David TaylorLightning SourceAn Ingram Content company

DIGITAL BOOK PRINTINGTHE NEW ECONOMICS OF PRINT-ON-DEMAND

ABOUT LIGHTNING SOURCE

- Founded in 1997

- 650,000+ titles are stored in our digital library9

- Digital and offset printing for complete supply chainmanagement

- 60,000,000+ single-copy books printed globally

- Average print run is 1.8 copies

- Global operation

LaVergne, TNMilton Keynes, United KingdomAllentown, PA

- 6,500 publishing partners

- 1.2 million books printed per month

PRINT ON DEMANDLIGHTNING SOURCE INC.

Repurpose content and sell it

POD giving life … Revenue generation from content repurposed.Gain incremental revenue from print-ready files generated from asingle hardcover title file.

• Large print

• Frontlist gaps

• Long tail – hardcover and softcover

• Backlist

• Out of print

• Special editions

Increased incremental revenue(more money…)

For example, add revenue at little or no cost by having print-readyfiles of a single title for:

Large print: $25 x 500 units = $12,500

Frontlist gap: $25 x 1000 units = $25,000

Special editions: $25 x 500 = $12,500

$50,000 additional revenue 1st year

Long tail/backlist/out of print: $15 x 300 units per year = $4500

Special editions: $20 x 100 = $2000

Large print: $20 x 100 = $2000

$8500 incremental revenue every year from year two

Large Print

Using POD, large numbers of titles can be made available

without incurring significant costs

• It’s not just for the older generation

• 1 in 6 people 45+ years report some sort of visual impairment* (That’s a population of 16.5 million today – expected to rise by 20 million by 2010)

• Social responsibility

• POD removes the need for publishers to print speculative stock

• Reflow text into larger point sizes

* Source- Publishers Weekly – 5/19/2008

XML is everywhere

XML is everywhere – especially in POD

• Distributing catalogs (ONIX)

• Rendering content (OEB, ePub, PDF)

• Ordering content (EDI is still king, but XML formats are availabletoo)

• In fact, within Lightning Source, virtually all of our internal systemcommunication are enabled via XML

A Perfect Storm….

Make the book available in multiple formats – XML

Assume there is a demand – the long tail

Let customers find it – the internet bookselling model

Let publishers make money out of virtual inventory, single copysupply when there is a demand - POD

Publishers like this idea…

• Multiple versions = increased sales• Reduced inventory = reduced capital• Get out of having big, costly warehouses• Social responsibility• Reduced shipping costs• Reduced carbon footprint• Improved availability messaging to customers = more sales

Traditional model of publishing is shifting from one almost exclusivelybased on speculative inventory to one increasingly based on micro orvirtual inventory

Stuff you need to make thisreally work….

• Genuine print on demand capability

• Single copy production to allow move to micro or virtual inventory

• Fast, rapid…

• Digital workflow management

• Quality – paper and case options

• Secure repository for multi-purposed digital files

• Linked to network of wholesalers, distributors, resellers

• CDF capabilities

• A genuine global footprint

Conclusion…

Having an effective digital workflow enables you to re-purpose yourcontent in a variety of formats/uses for little effort and cost.

POD allows you to make all of them available for purchase for littleeffort and cost.

Never lose a sale. Never disappoint a customer