1. Today’s Moving Target College Bookstores John Taylor University of Michigan

2. Learning Objectives To learn of the history, current challenges and potential future of college bookstores To understand the evolving textbook market To recognize the challenges of on-line and bricks & mortar services To be posed with questions that College Union Auxiliary Operators should consider for the future

3. Adjusting to Technology

4. Traditional Textbook Markets US New Book Market –Thousands of new textbooks published every year –Faculty decide whether/not to use new edition or completely different text. –New book sales in US college stores ~ 65% of course material US Used Book Market –Used books sales ~ 35% of all course materials –Offer strong selection, students sell back for up to 50% of purchase price Student Co-op –Students sell used books to each other –Often such groups are established student organizations –Other avenues, such as through Facebook & Craigslist allow students to also sell to each other

5. Catalysts for Industry Change 1.Higher Education Opportunity Act – includes provisions for textbook affordability –Colleges must identify course textbooks during registration –Price information from Publishers 2.Textbook Rental Sites – Chegg, BookRenter –Netflix goes to college 3.Comparison Search Sites – Bigwords, BestBookBuys –Students can search multiple online stores at once 4.Open Source Textbooks – Flat World Knowledge 5.Ebooks on the rise

6. Expansion of Textbook Rentals

7. Open Source

8. Traditional Going Digital Will Barnes & Noble’s Latest Moves Pay Off? Published: July 15, 2010 in Knowledge@Emory

9. Ebook on the Rise

10. Google Expands Access

11. Future noted by Follett David Randall, Forbes Blog interview of Tom Christopher, President of Follett Higher Ed division What about the iPadand other tablets and e-readers? We believe that the whole world is moving more toward digital content and digital delivery of content. The devices are slick and really great, especially for general reading. But they aren’t quite there in terms of educational content, at this point in time. That doesn’t mean that they’re not going to get there. The technology will continue to develop and the devices will have more capabilities. The text material will continue to evolve to where it’s more suitable to digital. Will you eventually go out of the printed book business? We don’t think that students will stop buying new textbooks in the near future. Over time more content will be going to digital formats. With the business model of converting it into a digital format, the upfront costs of it are prohibitive if it’s a limited distribution. There are hundreds of thousands of education titles and they are so esoteric they don’t get wide distributions. We are becoming a house of choices. It’s about having options. Depending on who a student is, there will be an option in them for our stores. For us it’s about having products in all those areas and letting consumer demand take over.

12. Troubling Signs Barnes & Noble Puts Itself Up For Sale Bookseller Borders Begins a New Chapter...11 WSJ.com FEBRUARY 17, 2011 By JOSEPH CHECKLER And JEFFREY A. TRACHTENBERG February 2011, Barnes & Noble dropped ACUI membership

13. Publisher Speculation Number of books published is exploding, but Book industry sales are declining Estimate eBooks will eventually comprise 20% of market – will take some years Affordability #1 reason purchase eBook Digital growing, but print not going away

14. HE Response Initiative #1

15. HE Response Initiative #2

16. HE Response Initiative #3

17. HE (State) Response Initiative #4

18. Taking the ‘Book’ out of Bookstore

19. Generational Adaptation

20. K-12 as Predictor

21. The Future of Teaching & Learning?

22. Underlying Messages Traditional Bookstore is on the Ropes Serious Technology Enhancements Textbook Cost is a Factor Flexible Content Delivery Generational Adaptation Academia Beginning to Change Strong Indication – Only a Matter of Time

23. Lingering Questions What does all of this mean for my bookstore contract that is about to expire, and the 14,000 square feet of space in the Union? What is in the best interest of students? –Personal care and customer service that comes with a bricks & mortar store? –Other community building or revenue producing uses of the space, recognizing textbook options exist for students? What will educational content delivery look like on my campus? What is the anticipated impact on the Union – revenues, operations, programs, visitors, etc.?

24. Thank You