1. Copyright © 2010 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-1 ELC 200 Day 21

2. Agenda Questions? Assignment 8 posted  Due April 20  ELC 200 assignment 8.pdf ELC 200 assignment 8.pdf  Last one Ecommerce Framework papers  Paper and presentation due May 8 @ 8 AM  initiative framework guidlines(2).pdf initiative framework guidlines(2).pdf Finish discussion on Online Services

3. Possible Bonus Points Questions Name and origin of   What does his name mean?  What does he look like all  “grown up”? Origin of the word SPAM for email  First SPAM  First email SPAM Copyright © 2010 Pearson Education, Inc. Slide 1-3

4. Remaining Class Schedule Today  Friday the 13 th  Online content and media April 17  Social Networks, Auctions and portals April 20  Scholar's Symposium (no class)  Assignment 8 due April 24  Social Networks, Auctions and portals April 27  B2B eCommerce May 1  Supply Chain Management and Collaborative Commerce  Optional Assignment 9 due May 4  Exam 3 May 8 @ 8 AM  Papers and presentations due Copyright © 2011 Pearson Education, Inc. Slide 8-4

5. Copyright © 2011 Pearson Education, Inc.Copyright © 2010 Pearson Education, Inc.Slide 10-5 Chapter 10 Online Content and Media Copyright © 2011 Pearson Education, Inc.

6. Online Newspapers Most troubled segment of publishing industry However, online readership growing at 15% Online newspapers one of most successful forms of online content to date  Few have reached break-even Aggregators have used Web to take away part of newspapers’ content/business – classifieds (Craigslist), weather, news, etc. Slide 10-6

7. Copyright © 2011 Pearson Education, Inc. Monthly Unique Visitors at Top 10 Online Newspapers Slide 10-7 SOURCES: Based on data from comScore, 2010; eMarketer, 2010Figure 10.7, Page 672

8. Copyright © 2011 Pearson Education, Inc. Newspaper Business Models Initially fee-based, then free, and now beginning a return to fee-based Newspaper headlines are primary content on Google News, Yahoo News http://news.google.com/http://news.google.com/ Newspapers have sought industry-wide alliances, e.g. CareerBuilder Other strategies  Revenue sharing with Internet titans  New reader devices Slide 10-8

9. Copyright © 2011 Pearson Education, Inc. Convergence in Newspaper Industry Technology:  Slow move to Internet; beginning to incorporate video, RSS (Real Simple Syndication) etc. Content:  Four content changes Premium archived content Fine-grained searching Videos reporting RSS feeds  Timeliness allows competition with TV/radio Industry structure: Has not seen much convergence due to limited returns Slide 10-9

10. Copyright © 2011 Pearson Education, Inc. Challenges: Disruptive Technologies Classic case of disruptive technology? Industry still in flux  Newspapers have significant assets: Content Readership Local advertising Audience  Wealthier, older, better educated  Online audience will continue to grow in numbers and sophistication Slide 10-10

11. 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  Web-downloadable e-book  Dedicated e-book reader Kindle, Sony, Nook  General purpose PDA reader  Print-on-demand books (academic texts & vanity press) Slide 10-11

12. 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 10-12

13. Copyright © 2011 Pearson Education, Inc. Growth of E-Book Revenues 2009-2014 Slide 10-13 SOURCES: Based on data from Assoc. of American Publishers, 2010; authors’ estimates. Figure 10.9, Page 680

14. 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 Advertising-supported model  Distributor (e.g. Google) arranges for rights to display book, shares ad revenues with publishers Slide 10-14

15. 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 10-15

16. 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 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 10-16

17. 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 (3G  4G )  Social networking platforms  Viable business models in music subscription services  Widespread growth of broadband  Business models that eliminate need for DRM Slide 10-17

18. Copyright © 2011 Pearson Education, Inc. The Five Major Players in the Entertainment Industry Slide 10-18 Figure 10.10, Page 687 SOURCE: Based on data from U.S. Census Bureau, 2010; NPD Group, 2010, authors’ estimates.

19. Copyright © 2011 Pearson Education, Inc. Online Entertainment Audience Size Online “traditional” entertainment (films, music, games):  Music downloads, followed by online games and TV, radio  http://www.hulu.com/search?query=three+stoogies&st=0&fs=null http://www.hulu.com/search?query=three+stoogies&st=0&fs=null 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 10-19

20. Copyright © 2011 Pearson Education, Inc. User Role in Entertainment Slide 10-20 Figure 10.12, Page 690

21. Copyright © 2011 Pearson Education, Inc. Projected Growth in Traditional Online Entertainment (In Millions) Slide 10-21 SOURCES: Based on data from eMarketer, 2010, Stevenson, 2010; authors’ estimates. Figure 10.11, Page 689

22. 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 10-22

23. 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 Slide 10-23

24. 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 10-24

25. 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 10-25

26. Copyright © 2011 Pearson Education, Inc. Entertainment Industry Value Chains Slide 10-26 Figure 10.13, Page 694

27. Copyright © 2011 Pearson Education, Inc. Insight on Technology Hollywood Meets the Internet: Round 3 Class Discussion What strategies has Hollywood pursued to combat movie piracy? Are there legitimate ways that videos can be distributed on the Web? How can the differentiation of DVD products help in combating piracy? Do you think Hollywood is doing a better job of protecting its content than the music industry? Slide 10-27

28. 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