FAQ – January 19, 2012



INDEX

Introduction…………………………………………………………………………page 3

1. What is the iBooks® Textbook?

2. What programs have iBooks Textbooks?

3. What titles are available now?

4. Which editions are available?

5. How do Pearson AEs and CSs get iBooks Textbooks for their iPads?

6. Who can get access to free sales editions?

7. A customer just called asking for information. What should I say?

8. Will we have a large release of iBooks for back to school 2012, like we had for eText for iPad in 2011? What titles are coming out soon?

9. How should Pearson refer to iBooks® Textbooks?

Purchasing………………………………………….……………..………..……...page 5

1. What is the price and terms of sale to customers?

2. Is this a subscription sale? For how many years does the customer have the text?

3. How will the $14.99 introductory price affect revenue, given the change from the usual Student Edition price?

4. Will the iBooks Textbook be sold as a standalone option, bundled with other material, or are both options available?

5. Are we bundling hardware with our sales?

6. Can we start placing these titles into bids?

7. How does the customer purchase from Apple?

Implementation…………………………………….……………..………..……...page 7

1. A customer called because they want to use these books. What are the questions I should ask them to see if they should buy?

2. Can a school download these titles to school iPads and use them as a class set? Can they reuse them from year to year?

3. Students don`t buy school books, schools buy the books. How will that work with the iTunes account?

4. What happens if a student leaves the district mid-year?

Bundles and Related Products………………………………………………….page 9

1. What is the relationship between the iBooks Textbook and the digital course?

2. Will the digital path work on the iPad® mobile digital device?

3. How is the bundle sold?

4. Are there plans to create the TE in this format?

5. What are my options for matching this with a TE?

6. How does this work with other ancillaries?

7. How are commissions processed?

Bundle Prices and Configuration…………………………….……………….page 10

Accessing the iBooks Textbook………..………………………………...…...page 11

1. How do customers sample titles?

2. How will customers access their titles?

3. Do customers need a Pearson, SuccessNet®, or SuccessNetPLUSTM account?

4. What hardware do customers need to use the iBooks Textbook?

5. Will the iBooks Textbook work on iPhone or iPod Touch?

6. How is technical support handled?

User Experience………………………………………………………...……....page 12

1. What are the main advantages/selling points of the iBooks Textbook?

2. How does the student navigate through a title?

3. What are some of the interactive content features of the iBooks Textbook?

4. What are the reader tools included with the iBooks Textbook?

5. Is the assessment in iBooks tracked?

iBooks Textbook and eText for iPad………………………………….....….page 13

1. What is the relationship between iBooks Textbooks and eText for iPad?

2. How is the iBooks Textbook different from eText for iPad?

3. When would a customer choose the eText option over the iBooks Textbook?

4. Does the iBooks announcement mean that Pearson is phasing out eTexts?

5. I have a customer who recently purchased the standalone eTexts or print books and now wants to switch to iBooks. What is our policy?

Learn More…………………………………………………………….………....page 14

1. Where can I go for more information about iBooks Textbooks?

2. What information is ready to share with customers?

3. What additional marketing support will be made available?

4. Who do I contact if I need more information?

5. What wasn’t information made available before the launch?

Introduction

1. What is the iBooks Textbook?

The iBooks Textbook is an interactive, touch-based version of our core Pearson titles published for iPad.

Pearson partnered with Apple over the last several months to develop an innovative approach to education that optimizes iPad functionality to improve student engagement and learning. The iBooks Textbook delivers core instruction on the iPad for a connected, continuous, and dynamic learning experience that drives success for teacher and students alike.

For legal and copyright reasons, please do not use the term “iBooks” alone in our marketing materials. Some alternatives are “iBooks Textbooks,” “iBooks editions,” “iBooks versions,” “interactive texts for the iPad,” or “Textbooks developed/designed for iBooks 2.”

2. What programs have iBooks Textbooks?

The first programs are the main titles in our secondary Math and Science lines. These titles include the same content that has already been proven effective by independent research studies. We are providing programs with strong efficacy in a new form factor.

