FranceKey Indicators Values Sources, commentsBook market size (p+e, at consumer prices) €4,534 million 2011 Syndicat National de l’Edition (FrenchPublishers’ Association, SNE)Titles published per year (new and successive editions) 86,295 SNE (figure for 2012)New titles per 1 million inhabitants 1,340 French National Statistics InstituteeBook titles (available from publishers) ca. 126,000 From publishersPublisher revenue share of ebooks ca. 2.1% of trade (GfK), 3% (SNE) Estimates GfK, SNEKey market parametersFixed book price; VAT of 7% for print, audio books,and ebookscomplete report is available online from the French government).In response to debate on how to act against piratedebooks, the French publishers´ association has signed anagreement with their British homologues to adapt theirCopyright Infringement Portal in a French version (see alsoActuaLitté, August 5, 2013).For an overview of dedicated ebook ventures and distributorsgo to “Selected distributors and new ebook venturesin 2012 and 2013” on page 35.Earlier developments in France 2012It had come as a surprise to some that readers in the countryof the Marquis de Sade, Georges Batailles, and CatherineMillet could fall for a clearly less-sophisticated versionof eroticism imported from America. And yet 900,000printed copies plus another 40,000 ebooks had beenpicked up in the French translations, which again made itto the pages of the New York Times (January 16, 2013).Despite the boom, one major retail channel for all formsof media content, Virgin, which in 2012 had started to getserious about ebooks, went bust. The fifth-largest retailchain for books, according to Livres Hebdo, with a turnoverof €280 million, of which €80 million came from books, anda market share of 2 to 4% of the French book market, declaredbankruptcy in January 2013 (Livres Hebdo, January14, 2013).Overall, 2012 was a flat year for bookselling, as were theyears before (Livres Hebdo, January 11, 2013). Althoughexact numbers are not yet available, interviews by thetrade magazine Lives Hebdo with various retailers reflectalmost unanimously on a difficult end for 2012 sales. Accordingto estimates, even at Amazon growth seems tohave slowed down in 2012, but at a high level of some 60%market share for online sales of primarily printed books.But overall, online sales are believed to account for justaround 10% of the entire retail market for books, which issmall when compared to Anglosaxon countries or neighboringGermany.However, consumers have started to embrace digital devicesthat can be used for reading: In 2012, some 3.6 milliontablet computers plus another 300,000 dedicated ereaderswere sold in France (compared to 145,000 in 2011). Thisshould trigger growth in ebooks by some 80% at least (LivresHebdo, May 3, 2012, and Livres Hebdo, January 11,2013, print edition, page 17).Perhaps even more conclusive is research commissionedby the French publishers’ association SNE in March, and thenupdated in September of 2012. In spring, a mere 5% of theFrench population over 18 admitted to having read anebook. Another 5% considered doing so. A staggering 90%said flatly “Non,” as they could not see themselves exchangingpaper for a screen. Only half a year later, 14% ofthe adults had in fact read an ebook at least in part, plusanother 8% would give it a thought at least. As in mostcountries, the strongest segment of the reading populationhas started to embrace digital first. The tablet seemedto gain forcefully over the ereaders. Remarkable shifts maybe under way, if a tendancy regarding the prefered locationsfor downloads solidifies: The share for general Internetplatforms such as Amazon, the Apple Store, and Googlegrew from 38% to 41%, while the share of specialized bookplatforms such as Fnac or Virgin declined from 30 to 28%.But this snapshot may be too random to identify it as atrend (Sofia, SNE, SGDL: “Baromètre des usages du livrenumérique,” Vague 1, March 2012; Vague 2, September2012).32 The Global eBook Report
SNE had earlier started to systematically track the emergenceof an ebook market on an annual basis. It has recordedebook downloads worth €35 million for 2011(against €17.9 million in 2010), hence doubling an albeitmodest stream of revenue in an overall market of €4587million (“L’édition de livres en France, Repères Statistiques2012,” données 2011). Together with digital sales of physicalsupports worth another €21.5 million for 2011 (downfrom €35 million) this accounts for a market share of 1.2%.More importantly, the figure illustrates a shift from distributionby CD/DVD or flashdrive to Internet downloads.As hinted, the overall temperature among French bookprofessionals with regard to ebooks was far below theboiling point as of mid 2012, an assessment which is wellin line with Bowker’s “Global eBook Monitor” consumersurvey. Hachette, by far the country’s leading publishinggroup and arguably the world’s largest trade publisher,considers the French ebook market as “embryonic” (commentfor this report) and returned ownership of its ebookdistribution platform Numilog to its founders press release(June 13, 2012).At Editis, the second-largest French house and an arm ofSpanish Planeta, the “ebook evangelist” Virginie Clayssenadmits that she “feels discouraged or saddened by theschism that exists between traditional publishers andthose who work in a digital world and are impatient withthe former” (Publishing Perspectives, March 13, 2012), evenas she sees France in a fundamentally similar developmentwith regard to digital as Germany (interview for this report).Gallimard, France’s third-largest publishing group, whichjust expanded significantly by acquiring Flammarion fromItalian RCS, sees “a lot of movement” (comment for thisreport). But it’s likely that all of these