Notes from the West10 KEY POINTS DIGITAL PUBLISHERS MUST KEEP IN MIND

CARLO CARRENHO | CEO | PUBLISHNEWS | BRAZIL

首届数字出版世界大会（ 2014 ，北京 )FIRST WORLD DIGITAL PUBLISHING CONFERENCE

NOVEMBER, 2014 | BEIJING

机遇[THE OPPORTUNITY]

Access is the real gain of the digital disruptionThe technological development, when applied to the publishing industry, allows a huge advance in three kinds of reading access:

• GEOGRAPHIC

• ECONOMIC

• FOR THE HANDICAPPED

It is a new GuthenbergRevolution.

Access is the real gain of the digital disruptionThe technological development, when applied to the publishing industry, allows a huge advance in three kinds of reading access:

• GEOGRAPHIC

• ECONOMIC

• FOR THE HANDICAPPED

It is a new GuthenbergRevolution.

Access is the real gain of the digital disruptionThe technological development, when applied to the publishing industry, allows a huge advance in three kinds of reading access:

• GEOGRAPHIC

• ECONOMIC

• FOR THE HANDICAPPED

It is a new GuthenbergRevolution.

威胁[THE THREAT]

New players might weaken traditional publishersBig companies that have entered the book market are several times larger than traditional publishers and booksellers. This might bring the risk of weakening or even eliminating such traditional enterprises. The important knowledge of content publishing and distribution might be lost in the process.

Source: Global eBook Market, 2012; Global Map of Publishing Markets 2012 and company reports

Apple Amazon Google Barnes & Noble

Brasil EUA Mundo0

20

40

60

80

100

120

140

108.25

48.0837.9

6.99 4.04

40.2

136.92

Annual sales x Book market size(US$ bi)

挑战[THE CHALLENGE]

Digital does not make readersAccess is not enough to create readers. Smartphone and tablet users will not read more simply because they can access books from their devices. The increase of readership will still depend on other factors.

2013 2014 2015

Apple Apple AmazonGoogle Amazon SaraivaSaraiva Saraiva AppleAmazon Google GoogleKobo Kobo KoboOther Other Other

eBookstore Ranking in Brazil

Digital does not make readersAccess is not enough to create readers. Smartphone and tablet users will not read more simply because they can access books from their devices. The increase of readership will still depend on other factors. Over 80% of purchases from the Google Play front store

Minimal customer return rate

困境[THE DILEMMA]

Smartphones & Tablets versus dedicated eReadersIt is not clear if dedicated eReaders will reach the same success in other countries as they did in the USA. The lack of heavy readers in countries such Brazil and the fact that the Kindle and similar devices were launched after the iPhone may play an important and defining role.

Smartphones & Tablets versus dedicated eReadersIt is not clear if dedicated eReaders will reach the same success in other countries as they did in the USA. The lack of heavy readers in countries such Brazil and the fact that the Kindle and similar devices were launched after the iPhone may play an important and defining role.

Source: IDC

2010 2011 2012 2013 2014 -

2,000

4,000

6,000

8,000

10,000

12,000

100

800

3,100

7,900

10,700

Tablet Sales in Brazil

Thou

sand

s of U

nits

Smartphones & Tablets versus dedicated eReadersIt is not clear if dedicated eReaders will reach the same success in other countries as they did in the USA. The lack of heavy readers in countries such Brazil and the fact that the Kindle and similar devices were launched after the iPhone may play an important and defining role.

Source: IDC

2010 2011 2012 2013 2014 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

4,900

9,000

16,000

35,000

47,000

Smartphone Sales in Brazil

Thou

sand

s of U

nits

战役[THE BATTLE]

How seven publishers beat Amazon in BrazilThe story of the seven Brazilian publishers that joined forces to launch a digital agreggator for eBooks and forced Amazon to accept conditions that the Seattle giant would never accept otherwise. By contract.