Math

Algebra I Common Core ©2012

Algebra II Common Core ©2012

Geometry Common Core ©2012

Science

Miller and Levine Biology ©2012

Pearson Chemistry ©2012

Environmental Science ©2012

3. What titles are available now?

Biology, Environmental Science, Geometry, and Algebra I are ready today. Chemistry and Algebra 2 will be released later in March.

4. Which editions are available?

The on-level student editions are available. Foundations series and Teacher’s Editions are available in print and eText form only.

5. How do Pearson AEs and CSs get iBooks Textbooks for their iPads?

Do not purchase titles from the iBookstoreTM. We will distribute codes to secondary AEs and CSs soon that can be redeemed for free editions of all six titles. Download the free sample lessons for the six programs in the meantime. You will need to upgrade your version of the iBooks application.

6. Who can get access to free sales editions?

We have a limited number of free edition codes, so priority has been given to AEs who sell high school products and CSs in secondary math and science.

7. A customer just called asking for information. What should I say?

These are new, iPad-only editions of our titles enhanced with new visuals, interactivities, and tools like note taking and flashcards. Your customers, especially iPad enthusiasts and tech coordinators, will understand that this project was developed in secret and that you have just learned about it, too. In the meantime, if they have an iPad, they can sample one lesson from the iBooks version for free and explore for themselves.

8. Will we have a large release of iBooks for back to school 2012, like we had for eText for iPad in 2011? What titles are coming out soon?

We will not have a broad release for fall 2012. We were able to release hundreds of eTexts for iPad titles because those titles already existed as print books and eTexts for PC/Mac. Converting them to iPad use was relatively easy and inexpensive.

Building an iBook is more like a major revision, and the effort needs planning and money. The business units are planning how this option fits with their overall product and mobile strategies.

9. How should Pearson refer to iBooks® Textbooks?

The term “iBooks” is Apple’s registered trademark for the application program used to view Pearson’s interactive textbooks developed for use on iBooks®2. Apple does not use the term “iBooks” to refer to individual books sold on the platform; therefore, Pearson should not refer to its individual titles or products as “iBooks” or “Pearson’s iBooks” and should strive to use “iBooks” in a manner that is consistent with Apple’s usage guidelines. Pearson may use the term "iBooks" to describe Apple’s iBooks® products, namely the applications through which the interactive books are used. Likewise, Pearson may refer to the application as a modifier for products created for use on the iBooks®2 Platform, such as "iBooks® Textbooks," Other permissible uses would include: “interactive textbooks for the iPad® mobile digital device,” or “textbooks developed for the iBooks®2 application.” Although this is not an exhaustive list of potentially acceptable uses, it is important to keep in mind that Pearson should use the iBooks® mark as an adjective to describe Pearson’s compatible interactive textbooks as opposed to referring to the textbook product itself as an “iBook.” Any questions regarding appropriate use of these terms should be directed to Stephanie Foster (Stephanie.Foster@) or Andy Yoo (Andy.Yoo@) in the Pearson Education legal department.

Purchasing

1. What is the price and terms of sale to customers?

The iBooks Textbook is sold at $14.99. A price and ISBN list is in the Guide to the Essentials and Customer Flyer posted to Playbook.

2. Is this a subscription sale? For how many years does the customer have the text?

When a school buys an iBooks Textbook, that book is linked permanently to the student’s iTunes account. The book is non-transferrable and can’t be given to next year’s students. This means that the school, or the next class of students, will buy the books again the following year.

The iBooks Textbook is structured as a permanent sale, but schools will have to buy new every year. This will mean more frequent updates and more frequent opportunities to sell.

3. How will the $14.99 introductory price affect revenue, given the change from the usual Student Edition price?

We can charge this price because it is recognized as an annual subscription, not an upfront fee, without exceptions. In addition, product will have no FWO, and schools will need to buy teacher’s editions for the answers, pacing, and lessons and the digital courses for data tracking, assessment, and math tools.

