OverDrive Final_Presentation - April 24, 2008 April 24,...

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Unformatted text preview: April 24, 2008 April 24, 2008 AEM 437 Innovation Strategy Company History Company History Steve Potash, CEO and visionary April 24, 2008 Industry and Products Industry and Products eBooks, audio books, music, and movies Content, digital rights management, and end­ user interfaces Market: libraries and schools Content from an increasing array of publishers Continuous innovation April 24, 2008 Company Overview Company Overview Open innovation model Technical partnerships (most notably with Adobe and Microsoft) R&D: incorporate new types of media to collection of content (e.g. games) new methods to protect content new ways to view content (e.g. iPod) April 24, 2008 Competition Competition Recorded Books audio books Audible.com Internet provider of spoken audio entertainment, information, and educational programming proprietary .aa format password prevents unauthorized playbacks Audible Education: lectures, study guides, and teaching aids April 24, 2008 Competition Cont. Competition Cont. Kindle electronic book handheld device supports .aa format Web browser in experimental stages Terms of Use eBooks Google Print: access to full texts scanned and digitally stored GoogleBooks April 24, 2008 OverDrive’s Chief OverDrive’s Chief Innovation Digital Rights Management (DRM) The library market and beyond… April 24, 2008 Importance Importance Implemented Microsoft technology into downloadable delivery system for libraries and schools Each type of content requires a different and complicated adaptation of base technology Allows files to automatically disengage licenses at the end of a loan period Content producers require this technology April 24, 2008 Process Process OverDrive worked directly with Microsoft Large team of software engineers and programmers to mesh the rights management standard to the OverDrive delivery model Network engineers insure a seamless process from content distribution to end­user delivery April 24, 2008 Future Future Currently audio, eBooks, music, movies and games on a single platform Adobe Digital Editions: Adobe ADEPT (DRM protection) and more games Currently 100,000 titles – expansion is key! More formats and more titles in current areas April 24, 2008 Business Model Business Model Value Proposition – 3 fold Manage/protect digital rights Deliver content To libraries To end user Manage through Publishers Value Proposition Deliver Using Libraries Provide access Access Via Publishers April 24, 2008 Business Model Cont. Business Model Cont. Target Market Libraries (public): Consortiums of 50­200 diverse libraries (highly saturated) Schools: Districts in regions with K through 12 April 24, 2008 More Value More Value Value Chain: Value Value Network: Overdrive uses and combines external tech to create its innovative process Microsoft: management of digital rights Adobe: format of content April 24, 2008 Business Model Completed Business Model Completed Cost Structure/Target Margins Cost of initial system = very high Cost of adding new content = very low Very high margins on new content Combine the tech to create a unique process Sell as much content as possible Competitive Strategy April 24, 2008 User Access IP Management User Access IP Management Content protection for viewing and listening: use of Adobe ADEPT, RealPlayer technologies Co­developed applications Pros andcons User demand tracking: Microsoft digital rights management Integration into OverDrive’s system April 24, 2008 System IP Management System IP Management Trade secrets OverDrive’s proprietary system for downloading and user interface Single interface for all content types Downloads accessible worldwide April 24, 2008 Content IP Management Content IP Management Relationships with content providers Agreements with individual publishers and producers Overdrive acts as “wholesaler” by licensing to libraries General model: 1 user, 1 copy April 24, 2008 Recommendations Recommendations More titles for current formats More formats Less restrictive DRM technology Build market share with content Look for acquisition possibilities and/or venture capital aid April 24, 2008 Questions? Questions? www.OverDrive.com April 24, 2008 ...
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