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Book Development Association of the Philippines

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Book Development Association of the Philippines Books A PUBLICATION OF THE BOOK DEVELOPMENT ASSOCIATION OF THE PHILIPPINES A PUBLICATION OF THE BOOK DEVELOPMENT ASSOCIATION OF THE PHILIPPINES PROJECT HEAD Andrea Pasion-Flores Andrea is a lawyer specializing in copyright as it pertains to book publishing. She is also an agent at Books@Jacaranda, LLP., a boutique literary agency BOARD OF CONSULTANTS based in Singapore. She was the Executive Director Lirio P. Sandoval of the National Book Development Board from 2007 President, Book Development Association of the Philippines to 2013. She is a member of the Board of Advisers of the Asian Festival of Children’s Content in Singapore, Jomini Manuel Abaya Country Manager – Philippines and Oceana, Cengage and a member of the Board of Trustees of the Book Learning Asia Pte. Ltd., Philippine Branch Development Association of the Philippines. Mylene Abiva PROJECT TEAM President/CEO, Felta Multi Media, Inc. Maria Natividad I. Karaan Ani Rosa Almario Jason Rafael I. Karaan Vice-President, Adarna House, Inc. Katherine Bercasio SUPPORT Karina A. Bolasco Ranielle Espiridion Assistant General Manager/Publishing Manager, Anvil Publishing, Inc. Cristina Pantoja Hidalgo President, Milflores Publishing, Inc. Director, Center for Creative Writing and Literary Studies, University of Santo Tomas Segundo Matias, Jr. General Manager, Precious Pages Corporation/Lampara Publishing House, Inc. Jose Maria Policarpio Executive Director, DIWA Learning Systems, Inc. SPONSORS National Book Development Board Jose Paolo Sibal Rex Bookstore, Inc. Vice President for Finance and Administration, Central Book National Bookstore, Inc. Supply, Inc. Abiva Publishing House, Inc. Cengage Learning Asia Pte. Ltd., Philippines Anvil Publishing, Inc. John Jack Wigley Adarna House, Inc. Director, University of Santo Tomas Publishing House Claretian Communications Foundation, Inc. St. Matthews Publishing, Corp. Belview Co., Inc. Books ATBP. Publishing, Corp. C & E Publishing, Inc. The Bookmark, Inc. Church Strengthening Ministry, Inc. Philippine Christian Literature, Inc. Lighthouse Inspirational Books & Gifts, Inc. Central Books, Inc. A ROADMAP OF THE BOOK INDUSTRY OF THE PHILIPPINES 1 Table of Contents A MESSAGE FROM THE BDAP PRESIDENT 6 EXECUTIVE SUMMARY 8 CHAPTER 1. INTRODUCTION 22 CHAPTER 2. 26 2.1 THE VISION 26 2.2 THE MISSION 27 2.3 METHODOLOGY 28 CHAPTER 3: THE WORLD OF BOOKS 30 3.1 INTERNATIONAL BOOK PUBLISHING 30 3.2 BOOK PUBLISHING IN ASEAN AND BEYOND 47 CHAPTER 4. BOOK PUBLISHING IN THE PHILIPPINES 56 4.1 COUNTRY OVERVIEW 56 4.2 PUBLISHING INDUSTRY OVERVIEW 59 4.3 OVERALL INDUSTRY PERFORMANCE 67 4.4 DRIVERS OF GROWTH 76 CHAPTER 5. INDUSTRY ANALYSIS 90 CHAPTER 6. GOAL SETTING 96 CHAPTER 7. CONCLUSIONS AND RECOMMENDATIONS 108 citations 116 ACKNOWLEDGMENTS 121 APPENDICES 122 2 CHARTING THE FUTURE OF BOOKS IN THE PHILIPPINES List of Figures and Tables FIGURES Figure 1: Top Down Model for the Philippine Publishing Industry Road Map 28 Figure 2: Contribution of Core Copyright Industries to GDP 31 Figure 3: Contribution of Core Copyright Industries to the GDP by Country 32 Figure 4: Contribution of Core Copyright Industries by Industry in Specific Countries 32 Figure 5: Contribution of Core Copyright Industries to Employment by Industry 33 Figure 6: Book Purchase Influences for Teens 39 Figure 7: Publishing House Value Chain 42 Figure 8: Traditional Supply Chain for Books 46 Figure 9: ASEAN Population in Comparison with China and India 48 Figure 10: Textbook Value Chain (DepEd Model) 60 Figure 11: Textbook Value Chain (Free Model) 61 Figure 12: Trade Book Value Chain 63 Figure 13: Academic Books Value Chain 63 Figure 14: Digital Publishing Value Chain 65 Figure 15: Number of Registered Literary Artists per Region 66 Figure 16: 2010 Percentage Distribution of Press and Literature in Terms of Value Added 69 Figure 17: 2010 Distribution of Press and Literature by Total Employment 70 Figure 18: Copyright Industries Contribution to National Employment 71 Figure 19: Labor Productivity Index for Copyright Industries 71 Figure 20: Copyright Industries GDP and Employment Quadrant 72 Figure 21: IPP Mandatory Industries. 76 Figure 22: Readership of Different Reading Materials in 2003, 2007, and 2012. 81 Figure 23: Distribution of Selected Bookstores in the Philippines. 84 Figure 24: Metro Manila Bookstore Cluster. 85 Figure 25: Distribution of Precious Hearts Romances Sales per Major Account 86 Figure 26: Road Map for the Philippine Publishing Industry 102 Figure 27: 15-Year Plan for the Philippine Publishing Industry 103 Figure 28: Summary of New Titles Published Projections 105 Figure 29: Summary of Value Added Projections 106 Figure 30: Summary of Export Revenue Projections 106 Figure 31: Main Reason for Reading Non-Schoolbooks. 111 A ROADMAP OF THE BOOK INDUSTRY OF THE PHILIPPINES 3 TABLES Table 1: Top 20 Book Markets of the World. 