downloads  Groups can bypass traditional marketing and sales Revenue Models Marketing, advertising, pay-per-view, subscription, value-added, mixed Slide 10-17

18. Copyright © 2011 Pearson Education, Inc. Convergence in Entertainment Industry Technology convergence:  PCs and handheld devices (iPods) become music listening devices  PC has become game station  Game stations connect to Internet  Movies and television Move toward Internet distribution  iTunes Store, Netflix, Hulu, Blockbuster Slide 10-18

19. Copyright © 2011 Pearson Education, Inc. Convergence in Entertainment Industry (cont’d) Content convergence  Significant progress toward digital tools for content creation and production Digital cameras, workstations Music recording and production highly digitized; some distribution direct to Internet, bypassing CD production stage Slide 10-19

20. Copyright © 2011 Pearson Education, Inc. Convergence in Entertainment Industry (cont’d) Industry structure  Fractionated: Many players and forces shape industry  Reorganization of value chain needed for aggressive move to Web  Possible alternative models Content owner direct model Internet aggregator model Internet innovator model Slide 10-20

21. Copyright © 2011 Pearson Education, Inc. Entertainment Industry Value Chains Slide 10-21 Figure 10.13, Page 694

22. Copyright © 2011 Pearson Education, Inc.Slide 10-22

23. Copyright © 2011 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall