THE BOOK INDUSTRYBY THE NUMBERSWhat’s Happening in the

US Book Market?

Hello.

My name is:

Nadine VassalloProject Manager, Research & Information

BISG

Hello.

And BISG is:

The US book industry trade association for research,

education, and best practices.

60,000publishers

How big is the US market?$27 billionin revenue

Market stability

26.5 27.1 27.9 27.4 27.1

Net Sales (in US $B)

2008 2009 2010 2011 2012

Trade dominated industry

15.0

4.3

4.3

3.6

Trade K-12 Higher Education Professional / Scholarly

2008 2009 2010 2011 2012$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

Physical Formats Digital Formats

Digital growth in trade

Print’s not dead

72%

19%

9%

Physical Digital Bundled/other

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0%50%100%150%200%250%300%350%400%

2008 2009 2010 2011 2012

355%

199%143%

44%

E-growth slowing

A New Opportunity:Digital Book Subscriptions

The subscription economy

Subscription has taken hold in the movie, TV, music industries, and more…

Thanks to our sponsor

DOMINANT SUBSCRIPTION MODELSThe subscription economy

Is this the end of ownership?

DOMINANT SUBSCRIPTION MODELS

What do publishers think?

Subscription is inevitable 84% predict positive impact

over next 5 years

Thanks to our sponsor

What do publishers think?

Biggest benefit: chance to reach new customers

Biggest concern: cannibalization of physical sales

Thanks to our sponsor

Market segments

Scholarly presses most likely to work with aggregators, libraries

Thanks to our sponsor

Market segments

Future of textbook publishing in Integrated Learning Systems

Thanks to our sponsor

Market segments

Professional publishers have established consumer relationships; continue to sell direct

Thanks to our sponsor

Market segments

Trade publishers beginning to join subscription services

Thanks to our sponsor

Open issues

Access vs. ownership Breadth vs. depth

Thanks to our sponsor

DOMINANT SUBSCRIPTION MODELSCompanies to watch

Understanding US Ebook Buyers

Sept. 2010

Jan. 2011

May 2011

Aug. 2011

Dec. 2011

Feb. 2012

May 2012

Aug. 2012

Feb. 2013

Aug. 2013

0%

20%

40%

60%

80%

More than a year ago

Within the last year

Maturing consumers

Sept. 2

010

Jan. 2

011

May 2011

Aug. 2011

Dec. 2011

Feb. 2

012

May 2012

Aug. 2012

Feb. 2

013

Aug. 2013

0%

10%

20%

30%

40%

50%

I mostly purchase e-books, and purchase fewer print books than I used to

I purchase e-books and print books inter-changeably, or I prefer some genres as e-books and others as print

I now exclusively purchase e-books

I no longer buy e-books, only print books

Mixing formats

Meet the“Power Buyer”

Female45-54 years oldClerical worker or homemakerKindle user

Google

Ebooks.com

iBooks/iTunes

Other

Library

B&N

Amazon

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Power Buyers

Other re-spondents

Acquisition

NOOK e-reader

NOOK Color

Android tablet

iPhone

Kindle Fire

iPad

Kindle e-reader

0% 10% 20% 30% 40% 50%

Power Buyers

Other re-spondents

Devices

iPhone

Android tablet

NOOK e-reader

NOOK Color

iPad

Kindle Fire

Kindle e-reader

0% 5% 10%15%20%25%30%35%40%

Power Buyers

Other re-spondents

Devices

Environmental factors

Searchability

Speed of access

Ease of acquisition

Portability

Readability (adjustable font size)

Affordability

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Very important

All about affordability

Sept. 2010

Jan. 2011

May 2011

Aug. 2011

Dec. 2011

Feb. 2012

May 2012

Aug. 2012

Feb. 2013

Aug. 2013

$0

$5

$10

$15

$20

$25

$30

So expensive I wouldn't purchase it (Was: "Too expensive")Expensive, but I'd still purchase it (was: "Expensive, but within reason")Reasonably/fairly priced (was: "Great value")Unusually cheap (was: "So inexpensive, you'd doubt the quality")

All about affordability

18%

18%

12%12%

8%

9%

6%

5%5% 5%

Mystery/ThrillerGeneral FictionBiography/AutobiographyScience Fiction/FantasyCookbooksRomance/EroticaYATravelLiteraryHow-To

Genre

CookbooksComics/Graphic Novels

TravelHow-To Guides/Manuals

History/Politics/Social SciencesBusiness/Finance

Literary FictionScience Fiction/Fantasy

Biography/AutobiographyYoung Adult Fiction

Religous FictionGeneral Fiction

Mystery/Thriller FictionRomance/Erotic Fiction

0% 10% 20% 30% 40% 50% 60% 70%

Prefer e-book Prefer Print

Genre

”We’ve learned how to move immersive reading from paper

to screen in a way that satisfies the consumer.”

Social media integration

Higher quality tables

Streaming audio/video

Embedded audio/video

Ability to copy text

Importing from other sources

Higher quality images

Ability to resell

Easier library management

Ability to lend

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

What enhancements do readers want?

Would you be willing to pay more for an ebook if it was published by a traditional publisher (rather than self-published)?

Reader preferences

62%22%

16%

No Don't know Yes

Source: 2014 Digital Book World/Writer’s Digest Survey

The author perspective

Source: 2014 Digital Book World/Writer’s Digest Survey

The author perspective

”The beauty of self-publishing is the

ownership and control of one’s work.”

In conclusion:The opportunities

are endless!

What’s next for BISG? 2013 sales report Digital content usage in public libraries K-12 educational materials

Thank you!

Nadine VassalloProject Manager, Research & Information

Book Industry Study Groupnadine@bisg.org

@BISG

#bokdagen2014