The Expansion of GlobalPlatformsPublishing groups with international reach arecertainly not a new feature of the industry, asthe strong presence of British houses in all ofthe former Commonwealth and in the US wellillustrate. With the acquisition of the world’slargest trade publisher, Random House, by the Germanmedia conglomerate Bertelsmann in 1998, the subsequentreaching out of Hachette into the US and the UK, and themore recent international aspirations of regional groupssuch as Spanish Planeta or Swedish Bonnier, internationalexpansion has become common. And their parent companiesall control various media and related activities, withbook publishing in most cases not being the groups’ largestdivision.Today, opening offices in the Gulf (like Bloomsbury in Qatar),or even holding corporate management conferencesin Beijing (as Penguin did a few years ago) has shown thatbook publishing is in no way any longer limited by nationalor linguistic borders.The recent expansion of distribution platforms and channels,both in reach and in the scope of their offer of productsand services, has brought the globalization of publishing,books and reading to an entirely new dimension.AmazonUpdate spring 2014“If anything seemed reliable in today’s topsy-turvy retailclimate, it’s that Amazon.com would continue to put upshocking rates of revenue growth, lapping rivals in traditionaland online commerce”, noted Brad Stone, author ofthe Jeff Bezos biography The Everything Store and a columnistwith BloombergBusinessweek in January 2014. He addedhowever that the growth rate of around 20% which thecompany reported for 2013 was “the lowest growth ratein several years.” (BloombergBusinessweek, 30 January2014).By early 2014, Amazon has clearly evolved into forming aseparate submarket of global publishing in its own right.It has broadened its umbrella to span over the entire valuechain, from author services via being a publisher and distributorand a market place for third parties, to a readingplatform (and a reading community, with Goodreads)where readers discuss their preferences, to impacting onpolitical debates in a wide array of countries, with a longlist of controversial topics, be it sales tax (or value addedtax) in the US and Europe, or a dispute over free trade versusprotection for local markets, as it occurs in India.(BloombergBusinessweek, 23 January 2014).In the words of Amazon’s founder Jeff Bezos, in a televisioninterview in December 2013, the online giant is in fact thewrong culprit to blame for all the disputes it stands for:“The Internet is disrupting every media industry, Charlie,you know, people can complain about that, but complainingis not a strategy. And Amazon is not happening to bookselling, the future is happening to book selling.” (60Minutes,CBSNews, interview with Charlie Rosen, 2 December2013).Amazon’s high media profile resulted not the least from itsrecently accelerated expansion, notably in emergingeconomies from Brazil to India. But alerts rang even rathercalm markets in Europe, when the market research firmXerfi anticipated the US retailer to be en route for becom-93 The Global eBook Report
ing “the first bookseller in France” (Xerfi, 7 February 2014),or in Germany, where it controls one fourth of the entireonline trade, with a volume worth €7.7 billion (Der Spiegel,3 February 2014), while a conflict with labor unionsover working conditions in Amazon’s logistics centers hascontinued to rage.The debate disguises however to what extend the revenuebase of Amazon is concentrated on just North Americaplus only three overseas markets, Germany, Japan and theUnited Kingdom. In 2013, international sales of $29.9 billioncompared to $44.5 billion earned in the US and Canada.In media sales, which includes all content, yet nothardware, domestic and international are roughly equal atslightly under $11 billion. But all other markets than US,Germany, Japan and UK combined account for just $4.5billion. But the international expansion is a lot faster, up246% from 2010 to 2013, than in any other market, withGermany up 98% in the same period.Amazon growth in selected markets, in $bn. (Source of data: SECfilings)With regard to printed as well as Kindle books, Amazon hasnot yet moved into several markets where it had been anticipatedfor a long time to open online shops in the locallanguage, with a respectively broad title catalogue, includingRussia, the Netherlands or Scandinavia.In early 2014, Amazon has extended its Prime program intoseveral European markets, which allows users to tap intoa streaming movie database and a lending library of selectedebook titles for the Kindle, plus premium delivery ofprinted books, for an annual membership fee.Amazon: Developments in 2012 and 2013When Amazon released data on its 2012 financial performanceat the end of January 2013, Jeff Bezos, the company’sfounder and CEO, concluded: “We’re now seeing thetransition we’ve been expecting. After 5 years, e-books isa multi-billion-dollar category for us and growing fast—up approximately 70% last year” (“Amazon reports recordsales growth”, The Bookseller, 30 January 2013). That iscertainly true. But Amazon may no longer be in the privilegedrole of ruling the game almost all alone, as least inthe US, due to the introduction of the Kindle in 2007.Sales from Kindle and tablet devices alone are estimatedat $4.5 billion, up 26% from 2012, according to MorganStanly, yet with annual growth expected to slow down inthe years ahead. For 2014, sales of digital media content isexpected to surpass revenues from devices. Overall, the“Kindle