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Webinar presented by Dr. Jessica Sänger, Kathrin Scheel, and Anja Mundt

July 25th, 2017 The German Market – Trends & Challenges

Webinar for Livres July 25th, 2017 Webinar content Overview

I. The German market: Consumer behaviour & trends 1. General 2. 3. Audio Books II. The regulatory framework & other factors 1. Fixed Book Price system 2. VAT 3. Copyright 4. Translation grants 5. Innovation German book market: A country of readers

Germany is a country of readers

• 83 percent of above the age of 15 read at least one book in 2015; one in every five Germans is a heavy reader (more than 18 books per year)

• 51 percent of Germans would not want to do without books

• 42 percent of Germans have a favourite author to whom they remain faithful

• Germans spent an average of €134 (roughly 195 CAD) per year on books in 2016. The German Book Market in 2016 The German book market

The German Book Market in 2016

• The German book market remained one ot the most important markets in the world in 2016

• Book market turnover: 9.28 bn €

• The German book market takes first place globally regarding the relation between population and turnover

• Broad spectrum of titles available

• Nationwide network of book shops

• Strong logistics system Estimated turnover

Sector turnover 2006 - 2016 (in million €)

10000 Development of turnover 2006 - 2016 + 0.2% 2015 - 2016 9500 + 1.0%

9,276 M € 9,261 M € 9,188 M € 9000

Snapchat Instagram (2011) (2010) Netflix (D: 2014) 8500 Android Twitter (2008) (2006) Google+ iPhone WhatsApp iPad (2011) Spotify (2007) (2009) (2010) (D: 2012) Amazon Video (2014) 8000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Börsenverein des Deutschen Buchhandels

7 Publishers

The Landscape

• About 3,000 commercial publishing houses

• 24,547 employees (2014)

• Overall number of publishers including institutions, universities, etc: ~ 20,000

• Largest trade publishing houses: , S. Fischer, Bastei Lübbe, Rowohlt, Carlsen, dtv, , Ravensburber Buchverlag, Egmont Holding, Piper

• Largest academic/STM/business publishers: , Haufe, Wolters Kluwer Deutschland, WEKA, C.H. Beck, Thieme, dfv/Deutscher Fachverlag, Rentrop Gruppe, Wiley-VCH

• The three largest school book publishers, Westermann Gruppe, Klett Gruppe, and Cornelsen, rank among the 10 largest publishing houses in Germany.

8 Retail booksellers

The Retail Landscape

• About 6,000 book shops (incl. branches and outlets)

• 29,800 employees (2014)

• About 3,700 are small, independent book shops

• 65% sell online

• Number of book shops in slow decline

• Trend: fewer very large stores, less floor space

• Largest chains: Thalia, Weltbild, Hugendubel

• Strong regional chains: Osiander, Mayersche, Rupprecht, Pustet

• Largest individual book stores: Dussmann, Wittwer, Rombach, Graff, Reuffel

9 Situation of the German book market

Trends in 2016

• Stable book market | Increase of turnover in 2016 (+1.0%), stable turnover (+0.2%) over the past 10 years despite transformation of media landscape

• Successful digital transformation | Publishers and booksellers are active in shaping digital development

• Lower footfall | Appeal to cities, municipalities and retail: many urban areas need to become more attractive to shoppers

• Increasing pressure on publishers | Copyright reform increasing risks and damaging revenues

10 Estimated turnover

Turnover per distribution channel in 2016

Book clubs 0.03 bn. EUR (-64.5%)

Other retail outlets 0.3% 0.94 bn. EUR (+0.4%) 10.1%

Book shops Direct sales from publishers (excluding e-commerce) 20.9% 1.94 bn. EUR (+1.2%) 4.39 bn. EUR (-0.8%) 47.3%

Total turnover: 18.2% Internet retail 9.276 bn. EUR (+ 1.0%) 1.69 bn. EUR (+5.3%) 1.4% 1.7% Department stores 0.13 bn. EUR (+16.3%) Mail order 0.16 bn. EUR (+37.5%)

11 Source: Börsenverein des Deutschen Buchhandels Consumer behaviour Customer footfall 2016 – retail in general (compared to same month in previous year)

15%

+10.5% 10%

5% +4.2%

0%

-1.5% -3.0% -5% -3.3% -4.4% 5.2% -5.5% -6.6% -6.0% -7.6%

-10% -8.9%

September December January February March April May June July August October November

