3. Publishing industry summary
•The market barely grows from 101.600 million$ in 2012 to 104.300million$ by 2017.
•E-Books will represent the 22% (22.700 million$) a significant increase from the 9% accounted in 2012.
US market accounts the 26% of the market followed by Germany 8% and France 4%. Talking about Region besides the share of US 26%,
highlighting the EU accounts the 33%, BRIC 18% and rest of regions 22%
•The steadily adoption of e-readers and tables devices for reading will boost the number of stores where new agents such us telecos will
participate remarking
•- Largest Platforms
oAmazon : Amazon has broadened its umbrella to span over the entire value chain ( self publishing, social networks, distribution…)
oApple: in the long run at least, to have integrated books so deeply and seamlessly, in the iTunes ecosystem,
oGoogle: Focused on SEO-SEM. The mathematical algorithm ensures accurate search results for every word of the editorial text is posted
oBarnes & Noble: positioning world’s largest bookseller
o Kobo: s positioned in the market as an alternative to other platforms based on extensive catalog and open technology supporting most
reading formats of principal platforms .
•Subscription platforms ( 24Symbols, scrib, Skoobe….) On average with a catalogue over 180.000 titles in the US market, and around 30.000 in EU
as it happens in DE market.
•Distributors & Technology: Libranda, Libreka, book mate
• Adoption of technology is also what is known as “ bringing to life traditional books” in other words adapt content to new habits and
to new type of content such as apps, books with sounds, games……. But still without market standards.
•Tablets and smart phones are the devices with most features to optimize the user experience of this new products
• new digital only ventures, ebook divisions specializing on certain genres, and most importantly, selfpublished titles, and books
available only through Amazon largely dilute and diversify what readers can buy. In other words even in the early stages of their
emergence, have a strong tendency to dissolve the notion of books as one integrated, homogeneous market segment
Amazon, scrib, Oyster, Barnes & Noble are moving to exploit reading data
4. Book Publishing sector in figures
(*)Source: International Publishers Association + PWC
EU 33%
Germany 8% ( Total World Market)
France 4% ( Total World Market)
USA 26%
REST 22%
BRIC 18%
8. World's Largest Book trade Publishers,
(*)Source: publishersweekly
•Penguin Random House comprises the
adult and children’s fiction and
nonfiction print and digital trade book
publishing businesses of Penguin and
Random House in the U.S., U.K.,
Canada, Australia, New
Zealand, and India, Penguin’s trade
publishing activity in Asia, and South
Africa; as well as Dorling Kindersley
worldwide; and Random House’s
companies in Spain, Mexico, Argentina,
Uruguay, Colombia, and Chile.
•53% •47%
•Revenues Publishing
• €2655 (2013)
•From Ebooks 20%(100m
ebooks sold)
•Revenues Publishing
• €2066(2013)
•From Ebooks10%
•Revenues % by area
•France 37%
•US 23%
(30% from ebooks)
•UK 20%
(27% from ebooks)
•SP 8%
•Revenues Publishing
• $1189(2012)
•From Ebooks 39%
REACH OVER 100 COUNTRIES ( PRINT + E-BOOKS)
•Revenues Publishing
•€1608m (2012)
•From Ebooks 27%
•Revenues Publishing
• $809 (2013)
•From Ebooks na
12. Global Platforms
Good reads
Biggest location cyberspace for
readers to exchange views,
reviewing books, and making, or
breaking the career of authors and
their works.
25 million members
750 million books
29million reviews
Shelfari
Shelfari is a community-powered
encyclopedia for book lovers.
Create a virtual bookshelf, discover
new books, connect with friends and
learn more about your favorite books
– all for free.
Books ecosystem – Entire Value Chain
“Amazon has broadened its umbrella to span over
the entire value chain, from author services via
being a publisher and distributor and a market
place for third parties, to a reading platform (and a
reading community, with Goodreads)”
1) Retail approach
2) Prime Program “Amazon has extended its Prime program into
several European markets, which allows users to tap into a
streaming movie database and a lending library of selected
ebook titles for the Kindle, plus premium delivery of printed
books, for an annual membership fee.)”