威胁[THE TRADE]

Trade books leads the growth in the western digital marketTrade books are the real stars when one looks at the digital market. The market share of digital trade books has grown exponentially. Now it seems to be reaching a plateau.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

5%

10%

15%

20%

25%

30%

0.05% 0.16% 0.24% 0.31% 0.50% 0.58% 1.17%

3.20%

8.32%

20.43%

25.87%26.66%

eBook Share in the American Trade Market[Association of American Publishers]

Trade books leads the growth in the western digital marketTrade books are the real stars when one looks at the digital market. The market share of digital trade books has grown exponentially. Now it seems to be reaching a plateau.

.

Fonte: Tipos Digitais

教育 [THE EDUCATION]

The educational market is a real challenge for digital publishingAlthough huge and able to grab substantial government budgets, the K12 market is far from becoming a digital one. Basically, it still depends on state educational regulations and digital adoption.

High education, although less regulated, has not been adopting digital books at the expected rate. College students seem to be reticent to dive into eReading.

Brazilian market in consummer prices (2013):

¥ 18,5 biBrazilian Publishers’ revenues:p

¥ 13,0 bi

Brazilian Government purchases:

¥ 3,60 biGovernment share in publishers’ revenues:

27,6%K12 share in publishers’ revenues:

47,76%

Brazil is the 10th largest

book market in the world. Global Publishing Monitor, Ruediger

Wischenbart

The educational market is a real challenge for digital publishingAlthough huge and able to grab substantial government budgets, the K12 market is far from becoming a digital one. Basically, it still depends on state educational regulations and digital adoption.

High education, although less regulated, has not been adopting digital books at the expected rate. College students seem to be reticent to dive into eReading.

The educational market is a real challenge for digital publishingAlthough huge and able to reach substantial government budgets, the K12 Market is far from becoming a digital one. Basically it still depends on state educational coucil regulations and digital adoption.

High education, although less regulated, has not been adopting digital books at the expected rate. College students seem to be reticent to dive in eReading.

童书[THE CHILDREN]

The costly app market challenges the digital economics.While eBooks are cheap to produce and can be sold for higher print-related cover prices, Android and iOS apps are expensive to be developed and need to be sold very cheaply. This is the main challenge for the children digital publishers. After all, any digital content for children must have a minimum level of interactivity.

The costly app market challenges the digital economics.While eBooks are cheap to produce and can be sold for higher print-related cover prices, Android and iOS apps are expensive to be developed and need to be sold very cheaply. This is the main challenge for the children digital publishers. After all, any digital content for children must have a minimum level of interactivity.

云计算[THE CLOUD]

The successes and failures of cloud-based librariesCloud-based content libraries in Netflix-style are here to last. After all, the all-you-can-read model is very attractive to the consumer. The challenge, however, is to find a business model that allow publishers to keep their revenues or, at least, their profitability.

The successes and failures of cloud-based librariesCloud-based content libraries in Netflix-style are here to last. After all, the all-you-can-read model is very attractive to the consumer. The challenge, however, is to find a business model that allow publishers to keep their revenues or, at least, their profitability.

The successes and failures of cloud-based librariesCloud-based content libraries in Netflix-style are here to last. After all, the all-you-can-read model is very attractive to the consumer. The challenge, however, is to find a business model that allow publishers to keep their revenues or, at least, their profitability.

希望[THE HOPE]

A future where publishers and tech companies unite forcesA health digital future in publishing will only exist if the publishers’ expertise and traditional knowledge is combined with the tech companies’ developments and boldness. We must search for the best of both worlds.

谢谢卡洛 · 卡朗诺 [CARLO CARRENHO] | CEO | PUBLISHNEWS | BRAZIL

CARRRENHO@GMAIL.COM

@CARRENHO

首届数字出版世界大会（ 2014 ，北京 )FIRST WORLD DIGITAL PUBLISHING CONFERENCE