|Oyster offers more than 100,000 books in an |
all-you-can-eat subscription model.
For one small monthly subscription fee one can gain instant access to huge libraries of hundreds of thousands of books.
What determines the ultimate success of these programs is the quality and quantity of books offered --- and this is built upon the quality of publishers (both big and smaller houses) that offer their books in these subscription models.
So, just how do publishers get paid under these business models? How do the writers/content providers get paid? What is the advantage to readers?
A key excerpt from tonight's research source:
"But the fundamental benefit for publishers is that by creating this fundamentally better reading experience, we can grow the pie for the industry. That means getting people to read more books, bringing in new audiences, and if we're able to do that, it's ultimately a win for us as a company."
So, essentially, if you start with satisfying the readers (the end users of your product) first, you will invent a sustainable model that makes money and is a win win for all players.
The following interview with Eric Stromberg, CEO of Oyster (among the first to offer the subscription model for books) will answer the questions raised above.
This interview is conducted by Daniel Terdiman, a senior writer for CNET:
How the 'Netflix of books' won over the publishing industry (Q&A)
Oyster has grown its library of books available to its all-you-can-eat subscribers to more than 100,000 titles. CEO Eric Stromberg told CNET how it happened, and how the company is changing the world of reading