Kindle Direct Publishing + Publishers
LibraryThing
Kindle
(*)Source:
Global
Report 2014
+ Icex +
Vooks
13. Global Platforms
Barnes & Noble ( partnered with Microsoft)
Books ecosystem based on SEO
“The contents pass an internal department of Google uploads
classified and indexed content to its system. The mathematical
algorithm ensures accurate search results for every word of the
editorial text is posted. The mathematical algorithm has more than
100 variables, where the search history and keywords etc. are
contemplated to determine a list of results.
Library Google +Google Play
Google books
Google Partner
Program ( self-
publishing )+ publishersDevices Market Place Ibooks Author
Books ecosystem based on Itunes digital entertainment
The more important part of Apple’s role with regard to ebooks might
be, in the long run at least, to have integrated books so deeply and
seamlessly, in the iTunes ecosystem, with music, movies and all other
formats of digital entertainment, thereby spearheading a future in
which books and reading simply lose their traditionally privileged
cultural position.
Nook Nookpress FacebookOnline & stores
Books ecosystem based on positioning world’s largest bookseller
Engage readers through its Nook device and multimedia catalog
offer by reaching agreements with Hulu among others.
Books ecosystem based on positioning “one of the world’s fastest-
growing ereading services”.
Is positioned in the market as an alternative to other platforms
based on extensive catalog and open tehcnology supporting
most reading formats of principal platforms . Claims to serve 18
million users in 190 country and an inventory of 4 million titles.
kobo
Tablet–multimedia
experience for ereaders
E-reader Writing life
publishing Online store
(*)Source: Global Report 2014 + Icex + Vooks
GoogleApple
+
14. Global Platforms
(*)Source: PWC+ Asymco
Ebook market share and Amazone´s in selected countries
In June of 2011 Apple announced that 130 million ebooks
were sold through iTunes. In October of 2012 it
announced that 400 million sold. That means 270 million
ebooks were sold in 16 months. Or about 17 million units
per month, on average
The download rate looks paltry but we need to
remember that Apps have a very low average selling
price (about 23 cents including in-app purchases) and
that Songs are probably priced around $1.1 on average.
In contrast each ebook could be generating about $10
per download.
•Claims to serve 18
million users in 190
country and an
inventory of 4 million
titles.
•Kobo has expanded
beyond Canada,where
in 2012 it controled a
market share of 46%,
according to Ipsos, by
establishing localized
platforms in Brazil,
France, Germany,
Indonesia, Japan, the
Netherlands, Portugal,
South Africa, Thailand,
Taiwan, UK, and the US.
•Accounts 20% of
ereaders markets
15. Reading Communities
(*)Source: Outbox online studio
Shelfari. This site (owned by Amazon)
allows you to connect with other authors
and readers over what each of you is
reading. By creating a virtual bookshelf
online, participants can easily see what
you’re reading and they make it easy to
start up a discussion
GoodReads. “Imagine it as a large library
that you can wander through and see
everyone’s bookshelves, their reviews, and
their ratings. You can also post your own
reviews and catalog what you have read,
are currently reading, and plan to read in
the future. Don’t stop there – join a
discussion group, start a book club,
contact an author, and even post your
own writing.”
LibraryThing. “LibraryThing helps you
create a library-quality catalog of your
books. You can do all of them or just
what you’re reading now. And because
everyone catalogs online, they also
catalog together. LibraryThing connects
people based on the books they share.”
AuthorsDen.com. “The largest most vibrant free
online literary community of authors and
readers! Visited by 1,400,000+ readers/mo.”
Nothing Binding. “The Leading Global Social
Networking Site for writers, authors, readers and
book buyers, Nothing Binding unites these
groups everywhere around the world. When you
join, You can promote your books; connect with
fellow writers and authors, hungry readers and
book buyers; and discover great new writing.”
FiledBy. “Any author with a book published in
the U.S. or Canada can join for free, manage
and enhance their pages, promote their books,
check for accuracy, provide corrections and
much more.”
Red Room. “For years, writers have joined the
Red Room Writers Society to get their writing
done in a supportive environment. Most people
don’t need more instruction; they need to write.
The Red Room Writers Society is the only writers
society or school focused on writing rather than
focused on reading and talking.”
16. Reading Communities
(*)Source: Practical ecommerce
Smashwords. Smashwords publishes
and distributes ebooks to Barnes &
Noble, Sony, Apple, Kobo, and Diesel.
Authors and publishers retain full
control over how their works are
published, sampled, priced and sold. It
offers a variety of tools to help authors
market their ebooks. Smashwords pays
a royalty of 60 percent of the retail
price when the ebook sells. Payments
are quarterly.
Lulu. Lulu publishes and distributes
ebooks to Apple and Barnes & Noble. It
offers authors a variety of editorial and
marketing services such as cover art,
formatting and editorial review. For a
limited time, Lulu pays the author 90
percent of the royalties from online
retail bookstores. Lulu pays monthly by
PayPal or quarterly by check
BookBaby. BookBaby publishes and distributes
ebooks to Amazon, Barnes & Noble, Sony, and
Apple. BookBaby offers a variety of services
such as format conversion, cover design, and
even custom book printing. BookBaby’s basic
package is $99, plus $19 annual fee after the first
year. The author retains 100 percent of royalties
from online retail stores. Payments are weekly.
FastPencil. FastPencil publishes and distributes
ebooks to Amazon, Barnes & Noble, Sony, and
Apple. It offers add-on services such as custom
cover, interior book design, editorial review,
and formatting review. FastPencil charges a
$149 fee and 20 percent of royalties from
online retailers. Payments are quarterly
BookBaby. BookBaby publishes and distributes
ebooks to Amazon, Barnes & Noble, Sony, and
Apple. BookBaby offers a variety of services
such as format conversion, cover design, and
even custom book printing. BookBaby’s basic
package is $99, plus $19 annual fee after the first
year. The author retains 100 percent of royalties
from online retail stores. Payments are weekly.
17. Subscription Platforms
Oyster
•Price $9.95
•USA Market
•Catalogue 200.000 (substantial percentage
from HarperCollins, also agreement with
Disney)
•Price $9.99
•USA Market
•Catalogue 135000+
•Closer to a traditional book club approach
•Price $8,99
•Volume Catalogue not undecalred
•Price €9.95-€19.99 depending on scope of
access
•DE Market
•Catalogue 30.000 titles
•Joint venture Bertelsmann & Holtzbrink
•Price €5
•DE market
•Catalogue 15.000
•Target only to tablets and Smartphones
•Price €5,99
•Traget 30% of Spnaish ebbok market by 2015
•Catalogue 7000
•Joint Venture Bertelsmann, Planeta And
telefonica
•Price €9.99 primium, & free version
•USA Market
•Catalogue 7.000 titles including graphic novels
•B2C model over 100.000 titles – fremium
•B2B model . ZED acquires 32% stake. Recently
launched services in Russia – Beeline,
Guatemala Tigo among other ( *PWC ebook)
•Price €10-12
•Russian Market
•Catalogue 250.00 titles
•Price €2-5
•Russian Market
•Catalogue 150.00 titles
•Price $19.99
•Latam market
•Catalogue 160.000
(*)Source: Zed Internal analysis
19. Others
(*)Source: Outbox online studio
Me gustaleer ( Penguin Random
House)
grammata
•www.edsudamericana.com.uy/
•www.edsudamericana.com.ar/
•www.rhm.cl/
www.rhmx.com.mx/
www.rhm.com.co
……………
•Publishing Serrvices and Libriries
20. Others Libranda & Libreka ( more than distribution platforms)
(*)Source: Outbox online studio
Libranda
•Libranda offers a digital distributing content publishing (ebooks)
services. Libranda develops integrated technology platforms
(software and hardware) for sale and lending of ebooks.
•For own publishers, shops, libraries and other customers creating,
managing and optimizing their processes, projects and digital
ecosystems.)
