E-publishing. New methods of selling of the publishing content. Piotr Kubiszewski
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1 E-publishing New methods of selling of the publishing content Piotr Kubiszewski
2 Digital books E-books Audiobooks Digital libraries
3 What s better: book or e-book? Source: in: Anna Zygierewicz: e-book. Produkt, technologia, rynek ; Analizy Biura Analiz Sejmowych, 7 Juni 2013
4 Digital books in the world USA The biggest market in the world January 2013: 26% Americans have an e-ink reader (2% in April 2009) 2012: 23% of books market value are e-books (17% in 2011, 1% in 2008) 2012: the sale of e-books has grown 41% in comparison to 2011 (year before 50%) 2012: e-book reader has read 24 books (tradiotional book reader only 15) 2011: audiobook market is worth 1.2 bln USD Source: Anna Zygierewicz: e-book. Produkt, technologia, rynek ; Analizy Biura Analiz Sejmowych, 7 czerwca 2013
5 Digital books in the world Great Britain 2012: e-book sale is 12.9% of book market (year before 7.2%, %) 2015: e-book sale will be 14.2% of book market, the value of the e-book sale will be 340 mln GBP (forecast) January-Juni 2012: e-books sale is 84 mln GBP (January-Juni 2011: 30 mln GBP) January-Juni 2012: e-book sale in fiction section has grown 188% in comparison to January-Juni period in 2011 Source: Anna Zygierewicz: e-book. Produkt, technologia, rynek ; Analizy Biura Analiz Sejmowych, 7 czerwca 2013
6 Digital books in the world Germany 2010: 2 mln e-books sold; ,7 mln; January-Juni 2012 nearly 4.6 mln 2011: the sale of e-books is 38 mln euro (without special interest publications) and has grown 77% in comparison to : e-book market is only 1% of whole book market ( %); 2015 it will be 6.3% (forecast) 2011: e-book sale is 6.2% of publishers incomes; 2015: e-book sale will be 16% (forecast) 2011: 49% of publishers sells e-books Source: Anna Zygierewicz: e-book. Produkt, technologia, rynek ; Analizy Biura Analiz Sejmowych, 7 czerwca 2013
7 Digital books in the world USA Great Britain Germany France Spain Poland Value of book market 27.2 bln USD 3.1 bln GBP 9.6 bln EUR 4.6 bln EUR 2.8 bln EUR 0.7 bln EUR New titles per year New titles per 1000 inhabitants VAT tax on books n.d. 0% 7% 7% 4% 5% Participation of e-book market in book market 20.0% 12.9% 2.0% 1.8% 2.4% 0.95% Number of e-books in sale epub PDF VAT tax on e-books n.d. 20.0% 19.0% 19.6% (5.5%)* 21.0% 23.0% * - lower rate of the VAT tax led on the beginning of 2012; n.d. - no data E-book market as a part of book market ( ) Sources: Anna Zygierewicz: e-book. Produkt, technologia, rynek ; Analizy Biura Analiz Sejmowych, 7 czerwca 2013; The Global 2013 ebook Market: Current Conditions & Future Projections, O Reilly; Rynek książki w Polsce 2012, Biblioteka Analiz
8 Digital books in the world Source: paidcontent.org
9 Digital books in Poland Audiobook market in Poland Number of audiobooks publishers b.d Sale 2.7 mln zł 10.1 mln zł 16.8 mln zł 19.9 mln zł21.7 mln zł 23.1 mln zł Number of audiobooks in sale n.d Growth n.d. 233% 175% 29% 18% 17% 2016: the market value is about 200 mln zł (by audioteka.pl; forecast) 70% of audiobooks are sold on CD/DVD Sources: Rynek książki w Polsce 2012, Biblioteka Analiz; Nabywcy audiobooków, nexto.pl report, 2010
10 Digital books in Poland 2011: value of the whole book market 2.71 bln zł 2011: e-book sale 26 mln zł, 50 mln zł (2012) = 1% of whole book market (by Biblioteka Analiz) 2011: e-book sale 9-11 mln zł (by Instytut Książki) 2012: e-book sale - 15 mln USD (forecast by PwC) 2013: e-book sale - 27 mln USD (forecast by PwC) Sources: Piraci zabierają wydawcom książek 250 mln zł rocznie, Magdalena Lemańska, ; Rynek e-booków rośnie w tempie 300 proc. rocznie, Magdalena Lemańska, ; Rynek książki w Polsce 2012, Instytut Książki
11 Digital books in Poland Ranking of e-books stores by Press magazine (7-8/2013) 1. Nexto.pl 2. Woblink.com 3. ebookpoint.pl 4. Legimi.pl 5. Virtualo.pl 6. Publio.pl 7. ebooki Allegro.pl 8. Empik.com 9. Merlin.pl 10.BezKartek.pl Sources: Press 7-8/2013, swiatczytnikow.pl
12 Digital books in Poland: e-libraries There are about 50 e-libraries in Poland that contain digitalized archive publications and antique books ibuk.pl publications, mainly science (average access price: 7.90 zł / week, zł / month etc.) Telco digital reading rooms - Tu i tam (Orange/Empik - Standard package 9.84 zł 2 e-books / month, Premium zł any quantity), Plusoczytelnia, T-Mobile Legimi 2000 e-books (9.90 zł / month for smartphone - or zł / month smartphone and tablet) Virtualo user can borrow an e-book for week or month VERY ATTRACTIVE BUSINESS MODEL, ESPECIALLY FOR SCIENCE LIBRARIES!
