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Amazon Kindle DX Test

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Amazon Kindle DX Test !"#$%$&'()*+'+%,",$-%(',"*,'(".,+*(,/$'('0$1+2( Today’s Discussion ! eReader Overview ! eReader Device Manufactures ! Device / Screen Convergence ! Leveraging The eReader / Digital Subscription Opportunity ! New York Times / Amazon Kindle DX Test 1 E-Readers – A Print Reading Experience 2 Market Size in the United States 3 Optimum eReader Consumer Experience ! Ubiquitous Connectivity: The consumer should be able to download content anywhere. ! Robust E-Commerce: Purchasing content for the device should be easy, one-click, with credit card information stored on file. Subscriptions should be delivered to the device in a seamless fashion requiring no action from the consumer. ! Ease of Use: The screen should be designed for reading. The device should be light weight, with long battery life. Content should be easy to navigate through. ! Content Catalog: There should be a large offering of books, newspapers, magazines and blogs. ! Advertising Capability: The provider should be developing an advertising ecosystem. ! Price: The price to the consumer should be no more than $200 to $300 with some research indicating $99 as a major tipping point. 4 Amazon Kindle ! Industry leader ! Established minimum expectations that other eReader manufacturers need to meet ! Kindle 2 is $299 / Kindle DX is $489 ! New York Times and Amazon conducting a test of a bundled Kindle DX / 1 Year NYT Subscription / Branded Cover 5 Sony Reader ! 3 devices by December 2009 ! $199 / $299 tethered ! $399 Daily Reader to launch December 2009 ! Daily Reader has wireless connectivity to mirror Amazon Kindle experience ! Best Buy – 1,000+ locations ! Library relationship 6 IRex ! U.S. launch 4th quarter ! Wireless access – international ! 8.1 inch screen ! Touch-Screen ! $399 price ! eCommerce hub ! Partnership announced with Barnes & Noble and Best Buy 7 Plastic Logic ! 10.7 inch screen ! Touch-Screen ! Launch date in 2010 ! Looking to better replicate newspaper and magazine reading experience ! Targeting executives 8 Netbooks ! Fastest selling category of computers ! Opportunity to market subscription and Netbook bundle ! Publishers need to consider a paid product for traditional screens ! Opportunity to address device convergence question 9 Possibility of Device and Screen Convergence ! Will consumers continue to carry a dedicated reading device? ! Improvement in Mobile devices ! New computing form factors – Tablets/Slates ! Advancing screen technology ! Device manufacturers are pursuing a multi-screen strategy ! Possible pressure on paid subscriptions in a Browser environment ! Publishers should be prepared for the possibility of convergence 10 The Relationship With Our Customers ! Publisher needs to maintain a strong relationship with its readers and “Own The Customer” ! Publisher should maintain the billing relationship with its readers ! Publisher should determine the price to the consumer ! Publisher should require access to all customer data ! Publisher should require access to all product usage data ! Publisher should maintain the ability to market to their customers CONTENT OWNING THE DEVICE PROVIDERS CUSTOMER • Newspapers • Customer Relationship • Kindle • Books • Content Warehouse • Sony Reader • Blogs • E-Commerce • First Paper • Magazines • Amazon • Plastic Logic 11 • Sony • Irex • First Paper Pricing Across Products and Platforms Print eReader $$$ Price $$$ Replica Edition Web / Mobile Closeness to Print Experience 12 Managing Economics of Reader Migration HYPOTHETICAL EXAMPLE $200 Gross revenue per print subscriber -$100 Variable costs per print subscriber (fulfillment, newsprint & ink) $100 Net margin per subscriber Publisher’s Revenue Share 13 Marketing Digital Subscriptions ! New entry point for Web or Mobile audience who are not interested in Print ! Opportunity to win-back expired subscribers ! Develop attractive product packages that bundle Print/eReaders/ Mobile/Web, etc. ! Brand subscription opportunities ! Print/eReader bundle to maintain most profitable Print days ! Target eReaders to least profitable print markets ! Device subsidy with long-term subscription 14 Times Reader on Adobe AIR ! March 2007 début ! $14.95 per month ! Free to Print subscribers ! June 2009 re-launch on Adobe AIR ! Runs on PC, Mac & Linux 15 Times Reader in Adobe’s Download Center 16 New York Times on Amazon Kindle ! Amazon is currently the largest seller of eReader devices and eReader content. More than 10% of their books are now sold via the Kindle. ! The New York Times has been available on the Kindle for almost two years. ! The New York Times has consistently been the #1 selling newspaper on the Kindle and has amassed a significant number of subscribers. ! The New York Times Kindle Edition currently sells for $168 per year. 17 New York Times / Amazon Kindle DX Test A unique e-mail promotion to non-routable and expired home delivery subscribers. $499 for: ! A one-year subscription to The New York Times Kindle edition ! A Kindle DX ! A limited-edition branded New York Times cover 18 The Process And Objectives Marketing Campaign E-Mail E-commerce Database Tool Tool Web Site ! Gauge demand for subscriptions that are sold bundled with a device at a reduced price ! Create a full New York Times experience for new Kindle subscribers ! Test our capabilities to sell and fulfill a subscription/device bundle ! Sell subscriptions! 19 The New York Times Purchase Experience Marketing E-Mail 20 The New York Times Purchase Experience Marketing E-Mail Web Site 21 The New York Times Purchase Experience Marketing E-Mail Web Site Order Confirmation 22 The New York Times Purchase Experience Marketing E-Mail Web SiteOrder Confirmation Shipping Confirmation 23 The New York Times Purchase Experience Marketing E-Mail Web SiteOrder Confirmation Shipping ConfirmationUn-Boxing Experience 24 Thank You!!! Yasmin Namini The New York Times SVP, Marketing & Circulation [email protected] Charlotte Gordon The International Herald Tribune Director, Strategy & Marketing [email protected] 25 .
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