Libreka! is the great e-book platform for German speaking -. using
a wide range of services, ranging from information about the
possibility of reading books by buying e-books and printed books
over 2,451,162 books 2,009 publishers with more than 50 million
pages are available to search for available and 1,040,055
electronic books available for purchase. Anyone looking for a
book reader, is Libreka! the right place
21. Some Aggregators, distributors and other service providers
40k
100knygu Lithuania
Acaiaca Brazil
ACK Media India
AKB eBOOKS, India
Alezaa.com Vietnam
Allzone Digital Services USA
Amabook SP
Andrews UK Limited UK
aNobii, IT
Apabi, China
Arta Tech, Poland
arvato Systems DE
Atingo, SE
Baker & Taylor, USA
Barcelona eBooks SP
Beam eBooks DE
Bezkartek Poland
Biblio Bulgaria
Biblos Slovenia
Blankpage Switzeland
BoD DE
Bokon SE
Bokskya, Norway
BOL, Netherlands
BookBaby USA
Bookboon Denmark
Bookeen FR
BookGanga, USA
Bookmasters, USA
Bookmate, Russia
BookRepublic IT
BookRix, DE
Bookwire, DE
BooXtream Holland
Brave New Books, Holland
Byte the Book UK
Casa del Libro, SP
Casalini Libri Torrossa, IT
CB Netherlands
ceebo, DE
Ciando DE
Chichili Agency, DE
Ciela, Bulgaria
Circulo de Lectores SP
Clearpassion FR
Contentment UK
Contentra Technologies, India
Copyright Clearance Center
Cubolibri IT ( telecom Italia)
DAISY consortium Switzerland
Dajianet Chinese
Dalim Software, DE
Datamatics India
Dawson France FR
DawsonEra UK
Deanta Global Publishing Services Ireland
De Marque FR
diacriTech USA
Diesel-eBooks.com, USA
Digibooks4all Greece
Digimarc Guardian, USA
Digiplug, FR
23. Formats
1 E PUB ePub is a standard format for displaying publications combined with a system of files that gives readers the feel and finish of a traditional
book. To create a digital correction ePub files for viewing and knowledge of web layout and programming in HTML and CSS is required. The eBook in
ePub format comes in a ZIP archive which contains three types of files : Open Publication Structure ( OPS ) , Open Packaging Format ( OPF) and EEBPS
Container Format ( OCF) . The ePub format allows adapting the text of ebook the size of the screen in which the document is opened . It is a universal
format and both tablets , smartphones and e-readers are configured to successfully open format. The ePub to select the text size or open the table of
contents at the time that the user wants . There are numerous software programs for creating an ePub or Apple Pages as Adobe InDesign and other
applications like SIGIL for editing. For those wishing to outsource this service you can count on official aggregators major online stores and digitization
specialists . Usually, if the ePub contains no embedded font takes up less memory than a PDF file.
2 PDF (Portable Document Format) is a standard format for distributing documents. Save appearance, formatting, graphics and color that has the
document in its origin, is not modifiable and can be displayed in both the browser and through Internet download devices with the right features. It is
therefore possible to use any font as it is not modified by the user. For technical documents is important to count the exact number of pages or
documents with layout and images such as comics, the use of PDF is recommended as the text zoom causes no change in the display of the document
as a whole. No advanced skills are necessary for creation, while it is for creating an ePub.
