Perlego recently raised $50M to build a “Spotify for textbooks” so people can access digital copies of textbooks for a fraction of the price. With this funding, Perlego has set out to put the power of education into the hands of people from all walks of life.
In this article, we will explore the market opportunity for Perlego and discuss why it is such a promising venture.
Overview of the market opportunity
Perlego is a digital subscription service for textbooks, academic literature and professional documents. By providing academic resources at a fraction of the traditional cost, the company provides students and professionals with a market-leading solution for their academic and professional learning needs.
The global demand for knowledge is growing rapidly as degrees become more prevalent in the workplace and continuing education requirements become mandated by employers. The textbook publishing industry has traditionally been extremely expensive with costly physical books and limited student options. In addition, traditional textbook publishers are slow to respond to market demands resulting in limited availability of up-to-date content. This has resulted in a large market opportunity for digital solutions such as Perlego, providing users instant access to a vast library of quality content at highly competitive prices.
The demand for knowledge also extends beyond education into professional development where individuals must maintain up-to-date competency levels in their field of choice. Government regulation and continuous assessment requirements require endless testing far beyond what traditional book publishers can provide, making it difficult for individuals to maintain their accreditation or stay atop existing trends in their industry without sustained financial outlay. Perlego meets this need through an easy subscription model that enables users to stay ahead in their field while saving money on expensive hardcover textbooks and limited selection academic resources.
Reasons for the Market Opportunity
Perlego, the digital platform for textbooks, has recently raised a staggering $50M investment to build out its vision of becoming the ‘Spotify for textbooks.’ The investment is a testament to the tremendous potential that the global education market presents for the company.
In this article, we’ll examine why Perlego is set to take advantage of the market opportunity.
High Cost of Textbooks
The cost of textbooks has been on the rise for the past decade. A study by the US Student PIRGS found that textbook prices have risen by 812% since 1978, which is four times the rate of inflation. In addition, 67% of college students do not purchase textbooks due to their high costs. This puts pressure on faculty to teach without textbooks and can lead to a decrease in learning outcomes and assessment quality.
The high cost of textbooks presents a significant market opportunity for Perlego. Many students will be willing to pay a lower fee to access digital versions of their course materials. Not only will this reduce their costs, but it will also give them more convenient access since digital materials can be accessed virtually anywhere through an internet connection or mobile device. Furthermore, digital versions often provide access to up-to-date information and multimedia resources that may not be included in physical books which makes it even more attractive for students.
Growing Demand for Digital Content
The demand for digital content has increased rapidly as consumers favor convenience and fast and easy access to information. Streaming, subscription-based and personalized content solutions have been embraced by users looking for an affordable and flexible way to acquire the knowledge they need. There is a significant market opportunity arising from the rising demand for digital content from all demographics worldwide.
The demand for digital knowledge is driven by various factors, including an increased availability of mobile devices with access to high speed broadband connections. This gives users an anytime, anywhere experience and allows them to better consume content on their terms. Additionally, advances in artificial intelligence technology are powering more personalized content experiences that deliver what users want quickly, making them more likely to return in the future. Moreover, a shift away from physical books towards e-books has been seen due to environmental concerns or simply wanting a less cluttered home library space – favoring convenience over traditional means of consuming information.
The combination of all these factors form an attractive market opportunity within the digital knowledge economy that Perlego is capitalizing on; providing both online academic libraries and personal libraries to individual subscribers offering great value without compromising quality or choice. By harnessing the power of technology, Perlego offers a viable alternative from traditional delivery models like universities or publishers with its tailored solutions allowing students & professionals alike discover expertly curated knowledge anytime and anywhere essential for success in whatever field of study/work they choose – growing with its customers ensuring their journeys are always powered by best-in-class digital solutions.
Lack of Accessibility to Textbooks
Dozens of countries worldwide struggle to provide their populations with basic educational resources. Still, even in the affluent nations that dominate the global economy there can be a problem with access to textbooks. For those students meeting the postsecondary tuition fees and enrollment requirements, acquiring a library of textbooks is often an added burden that has impacted their academic success.
In countries like the United Kingdom, Canada and United States, textbook prices have risen rapidly over the last decade, resulting in a significant decrease in student purchasing power. Despite advances in technology and digital media formats, many publishers have not made enough content available online. They have actively resisted new concepts such as rental agreements or subscription models due to concerns over copyright protection. The lack of accessibility is limiting student learning opportunities and putting a strain on already tight budgets.
This lack of accessibility affects all students: traditional college-aged individuals studying full-time and working professionals seeking specialised education at night. To be competitive in today’s job market they need access to current information on established topics and emerging technologies; yet, they can’t always afford nor find what they need to gain this knowledge. This widening gap between educational materials available for purchase and those accessible through subscription services creates an immense market opportunity for Perlego. This open digital library offer access to a massive selection of instructional content in an affordable way.
Perlego’s Vision
Perlego recently raised $50M to fuel its vision of being the ‘Spotify for textbooks’, creating a platform that makes it easier for students to access and afford educational materials. With a global market for educational materials estimated to be worth over $17 billion, Perlego is betting on its ability to bring a convenient and affordable learning experience to students worldwide.
Let’s explore why this market opportunity is so significant.
