For the complete report, get in touch with us at : info@netscribes.com India has been hailed as a prospective market for books, a derivative of the passion in people for reading. E-book, the digital format of book, was an unknown area to tread even two years back in the country. But, as new technology creates new readers, technology enthusiasts began to opt for e-books and read them on a regular basis. As the advent of e-books become more prominent in India, publishers and readers wonder whether if the era of physical, paper books is drawing to a close. Touted as a tech marvel, e-readers along with the recent addition of smartphones and tablets, have emerged as the supporting platforms that work in conjunction with e-books. The report begins with an introduction of the concept of e-books and is presented with the evolution of e-books. It is followed by a value chain analysis of the product. The report then proceeds towards an overview of the global market for e-books and provides the market size and growth along with a split of the market share constituted by different players. It is followed by an overview of the Indian e-books market that is aided with a market size and growth, a market segmentation based on the type as well as a geography-based revenues split. The next part deals with the benefits associated with e-books and then moves on to providing a comparative study between print and e-books. The next section throws light on the market highlights which speaks about the Indian market as well as the global market. It also provides a snapshot on the digital revenues earned by leading players across the global arena. Formats and software for e-books is provided which forms the concluding part of this section.

1. E‐books Market in India
December 2012

2. Executive Summary
 E‐book has been a known phenomenon in the global platform for quite some years and is posting
a healthy growth
Market  E‐books market in India is still in its nascent stage but is slated to see good growth in the coming
1‐2 years
 E‐books can be categorized into x1, x2 and x3
Drivers Challenges
Drivers &
– Growth in education
– Increase in internet users
– Demographical alterations
LE – Negative consumer perspective
related to cyber security & piracy
P
– High prices of e‐book readers
Challenges – Increase of internet enabled computing
– Majority focus on academic text
M
devices
books
SA
– Improvised content
– Publishers save costs in this format – Lack of touch and feel element
 Application approval from Apple  Technological add‐ons
 Retail chain offering e‐book reading  Digital rights management
Trends application  Sports category emerges as a thriving option
 Drive to convert books into digital formats
 Foreign giant setting stores in India
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
E‐BOOKS MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Benefits
•Market Highlights
•Formats & Software
•Drivers & Challenges
•Government Regulations
•Trends
•Major Players
•Strategic Recommendation
•Appendix
E‐BOOKS MARKET IN INDIA 2012.PPT 3

4. Though nascent, the market is slated to usher in a positive
change in the coming 1‐2 years SAMPLE
E‐books – Indian Market Overview E‐books – Market Size & Growth
• The Indian market for e‐book buyers forms the second largest
e‐books market in the world Units No
b1% a6
• India is considered to be having a huge potential owing to a a5
burgeoning middle class that speaks English aided with an a4
increasing disposable income a3
• Additionally, as Indian e‐publishers are producing content for a2
a1
Indian consumers, global e‐publishers have started
outsourcing their e‐publishing services to Indian firms
• Advantages associated with e‐books in the form of easy 0
portability, multiple storage, linked‐in browser devices along
with added features like magnifying capability have been 2011 2012e 2013e 2014e 2015e 2016e
responsible for its rapid adoption amongst youth fraternity
Note: This market size refers to the text e‐book market
E‐books – Geographic Segmentation (2011) E‐books – Market Segmentation (2011)
b2 b4
Segment 1 Segment 3
Segment 2 Segment 4
Segment 5
b3 b6 b5
E‐BOOKS MARKET IN INDIA 2012.PPT 4

5. Print Book v/s E‐book
SAMPLE
Retail Price per Royalty
Paid to retailer payment to Others
book author
Print Book t1 t2 t3 t4 t9
E‐book t5 t6 t7 t8 t10
• Under the agency pricing model, retailers act as agents and take t11 while leave the remaining t12 to the
publisher
• The comparative analysis shows that even though retail price of e‐books cost lesser than their printed
counterparts, the payments made to different heads are also less which makes the end revenues generated by
the publisher is more than the physical books
Note: xxxxxxxxxx
E‐BOOKS MARKET IN INDIA 2012.PPT 5