4. Will the iBooks Textbook be sold as a standalone option, bundled with other material, or are both options available?

The iBooks Textbook will be sold under both options. It can be purchased as a standalone product or bundled with all digital program elements. Customers buy the iBooks Textbook through Apple’s Volume Purchase Program (see below). Customers buy the digital courses through Pearson like any other product. For questions related to purchasing, contact Lebanon Customer Service at 800-848-9500.

5. Are we bundling hardware with our sales?

No. However, Apple has a sales team ready to assist. The customer can contact Apple Education at 1-800-800-2775.

6. Can we start placing these titles into bids?

Yes. We have a list of ISBNs and prices at Neo and at Playbook.

7. How does the customer purchase from Apple?

Customers will buy through Apple’s App Store Volume Purchase Program (VPP) which is explained at . The process is:

1. Program Facilitators (at the school) visit the app store and purchase titles in volume. They can buy the titles with vouchers they have purchased from Apple or by paying directly with a credit card or PCard.

2. The Program Facilitators log into the VPP and download a spreadsheet with app-specific codes: one code per app.

3. The end user (students, teachers, administrators, tech coordinators) redeems the code to download titles.

Apple is prepared to support customers in the process and has help links at the VPP web site.

Implementation

1. A customer called because they want to use these books. What are the questions I should ask them to see if they should buy?

“1. Does your school have iPad2s?”

The original iPad does not support the iBooks editions well enough to use. Very few schools will have these original devices.

“2. Will you assign iPads to students, 1:1, for the school year?”

This is important and will be the #1 factor in determining whether a school can buy the iBooks editions. It marks a change for many schools that use an iPad cart, an iPad lab, or have a classroom set of iPads, which rely on the school creating their own iTunes accounts.

The FAQ below goes into more detail, but the terms of sale require the school to redeem the codes within a student’s iTunes account, not a school iTunes account. This means that even if the school owns the iPad, the iTunes account on that iPad must be the student’s.

For legal reasons, if the iPad is using a student’s iTunes account, it can only be used by that student and not other students.

Schools that do not have enough iPads to distribute them 1:1 can not use the iBooks edition.

“3. The $14.99 price is for a one-year use, and the student owns the book at the end of the year. Will you buy new titles next year for the next class of students?”

Schools need to know that we can charge this $14.99 introductory price because it works as a one-year subscription and we expect them to repurchase next year, no exceptions, unless they decide to go with a completely different program. McGraw-Hill has the same expectation.

Both Apple and Pearson will track purchases by schools and how the codes are used by iTunes account. Apple’s Volume Purchase Program FAQ and Addenda F and G of the Terms and Conditions of the VPP explain this to schools.

2. Can a school download these titles to school iPads and use them as a class set? Can they reuse them from year to year?

No, they can not. Doing that would require using the school’s own iTunes accounts instead of the students’, and this violates their agreements with us and with Apple.

The terms of Apple’s Volume Purchase Program states that books, unlike apps, must be used in the student’s iTunes account. This is a quote from their FAQ ()

“Who owns the content purchased by an institution through the Volume Purchase Program?

In the case of apps, your institution has the option of retaining ownership of the app. When a student moves on, your institution can make the app available to another student.

In the case of books, the student as the end user must redeem the book using his or her own Apple ID, and the student owns the book.”

Schools who want to use iBooks must be prepared to assign individual iPads to students for the year. If they don’t want to do that, they should be directed to eText. This is true for us and all other publishers using iBooks. Apple and Pearson will track purchases and redemptions and know how they are being used.

Since there is no FWO with iBooks, schools will need to buy annual student licenses for the digital course and a license for the standalone Teacher’s Edition eText to have access to math tools, assessment, and answers. Schools looking to repurchase from us the next year will have to also demonstrate they have repurchased their iBooks for the next class of students.

3. Students don`t buy school books, schools buy the books. How will that work with the iTunes account?

Schools buy codes that are redeemable for books. They can pay for the codes and then distribute to students or enter them on the students’ behalf. Program facilitators named by the school help with the process.

