Exporting English: Digital Without Borders

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1. The Global Publishing Market – Exporting English 2. Digital Rights: To Sell or To Hold? 3. English Content in Non-English Speaking Territories Global Publishing $151 Billion

International Publishers Association 2013 Growth of U.S. Exports of English Language

• U.S. 2012 reported net revenue from export of books = $833 million or approximately 3% of overall net revenue ($27B) and 7.2% gain over previous year

• made up 20% of overall net revenues or $166 million

• net revenue from exports grew 63% in 2011

Source: 2013 AAP Export Sales Report/ BISG’s BookStats 2013 To Distribute or To Sell Territory Rights: That is the Question? Who’s Selling Digital Rights at the Territory Level?

• If you own the digital rights use them! • No , no shipping • Plenty of global outlets for distribution • Translation may not even be an issue

Capital in the 21st Century eBook

• Sold more than 50,000 copies in the original French • Harvard Press sold more than 80,000 hardcover copies in US as of May 2014 • eBook edition hit #1 at Amazon in April; approximately 30,000 copies sold at $16.26 • Nook eBook $21.99 • Kobo International €21.77 Potential for English Language Digital Content Populations of English as 2nd Language

China France 300 Million 25 Million India Italy 225 Million 20 Million Pakistan Brazil 92 Million 16 Million Philippines Netherlands 52 million 15 million Germany Poland 51 Million 13 Million Bangaldesh Turkey 29 Million 12 Million Egypt Spain 28 Million 10 Million

Index of Demand for English eBooks

Western European Territoral Propensity for English Language eBook Sale Metrics/Infrastructure United States Germany France Spain Population 60,975,000 3 16,823,000 80,600,000 65,350,000 47,190,000 English Language Speakers 59,600,000 2 98,444,149 51,584,000 25,500,000 10,400,000 Percentage of Population speaks English 98% 94% 64% 39% 22% Percentage English Speakers Relative to Germany 152.7% 147.2% 61.0% 34.4% Books Published Annually 1 84,000 3 04,912 93,600 66,527 76,434 Titles per 1 million people 3,018 962 1,161 1,018 1,620 Title per 1 Million English lang. 2 ,957.28 9 04.66 743.23 397.23 356.96 Publishing Industry Size ($million) $0 $0 $0 $0 $0 è eBook as % of Publishing Rev. 20% 20% 10.00% 3.00% 4.00% eBook Titles Available 5 00,000 1,500,000 200,000 50,000 English eBook Title Potential (new releases per year) 34545.73 50758.24 3833.86 303.88 148.50 English eBook Potential Relative to Germany 534.03% 915.79% 7.93% 3.87% Trade Per Capita ($) $ 24,297 $ 1 4,750 $ 39,833 $ 24,421 $ 18,450 Trade Per Capita Relative to Germany 61% 37% 100% 61% 46% Propensity to Succeed with English eBook 7.48 11.00 1.00 1.30 0.85

SOURCES 1,2,3,4,5,6,7 1Global eBook: A Report on Market Trends & Development - Update Spring 2014, Rudiger Wischenbart, Carlo Carrenho, Javier Celaya, Veronika Licher,Miha Kovac, Vinutha Mallya 2 IPA Global Publishing Statistics International Publishers Association, Rudiger Wischenbart 3Who Speaks English, April 5, 2011 The Economist by R.L.G. 4Market Analysis & Research ©1999-2008 International Trade Centre 5Eurobarometer ©European Union 1995-2014 6Euromonitor International ©2014 Euromonitor 7Census Data, USA, Phillipines, Russia, Switzerland Creating the Index: Four Determinants

There are four primary drivers used to devise this index. 1.Percentage of Population fluent in English 2.Measure of publishing activity – any language– amounts to new titles per capita, per annum 3.eBook share of publishing revenue 4.Measure of international Trade (per capita)

Index is tied to Germany as a model country for English Language book sales Creating the Index

“Several factors correlate with English ability. Wealthy countries do better overall. But smaller wealthy countries do better still: the larger the number of speakers of a country's main language, the worse that country tends to be at English. This is one reason Scandinavians do so well: what use is Swedish outside Sweden? “ - Who Speaks English?, The Economist April 5, 2011 Index of Demand for English eBooks: The Trade Factor

“Export dependency is another correlate with English. Countries that export more are better at English (though it's not clear which factor causes which).” - Who Speaks English?, The Economist April 5, 2011