13 Digital books in Poland What has influence on digital books market? Increasing number of users of the Internet Increasing number of Internet users that are buying and paying through the Internet More and more tablets and e-ink readers in hands (tablets 0.1 mln in 2011, mln in 2012, mln in 2013 (source: tabletowo.pl)) Increasing number of e-books on the market 2011: epub and mobi file formats became standards now more than 90% of e-books are downloaded in these formats (by nexto.pl, publio.pl) Costs of digitalization of e-books still very high in comparison to forecasted incomes
14 Digital books in Poland 80% Households with Internet access 70% 60% 59% 63% 67% 71% 50% 40% 30% 36% 41% 48% 20% 10% 0% Sources: Społeczeństwo Informacyjne w Polsce: wyniki badań statystycznych z lat , GUS; Eurostat data
15 Digital books in Poland 2012: Internet shopping is very popular - Poland is on third place in Europe (by Trusted Shops) 2012: 13 mln of Poles are buying goods through the Internet (by TNS Polska) Source: NetTrack SMG/KRC
16 Business models Revenue sharing recent standard: 50%, now publishers can negotiate better conditions Subscriptions future model, not only for e-libraries Piracy model of chomikuj.pl user pays for access, not for e-book (SMS 2.46 zł) Self-publishing (in Poland: Virtualo, wydaje.pl, BezKartek.pl, RW2010, poczytaj.to) Publishers initiatieves - Woblink, Platforma Dystrybucyjna Wydawców
17 Prices Average price of bestseller e-book in USA (August 2012-March 2013) Source: The Ebook Pricing Sweet Spot,
18 Prices E-book suggested prices in Poland: 37% people want to pay half price of traditional book 26% people pay 9.90 zł 2012: Average price of e-book in Nexto.pl TOP zł 2011: Average price of e-book in Germany: 8.07 euro; 2010: euro Sources: Piraci zabierają wydawcom książek 250 mln zł rocznie, Magdalena Lemańska, , na podstawie badań Biblioteki Analiz; Lista bestsellerów Nexto.pl, Blog Nexto.pl,
19 Prices Average prices of audiobooks in Poland: about 20 zł (2009 and before) about 25 zł (2010) About 30 zł (beginning of 2012) Source: Biblioteka Analiz
20 File formats PDF visual resemblence to traditional books, but reading on small screens is not comfortable mobi (Kindle), epub formats adapted to reading on small screens of mobile equipment (e-ink readers, tablets, smartphones); bad side: e-books have to be specially prepared to distribution (additional cost) Audiobook standard format: MP3; bad side: additional cost of recording
21 File formats File format File extension Photos Tables Sound Video Open standard? Notes DRM Watermark? EPUB.epub YES YES YES YES (epub 3) YES YES (depends on app) YES YES (depends on app) Kindle.azw YES YES YES (only ipad/iphone YES (only ipad/iphone NO YES YES YES version) version) MOBI.prc,.mobi YES YES NO? NO YES YES YES YES Adobe PDF.pdf YES YES YES (condition: flash) YES YES YES YES
22 File formats and hardware E-ink readers sale is not growing any more. Tablets and smartphones are replacing e-ink readers PDF is an universal format but stiff and hard to read on a small screen (e.g. on a smartphone) epub is the most popular mobile format.the only thing that can t read it is Amazon s Kindle Mobi is a format developed by Amazon it cannot be read by some readers etc. Non existent hardware standard doesn t interrupt the growing market, since we have file format standards
23 File formats and hardware Considering the habits of Polish e-book readers researched by Publio / Świat Czytników and Virtualo: 84% (Publio) and 55% (Virtualo) respondents own Kindle 23% (Publio) and 20% (Virtualo) respondents has read e-books on notebooks as well 22.5% (Publio) and 23% (Virtualo) respondents used tablets for e-books reading purpose 18% (Publio) and 14% (Virtualo) has read e-books on smartphones as well People who own e-ink readers buy (average) 35 e-books per year, tablet owners 24 (Publio) Sources: Jak e-czytają Polacy? Wyniki ankiety Publio i Świata Czytników, Robert Drózd, , swiatczytnikow.pl; Trwa Światowy Tydzień eksiążki, , virtualo.pl
24 File formats and hardware Reader PDF epub MOBI Kindle mobi Amazon Kindle YES NO YES YES Amazon Kindle Fire YES NO YES YES Android YES YES YES YES ipad/iphone YES YES YES YES Barnes & Noble Nook YES YES NO NO Linux YES YES YES? Onyx Boox 60 YES YES YES NO Mac OS X YES YES YES YES Windows YES YES YES YES Pocketbook YES YES YES NO Sony Reader YES YES NO NO Windows Phone 7 YES YES NO YES
25 Digital books preparation PDF graphics: 144 dpi; pages cut to netto format; require fonts attached mobi, epub files have to be compatible to epub2 standard, checked by validator (e.g. epubcheck 3.0 Publio) Audiobooks good recording studio required
26 Security popular DRM (e.g. Adobe) authoring DRM solutions watermark no security = piracy!!! Publishers give up with hard security solutions (DRM), because of: they are troublesome for readers they assure illusionary safety watermark is much more comfortable for readers and even more effective
27 Restrictions VAT tax is too high high prices of digital books too small number of accessible books DRM security solutions poor quality of e-books and audiobooks piracy poor awareness popularity of tablets and e-ink readers is insufficent
28 Market perspectives there is no escape from digital world! established standards considering file formats DRM is out of date, watermark is the king! new models on the horizon e.g. payment for next chapter and price experiments (e.g. kiker.pl by Nexto) subscriptions will become much more popular increasing number of the e-ink readers and tablets in hands of people VAT on e-books will be lowered in whole EU Amazon and other giants will appear in Poland = consolidation The costs of licences for digitalization are too high
29 Thanx for attention Piotr Kubiszewski
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