12 Source: ShopperTrak; Tyco Retail Solution Consumer behaviour

Book buyers* in millions

35 33.1 30.8 30

25

Percentage 20 of potential 48.9% 45.6% customers reached 15

10

5

0 2015 2016

*Trade book market including downloads (audio books and ebooks)

13 German private individuals above the age of 10, excluding school books and specialist titles, From: GfK Consumer Panel Media*Scope Buch Consumer behaviour

Average number of books purchased per buyer per year

14 12.2 12 11.5

10

8

6

4

2

0 2015 2016

*Trade book market including downloads (audio books and ebooks)

14 German private individuals above the age of 10, excluding school books and specialist titles, From: GfK Consumer Panel Media*Scope Buch Consumer behaviour

Average price paid per book purchased

14 13.09 € 12.59 €

12 10.70 € 10.98 € 10

8

6

4

2

0 2015 2016 Total market Trade book market

Expenditure per buyer*:

2015: 122.78 € 2016: 134.29 € (+ 9.4%)

*Trade book market including downloads (audio books and ebooks)

15 Red columns: All sales from product categories 1 - 9, from the retail panel of Media Control Grey columns and boxed text: German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch Retail prices

Development of retail prices (compared to previous year, percent) 10% Average price paid by buyers Average price of new titles (weighted according to turnover) (set by publishers) 8% +6.3% 6%

+4.0% 4% +2.6% 2%

0%

-2% -1.2% -2.3% -2.9% -4%

16 Red columns: All sales from product categories 1 - 9, from the retail panel of Media Control Grey columns: average price of new titles, German national data, VlB (books in print database) Title production

New releases 2006 - 2016

100000

90000 86,084 83,381 84,351 81,177 81,793 82,048 81,919 79,860 80000 76,547 73,863 72,820 70000

60000

50000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sources: data, VlB (books in print database) Calculation: Börsenverein des Deutschen Buchhandels

17 Publishing sectors

Turnover by product categories 2016 (comparison to previous year)

Fiction 31.5 (-0.5%)

Childrens' & YA books 16.5 (+9.0%)

DIY, health, self-help 14.5 (-0.1%)

School & education 10.9 (+6.1%)

General non-fiction 9.8 (-2.7%)

Travel 5.7 (+0.2%)

Humanities, art, music 4.8 (+13.4%)

Science, medicine, IT science, technology 3.8 (-11.6%)

Social sciences, law, economics 2.5 (-10.7%)

0 10 20 30 40

Source: Media Control

18 Translations

Translations into German: new releases 2006 - 2016

12000 10,862 10,760 10,716 10,731 11000 10,599 9,962 9,882 10000 9,454

9000

8000

7000 7,340

6000 6,160 5000 5,773

4000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: German national library data, VlB (books in print database) Calculation: Börsenverein des Deutschen Buchhandels

19 Licenses

License sales from Germany 2006 - 2016

10000

9500 9,225

9000

8500 8,828 8,191 8,000 8000 7,521 7,605 7500 7,310

7000 6,855 6500 6,278 6,443 6000 6,466 5500

5000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Licensing survey, Börsenverein des Deutschen Buchhandels

20 Ebooks in Germany in 2016 Ebooks

Turnover share & development 2010 - 2016 (percent)

6%

5% 4.5% 4.6% 4.3% 3.9% 4%

3% +67.8%* +191.4%* +60.5%* +7.6%* +4.7%* +2.6%* 2.4%

2%

1% 0.8% 0.5%

0% 2010 2011 2012 2013 2014 2015 2016

Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, * Development compared to previous year from GfK Consumer Panel Media*Scope Buch

22 Ebooks

Turnover share in selected European countries 2015 (percent)

14% USA: Turnover share in 2016 approx. 20 percent; 12% Development compared to previous year: 11.5% 2016: -16.4% (2015: -9.5%, 2014: +4.7%) 10%

8%

6% 5.0% 4.5% 4.5% 4% 3.0% 3.0%

2%

0% Germany France Italy U.K.

Source for European figures: Federation of European Publishers: The book sector in Europe - Facts and figures 2017 Source for USA: Association of American Publishers / Wischenbart, R. „Global . A report on market trends and developments“ (Update 2017)

23 Ebooks

Sales and consumer expenditure 2010 - 2016 Ebook sales in the trade market rose by 4.1 percent to 28.1 million copies in 2016. The price paid for these by consumers dropped by 10 Euro cents to 6.72 € (~ 9.76 CAD).

