French-founded B2B distribution platform ePagine alsooperates a Dutch platform serving a broad list of publishers,including Artemis, Athenaeum, Kluwer, and Queridoand retailers and wholesalers Boekhuis and Luisterhuis, aswell as ePagine itself and the British Gardners Books.Several other platforms have been launched to sell,stream, and lend ebooks, including Yindo and ebook.nl.Reading DevicesIn the Netherlands, iRex Technologies, a spinoff of Philips,introduced ereaders at the end of 2008 and reported salesof just over 4,000 units by the end of 2009. Sales rose to50,000 ereaders by mid year 2010, but this was not enoughto prevent iRex from filing for bankruptcy protection inJune 2010.Several other ereader manufacturers have filed for bankruptcyprotection as well, including the manufacturer ofthe Cool-er ereader and the European division of Foxit.In the meantime, a number of ereaders are available thathave the capability to integrate with online stores. For example,bol.com offers readers with WiFi capabilities,among them the Sony eReader and the BeBook Neo, whichwas developed in the Netherlands.PricingIn the Netherlands, as in Germany, bookstores must usethe price defined by the publisher because of fixed bookprice arrangements. The fixed book price arrangement inGermany is not subject to any time restriction, whereas thecorresponding arrangement in the Netherlands is applicablefor only the first year after the publication of printedand digital books.As in most other European markets, a VAT of 6 percent isan advantage for printed books versus ebooks (taxed at aVAT of 19 percent, which will rise to 21 percent by October2012; source: Boekblad).AustriaAustria is a good example of a relatively small marketneighboring a much larger territory and a market of thesame language. With a population of about 8 million, Austriais roughly 10 percent the size of Germany in all majorrelevant respects for this study and shares both the vernacularand, largely, the current cultural and media frameworkof its dominating neighbor. Both countries are membersof the European Union and the Euro Zone.With regard to printed books, books from German publishersalready reign supreme in Austrian bookshops,namely the chain stores as well as the online platforms ofAmazon, Thalia, and Weltbild, serving the Austrian marketfrom headquarters in Germany. Amazon also serves Austriafrom its German Kindle store, which opened a localizedversion in April 2011. Although local Austrian bestsellinglists show, as would be expected, significant differencesfrom locally branded authors (e.g., local celebrities as wellas local literary talent), the overall pattern and a share ofroughly two-thirds of those charts are very similar to thosein Germany (for details, see Diversity Report 2010).On the other hand, local Austrian publishers have alwaysconfronted substantial hurdles to bringing their books toretailers, to media, and hence to consumers in Germany,where Austrian imports account for only about 3 percent(not, as expected by the equivalents in size, around 10percent). In recent years, this imbalance has significantlyincreased. Between 2008 and 2010, in an overall flat bookmarket in both Germany and Austria, imports from Germanyto Austria have increased by 8.14 percent, as exportsby Austrian publishers into Germany slumped by a remarkable24 percent, reflecting on a domestic publishingsector in Austria that has ever growing difficulties in reachingout beyond its borders.The Austrian debate on ebooks has been largely shapedby Hauptverband des österreichischen Buchhandels, theAustrian publishers and booksellers support of their Germanequivalent Börsenverein, in their legal action againstGoogle’s unauthorized digitization of copyrighted worksfrom libraries and against the proposed—and, at least forthe US, widely accepted—Google settlement. No recentcomments have been released as to the association’s standin view of those recent developments.In November 2012, the association published its secondreport on ebooks in Austria, but with most data limited tothe years 2011 and 2010, which have only very limited valueto assess the situation as of late 2012. Because Austriais largely served by publishers, retailers, and distributorsfrom Germany, it is fair to assume that developments asdescribed for Germany largely apply also to the Austrianmarket, meaning that ebooks are increasingly embracedby the strongest readers, and that retail sales show a significantshift from traditional chain stores to online, notablyto Amazon. This last trend has been highlighted byseveral small Austrian publishers interviewed in late 2012for this report. Some of the interviewees, however, recognizedin that shift an opportunity, notably with regard to46 The Global eBook Report
