Terry McGraw, the chairman, president & CEO of educational publisher McGraw-Hill, confirmed the existence of Apple’s iPhone OS-based tablet and that it’s coming tomorrow.
Yeah, very exciting. Yes, they’ll make their announcement tomorrow on this one. We have worked with Apple for quite a while. And the Tablet is going to be based on the iPhone operating system and so it will be transferable. So what you are going to be able to do now is we have a consortium of e-books. And we have 95% of all our materials that are in e-book format on that one. So now with the tablet you’re going to open up the higher education market, the professional market. The tablet is going to be just really terrific.
It’s no surprise that Apple is going after the educational market. The company has deep roots in education with programs that are more than 20 years old for donating and discounting products to students and educators.
At the same time, the college textbook market is undergoing major structural change. Emerging startups like Chegg and BookRenter that allow students to rent textbooks are challenging traditional publishers’ revenue streams. McGraw-Hill, in fact, now partners with Chegg, supplying some texts in exchange for a revenue share.
An Apple tablet could provide an avenue for McGraw-Hill to earn revenue through a subscription-based model with rich multimedia and interactive problem solving.
I’ve embedded the video below. The discussion of the tablet starts about 2:50 in.