Ebook sales in million copies Average price paid for an ebook in €

27.0 28.1 24.8 12 10.71 21.5 10 8.03 7.72 7.58 8 7.08 6.82 6.72 13.2 6 4 4.3 1.9 2 0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch

24 Ebooks Buyers: number and share among consumers 2010 - 2016

In 2016, 3.8 million individuals purchased ebooks. This constitutes a slight decrease to 5.6 % in the share of ebook buyers among consumers.

Portion of consumers buying ebooks Ebook buyers in million individuals (percentage of potential customers reached)

5.7% 5.7% 5.6% 5.0% 3.9 3.9 3.8 3.4 3.5% 2.4

1.5% 1.0 0.7 1.0%

2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch

25 Ebooks

Number of ebooks purchased per person 2010 - 2016 The average number of ebooks purchased by ebook buyers in the trade book market rose to 7.4 titles in 2016.

ø intensity of ebook purchases per buyer per year 8 7.4 7.0 6.4 6.4 6 5.5 4.3 4 2.8

2

0 2010 2011 2012 2013 2014 2015 2016

Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch

26 Ebooks Buyers: Age and gender 2011 - 2016 In 2016, 21 percent of ebook buyers are 60 or older. This indicates that the number of older ebook buyers has doubled over the last five years.

Book buyers Ebook buyers

2011 2012 2014 2016 2011 2012 2014 2016 Gender 42% 43% 42% 40% 41% 38% 52% 47% Male Female

58% 57% 58% 60% 59% 62% 48% 53%

2011 2012 2014 2016 2011 2012 2014 2016 Age 8% 10% 10% 10% 8% 6% 6% 6% Ages 10 to 19 26% 25% 22% 21% 31% 33% 31% 26% Ages 20 to 39 36% 35% 37% 36% Ages 40 to 59 45% 47% 51% 48% 60 and older 30% 32% 34% 29% 21% 10% 13% 18%

27 Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch Ebooks

Ebook buyers vs. hybrid buyers 2014 - 2016 The portion of consumers who buy ebooks as well as printed books dropped again in 2016.

100%

75% 62% 64% 61%

50% Purchased both ebooks and printed books

25% Purchased ebooks only 38% 36% 39%

0% 2014 2015 2016 Example: In 2016, 39 percent of all ebook buyers purchased ebooks only. 61 percent purchased both ebooks and printed books.

Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch 28 Ebooks

Product categories: shares of turnover 2013 - 2016

The share of childrens‘ and YA titles in ebook turnover rose in 2016.

Fiction 83% 84% 81% Childrens' & YA books 86% Travel* DIY, health, self-help Non-fiction/reference

8% 7% 5% 4% 1% 4% 5% 4% 6% 5% 6% 5% 5% 2013 2014 2015 2016

Basis: GfK, Period: January - December each year, * Turnover share until 2015: < 1 Percent German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch

29 Ebooks The Tolino Alliance

• Alliance operating in GAS since 2013 • Large bookstore chains • Rakuten (previously: Deutsche Telekom) • Libri (wholesaler) • Range of devices (i.a. Tolino Shine 2 HD, Tolino Vision 4 HD, Tolino Tab 8", Tolino page) • Over 1,500 sales outlets in Germany (> 1,800 overall) • Open Ecosystem: interoperability, consumer choice • Participation of independent booksellers via Libri • Estimated 45% market share in GAS in 2015, with Amazon/Kindle at 39% • Launched in Belgium, Netherlands and Italy in 2014

30 Audio books in Germany in 2016 Audio books Audio book market share (percent of turnover in trade book market*)

• 2016: 4.3% * Trade book market: hardback, soft cover, , audio book (physical and downloaded), and ebook; excluding school books and specialist/academic/business titles. • 2015: 4.3% • 2014: 4.4% • 2013: 4.4% • 2012: 4.2% German private individuals above the age of 10, figures by GfK Consumer Panels.

Audio book turnover development (comparison with previous year)

• 2016: + 1.1% Audio books on physical support and downloads. • 2015: - 2.8% • 2014: - 1.8% • 2013: + 4.2 %

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

32 Audio books

Market shares of physical and downloaded audio books

The relation has been stable for years: about a fifth of revenues and expenditure in the audio book market are generated by downloads.