30 Table 2: 2012 Global Media and Entertainment Share Comparison 34 Table 3: Market Share of eBooks in Selected Markets 34 Table 4: Estimated market share of online bookselling and of Amazon and local platforms for print and eBooks 35 Table 5: Comparison of Sales for Brick and Mortar and Online in the US from 2010 to 2013 35 Table 6: Big Five Trade Publishing Groups: EBook Related Key Parameters 36 Table 7: Disaggregation of Learners in the Philippines for Private and Public Schools. 40 Table 8: ASEAN Population 2013 47 Table 9: ASEAN GDP 2013 48 Table 10: ASEAN GCI 2014-15 Rankings 49 Table 11: Comparative Number of Titles Ratio per One Million Inhabitants 55 Table 12: Number of Registered Stakeholders in Various Organizations. 66 Table 13: Printing and Publishing Industry Contribution to the Philippine Economy, 1991-2009 67 Table 14: Value Added for Core Copyright Industries. 68 Table 15: Employment for Core Copyright Industries. 69 Table 16: Comparison of New Titles per Year in the Philippines, Malaysia, and Singapore. 73 Table 17: Importation of Books and Publications from 2011 to 2013 73 Table 18: Philippine Book Exports to the World 73 Table 19: Number of Establishments, Wholesale, and Retail of Paper Products 74 Table 20: Year-on-Year Growth Rates for the Publishing and Printing Industry. 75 Table 21: Volume of Production Index (VoPI), Volume of Net Sales Index (VoNSI) and Producer Price Index (PPI) for Manufacturing Sector 75 Table 22: 2014-2015 Global Competitiveness of Selected ASEAN nations 77 Table 23: DTF Score and Doing Business Ranking for ASEAN. 77 Table 24: Cost of Doing Business Indicators. 78 Table 25: Trading Across Borders Indicators. 78 Table 26: Technological Readiness of the Philippines 82 Table 27: Approximate Number of Bookstores in the Philippines. 83 Table 28: Libraries in the Philippines 87 Table 29: Trade Books SWOT Analysis 91 4 CHARTING THE FUTURE OF BOOKS IN THE PHILIPPINES Table 30: Textbooks SWOT Analysis 92 Table 31: Academic and Scholarly Titles SWOT Analysis 93 Table 32: Value Chain SWOT Analysis 94 Table 33: Goals and Performance Indicators 96 Table 34: Conservative Disposition for New Titles Published 104 Table 35: Moderate Disposition for New Titles Published 105 Table 36: Aggressive Disposition for New Titles Published 105 Table 37: Number of Public Libraries per 100,000 Inhabitants for ASEAN 107 Table 38: Goals for Libraries in the Philippines. 107 A ROADMAP OF THE BOOK INDUSTRY OF THE PHILIPPINES 5 A Message from THE BDAP President Change is upon us. And, to be able to keep up with the demands of an ever-dynamic industry, so must we change as well. But where do we begin? We must start by taking a hard look at where we are in terms of achievements and gaps, looking at the ways we do business, our systems and processes, where we need to improve while drawing a picture of where we want to go, or what we want to achieve after a given amount of time. In other words, we need a plan. If we are to be honest with ourselves, we know that book publishing in the world has evolved more rapidly than local stakeholders have been able to keep up. This is considering the many issues we have had to face living in a society such as ours, dealing with the cataclysmic developments that continue to unhinge our industry’s equilibrium: the adoption of the public school system of K to 12; the rapid rise of digital technology; and the inevitable ASEAN economic integration. Aside from keeping pace with the industry’s developments, we must address, as an industry, the many issues that beset our respective businesses as part of the Philippine society. Thus, the Book Development Association of the Philippines conceived of a project to put together a road map of the industry to outline our collective vision and enumerate what we must do to achieve such a goal. In the process of doing so, we also had to take stock of where we are and what we have become after 35 years as an organization. Though we have come a long way from our humble beginnings, the Philippines is already lagging behind in its development efforts: we have one of the lowest production of books in the world; we have very poor distribution systems for our books, including a low number of bookstores and libraries that is barely responsive to the needs of the country’s huge population; and we have barely attempted to sell Philippine made and authored books beyond our shores. While we have been comfortable with the usual way of doing business, some of our neighbors, and much more so the players of Western countries, have been forging ahead. It has now become imperative for each one of us to be more aggressive in working towards the achievement of our targets. This study shows us the beginnings of what we must endeavor to achieve, foremost of which is a change of mindset that looks both inward to the domestic market without ignoring international markets.
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