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Report by Boundless Boundless creates a!ordable and e!ective online textbooks and learning tools that improve education for millions of students and educators. To learn more visit www.boundless.com."

Table of Contents
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Summary of Findings Full Report Conclusion Contact and Learn More 3 5 11 12

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Summary
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Higher education is traditionally dened by the tools its students and professors use to master subjects. However, our vision of education must shift, as digital alternatives are quickly becoming as popular even overcoming traditional resources such as textbooks." Students are nding and choosing digital alternatives to traditional textbooks that help them learn better, with fewer pain-points and at a lower cost. This movement will eventually lead to a post-textbook world, where physical reference materials give way to digital resources that deliver better education with greater access. Boundless recently surveyed nearly 650 college students about how they study, the high cost of textbooks, and exactly how they feel about the transition to digital alternatives."

! Key Findings !
Digital tools are surpassing traditional resources

Students are moving toward digital, even where handwritten or traditional resources once dominated. Already, 92% of students prefer online database research compared to print. 61% of students prefer to study via a digital quiz over a quiz handwritten from their notes. Consider this: many students may not even keep handwritten notes. A near-50/50 split was reported when asked about preference 82% of students say between digital and handwritten/traditional for the following interactive content resources: ashcards, notes and textbooks."

is a valuable asset digital resources have over print resources.

When considering that digital resources have been on the market a relatively short time, a narrowing gap between digital and handwritten resources shows clear momentum in the shift toward digital."

Students say digital resources bring inherent value over traditional textbooks

Students are drawn to digital resources for two key extremely valuable assets: their low-cost nature (80%) and portability (74%). Another 82% of students describe interactive content,

92% of students prefer digital research options to print resources.

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such as quizzes and ashcards, as valuable assets to digital alternatives to traditional textbooks." While cost may drive students to seek digital alternatives, content and functionality increases a students likelihood to opt for digital versus traditional."

Tight budgets push students to digital alternatives

59% of students report using their semester budget on textbooks. When asked if they could save $150 per semester on textbooks, the top three budget items where these funds would go were: tuition (40%), transportation (38%), and school supplies (31%)." Clearly, students look to save money to keep up with living expenses. This behavior increases the likelihood that they will seek digital alternatives for traditional resources such as textbooks."

59% of students use their semester budget on textbooks.

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Conclusion

Overwhelmingly, students are open to adopting digital alternatives to traditional resources, because they provide value on price, content and portability. These are all areas where traditional textbook publishers have stopped innovating and fallen at. " Our ndings suggest that students have already adapted to cost and access barriers with behaviors not supported by the traditional textbook market. We are at a new precipice in education, one where digital innovation will dene the way our students look, work, learn, and interact all in a post-textbook world."

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Full Report
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Introduction
Boundless recently surveyed nearly 650 college students about their study habits. We asked these students about the tools they use to do well in class, di$culties and distractions, and the cost-strain of traditional tools such as textbooks. Based on student responses, its clear that digital tools have already surpassed, or are quickly overcoming traditional resources. This profound move toward digital innovation is evidence that many resources that dene higher education will no longer exist, including the textbook. Education is marching toward a posttextbook world."

Market Context

For the last decade or so, weve seen the publishing industry change dramatically. When the internet rst connected to individual households, the impact on newspapers was not immediate. But over the last decade, the consolidation and switch to digital for publications has been remarkable. Now the textbook industry is primed for a similar attrition, and though we have yet to see a full e!ect, major change is on the way." Dr. Mark Perry, an economist and professor at the University of Michigan, calls the decline of the textbook the college textbook bubble.1 Consider the chart he produced below (page 6). Perry highlights the consumer price index (CPI) of textbooks since 1998. Youll notice college textbooks have increased more than 150% when compared to all other CPI goods and services over this time period." Perrys take on the increase of textbook prices in comparison to recreational books is especially telling for the larger market. Perry said in an American Enterprise Institute blog post in January 2014:" The fact that the real price of recreational books has fallen signicantly over the last 15 years would suggest that the rising cost of college textbooks cant be justied by higher publishing costs, and has to be explained by other factors like the consolidation of publishers that has resulted in less competition and anti-consumer behavior.

Perry, Mark. AEI Ideas. The era of the textbook cartel and $300 textbooks is ending. 2014. Retrieved from: www.aei-ideas.org/2014/01/the-era-of-the-textbook-cartel-and-300-textbooks-is-ending-as-the-collegetextbook-bubble-shows-signs-of-deating/
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Already, were seeing the college textbook landscape change. The Student PIRGs2 reports that 65% of college students have decided against buying a textbook because it was too expensive. Facing this reality, textbook industry giants are preparing for market disruption via acquisitions, bankruptcy lings, and long-term stock price rallies to keep their oligopoly in place. " However, the rest of the world including students who refuse to buy textbooks is moving beyond the textbook. Smaller education technology companies are poised to strike in this market. Between 2012 and 2013, CB Insights, which tracks companies, investors, and emerging industries, reports a year-over-year increase in seed funding deals for edtech companies and 10 mega rounds in 2013 that added up to almost $600M.3 Everything points to growing evidence that smaller, more agile companies with new perspectives are creating new opportunities where growth has been traditionally stunted."

Boundless Survey Findings

As one of those edtech companies working to ease educational pain points for students, Boundless recently spoke with 647 college students about how they study, the high cost of textbooks, and exactly how they feel about the transition to digital alternatives. These are our ndings."

