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The Bookwire Spanish and Portuguese Digital Markets Report The Bookwire Spanish and Portuguese Digital Markets Report Bookwire Index 1. INTRODUCTION 3 2. DIGITAL TRENDS IN THE SPANISH AND PORTUGUESE MARKETS 5 3. PUBLISHING IN THE SPANISH AND PORTUGUESE MARKETS 7 ARGENTINA 7 BRAZIL 10 COLOMBIA 12 CHILE 14 ECUADOR 16 SPAIN 18 MEXICO 23 PERU 27 PORTUGAL 28 4. CONCLUSIONS 30 5. ABOUT BOOKWIRE, CREDITS AND ACKNOWLEDGEMENTS 33 Notes 34 Bookwire The Spanish and Portuguese Digital Markets Report 3 1. INTRODUCTION Over the past few years, many international pub- will grow by 2.5% in 2015, one of the lowest rates lishers who regularly attend book fairs in Latin in a decade, according to IMF numbers. This rate American countries and have established their may be pushed up by a highly likely rise in foreign publishing brands on that continent have clearly demand, or it could fall if the decrease in demand observed two critical issues central to the future for raw materials were to force prices down. of books there: print book exports to the region In such case, Latin American economies with have stagnated – and are trending downward – greater dependence on exports may enter into a while the emerging digital transition is beginning period of sluggishness. generate keen interest all over the region. There is a convergence of forces that could lead to a real In this decade, Latin America has witnessed a sig- explosion of digital commerce in these countries nificant rise of the middle class (50% according to within the next decade. the World Bank), private consumption (now up to 67% to 75% of the GDP) and access to education This paper presents a range of essential figures (school enrolment rates have greatly increased and perspectives with a view to enabling profes- although there are still high levels of poverty and sionals in the publishing sector around the world inequality). Some indicators suggest that the to understand the transformation currently region is facing a profound social (and cultural) taking place in the Spanish- and Portuguese- transition. In order to sustain future growth language markets, as well as the business and continue progress in reducing poverty and opportunities this transformation presents. inequality, Latin American countries need to Spanish-language markets represent over 500 address three important challenges: support million Spanish speakers mainly living in Latin for education, a firm commitment to the digital America and Spain, along with the US, where economy, and an increase in R&D spending, the latest census counted over 50 million people which represents 0.8% of regional GDP – still a of Hispanic or Latino origin, including nearly 40 far cry from the nearly 3% in the U.S. or 3.4% in million who speak Spanish at home. Portuguese South Korea. markets represent over 200 million Portuguese speakers, living mainly in Brazil and Portugal, as In order to analyse and design suitable business well as Mozambique and Angola. scenarios, it is important to distinguish the two eco- nomic and largely geo-political blocs which have A decade of economic, political and social sta- emerged in Latin America. On the one hand, the bility across Latin America has provided a solid Pacific Alliance (Chile, Peru, Colombia y Mexico), foundation for its various book markets. A look at and on the other Mercosur (Argentina, Brazil, the data around future growth in Latin America, Paraguay, Uruguay and Venezuela). The first bloc is however, should give any publishing professional much more dynamic, pragmatic and open, and the pause. Latin America and the Caribbean are second bloc is more protectionist and bureaucratic. currently in a period of transition: the end of the Needless to say, the first bloc offers better perspec- “golden decade” (2003-2013), a cycle of prosperity tives for all kinds of business and transactions, marked by continuous economic growth and particularly in the book sector, primarily due to the huge social progress, and the birth of a new era opening up of its economies to the outside world that will be marked by a slower growth rate and and the free trade agreements they have with a drop in the prices of raw materials. A number Europe, Asia and the U.S. A basic working knowl- of sources have forecast that Latin America’s GDP edge of this situation is an important prerequisite Bookwire The Spanish and Portuguese Digital Markets Report 4 to designing publishing business and marketing these countries. At the same time, the growing strategies for the continent. penetration of e-commerce platforms, both B2B and B2C, and their arrival in America mark the We firmly believe that digital books offer a beginning of a new and undeniably significant unique opportunity for Spanish- and Portuguese- market ecosystem in terms of the potential for language publishing, a