Share of copies Share of consumer sold, percent expenditure, percent

79% 79% 79% 78% 77% physical 82% 81% 82% 81% 81% downloads

21% 21% 21% 22% 23% 18% 19% 18% 19% 19%

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

33 Audio books

Sales numbers physical / downloads

Consumers purchased 16.3 million audio books in 2016. Out of these, 3.7 million were downloaded. This constitutes a 4% increase compared to 2015.

Number of sales in million copies

16.2 15.9 16.4 16.5 16.2 16.3 15.1 0% 13.7 12.9 12.9 13.0 12.7 12.6 11.9 2010 2011 2012 2013 3.2 3.5 3.5 3.6 3.7 2014 2.5 2.9 2015 2016 overall physical downloads

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

34 Audio books

Average consumer expenditure 2010 - 2016

On average, audio book buyers paid 10.84 € (~ 15.75 CAD) for each audio book purchased in 2016. This is an increase of 1% in relation to 2015.

Average price paid per audio book in € 13 12.19 11.68 12 11.55 11.59 11.35 11.32 11.30 11.26 11.20 11.25 10.87 10.90 10.79 10.84 11

9.95 9.77 9.76 10 9.10 9.23 9.15 9.22

9 2010 2011 2012 2013 2014 2015 2016 overall physical downloads

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

35 Audio books

Number of audio book buyers

About 3.3 million individuals purchased physical audio books in 2016 – significantly fewer than in 2015. the number of purchasers of downloads also dropped.

Audio book buyers in million individuals

4.0 4.0 3.8 3.8 3.8 3.7 3.6 3.6 3.5 3.4 3.3 3.3 3.2 2.9 2010 2011 2012 2013 0.7 0.7 0.7 2014 0.5 0.6 0.6 0.7 2015 2016 overall physical downloads

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

36 Audio books

Number of audio books purchased per person 2010 - 2016

The number of audio books purchased per buyer rose by 9 percent to an average of 5 titles in 2016. Buyers purchased both more physical and more downloaded audio books.

ø intensity of audio book purchases 6 per buyer per year

5.4 5.3 5 4.9 5.0 4.8 4.8 4.7 4.5 4.5 4.6 4.4 4.3 4.1 4.2 4 3.9 4.0 4.0 3.7 3.8 3.8

3.1 3 2010 2011 2012 2013 2014 2015 2016 overall physical downloads

German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panels

37 Audio books

Leisure time (adults) 1.4% of adults in Germany listened to audio books frequently in 2016. This shows a slight but continuous decrease over the years.

2016: Listening to audio books 5.2% 12.6% 80.8% 1.4% 2015: Listening to audio books 5.7% 14.0% 78.8% 1.5% 2014: Listening to audio books 6.4% 14.9% 77.2% 1.6% 2014: Listening to audio books 6.2% 14.9% 77.2% 1.7%

2016: books 18.8% 27.5% 28.5% 25.2% 2015: Reading books 19.7% 28.3% 27.8% 24.2% 2014: Reading books 20.4% 29.0% 27.8% 22.8% 2013: Reading books 20.7% 28.2% 28.2% 22.9% 0% 20% 40% 60% 80% 100%

frequently occasionally

Source: best for planning 2016 I, 2015 I, 2014 I and 2013 III, Gesellschaft für integrierte Kommunikationsforschung mbH & Co. KG (ed.) Basis: Germany, German-speaking population above the age of 14 38 The German fixed book price system Fixed book price system German fixed book price rules

• In operation since 1888, law since 2002, last amended in 2016. • Scope: books, German language ebooks, maps, globes, music scores – NOT audio books.  Covers cross-border sales into German market;  Does NOT cover temporary access or content from databases. • Mechanism: publisher sets retail price. Publisher may change prices and/or cancel price after 18 months. • Different prices may apply to different editions (e.g. hardback / paperback / ebook). • Bookseller discount negotiated; certain limits on discount practices within the value chain. • Certain reductions according to the statute (i.a. schools, ).

40 Fixed book price system

Fixed prices – more diversity & better logistics

• Publishers able to cross-subsidise titles from :  more investments in niche titles or new authors;  Smaller print runs are sustainable;  Retail prices for specialist titles lower;  2.5 million titles available via books in print database alone. • Wholesalers benefit from secure basis for calculation:  Stock ~ 400,000 titles for immediate delivery;  Sophisticated logistics system can fill 97% of all orders over night. • Booksellers not in price war, safer margins from bestsellers; more independent booksellers offering more diverse selection to readers.