4. What happens if a student leaves the district mid-year?

Because the book is tied to the student’s account and is non-transferrable, it travels with the student to his new school. If a new student starts mid-year, the school will buy a new book for that student at $14.99. Many schools will buy more codes than they need at the start of the year to be prepared for changes.

Bundles and Related Products

1. What is the relationship between the iBooks and the digital course?

Like eText for Mobile or print programs, iBooks Textbooks are paced to work with digital courses and are sold separately or in a bundle. Pearson will have bundle options for the iBooks Textbook and digital course.

2. Will the digital path work on the iPad® mobile digital device?

No, customers should understand that the digital path part of the bundle is to be used on computers and smartboards, and is separate from the iBooks component.

3. How is the bundle sold?

The bundle includes multiple ISBNs: one for the iBooks Textbook and other ISBNs for other components. Customers buy the iBooks Textbook through Apple’s Volume Purchase Program. Customers buy the digital course through Pearson like any other product.

Pricing and bundle structure are being decided and will be announced.

4. Are there plans to create the TE in this format?

At this early date, there are no TE plans underway.

5. What are my options for matching this with a TE?

While the page layouts and navigation are different, the basal text, content, and pacing are the same as print and eText editions. You can match this program with the print TE for sale (not FWO) or with a single teacher license of an eText for Mobile and PC/Mac which will give the teacher eText editions of the SE and TE.

eText for iPad editions of the Math TEs have been published; they have not yet been published for the Science titles and should be available in late March.

6. How does this work with other ancillaries?

Sell other ancillaries in print and digital as you would with the print version.

7. How are commissions processed?

All Apple iBooks VPP sales orders will be processed just like an order originating in-house, allowing for full and accurate credit.  Any additional questions should be sent to Joe Marinaro.

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Accessing the iBooks Textbook

1. How do customers sample titles?

Sampling is easy and managed by Apple. Anyone with access to an iPad can download a sample lesson of each book to their iPad directly through the free iBooks app. Customers may need to download the iBooks application program from the Apple App Store first.

Customers can also buy a book directly from the iBookstore for $14.99. We do not have free sample codes. If a customer asks for a free sample, for the time being, direct them to buy a title and reimburse them with an iTunes gift card for $15, credit, or whatever makes the most sense.

2. How will customers access their titles?

Customers will view the books within Apple’s iBooks application program. For information about how customers will buy the iBooks version, see the Purchasing section.

3. Do customers need a Pearson, SuccessNet, or SuccessNetPLUS account?

No. They only need an Apple account.

4. What hardware do customers need to use the iBooks Textbook?

The iBooks Textbook is for iPad tablets only.

Android customers should use eTexts through the eText for Android app.

5. Will the iBooks Textbook work on iPhone or iPod Touch?

No, they are not designed for small screens. Digital texts require a larger size screen for students to be engaged and able to read them easily. Our offerings for smartphones and iPod Touch focus on vocabulary practice, skills practice, and test prep in support of their basal learning.

6. How is technical support handled?

Customers should call School Technical Support in Chandler at 800-234-5832. They will handle technical support on issues related to the iPad, i.e., whether the text works on one device but not another, or with the purchase process. They will also handle support related to the title itself, like content issues. Escalation procedures will be put in place with Apple to address any questions they cannot answer.

User Experience

1. What are the main selling points of the iBooks Textbook?

Pearson collaborated with Apple over the last several months to develop an innovative approach to education that optimizes iPad functionality to improve student engagement and learning. The iBook edition delivers core instruction on the iPad for a connected, continuous, and dynamic learning experience that drives success for teacher and students alike.

The iBook edition is an interactive, touch-based version of our core Pearson titles published for a dynamic learning experience with self-assessment and iPad functionality. The text and pacing are the same, but there are more visuals, and interactive features and the customer reading experience is different.