ecosystem” is expected to account for 11 percentof the company’s total revenue this year, but 23 percent ofits operating profit. (Quoted by Allthings, 12 August 2013).A major expansion in the ecosystem that Amazon offers toits customers was in spring 2013 the acquisition of thereading platform Goodreads, which had grown, by summer2013, to a community of 20 million.Amazon’s International GrowthSince June 2013, Amazon has started to sell its devices inmainland China, with the Kindle Paperwhite 849 yuan (US$134) and tablet computer Kindle Fire HD with 16-gigabyte memory for 1,499 yuan. (Sina, 8 June 2013).Also in 2013, Amazon has started selling Kindle devices inIndia, after its launch of a Kindle shop in 2012, and it hasenhanced its presence in India by unveiling its AmazonAssociates program. (Shelf Awareness, 14 June 2013 and9 July 2013).In addition, Amazon reportedly has started preparation forentering the Russian market with a dedicated website, afterhiring Arkady Vitruk, formerly the general director ofone of Russia’s leading publishing houses, Azbuka –Atticus.(Russian Book Industry Magazine, 4 July 2013).Amazon’s own publishing arm had started its internationalexpansion already in late 2012 to Germany and Europe.(“Amazon-Verlage nehmen Kurs auf Deutschland”, buchreport,29 November 2012). In France, it launched an imprint,Jet City, specializing in graphic novels. (Livres Hebdo, 10July 2013).The Global eBook Report 94
- Page 2:
ContentsAbout the Global eBook Repo
- Page 5 and 6:
• The Bookseller (United Kingdom)
- Page 7 and 8:
Executive SummaryThis report provid
- Page 9 and 10:
The ambitions, and thelimitations o
- Page 11 and 12:
ending requests by email and face t
- Page 13 and 14:
Chris Kenneally, Copyright Clearanc
- Page 15:
A Global Industry, and Many Local P
- Page 18 and 19:
transformation longer than other se
- Page 20 and 21:
The Bookish Elites: Market size & n
- Page 22 and 23:
Book markets evolution in selected
- Page 24 and 25:
Market share of ebooks (in various
- Page 26 and 27:
English Language eBookMarketsThe fo
- Page 28 and 29:
United States (2010-2011 Book Marke
- Page 30 and 31:
Ebooks accounted in 2013 for one in
- Page 32 and 33:
stores, and 700 Argo stores, as wel
- Page 34 and 35:
Metadata is the key to online sales
- Page 36 and 37:
EuropeGermanyUpdate spring 2014Afte
- Page 38 and 39:
GermanyKey Indicators Values Source
- Page 40 and 41:
Ebooks evolve in a complex and chal
- Page 42 and 43:
actively seeking Google’s coopera
- Page 44 and 45:
SpainKey Indicators Values Sources,
- Page 46 and 47: early days there. Yet according to
- Page 48 and 49: According to the Danish book trade
- Page 50 and 51: and Amazon is as well. Barnes & Nob
- Page 52 and 53: PolandKey Indicators Values Sources
- Page 54 and 55: The emerging role of ebooks in Cent
- Page 56 and 57: Nemokamospdfknygos (Aida Dubkeviči
- Page 58 and 59: play a role for starting to change
- Page 60 and 61: 57 The Global eBook Report
- Page 62 and 63: RussiaKey Indicators Values Sources
- Page 64 and 65: OzonOzon is a general retailer sell
- Page 66 and 67: tribute the PDFs they had received
- Page 68 and 69: a company wants—and it should—t
- Page 70 and 71: also has the fourth largest install
- Page 72 and 73: ChinaKey Indicators Values Sources,
- Page 74 and 75: lion in 2008 to ¥60 million in 201
- Page 76 and 77: The National Book Trust (NBT), the
- Page 78 and 79: tion. Of these, 73% youth are liter
- Page 80 and 81: Wiley were among the first. Much of
- Page 82 and 83: launched with 47 titles, available
- Page 84 and 85: Ebook publishers are faced with the
- Page 86 and 87: Arabia, the situation improves dram
- Page 88 and 89: Contributed articleCopyright Cleara
- Page 90 and 91: Forces Shaping the eBook MarketsA c
- Page 92 and 93: In the current battle over emerging
- Page 94 and 95: Paradoxically, the global expansion
- Page 98 and 99: Interestingly, all Amazon figures b
- Page 100 and 101: $1.8 billion”, equalling some 8%
- Page 102 and 103: leader in the digital industry thro
- Page 104 and 105: By January 2013, Kobo claimed to ow
- Page 106 and 107: aggressively at €0.99 or €2.99,
- Page 108 and 109: edition of the same titles is still
- Page 110 and 111: Self-publishingUpdate spring 2014In
- Page 112 and 113: continental Europe have launched th
- Page 114 and 115: Goodreads, launched by Otis Chandle
- Page 116 and 117: Regulatory frameworksThe litigation
- Page 118 and 119: Receptiveness for foreign(English)
- Page 120 and 121: suffers not in spite of but because
- Page 122 and 123: entific and professional publishing
- Page 124 and 125: utors. Börsenverein’s own Librek
- Page 126 and 127: sources and blogs promoting and poi
- Page 128 and 129: In France, the independent literary
- Page 130 and 131: eBook Yellow PagesThe eBook Yellow
- Page 132 and 133: dotbooksEdiciones B, founded in Bar
- Page 134 and 135: Neowood Éditions is a French digit
- Page 136 and 137: those who would like to create thei
- Page 138 and 139: about 60,000 ebooks. In November 20
- Page 140 and 141: making the ebook creation and publi
- Page 142 and 143: extended ranges of books and audio
- Page 144 and 145: MyiLibrary is an econtent aggregati
- Page 146 and 147:
that publishes RNTS branded digital
- Page 148 and 149:
lishers and over 30 sales channels,
- Page 150 and 151:
Professional organizationsProfessio
- Page 152 and 153:
Advertising in the eBookYellow Page
- Page 155 and 156:
The acceleratedtransformation of th
- Page 157 and 158:
IndexSymbols100knygu, 13224Symbols,
- Page 159 and 160:
INscribe, 139Integral, 139iStoryTim