Pearson's CEO mentioned they are looking into NFT textbooks—but is this just talk?
On August 1, during a call discussing earnings, Pearson's Andy Bird hinted that the company might pivot towards making textbooks available as NFTs, aiming to benefit from future transactions. secondary market sales The internet has reacted strongly to this news, criticizing Pearson's intent to squeeze additional profits from financially strapped students.
Some analysts have paused to think whether Pearson's strategy could actually be viable, considering the current state of the market and students' susceptibility. lit industry’s other blockchain forays.
Bird explained, 'In the old days, a Pearson textbook could be resold multiple times, yet we only benefited from the initial sale,' shared with reporters after the company's latest quarterly results. 'Shifting to digital can shrink that secondary market, and utilizing technologies like blockchain and NFTs could enable us to profit from each transaction as the item changes hands over time.' Bloomberg Textbooks are pricey and their utility is often fleeting. What happens to a specific edition that’s only relevant for a short course? Generally, students try to sell them back. blockchain This creates a win-win where sellers recover some costs while helping other students acquire necessary materials at a lower rate.
The rise of ebooks has complicated the resale market since they're tougher to pass on to others. In many cases, physical books retain greater appeal for both practical use and reuse. first-sale doctrine But students can still share book pages via photocopies or screenshots. This scenario echoes a main reason blockchain was valued by digital artists—overcoming the simple 'right-click save' issue by confirming true ownership with a secure and permanent digital ledger.
Meet Andy Bird, who previously led Walt Disney's operations.
Pearson appointed Bird as CEO in 2020 to address the rising costs associated with producing university textbooks, particularly as many students prefer buying secondhand editions.
It appears that Bird is fulfilling his role well. Besides launching an ebook subscription service, Pearson+, it was reported that in 2021, the company amassed $4.2 billion in revenue, with projections suggesting even better figures for 2022—a 14% profit increase. Notably, their earnings for the year's first half surpassed analyst expectations, reaching over $2.2 billion. Disney International. The Guardian According to Bloomberg, Pearson’s stock surged by 10% following Bird’s comments—marking the most significant increase in a single day since a takeover bid was made in March.
Some observers have speculated that Bird might have used 'NFT' as a trendy keyword to ignite enthusiasm among shareholders. familiar ?) Cointelegraph Although NFTs could benefit the literary sector by opening self-publishing paths, the challenge with Bird's proposal lies in motivating students. Who actually cares about owning the copyright to their book? Why would cash-strapped students disregard savings?
For Pearson to make this model work, they would likely need to make ownership a necessity. NFT Since NFTs gained popularity, I've consistently said that textbooks are an ideal example of their practical application. However, the authors usually receive a fixed fee. Until they start sharing profits with contributors, students should explore alternative means to acquire their textbooks.
'NFTs don't inherently introduce any groundbreaking solutions to this dilemma,' an expert pointed out. Existing digital database technology already allows for the resale tracking that Pearson claims to seek.
'A blockchain would merely decentralize that database, but it’s nearly impossible that Pearson would adopt a truly open system,' they added. 'Chances are, they’ll extend existing copyright protections to prevent non-NFT holders from sharing or copying texts, effectively making NFTs an overlaid guise on traditional digital rights management (DRM).'
'Library ebooks often come with limitations, like self-destruct conditions requiring new purchases after multiple checkouts,' The Verge noted as an example of a potentially exclusionary feature Pearson might implement. The Verge Any successful NFT venture will necessitate Pearson to navigate thoughtfully.
'We have a dedicated team assessing the implications of this shift,' Bird mentioned in a recent call, likely alluding to their emerging online learning platform, OPM.
As the new academic term approaches, it would benefit Pearson to emphasize the collective advantages that Web3 advancements could bring, perhaps even framing it as a PR strategy to placate profit-oriented shareholders. IP ’s evil empire.
Warner Bros is set to release its Tweety Bird NFT collection later this month.
Be part of the inaugural Metaverse book launch in Decentraland: 'Parallel Metaverses' by Nina Xiang. pack on some utility to encourage adoption.
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With Metaverse learning this summer’s hottest topic Vittoria Benzine is a Brooklyn-based author specializing in contemporary art. She provides insights on various topics, focusing particularly on the interplay between human experiences and counterculture. Her work appears in publications like Maxim, Hyperallergic, and Brooklyn Magazine.
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