41 VAT on books in Germany VAT on books VAT rates • Standard rate: 19%; reduced rate: 7%. • Germany applies reduced rates to  Printed books, newspapers, magazines, periodicals, music scores, maps, and other printed materials (excluding pornographic content and advertising materials);  Audio books sold on „physical support“ (CDs, data sticks, etc.) provided they consist of a reading of the book, not a radio play with sound effects and/or music. • European taxation rules currently prohibit reduced rate for ebooks and audio books as downloadable files as these are electronic services. • Change expected by 2018, permitting application of reduced rates to ebooks, audio book downloads; and uniform application of reduced rate to „bundles“ consisting of printed book with access code for electronic services.

43 German copyright framework Copyright reform 2017

Copyright – exceptions for teaching & research

• Illustration for teaching: up to 15% may be reproduced, distributed, or made available.  School books are carved out (but not university text books). • Research: 15% of a work; for the individual’s “own” research, 75%. • Images, articles, short works, or works which are out of print may be used in their entirety for both purposes. • Non-commercial TDM exception with obligation to delete & take down after completion of research.

45 Copyright reform 2017

Copyright reform – library exceptions

• Libraries: reproduction for the purposes of making available, indexing, cataloguing, preservation or restoration.  Making works available at terminals on premises for research or private study; users can reproduce up to 10% per session.  Reproduction of 10% for individual orders for non-commercial purposes. • Compensation for all these exceptions is lump sum only, administered via RRO. • Licenses may not be relied upon if they would change the effect of these exceptions!

46 Copyright enforcement

Copyright enforcement in Germany

• German courts have relatively good track record of holding major infringers liable for copyright infringements. • German Supreme Court ruling on Rapidshare: cyber locker liable under tort of nuisance as „instigator“ for making copyright protected material publicly available. Preconditions (cumulative):  Service‘s actions actually causal for infringement,  Service had actual knowledge (through notice) of infringement,  Service nevertheless did not take reasonable measures to prevent similar infringements. ➢ Cyber lockers obliged to check link resources and register users; Rapidshare has since closed down infringing operations.

47 German market: Other factors Translation grants Translation grants • SODEC: financial assistance for translation of literary works by authors from Québec

SODEC - Société de développement des entreprises culturelles 215 Saint-Jacques Street, 8th Floor Montréal (Québec) H2Y 1M6 Canada Tel.: + 1-800-363-0401 or + 1-514-841-2299 Louis Dubé, Project Manager Tel.: + 1-514-841-2202 E-Mail: [email protected] Website: www.sodec.gouv.qc.ca/fr • Canada Council for the Arts: assistance to foreign publishers for translation of literary works by Canadian authors into languages other than French and English for publication abroad.

The Canada Council for the Arts 350 Albert Street, P.O. Box 1047 Ottawa, Ontario, K1P 5V8 Tel.: +1 800 263 5588 (Canada only) or (613) 566 4414 Fax: +613 566-4410 Website: www.canadacouncil.ca/funding • Programmes for translations of German books are run by Goethe Institut: https://www.goethe.de/ins/ca/en/kul/ser/uef.html

49 Innovation Book sector startup accelerator: CONTENTshift

• 3-month, EU-wide support programme designed to support startups with business models relevant to the content industry, run by Börsenverein. • Participating companies invest €10,000 in return for a seat on the jury and exclusive access to the startups themselves. • Over the course of the programme, startups receive extensive coaching as well as advice from experts and mentoring from a member of the jury. • The centre piece is a joint workshop weekend attended by the jury and the startups. • The programme culminates at Book Fair, where startups make their final pitch, the ultimate winner is chosen, and the award ceremony takes place. • First successful round of the CONTENTshift programme in 2016; 2017 award ceremony scheduled for October 12th, 10.30-12.30 (ARTS+ stage).