6. E‐book – Global Snapshots (1/2)
Total Trade – Revenues Adult Book Trade – Revenues
E
INR bn q1 INR bn
q2
p2 p4
L
p1 p3
MP
0
2011 YTD 2012
SA 0
2011 YTD 2012
Children Book Trade – Revenues Religious Book Trade – Revenues
INR bn INR bn q4
p8
q3 p6 p7
p5
0 0
2011 YTD 2012 2011 YTD 2012
E‐BOOKS MARKET IN INDIA 2012.PPT 6

7. Digital Revenues – Global Snapshots (2/2)
… as a part of the total book publishing revenues earned by majors
Publisher y z
Earnings Period y1
LE z1
MP
Book Publishing
Revenues y2
SA z2
Digital as %age of
y3 y4
total book sales
E‐BOOKS MARKET IN INDIA 2012.PPT 7

8. Drivers & Challenges – Summary
Drivers Challenges
Growth in education Negative consumer perspective
related to cyber security & piracy
Increase in internet users High prices of e‐book readers
Demographical alterations Majority focus on academic text books
Increase of internet enabled
computing devices Lack of touch and feel element
Improvised content
Publishers save costs in this format
E‐BOOKS MARKET IN INDIA 2012.PPT 8

9. E‐books will penetrate proportionately with the rise in
internet penetration and its users
Increase in internet users Impact
• The ever increasing figure of internet users in India is considered to be one of the key drivers for
this market
LE
• Internet is the primary means of accessing e‐books which is sure to derive its growth as the
P
penetration of the same deepens
• As internet penetrates deeper into different strata of the society, accessibility to e‐books
increases profoundly
AM
• This is specific to e‐books that are not restricted to any device or software and can be accessed
S
only through any application or hardware supporting DRM content
Total Internet Subscribers – India Number of Broadband Subscribers – India
mn mn
e6
d10 e7
d8
d4 d6 d9 e5
d2 d7
d5 e4
d3 e3
d1 e1 e2
0 0
2011 2012e 2013e 2014e 2015e 2010 2011 2012e 2013e 2014e 2015e
Rural Subscribers Urban Subscribers
E‐BOOKS MARKET IN INDIA 2012.PPT 9

10. Impact of FDI cap on e‐tailing firms
Category Example
SAMPLE
Impact
f1 f2 f3
f4 f5 f6
f7 f8 f9
f11 f12
f10
f13 f14 f15
E‐BOOKS MARKET IN INDIA 2012.PPT 10

11. Trends – Summary
Application approval from Apple
Retail chain offering e‐book reading application
Drive to convert books into digital formats
`
Key Trends Foreign giant setting stores in India
Technological add‐ons
Digital rights management
Sports category emerges as a thriving option
E‐BOOKS MARKET IN INDIA 2012.PPT 11

12. Approval from majors open gates for device manufacturers
to feature e‐books on their devices
Application approval from Apple
SAMPLE
• A recent development in this sector is that of e‐book reader concern Sony getting Apple approval for an iOS
Reader application
• This means that Sony Reader customers can read their Sony e‐books on an iPhone, iPad, iPod Touch
• Though Sony remained absent form the app circle compared to Kindle app, Barnes & Noble Nook app, but its
recent inclusion in the Apple App Store brings cheer to its readers
Features
xxx
• Sony has launched ‘Reader for your iPhone, xxx
iPad and iPod’
T
• The Sony Reader iOS app is powered by xxx
R
E Bluefire Reader which has its own app in the
N App Store xxx
D
• This will enable the consumers to even read
xxx
book on their iPhones
xxx
E‐BOOKS MARKET IN INDIA 2012.PPT 12

13. Private: Foreign Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
New Delhi
Corporate Address
Tel No.
Website
Year of Incorporation
Head Office
Products and Services
Category Products/Services
Publishing Print & Digital Key People
Name Designation
Note: The list of products and services is not exhaustive
E‐BOOKS MARKET IN INDIA 2012.PPT 13