AZW (Amazon Kindle) all independent
authors and publishers must ensure that the
ebook formats ePub pass the screening tests of
Kindle format. Compatible with (Kindle (AZW),
PDF, MOBI, HTML, DOC and JPG mainly)
IBA Iba is Apple’s proprietary format for books
created with its program iBooks Author. It is
very similar to ePub, but can only be sold through
the iBookstore
Mobie /azw
( older Kindles)
APPS iBooks Audio Books
KF8 Kindle
( designed to support
more advanced HTML5
and CSS3)
(*)Source: Vook Ebook_Marketplaces_and_Royalties_guide + ICEX+Appsfera
24. Formats & Platforms
Kindle
Kindle
for PC
Kindle
for iOS
Kindle
for iOS
Kindle
for iOS
Kindle
for iOS
Kindle
App
Kindle
App
Kindle
Cloud
e-reader
Nook
Nook
app
Nook
app
Nook
app
Nook
app
Nook
app
Nook
app
Nook
app
Nook
app
iBook
Store app
iBook
Store app
iBook
Store app
iBook
Store app
iTunes
Most e-readers
Apart kindle
Google Play
Books
Google Play
Books
Sony
E-reader
PC
app
Mac
app
app
app
app
Kobo
Device
PC
app
Mac
app
app
app
app
app
(*)Source:Vook
Ebook_Marketplaces_and_
Royalties_guide + ICEX
1
2
Epub
iPad, iPhone,
iPhone Touch,
Nook, Kobo,
Google, Sony,
Samsung, Kindle
Adaptado
PDF
Most devices but
sometimes needed
to make
adjustments
iPub
iPad, iPhone,
iPhone Touch,
Kindle
KF8, Mobi, azw
25. Reading devices
Battery life Ability to
display
Pictures
Ability to
display
Videos
Display
size
Readability Colors Variety of
formats
Weight Mobile
Connectivity
Disk
space
Additional
Contents
Suitable for
consumer
books
Suitable for
professional
books
(*)SourcePWC
26. DRM
DRM The system of digital rights management , known as DRM (Digital Rights Management) , links content to software
and hardware of the computers from which the content is accessed. The editorial content is recorded with a number of
user identification in a read . The role of DRM systems is to manage the digital rights of a certain content, establishing rules
for Editorial certification of digital content and monitoring the movements of contents in the network. DRM allows the
reading of those documents in a limited number of electronic devices ( computer, tablet , e-reader or smart phone )
There is not yet a standard DRM system so often and control the process is complex and involves an increase in hardware
and software costs .
ADOBE
This software is of universal
application and allows the
download of your ebook in PDF or
ePub format in a total of 6
devices.
(*)Source:ICEX
AMAZON DRM APPLE DRM BARNES & NOBLE DRM
28. Pricing drivers
•Users perception = Digital Prices 40% lower ( GFK survey)
•Users perception = Digital Prices lower than 35%
•Despite range of prices in amazon.de on week 9/2014 top 10 bestselling kindle ebooks
were priced at €2.68 on average
•Regulation fixed price e.g. DE andFR
•Digitization in develop countries will represent the 44% of the company expenses in the
next coming 5 years whereas that traditional media and channels will contribute with the
gross of revenues. ( PWC)
•Study Carried out by PWC and International Publishers Association shows that 88
investigated countries charge VAT on printed Books at reduce VAT
•Biggest publishers are getting bigger in ebooks
•In UK (2012) ebooks accounted for some 13% to 14% of all book sales in terms of units and
for a more modest 6% to 7% of revenues.
•Self - Publishing
•E.g In Canada 4 major publishing groups ( Hachette, Harper Collins…) have signed an
agreement with competition authorities to lower ebooks prices ( Livres Hedbo, 7 February 2014)
29. •Germany 7.14€ 13.99€
•France 5.08€ 9.79€
•Spain 6.88€ 6.74€
•Italy 6.99€ 6.19€
•UK 3.15€ na
Ebooks prices & discounts in Europe
Top 10 Amazon
Kindle
Top 10 leading
domestic platforms •There are two distinctly different corridors in the price of
ebook editions of frontlist fiction titles:
1. One above €14, as seen in France, Germany
and Sweden,
2. and the other converging at around €10
• It becomes remarkably obvious that publishers’ decisions on
how much they discount an ebook against the print edition
of the same titles is still highly experimental in many markets.
In the widely diverse markets of Germany, France and Italy,
and after highly different trajectories, a certain equilibrium of
around 25 to close to 30 percent discount from print seems to
emerge.
•Spain with its very specific crisis related economic context, a
much higher level of around 50 percent between the price
for bestselling print titles and their ebook edition stabilizes
•Sweden and the Netherlands have not yet found a clear
level of ebook pricing, and discounting at all.
•These differences not only highlight the very broad range of
prices and discounts among ebook frontlist titles but also
emphasize that ebooks, even in the early stages of their
emergence, have a strong tendency to dissolve the notion of
books as one integrated, homogeneous market segment.
(*)Source: Ebook 2014 Report
30. DE Case Study ( 8% of total industry)
•The average retail price of a printed book is around €12
(2013: €12.40), while the average price for an ebook is €7,58
(2013, GfK).
•Spiegel bestseller list The top 10 fiction bestsellers on the
authoritative Spiegel bestseller list in February 2014 came at
an average retail price of €19.90, while the most popular
trade paperbacks sold at roughly half this price (€9.89).