50 Thank You! Dr. B. Jessica Sänger

T: +49 69 13 06 252 Braubachstraße 16 E: [email protected] 60311 Frankfurt am Main Germany www.boersenverein.de The German Book Market Adult Trade

Webinar for Livres Canada Books, July 25th, 2017 THIS BOOK TRAVELS - Kathrin Scheel

The German Book Market Current Characteristics & Outlook

• Revenue of 9.2 billion euros • Publishing industry stable since more than 10 years • Bricks-and-mortar bookstores‘ share still 47.3% of the market • Foot traffic at German bookstores down • Shift to online outlets • Publishers curtail number of new books • Translations account for 13.6% of the market • Stable revenue predicted through 2020 with fiction and nonfiction increasing THIS BOOK TRAVELS - Kathrin Scheel

Adult Trade Predicted Fiction & Nonfiction Sales by 2020

• Fiction sales by 2020 estimated down to 3.4 billion euros (-3.4% annually) • Fiction ebook sales by 2020 estimated up to 830 million euros (+16.9 % annually) • Nonfiction sales by 2020 estimated down to 2.0 billion euros (-3.0% annually) • Nonfiction ebook sales by 2020 estimated up to 825 million euros (+11.2%) • Ebook sales by 2020 estimated up to 1.8 billion euros (+12.9% annually) • Print book sales by 2020 estimated up to 7.0 billion euros (-3.3% annually) • Overall German book market 8.8 billion euros (-1.1% annually)

©pwc 2016 THIS BOOK TRAVELS - Kathrin Scheel

Adult Trade Market Shares

By publication: : 75.8% Paperback: 21.9% E-book: 4.5% Audio: 3.3%

By category: Fiction: 48.3% Nonfiction/Academic: 31.3% Schools & learning: 20.4% THIS BOOK TRAVELS - Kathrin Scheel

Copyright & Licensing

• Fixed prices and copyright lie at the heart of the book policy of Germany‘s book trade organisation Börsenverein • Strong fight against pirate , illegal downloads on the internet and unlawful digitasation of millions of books by companies such as Google • Fixed prices for the book is a strong and important cultural asset • Laid down by law since 2002 (Buchpreisbindungsgesetz) • Fixed prices also account for ebooks since 2016 • Title of a book protected by copyright as well (Titelschutz) • 70 years post mortem auctoris • VG Wort collecting society representing interests of authors and publishers THIS BOOK TRAVELS - Kathrin Scheel

Translation Rights to German Publishers • Translations traditionally play a huge role in the German market • Fiction accounts for the bulk of translations • English remains the dominant language • Literary Agents in Germany originally acted as sub-agents • Active rights departments as result of strong publishers‘ commitment to their authors • Revised profit-sharing model for translators laid down in law since 2011 (1/5th for all revenues from subsidiary rights) THIS BOOK TRAVELS - Kathrin Scheel

Translation Rights to German Publishers Preparations • Know your customers, meet them face-to-face • Know what you‘re selling • Know your strategy • Prepare for long tail effect especially in fiction • Prepare a solid proposal for nonfiction in advance of the final ms • Timing is key • Elevator Pitch • Why this book to this particular editor? THIS BOOK TRAVELS - Kathrin Scheel

Translation Rights to German Publishers Considerations • Term of License 10 years from publication • Territorial Grant (, Germany, ) • Formats ( or specific) • Electronic Rights • Subsidiary rights • Publication • Advances & Royalties • Marketing- and Promotion Plan • Termination THIS BOOK TRAVELS - Kathrin Scheel

Sale and Acquisition of Translation Rights

Buying from: Selling into: 9,454 titles (-5.1%) 7,521 titles (+16.7%) English (63.8%) Chinese (20.1%) French (12.0%) English (7.6%) Japanese (Manga) (6.6%) Spanish (5.5%) Italian (2.9%) Italian (5.4%) Swedish (2.9%) Polish (4.9%) THIS BOOK TRAVELS - Kathrin Scheel

20 Largest German Publishers, 2016 Turnover in Mio €, © Statista 2017 THIS BOOK TRAVELS - Kathrin Scheel

Largest Trade Publishers Fiction/Nonfiction • Random House Group • Herder • Klett Gruppe • Diogenes • • Holtzbrinck Publishing Group Edel AG • HarperCollins Germany • Bonnier Media Deutschland • Ganske Media Group • Verlagsgruppe Lübbe • Münchner Verlagsgruppe • dtv • Aufbau • Hanser • Orell Füssli • • LangenMüller Herbig Reclam • DuMont • Suhrkamp THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