Western Europe

Western Europe Propensity for English Language eBook Metrics Germany France Spain Italy Portugal Netherlands Pop. 80,600,000 65,350,000 47,190,000 59,619,290 10,623,000 16,770,000 English Spkrs 51,584,000 25,500,000 10,400,000 20,300,000 2 ,900,000 15,030,000 % Eng Spkrs 64% 39% 22% 34% 27% 90% Eng.eBook Index 1.00 1.30 0.85 1.18 1.11 3.36 Metrics Austria Norway Sweden Finland Denmark Switzerland Pop. 8 ,415,000 5 ,100,000 9 ,517,000 5 ,410,000 5 ,543,000 7 ,637,300 English Spkrs 6 ,150,000 3,500,000 8 ,200,000 3,800,000 4,770,000 4 ,680,000 % Eng Spkrs 73% 69% 86% 70% 86% 61% Eng.eBook Index 2.51 2.75 2.66 2.08 2.82 3.35

As per Economist forecast small countries of unique native tongue that are active traders and strong publishing programs are likely most responsive to English Language e-Books Central/Eastern Europe Receptive to English eBooks

Central Europe Propensity for English Language eBook Metrics Germany Slovenia Lithuania Bulgaria Hungary Poland Czech Rep. Romania Pop. 80,600,000 2 ,050,000 3 ,053,800 7 ,640,238 9 ,982,000 38,501,000 10,562,214 19,043,767 English Spkrs 51,584,000 1 ,210,000 1 ,160,000 1 ,900,000 2 ,000,000 12,700,000 2 ,850,000 5 ,900,000 % Eng Spkrs 64% 59% 38% 25% 20% 33% 27% 31% Eng.eBook Index 1.00 1.74 1.10 0.61 0.88 0.82 1.12 0.65

• Smaller Central European economies are strong but not as strong as Western Europe

• English speakers are a higher percentage in Western Europe

• Slovenia showed the highest per capita publishing (1000 titles per 1 million English speakers next closest is Lithuania which showed 407 titles)

• Slovenia had largest per capita trade $32,570 next highest was Czech Rep. at $27,600 Asia

Asian Propensity for English Language eBook Metrics Germany Japan China Hong Kong India Pakisatan Pop. 80,600,000 127,341,000 1,200,000,000 6 ,808,433 1,210,000,000 188,400,100 English Spkrs 51,584,000 30,000,000 300,000,000 3 ,136,784 225,246,449 92,316,049 % Eng Spkrs 64% 24% 25% 46% 19% 49% Eng.eBook Index 1.00 0.85 2.32 4.44 0.34 0.78 Metrics Thailand South Korea Malayasia Philippines Singapore Pop. 63,038,247 50,000,000 27,170,000 92,337,852 5 ,076,700 English Spkrs 17,121,187 10,000,000 5,580,000 52,292,884 4 ,822,865 % Eng Spkrs 27% 20% 21% 57% 95% Eng.eBook Index 0.61 0.94 0.74 0.94 6.28

• Hong Kong and Singapore huge traders $146,000 per capita and $189,000 per capita respectively. Larger than any other country, Germany is $3,833 per capita

• India falls off because of low publishing – less than 70 titles per 1 million English language speakers. China’s stat is 370 titles per 1 million Eng. language speakers

• Both Hong Kong and Singapore are active publishing countries with 2000+ titles per 1 million Eng. Language speakers USA is only 1,000 titles per 1 million Middle East

Middle East Propensity for English Language eBook Metrics Germany Israel Egypt Lebanon Turkey Pop. 80,600,000 7,303,000 83,239,500 4,265,600 70,586,256 English Spkrs 51,584,000 6,205,000 28,101,325 1,706,000 12,000,000 % Eng Spkrs 64% 85% 34% 40% 17% Eng.eBook Index 1.00 1.51 0.56 0.64 0.41

• Middle East is not conducive with the exception of Israel • High propensity to publish 700 + titles per million Eng. language speakers • 85% of population speaks English • Trade is $2853 per capita

Latin America

Latin America Propensity for English Language eBook Metrics Germany Brazil Mexico Argentina Chile Columbia Venuzuela Peru Pop. 80,600,000 201,072,700 106,682,100 42,192,500 16,634,603 47,661,368 25,017,387 30,800,000 English Spkrs 51,584,000 15,881,583 4 ,855,000 2 ,752,681 1 ,585,027 2 ,012,950 2,000,000 3 ,000,000 % Eng Spkrs 64% 8% 5% 7% 10% 4% 8% 10% Eng.eBook Index 1.00 0.20 0.32 0.22 0.44 0.15 0.29 0.37

• Latin America is not a good prospect • Population of English speakers is relative small • While trade per capita is pretty strong $3,000 to $10,000 per capita vs. Germany $3833 per capita. Trade is mostly among themselves, thus smaller English language population

Global eBook Distribution by Leading Channel Partners Thank You

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Walter W.J. Walker President, codeMantra US, LLC [email protected]