primary observationsfall short of the overall story, which is clearly more complex.A survey sponsored by several trade and related organizations(SNE, SGDL, and Sofia, released in March 2012)showed that only 5% of French adults have ever read anebook (with 2% having consumed an entire digital bookand 3% having consumed just parts).Many separate indicators point to a serious build up ofinfrastructure, regulatory and market framing efforts, newrelevant impulses from the outside, and a quiet, yet pervasiveformation of a market ready to embrace digital,against heavy odds from local tradition and routine.France has become one of the key markets targeted byglobal players such as Google (by quietly settling its legalconfrontations with French publishers and related stakeholders)(Livres Hebdo, June 6, 2012), Amazon (by announcingits new generation of low-cost devices), and Sony(by signing a cooperation agreement with online distributorChapitre.com).New domestic initiatives have also emerged. In Lyon, retailerDecitre has launched a new TEA “The Ebook Alternative”service.Meanwhile, traditional strong arms such as the omnipresentchain of Fnac have produced headlines showing similartrouble in finding their place and strategy —betweenbricks and mortar and online as well as digital— as is itsGerman peer Thalia, with revenues declining by 1.1% to astill lavish €1.77 billion, yet with profits going down bysome 7.5% (buchreport, August 1, 2012). Still, Fnac is wayahead of its direct competitors. But with new entrants andnew games to be played, its once singular position hasbecome everything but comfortable.French book professionals still feel that they are having ahard time getting what they want or what they deservefrom the digital world. Eric Marbeau of Gallimard arguesabout shortcomings in the representation of their ebooksin the catalogs of Amazon and Kobo, in adjusting metadatastandards, and coming to agreements on digital rights andretail prices (interview for this report).Several serious issues need to be sorted out with regard toregulating a market that barely exists, but which everybodyseems to be preoccupied with, which at least indirectlyhints at how seriously the broader perspective isthought to be.The European Commission has started investigations intopricing arrangements and is expected to look very closelyinto the procedures of the US Department of Justice (DoJ)with regard to the American “agency model,” and the dealingsof French publishers with regard to support of an extensionof the fixed price system for ebooks.The gap of VAT on printed and digital books has beenbrought down from 19.6% for ebooks to the print level of5% in 2012, and will probably further drop to 5.5% fromJanuary 2013.For the second half of 2012, a serious dynamic with regardto reading devices, and notably all sorts of tablets, is expected,which could result in a surge in ebook downloadsafter the year-end holidays. All actors, notably in distribution,are expected to spend heavily on related marketing.Developments in 2011The Global eBook Report 33
- Page 2 and 3: ContentsAbout the Global eBook Repo
- Page 4 and 5: Receptiveness for foreign (English)
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- Page 8 and 9: Mapping and Understandingthe Emergi
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- Page 31 and 32: GermanyKey Indicators Values Source
- Page 33 and 34: than 10% of all online sales by the
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- Page 43 and 44: focusing on both Spain and Latin Am
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- Page 47 and 48: SwedenKey Indicators Values Sources
- Page 49 and 50: Netherlands2012 was a tough year fo
- Page 51 and 52: inging ebooks to the tenfold larger
- Page 53 and 54: magazines, and devices, with a cata
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- Page 57 and 58: Source: Vesselin Todorov, Ciela Nor
- Page 59 and 60: Contributed articleCopyright Cleara
- Page 61 and 62: Emerging MarketsRussia70% of Russia
- Page 63 and 64: (see details in “eBook piracy in
- Page 65 and 66: The first research comparing the pe
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- Page 69 and 70: on ebooks. It has not gained much t
- Page 71 and 72: ChinaKey Indicators Values Sources,
- Page 73 and 74: Key players in the digital environm
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- Page 83 and 84: 3. Source: Personal interview with
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Amazon’s performance in 20122012
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strict or eliminate competition”
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settlement is expected to make avai
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Forces Shaping the eBookMarkets: Ke
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Average top 10 ebook prices in sele
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As for the UK, The Bookseller compi
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ation solutions have recently emerg
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In Germany, the by far the largest
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(SSRC, the American Assembly, Colum
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In its report of May 2011, by Le Mo
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Of those who admitted to downloadin
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1,200 titles (see this blogpost by
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The AcceleratedTransformation of th
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AcknowledgmentsThis report has been
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Mandarin, she has specialized in re