inging ebooks to the tenfold larger German market, asit allowed them to compete on par with the much largerGerman publishing houses. eBooks and the various servicesproposed by Amazon would more and more lower thebarriers of entry and compensate for a disadvantage ofgeography for small enterprises.A top 20 fiction ebook bestselling list for October 2012,which was included in the association’s ebook report, wasunsurprisingly dominated by James’ Shades trilogy, followedby Rowling with Casual Vacancy and numerous internationalblockbuster titles, like Ken Follett’s Giants sagaand Jonasson’s Hundred Year Old Man. All top 20 titles camefrom German publishers.AustriaKey Indicators Values Sources,commentsBook market size (p+e, at consumerprices)Titles published per year (new andsuccessive editions)New titles per 1 million inhabitants 1,028€792 million PublishersAssociation8,505 PublishersAssociationAustrian publishers have been very cautious with regardto investing in digitization, with most starting only in 2011,or even 2012, to regularly offer new print releases in ebookformats. A preference for direct distribution of ebooks bythe publishers, which could be seen in 2011, has diminished,as most houses have signed service contracts withGerman distributors.Some, like general trade publisher Haymon, started tobuild a modest list in 2011 and added digital editions oftheir printed releases as a routine procedure as of spring2012.But, as on the German side, the ebook market is largelydominated at this point by a few leading publishinggroups. It is forseeable that it will be increasingly difficultfor small Austrian publishing houses to carve out a digitalniche.A first survey of the Austrian ebook market, released onSeptember 29, 2011, by the Austrian publishers’ and booksellers’association HVB showed that just 17 percent ofAustrian publishers have sold ebooks as of 2010. Another21.7 percent are planning to do so in 2011, 30.1 percent atsome point in the future, and 36 percent said that they hadno plans for ebooks. This compares to Germany, where 35percent of publishers already offer ebooks, and another 43percent plan to include ebook editions in the near future(for details, see the Börsenverlag study from spring 2011in the discussion on Germany). The Austrian study revealsseveral more distinctly different developments and expectationsbetween the two countries, as even those publishersin Austria who have launched ebooks do so for just10 to 20 percent of their new releases and prefer distributionfrom their own website (with online retailers and Librekabeing the second and third most popular optionsfor distribution). PDF is the prevalent file format, with 88.5percent of the titles, but half are available as EPUB as well,and 15 percent in the MobiPocket format for Amazon’sKindle. Three out of four books are distributed with somecopyright management included, but only 35 percent ofthe books come with DRM, and 65 percent have digitalwatermarks built in.Under such circumstances, it is hardly surprising that nodomestic infrastructure for ebook distribution and serviceshas been set up, and publishers—just like local chainand independent bookstores—are instead encouraged touse services from companies based in and run from Germany.At this point, no local branch offices of any of themajor German service providers have been opened.As in other European countries, books are subject to a reducedVAT of 10 percent, and ebooks carry the full 20 percentVAT and are discounted against printed editions by10 percent on average.PolandWith revenues of 50 million Zloty in 2012 (ca. €12 million,up from 23 million Zloty in 2011 and estimated €9-12 millionin 2010), the Polish ebook sector not only shows astrong curve of growth. It is also characterized by significantmomentum for all revel drivers. With a catalogue ofca. 25 to 30,000 ebook titles by mid 2013, and 150,000ereading devices (of which half are estimated to be Kindledevices) across a total population of 38 million, ebookshave become a focus for a number of domestic players inPoland. (All data provided by The Polish Book Institute forthis report)Remarkably, the initially widely used hard DRM fromAdobe gave place recently to watermarking, or social DRM,with some local firms experimenting with their own solutions.Competition over pricing is considered to be onlymodestly growing, despite overall competition in digitalpublishing is see as rising.The Global eBook Report 47
- 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
- Page 35 and 36: warm at best, and the half-year res
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- Page 41 and 42: SpainKey Indicators Values Sources,
- 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: Netherlands2012 was a tough year fo
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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
- Page 67 and 68: Revenue Service has been receiving
- 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
- Page 75 and 76: The Government of India is leading
- Page 77 and 78: Android-based devices in the countr
- Page 79 and 80: and Mathematics books, Hindustan Bo
- Page 81 and 82: When it first launched, most ebooks
- Page 83 and 84: 3. Source: Personal interview with
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- Page 89 and 90: strict or eliminate competition”
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- Page 95 and 96: Average top 10 ebook prices in sele
- Page 97 and 98: As for the UK, The Bookseller compi
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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