Perlego’s Strategy
Perlego’s strategy is to become the world’s largest digital library of educational content at a fraction of traditional price points. Through its platform, Perlego offers access to thousands of textbooks and academic publications from over 1,000 publishers. Perlego was founded to democratize knowledge by giving students affordable and flexible access to classic textbooks and contemporary academic literature.
The founders had identified a gap in the global educational market for a smarter solution – an answer that could provide quality content in a flexible, pay-as-you-go format. Perlego has therefore been engineered as a frictionless solution, while still delivering an exceptional product and experience that disrupts traditional approaches to purchasing textbooks and learning materials.
Investors have backed this model as they believe that not only does the platform drive more sales through greater reach but also provides Perlego with better margins than it would traditionally receive from physical book sales. Communication to potential customers is key for any business, however in this fast paced digital age where new products and services are launching every day it can be difficult for businesses to stay ahead of their competition. To do this successfully and ensure customer loyalty Perlego built OTM which standsfor Onboarding & Touchpoint Management and is used by companies worldwide to help engage their new and existing customers. Using OTM, Perlego can share content directly with their users on all devices, keeping them informed while building trust throughout their customer journey.
Perlego’s $50M Funding Round
In March 2020, Perlego announced a $50 million Series B funding round. This was led by Insurtech strategic investor Rubicon Venture Capital and included participation from the tactical investor TimeOrders Technologies and existing investors Hambro Perks and Global Founders Capital.
Capital injection was part of Perlego’s mission to disrupt the nascent online education market. In 2020, spending in academic textbooks is predicted to reach $14 billion, forming just one component of a growing quarter-of-a-trillion dollar eLearning industry. By blending best-in-class content discovery and recommendation technology with an Automated Rights Management System (ARMS), Perlego has developed a unique platform to provide instant, cost effective access to quality resources remotely — ideal for students who face space constraints when carrying weighty textbooks around campus.
The investment will help accelerate platform expansion into North America and Asia Pacific regions, as well as support development of new features including library sharing capabilities and eCommerce integrations. This will also ensure that the platform can expand its content base. With more than 250 publishers currently on board, Perlego is well on its way towards achieving its goal to become “the world’s leading all-you-can-read digital library” for professionals and students alike.
Advantages of Perlego
Perlego raises $50M to build out its vision of being the ‘Spotify for textbooks’. The company provides an affordable and convenient way for students and learners to access textbooks and content from leading publishers. This is a great opportunity for Perlego to expand its reach and meet the growing needs of its customers.
In this article, let’s discuss the advantages of Perlego that drive its success.
Low Cost
One of the main advantages of Perlego compared to traditional educational course providers is that it is significantly more cost effective for students. With a membership fee of £8.99 per month, Perlego provides an extensive library of more than 300,000 digital books – all at an affordable price.
For students on a tight budget, this can make a huge difference in what they can purchase for their studies. Additionally, with access to the library on a subscription basis and no textbooks required to be purchased upfront, students can save time and money on purchasing separate course materials and managing the investment in textbooks over several months or even years.
Additionally, with access lasting 12 months following a year-long subscription purchase instead of having to constantly renew or buy new books as courses change or move forward, there’s less long-term financial pressure for subscribers.
Wide Range of Content
Perlego offers unlimited access to an extensive library of more than 200,000 professional and academic e-books from leading publishers. From business books to coding guides and material for engineering, healthcare and tech professionals, Perlego users can tap into a wide range of content on one convenient platform.
By utilizing their sophisticated algorithm, Perlego users can search for titles from multiple publishers in one place or filter their searches by author, title or subject. With an international roster of titles and the ability to search multiple languages simultaneously, users will have no difficulty finding up-to-date materials relevant to their field of study.
The platform is designed with the convenience and needs of learners in mind—users can swiftly bookmark pages and take notes digitally within traditional texts and online courses with the easy-to-navigate interface. Furthermore, by tracking the user’s reading habits and activities, Perlego provides personalized recommendations that adapts to each user’s learning style. These dynamic recommendations ensure students have access to relevant content that piques their interest and aids in mastering new skills quickly—becoming job ready faster than ever!
Easy Accessibility
Perlego’s innovative digital platform and business model provide several advantages over traditional methods of accessing academic reading materials. By giving readers unlimited access to thousands of books and journals, users benefit in several ways, specifically in terms of convenience, affordability, and accessibility.
With Perlego, readers can access all their course materials wherever they are with just one subscription. No more carrying multiple physical textbooks around campus or returning to the library only to find the book is ‘on loan’. Plus, Perlego ensures readers keep up to date with new editions as soon as they are released without any additional costs.
Perlego offers an affordable monthly subscription fee that covers all books and journals available on their platform. These costs can be dramatically lower than buying everything from the university bookstore, especially for those struggling financially due to changing economic conditions due to COVID-19.
Finally, accessibility is key for certain students who have vision difficulties or dyslexia or are living in remote locations where physical libraries are not easily accessible – Perlego’s audio book function helps make texts much easier to understand for these learners. Allowing customization options such as font size too helps create a more enjoyable experience for the reader which increases user engagement and would make us closer towards creating a more inclusive education system.
Conclusion
Perlego has raised $50M to build out its vision of being the ‘Spotify for textbooks’. The company has identified a big market opportunity in making textbooks more accessible and affordable. This new injection of funds will enable them to continue developing their platform and expanding their reach.
In conclusion, it is clear that Perlego has a bright future ahead of them, and this investment will help them reach their goals.
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