14. Private: Foreign Company – Company 1 (2/3)
Financial Snapshot Key Ratios
SAMPLE
y‐o‐y change
Total Income Net Profit/Loss Particulars 2011 2010 2009 2008
(2011‐10)
INR mn INR mn Profitability Ratios
u v Operating Margin N.A. N.A. N.A. 7.25% ‐6.25%
Net Margin N.A. N.A. N.A. 6.81% ‐7.82%
Profit Before Tax Margin N.A. N.A. N.A. 8.14% ‐4.43%
Return on Equity ‐8.63 25.25% 33.88% 19.27% ‐28.40%
Return on Capital Employed N.A. N.A. N.A. ‐23.78% 556.91%
Return on Working Capital ‐9.57 31.68% 41.25% 22.28% ‐30.59%
Return on Assets ‐8.63 25.25% 33.88% 19.27% ‐28.40%
0 Return on Fixed Assets ‐278.38 461.59% 739.97% 293.86% ‐397.26%
Cost Ratios
2008 2009 2010 2011
Operating costs (% of Sales) N.A. N.A. N.A. 92.68% 106.37%
Administration costs (% of
N.A. N.A. N.A. N.A. N.A.
Sales)
Financial Summary Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
• The company incurred a net profit of INR ‐ mn in FY 2011, as Liquidity Ratios
compared to net profit of INR ‐ mn in FY 2010 Current Ratio 4.99% 2.11 2.01 1.46 1.89
Cash Ratio 60.38% 0.41 0.26 0.30 0.38
• The company did not earn any operating margin in FY 2011 Leverage Ratios
• The company did not earn any debt to equity ratio in FY 2011 Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover N.A. N.A. N.A. 42.74 49.85
Asset Turnover N.A. N.A. N.A. 2.80 3.56
Current Asset Turnover N.A. N.A. N.A. 1.03 1.81
Working Capital Turnover N.A. N.A. N.A. 3.24 3.84
Capital Employed Turnover N.A. N.A. N.A. 2.80 3.56
Improved Decline
E‐BOOKS MARKET IN INDIA 2012.PPT 14

15. Private: Foreign Company – Company 1 (3/3)
Business Highlights
Description News
• Is known as the provider of learning solutions to higher education, professional, library
PLE
reference and school markets in the Indian sub‐continent
SAM
Overview
• The company has ‐ employees and has operations in more than ‐ countries across the
globe
• Z1 is a suite of digital products and services that serves to enhance student engagement,
improves learning outcomes and helps academic institutions navigate the changing
education landscape
 Z2, z3and z4 are three components of z5 that include features like interactive e‐textbooks,
E‐books multimedia resources and other online course solutions
• Its z6 is an e‐book platform that provides access to thousands of authoritative reference
works from Gale and more than 70 publishing partners, researchers
 Gale is a leading global provider of digital and print product solutions that support education and
research in public, academic and K‐12 libraries
E‐BOOKS MARKET IN INDIA 2012.PPT 15

16. Player 2
Device 1
Corporate Information Business Highlights
Headquarters • u1 works on complex technology challenges and it directly
drives its business on u2
LE
• It primarily builds software and applications that support u3
Founded
MP
websites across the world along with core development in the
SA
domain of payments, transportation, search and digital
Presence in
products
India
• Has launched a new Kindle store for Indian consumers
Key People wherein u4 is the exclusive seller of the u5 e‐reader
 It will offer u6 book purchases in rupees
Product Specifications
Name Price (INR) Connectivity Dimensions Web Display Battery Life, On‐device Storage
Wireless Off
E‐BOOKS MARKET IN INDIA 2012.PPT 16

17. Foreign Tablet PC Players (1/5)
Company Snapshot: Device 2
Corporate Information Business Highlights
Headquarter • The first u7 Tablet PC launched in India was u8
 It houses Nvidia Tegra 2 processor which is highly regarded in recent
LE
Employee
AMP
times for its multimedia capability
Strength • u9 has included extra features on its tab including an e‐reader
Contact
Information
Revenue
S
application for viewing e‐books in Kindle or any other Android
e‐reader app
Tablet Offering
Processor Network USB
Product OS Display Wi‐Fi GPS
& RAM (3G) Port
Note: The list is not exhaustive
E‐BOOKS MARKET IN INDIA 2012.PPT 17

18. Smartphone Price and Specifications (1/3)
Brand
Apple
HTC
LAVA
LG
Model Price (INR) Operating System
SAMPLE Processor RAM 3G Wi‐Fi GPS
E‐BOOKS MARKET IN INDIA 2012.PPT 18

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E‐BOOKS MARKET IN INDIA 2012.PPT 19