12.07.2015 Views

1234000000358_04042014_final

1234000000358_04042014_final

1234000000358_04042014_final

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!