2013_2ndTrimester|InternetBusiness

eBook Industry in S.Korea

Team8 Gaee | Jihee | Jaehoon

2nd Trimester | Internet Business Professional Engagement Project

Contents

1.  Domestic eBook market situation 2. eBook failed in Korea 3. Business Opportunity and threats 4.

Solutions

Domestic eBook Market

The domestic market Stagnation o In 1999, Booktopia came out

o With many problems, the company broke down o → Stagnation for a decade o Sales of e-book is going up in online market

Domestic eBook market

The domestic market Growing market magnitude, Fluctuation of growth rate over 6 years

Foreign market

Domestic market

Domestic eBook market

The domestic market Market share ratio by genre and customer age group

Domestic eBook market

Value Chain Value chain comparison with existing publishing players

Domestic eBook market

Failure of eBook in the past Why did eBook fail? ü Lack of contents ü Legal battles for fixed book prices ü Difficult to sell devices due to stiff market ü Reduce investment after falling of BookTopia ü Fail to release new model ü Low demand in B2B market ü Lack of active participation with publisher

Domestic eBook market

Business Opportunity Analysis

Opportunities Growth of Domestic eBook Market 1. Increasing number of mobile device users Number of users 4000 3500 3000 2500 2000 1500 1000 500 0 2010

2011 Smartphone

2012 Tablet PC

Business Opportunity Analysis

Opportunities Growth of Domestic eBook Market 2. Increasing number of eBook contents Year

2004

2005

2006

2007

2008

2009

2010

Number

31,194

3,281

45,029

6,987

246,882

2,034,961

360,840

Korea Electronic Publishing Association, 2010

3. Diversification of E-Book Contents ü SF ü Literature ü Novel

Comics

4. Support from Government 60 billion won, during 5 years (MCST) 2,228 billion won for eTextbook, 2015 (MOE)

Business Opportunity Analysis

Problems in eBook market On the process of paradigm shift Problems in Transitional period

• Cannibalization of paper book • Cost of E-Book and paper book • No standard E-Book technology ePub from IDPF (International Digital Publishing Forum) DRM (Digital Rights Management) related problems

Customer’s inconvenience

Business Opportunity Analysis

Problems in eBook market Too many, varied eBook apps

Business Opportunity Analysis

Proposal For the Breakthrough in eBook market

Proposal No.1

Activating Multimedia based eBook o Increased accessibility through various devices o More than reading ,

Listening, watching and feeling

Kids’ Book

Cook Book

News

& Magazines

Story books

Proposal For the Breakthrough

Proposal No.2

Integrated platform, Necessity of eBook agency o  Scattered contents, bad UI o  Difference from the conventional chain Contents creation Contents Packaging Print & Distribution Wholesaler Retailer Purchase & Delivery

Proposal For the Breakthrough

Proposal

Publishing

Contents provider

Publishing & Revising

Data Rights

Management

Distribution

Distribution eBookreader devices Channels

Sales

Proposal For the Breakthrough

Proposal No.2

Integrated platform, Necessity of eBook agency

Proposal For the Breakthrough

Proposal o Benchmarking : ISSUU.COM

ü Social Curation ü UI design with high usability ü Customizable book stacks

o Fruitfulness of Contents : Crowd sourcing ü Individual writers who needs literary career

Proposal For the Breakthrough

Problems in eBook market No.2

Integrated platform, Necessity of eBook agency o Further considerations ü The importance of unified DRM|Data Rights Management Developing universal file format

ü Sustainable profit structure Adequate pricing / payment system from the end users Efficient contract strategy with existing publishing companies

Proposal For the Breakthrough

eBook Industry in S.Korea Text and design copyright â“’2013 InternetBusiness Limited

First published in 2013 by Team8, 2nd Trimester Internet Business course UNIST, Banyeon-li, Eunyang-eup, Ulju-gun, Ulsan metropolitan city

This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publishers prior written consent in any form of cover or binding other than that in which it is published and without a similar condition including this condition, being imposed upon the subsequent purchaser.

All rights reserved.

SID 20101611| 20101677 | 20111302

Publishing Manager : Gaee Kim Domestic Market Specialist : Jihee Shim Market analyst : Jaehoon Song Production: Gwangwook Kang

Thank you

Course price : invaluable