•Amazon. The opposite is true however, when it comes to
ebooks. The top 10 bestselling Kindle ebooks at Amazon.de at
the same week (9/2014) were priced at €2.68 on average,
forming an altogethjer different corridor of books selling in
their majority at unter €5.
• Börsenverein in November 2013 By contrast, a top 10 ebook
bestseller list published had an average ebook price of
€13.54. Perhaps even more, ranging from €6.99 (which is
below the average print paperpack) to 19.99 (which equals
the average print hardcover.
• Libri leading German wholsaler’s own retail arm, had a
middle of €7.79, with again a wide price range from €2.99 to
€16.99.
the consensus among publishers to informally apply fixed
prices to ebooks is having lower effect when the offer of
ebooks now comes not anymore from just the well
established publishing houses. Instead, new digital only
ventures, ebook divisions specializing on certain genres, and
most importantly, selfpublished titles, and books available
only through Amazon largely dilute and diversify what
readers can buy.
(*)Source: Ebook 2014 Report
31. Royalties & Fees
(*)Source: Vooks
(*)All percentages quoted are of the actual price
at which your book is sold, not the recommended
retail price. Sometimes distributors will choose to
discount your book; if this occurs your royalty may
be calculated according to the discounted rate.
Please note also that this chart is applicable only to
authors and publishers dealing directly with the
distributors—approved aggregators, such as Vook,
can secure higher royalty rates in
some instances.
33. Tracking Habits
(*)Source: The New York Times
•The move to exploit reading data is one aspect of how consumer analytics is making its
way into every corner of the culture
•Amazon and Barnes & Noble already collect vast amounts of information from their e-
readers but keep it proprietary. Now the start-ups — which also include Entitle, a North
Carolina-based company — are hoping to profit by telling all.
•Scribd is just beginning to analyze the data from its subscribers. Some general insights: The
longer a mystery novel is, the more likely readers are to jump to the end to see who done it.
People are more likely to finish biographies than business titles, but a chapter of a yoga
book is all they need. They speed through romances faster than religious titles, and erotica
fastest of all.
•At Oyster, a top book is “What Women Want,” promoted as a work that “brings you inside
a woman’s head so you can learn how to blow her mind.” Everyone who starts it finishes it.
On the other hand, Arthur M. Schlesinger Jr.’s “The Cycles of American History” blows no
minds: fewer than 1 percent of the readers who start it get to the end.
•“Self-published writers are going to eat this up,” said Mark Coker, the chief executive of
Smashwords, a large independent publisher. “Many seem to value their books more than
their kids. They want anything that might help them reach more readers.”
Quinn Loftis, a writer of young adult paranormal romances who lives in western Arkansas,
interacts extensively with her fans on Facebook, Pinterest, Twitter, Goodreads, YouTube,
Flickr and her own website. These efforts at community, most of which did not exist a
decade ago, have already given the 33-year-old a six-figure annual income. But having
actual data about how her books are being read would take her market research to the
ultimate level.
35. Market Trends
Barbastro 2013
http://www.youtube.com/
watch?v=9r1dnOS9wf8&list
=PLDLussk0gYhl7SwWBn_yR
8JUgsRxtj-D8
community of
accomplices..
Bringing back the
concept of library a place
where someone knows
your interest and
recommends books in a
personal atmosphere
Creating ecosystems
But defining clear positioning… google SEO , apple
entertainment , Kobo extensive catalog and open
technology…
Bringing Books to life
https://www.yout
ube.com/watch?v
=cn4Bz_KjEmY#t=
17
What I’d love to see next is more equality across all
the platforms/devices to allow publishers the chance
to offer our best and most innovative titles across the
market, including bringing books to life with
animation and offering interactive features for kids’
activity books. We’re ready; a lot of devices aren’t
http://www.youtub
e.com/watch?v=mlF
RPiKwhgg
http://www.youtube.
com/watch?v=9Z1jqi
0bgwM
http://www.har
percollins.com/
Video/
Communication, communities, affiliates programs,
selfpublishing + marketing services….
Google Partner
Program ( self-
publishing )+
publishers
Writing life
publishing