global marketplace that greater visibility for Latin American publisher could create greater visibility for Latin American catalogues. Considering that the number of pub- titles on both sides of the Atlantic. For the past 40 lishers that exported paper books to America was years, the Spanish-language book business has relatively limited until recently, the ready avail- been built on a lack of symmetry between Spain ability of mature digital platforms could bring and Latin America. Spanish books travelled to about an exponential increase in the number of America but Latin American books for the most titles available in Spanish in Latin America from part didn’t make it to Spain, or arrived in dribs publishers all over the world. From this stand- and drabs. Digital books have the potential to point, the digital book business has reached a shatter this imbalance if Latin American pub- crucial juncture on both sides of the Atlantic. lishers understand and accept the need to build The opportunity is there and should be realized, the basic digital infrastructure necessary to make both in Spain and Latin America. As readers, we their own publishing industry competitive. can consider ourselves extremely lucky; access to a great mass of content in Spanish is excellent The design of digital distribution and sales news. channels is essential for emerging publishers in Bookwire The Spanish and Portuguese Digital Markets Report 5 2. DIGITAL TRENDS IN THE SPANISH AND PORTUGUESE MARKETS Though it wouldn’t be correct to talk about Latin thus contributing to a gradual improvement America as a unified whole, given that each in the GDP of each country in the region. A rise country moves at its own pace and has its unique in 3G broadband connections would yield an characteristics, still there are general trends increase in mobile e-commerce for the entire throughout the continent, and these should be region – keeping in mind that mobile (cell) phone analysed with precision, as well as with a certain penetration currently stands at 84% across Latin amount of caution. America. In a few short years we have seen the world’s When it comes to the book world and its poten- economy begin to revolve around the Internet. tial development, there are two important phe- According to the World Bank, every 10% nomena to look at: publishing production on one increase in penetration on the Internet can hand, and on the other the speed of the digital mean a 1.3% growth rate in the GDP of emerg- transition in buying habits. According to recent ing countries. Latin America is a continent with research published by CERLALC1 in its report, a very high growth forecast despite the fact that “Libro en Cifras nº 5” (The Book in Numbers, the average of internet connected users is a little No. 5), we are at the brink of an important transi- over 40%, whereas the average in OECD coun- tion. Here’s a look at some of the data: tries is around 80%. The potential for growth is very high due to the substantial rise of the End of year data for 2013 shows an increase in middle class throughout the entire continent publishing production of 8.9%, from 178,971 titles resulting from the positive economic outlook in published in 2012 to 194,009 titles in 2013. the region. The number of titles published digitally account- Despite this growth, the region still has an enor- ed for about 17%. mous digital divide, both of supply and demand. The former is caused by the limited reach of wired eBooks have increased share from 8% of networks due to lack of infrastructure, which books published in 2010, to 14% in 2011, and translates into slow Internet connections; the 17% in 2013. latter is determined by the economic inequality affecting much of the population and related low Although the digital percentage may still seem levels of cultural and educational attainment. fairly low, what is noteworthy is the way the Nevertheless, Internet usage is increasing rapidly numbers are trending upward. Coupled with and penetration is expected to reach 53% in 2016, the large increase in the number of readers who with an annual growth rate of 13%. claim to read on electronic devices, it would be reasonable to assume that there will be a sub- Breaking the digital divide is a challenge faced stantial change in reading habits in the region. by all Latin American economies. Economic modernization requires investing in new technol- For more than a year now, e-commerce volume ogies and promoting Internet use in areas such via B2C channels has been very strong. Many as business, industry, and politics. In this sense, it Spanish publishers have acknowledged that their is essential to encourage and implement public digital sales in Latin America account for 25% to policies that support the adoption of broadband, 50% of their total worldwide ebook sales.
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