best practices for exporting digital books
DESCRIPTION
Presentation given at the Association of Canadian Publishers annual general meeting (professional development day). Provides an overview of a research paper written for and published by Livres Canada Books.TRANSCRIPT
BRIAN F. O ’LEARY
MAGELLAN MEDIA CONSULTING PARTNERS
ASSOCIATION OF CANADIAN PUBLISHERS
ANNUAL GENERAL MEETING
JUNE 13 , 2011
Best practices for exporting digital books
Overview of today’s talk
BackgroundGoalsPrimary findingsMarket intelligenceOptions for international rightsRecommendations
Background
LCB missionImpact of new technologies(Widely) different market profilesPrepare ‘now’
Research goals
Market intelligenceOptions to maintain, sell or license rightsRecommendations to maximize digital incomeProvide an annex of resources
Primary findings: content
U.S. leads the waySignificant expansion expected in U.K.,
FranceEmerging: Spain, Germany, NetherlandsRegional rights sales a challenge
Primary findings: technologies
Content forms are evolvingDedicated eReaders and multifunction
devicesTablets may supplant other devices for
reading
Market intelligence
WorldwideU.S.U.K.FranceNew and emerging markets
Worldwide trends
$4.6 Billion (2009), largely U.S.Education, trade, professional marketsSpecial-interest salesBroader, pan-market issues
Evolving value chain Workflow VAT policies Impact of piracy
Qualifying potential markets
Affordable, attractive eReading devicesWide range of contentPerceived price competitivenessEasy interfaces
Market share by sales channel (U.S.)
24%
23%
22%
14%
10%
7%
OtherOnlineLarge chainBook clubsMass marketIndependent
Source: Barclays Capital (2010)
Growth in digital book share (U.S.)
2010 2011 2012 2013 2014 20150.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Barclays Capital PwC
Current profile: United States
Online, chain dominanceDigital content availabilityMultiple platformsAgency pricingVertical storesDiscovery starts with content
Market share by sales channel (U.K.)
37%
22%
18%
14%
7%
2%
IndependentsDistributorsSchoolsBookstore chainsSupermarketsOthers
Source: Barclays Capital (2010)
Growth in digital book share (U.K.)
2010 2011 2012 2013 2014 20150.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Barclays Capital PwC
Current profile: United Kingdom
Independents still prevalentOnline sales underdevelopedConcerns about market size, rightsLess optimistic about agency pricingConsumption profile parallels the U.S. in
2008
Market share by sales channel (France)
37%
15%15%
12%
11%
10%
ChainsSupermarketsOnlineDirect mailOther shopIndependent
Source: Barclays Capital (2010)
Growth in digital book share (France)
2010 2011 2012 2013 2014 20150.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
PwC
Current profile: France
Chains and supermarketseBook market just developingThree digital platformsUniform pricingPotentially younger market
Growth in digital book share (emerging markets)
2010 2011 2012 2013 2014 20150.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Spain (1) Germany (2) Netherlands (2)
1Barclays Capital estimates; 2PriceWaterhouseCoopers estimates
Current profile: Emerging markets
Spain, Germany, NetherlandsGenerally not Canadian publishing targetsPotential growth: India, AustraliaPlatform competition a signalWorth watching all of these markets
International rights: current models
Sell rights by territory or languageRetain rights, sell through aggregatorsRetain rights, sell direct
Sources: Magellan analysis
Selling rights by territory or language
“Traditional” modelRegion, country or languageTypically takes time to negotiateWith digital, a lag can cause frustrationSome (small) markets may be missed
Making digital work with the traditional model
Broader negotiations, concluded more quickly
Partner with publishers that can offer both print and eBook distribution
Test eBook-only in smaller markets
Selling digital and print rights separately
May affect willingness of local partners to buy or promote a print title
Can work with international aggregators (Kobo, Apple, Google)
Can also work with local aggregators (complex arrangements; may be publisher-specific)
Retaining digital rights and selling direct
Improved margins; publisher controls pricingDirect selling can provide insightChallenges: discoverability and accessNeed content depth or focusCan try “verticals”, consortia
Emerging models
Lending (consumers, libraries)SubscriptionConsortia“Netflix”-likeDigital-only or digital-first
Preparing for new digital models
Be sure that rights are well-tracked and up to date
Know where your files are (ideally, in-house)Align your metadata with partner
requirementsIf you want to sell content components, plan
aheadThink globally
Recommendations: Getting started
EPUBSimple before enhancedIf enhanced, think platform
Recommendations: Going global
Direct sales? Devices and markets are complex
Partners can helpIf geographically focused, you can chooseWorldwide rights gaining in value
Recommendations: Internal assessments
Subscription and component salesCost containment and agile contentPiracy can point out demandKeep up with VATBuy and use eReaders
Digital penetration in selected markets
2010 2011 2012 2013 2014 20150%
5%
10%
15%
20%
25%
30%
35%
40%
US - 1US - 2UK -1UK - 2
Sources: Barclays Capital, PwC, Magellan analysis
Digital penetration in selected markets
2010 2011 2012 2013 2014 20150%
5%
10%
15%
20%
25%
30%
35%
40%
FranceSpainGermanyNetherlands
Sources: Barclays Capital, PwC, Magellan analysis
Additional resources
Livres Canada Books, “Exporting digital books: A guide to best practices”
Barclays Capital, “eBooks – Digital positive for once?”, 17 Sep 2010
Outsell, “Worldwide eBooks market size and forecast report”, 21 Jun 2010
PwC, “Turning the page: The future of eBooks”, 2010