2. How does the student navigate through a title?

The chapters and lessons follow the same outline as the eText or print book. Navigation has been redesigned for touch and swipe interaction. The reader can swipe directly from chapter opener to chapter opener, tap a lesson in the chapter table of contents to jump to that section, or preview and swipe through individual pages along the bottom.

The iPad edition can be read in either portrait (upright) or landscape (horizontal) mode. The text reflows and images reorganize to fit either view.

3. What are some of the interactive content features of the iBooks Textbook?

Interactive content includes diagrams with multiple levels of detail and images, animations, videos, and self-quizzes. Descriptions don’t do them justice, they have to be experienced first hand by the reader.

4. What are the reader tools included with the iBooks Textbook?

Tools include a glossary with links to the text, pre-loaded flashcards, and a touch-based highlighter that lets students color text, add notes, or select text for custom flash cards.

5. Is the assessment in iBooks tracked?

No, there is no data reporting from the iBooks to other systems, nor will there be. The self-quizzes and assessments in the iBooks are for the student’s practice (if answers are given) or for the teacher to assign for homework.

iBooks Textbook and eText for iPad

1. What is the relationship between iBooks Textbooks and eText for iPad?

The iBooks Textbook is a premium offering that has been designed for iPad and is available for a small number of titles at launch.

The iBooks Textbook is not part of the print or eText for Mobile/PC bundle.

You can bundle the iBooks Textbook with the digital path; be sure customers know that the digital path works on computers and smartboards, not iPads.

2. How is the iBooks Textbook different from eText for iPad?

eText for iPad and Android® devices is a viewer for our eText files with highlighting, note taking, audio playback, and additional resources. A page in eText for iPad and Android version is identical to a page in the print and eText for PC/Mac versions.

iBooks titles begin with the same basal programs, but have been redesigned and enhanced with in-depth, interactive content at point-of-use for a dynamic learning experience with self-assessment and native iPad functionality. The text and pacing is the same, but there are more visuals, and interactive features and the customer reading experience is different.

3. When would a customer choose the eText option over the iBooks Textbook?

Many reasons. Most importantly, eTexts are available for Android tablets and for hundreds of titles across our line, while the iBooks version is for iPad only and has six titles. eTexts include our Teacher’s Editions for most programs. eTexts are less expensive for yearly subscriptions than iBooks Textbooks. eTexts have page fidelity with the print book and eText for PC/Mac.

4. Does the iBooks announcement mean that Pearson is phasing out eTexts?

Absolutely not. eTexts for Mobile are an important part of our story and many customers find that they serve their needs better than iBooks. Many customers are looking at devices other than iPads, and the eTexts reader is the only way to serve them.

5. I have a customer who recently purchased the standalone eTexts or print books and now wants to switch to iBooks. What is our policy?

You should discuss these situations on a case by case basis with the Business Unit product manager.

Learn More

1. Where can I go for more information about iBooks Textbooks?

The Playbook iBooks Textbook site will be your go-to site for information, price lists, and collateral for customers and will be continually updated.

On Playbook, we’ve added a customer-ready 3-minute video featuring Marjorie and Peter and introducing iBooks editions as part of our whole mobile story. Visit and click on “Pearson Mobile Offerings Video.”

2. What information is ready to share with customers?

Customers can visit to learn about these programs and our other mobile products and link to samples and product pages.

There is a two-sided leave-behind PDF posted to Playbook. This highlights the key features, shows screen captures, and lists prices.

3. What additional marketing support will be made available?

We are developing a web site and will develop training materials.

4. Who do I contact if I need more information?

For the short term, if you have questions that are not covered here, e-mail Mark Staloff (mark.staloff@). Please do not contact Marketing or Product Management in Math and Science until they have designated people to answer your queries. We will contact you as soon as the transition takes place.

5. Why wasn’t information made available before the launch?

Our partnership required Pearson to develop our titles under high levels of security because of public interest in Apple’s products. Only people working directly on the project were aware of it and were contractually forbidden to discuss it with others before it was publicly announced.

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