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2 Student

PIRGS. Fixing the Broken Textbook Market. 2014. Retrieved from: http://uspirg.org/reports/usp/ xing-broken-textbook-market" 3 CB Insights. The 10 Largest Ed Tech Financings Rounds in 2013. 2013. Retrieved from: http:// www.cbinsights.com/blog/trends/ed-tech-top-10-2013

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! Todays students (want to) study differently !

Students today arent afraid to turn to digital sources when they need information or help. In fact, 59% of the students Boundless surveyed report having used an online homework help system. However, the most common problem with studying had little to do with technology: 40% of surveyed college students say limited time is their biggest problem when it comes studying. Unfortunately for those 40%, repeating reading was also their top solution to actually learning the material they covered. So while many students seek new approaches to studying, few nd an e!ective way to address their top pain-point committing information to memory." But students reported inherent value in digital resources scally, physically, and contentwise. 80% of students identied low-cost and 74% cited portability as extremely valuable assets. 82% of students surveyed also pointed out that interactive learning tools, such as ashcards and quizzes included in digital textbooks were valuable assets. These overwhelming majorities suggest that, on a number of issues, digital alternatives deliver where traditional resources do not."

The Value in Digital

Low-cost price tag

Portable

Not Valuable Moderately Valuable Extremely Valuable

Interactive Quizzes

Interactive Flashcards 0% 20% 40% 60% 80%

! Digital methods are gaining ground on traditional handwritten methods !

The students Boundless surveyed report only a small gap when asked if they prefer handwritten study tools compared to digital study tools. For example, there is almost a 50/50 split between students who prefer studying with handwritten ashcards, notes, and textbooks compared to digital alternatives. However, this gap widened to a 61-39 split with preference

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to digital when students were asked about studying with handwritten or digital quizzes. The gap opened wider when asked about research preferences. 92% of students report preferring online or database searches compared to using print resources for research, evidence that technology is already ingrained in some functions of higher education. When considering that digital resources have been on the market a relatively short time, the narrowing gap between digital and handwritten resources shows a clear momentum shift toward digital."

Handwritten vs. Digital

Flashcards Notes Textbooks Quizzes Research (100%) (75%) (50%) (25%) 0% 25% 50% 75% 100% Handwritten Digital

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Where study habits havent changed distractions have

Boundless was also curious to nd out how students adapt to the growing wireless, and connected, world around them. Although ndings suggest that traditional study locations have changed little, distractions in Common Study Spots those spaces have. For example, an overwhelming 54% of students report they most commonly study in dorms or 8% apartments. Trailing dorms and Library 33% apartments were libraries with Cafe/restaurant Dorm/apartment 33%. A mere 13% report Other common space on campus studying in cafes, restaurants or commons spaces on campus. "

55%

4%

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Despite students insistence on using the dorm room or apartment to study, television is not their top distraction. 40% of students report that social media or texting are their top distractions from studying, followed by friends or signicant others at 27%. Television was reported only 14% of the time, ahead of social opportunities, video games, online shopping, and sports/gym. Whats clear from this data is that though students still occupy traditional physical spaces, media habits are changing. Students are no longer captivated by mass media, but rather more personal, social media."

Biggest Study Distractions 4%3%

Social media/texting Friends/signicant other TV Social opportunities Video games Online Shopping Sports/gym

4% 8%

40% 14%

27%

! Students are more responsible than you think !

Despite the stereotype that college students arent incredibly e$cient and procrastinate often, Boundless found evidence to the contrary. Only 14% of students described themselves as crammers students who go weeks Responsible Study Habits without opening a book to study. 86% of students described themselves as more responsible modest or diligent studiers. In the survey, a modest 14% studier was dened as not having a set 35% Diligent Studier schedule but trying to do a little along Modest Studier the way, while a diligent studier was Crammer dened as sticking to the syllabus and doing your work every week."

51%

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The students surveyed also displayed responsibility with nances. When asked to break down their budgets by semester, the two most commonly mentioned budget items were textbooks and transportation. 59% of students report using their semester budget on textbooks, while another 41% reported transportation as a major item on their budgets. When asked where they would spend money if they could save $150 per semester on textbooks, more than 40% responded the money would go toward tuition, while 38% would put that money toward transportation costs. Alcohol was also an option, to which only 2% responded."

How Students Would Spend $150 Saved after Purchasing Digital Textbook Alternatives
50% 37.5% 25% 12.5% 0%

C lo th es

Sc o ho lS up pl ie

El tro ec ni cs s

En rta te in m en t

i Tu tio n

Al co ho

G as an /tr sp l

t ca Va io tra n/ ve l n ta or tio

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Conclusion
! Students are waiting for a change in study materials !
The data in this report suggests that while students are actively searching for study materials that accelerate their learning, their demand has not been satiated. Already, we see students searching for new study materials, honing in on digital alternatives over traditional study methods, embracing new media sources, and worrying about personal budgets for education." If 65% of students skip buying their assigned textbooks because of cost, then to use Dr. Perrys term the college textbook bubble will burst sooner rather than later. While the demand for higher education increases, students continue to shoulder the burden of costs. This growth drives the popularity of digital resources. Meanwhile, the market will need to respond to accommodate students needs and push forward the future of education and that future may not include traditional resources like textbooks."

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Contact & Learn More

! About this report !
This report was created and researched by Boundless. " Boundless creates a!ordable and e!ective online textbooks and learning tools that improve education for millions of students and educators. " To learn more visit www.boundless.com."

Contact

For questions or comments, contact press@boundless.com.%

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