Arche Verlag, (important new voices, world-class international authors such as Atticus Lish, Tove Jansson, Neil Gaimann, Jo Nesboe) Aufbau Verlag, (German and international classics, exile and resistance, contemporary world literature. Authors: Fred Vargas, Donna Cross, Hans Fallada) Bastei Lübbe, (major publisher of genre fiction, distributes their ebooks in English, Spanish and Chinese markets, . Authors: Dan Brown, Ken Follett, Rebecca Gablé) C.H. Beck, (with a law-taxes-economics- and a literature- nonfiction-science branch, publishers of over 70 professional journals and a growing highly respected fiction list) THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

Diogenes, Zurich, (literature, plays, world-class literature, authors include Raymond Chandler, F. Scott Fitzgerald, Faulkner) Verlagsgruppe Droemer Knaur, Munich (ambitious international literature, authors: Val McDermid, Sebastian Fitzek, Don Winslow) dtv, Munich (independent, originally solely a publisher for paperback, nowadays all formats with international and German fiction) DVA, Munich (part of RH, one of Germany‘s leading non-fiction publishers, history, current affairs, politics, biography, memoir and exquisite list of international fiction. Authors: Ian Kershaw, Anne Enright) THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

DuMont, Cologne (literature and art and general non-fiction. Authors: John Cheever, Keith Gessen, Michel Houellebecq, Edward St. Aubyn) Hanser, Munich & Berlin (Hanser, Hanser Berlin, Zsolnay/Deuticke, Nagel & Kimche, independent, top-notch list with more than ten nobel-prize winners and authors such as Borges, Calvino, Eco, Gaarder, ) HarperCollins Germany, Hamburg (genre, crime, commercial) Hoffmann und Campe, Hamburg (fiction and nonfiction (stress on memoirs, politics, economics, philosophy) with authors such as Doris Lessing, V.S. Naipaul, John Grisham or Patricia Cornwell Kein & Aber, Zurich (independent, also strong audio list, authors: Woody Allen, Flann O‘Brien, Anne Tyler) THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

Kiepenheuer & Witsch, Cologne (leading contemporary German and international fiction such as Márquez or John Banville, also nonfiction) Klett-Cotta, (literary fiction, nonfiction, human sciences, fantasy, authors: J.R.R. Tolkien, Jonathan Lethem) Luchterhand, Munich (part of RH, literary fiction and poetry, part of Random House Group. Authors: Frank McCourt, Pablo Neruda, António Lobo Antunes) Penguin Deutschland, Munich (part of RH, literary fiction, nonfiction, world-literature. Authors: Lee, Jonas Jonasson) Piper, Munich (leading contemporary German and international authors, part of the Swedish Bonnier Group, authors: Huxley, Sándor Márai) THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

Random House Germany, Munich (division of , 45 imprints, such as Blanvalet, DVA, , Heyne, Luchterhand, Siedler) Reclam, Ditzingen (Reclam‘s Universal Library is one of the largest and the oldest paperback series, established in 1867 and used by almost all pupils of secondary schools and students) , Reinbek/Hamburg (brought the pocketbook to Germany with rororo Taschenbuch, part of Holtzbrinck Group, one of the most influential publishers, strong international list with authors such as , or ) THIS BOOK TRAVELS - Kathrin Scheel

Trade Publishers Fiction/Nonfiction

S. Fischer Verlag, Frankfurt (one of the largest trade publishers with literary fiction and nonfiction, part of Holtzbrinck, leading international authors and world literature with authors such as , Thomas Mann, Naomi Klein, Carlos Ruiz Zafón) Schöffling & Co., Frankfurt (independent, world-literature, authors: Jami Attenberg, Joshua Cohen, Jennifer Egan or classics like Carson McCullers and Jean Rhys) Suhrkamp Verlag, Berlin (independent publisher, top-notch, distinguished list, major international authors and several Nobel Prize winners. Authors: T.S. Eliot, G.B. Shaw, Brecht, Hesse) Ullstein Buchverlage, Berlin (part of Bonnier, several imprints, fiction and nonfiction with authors such as John le Carré, Jo Nesbo, James Ellroy)

**Please note this list is not exhaustive!** THIS BOOK TRAVELS - Kathrin Scheel

Bestsellers German Adult Fiction in 2016 THIS BOOK TRAVELS - Kathrin Scheel

SPIEGEL List Hardcover July 2017 Fiction/Nonfiction THIS BOOK TRAVELS - Kathrin Scheel

SPIEGEL Bestseller List Trade Paperback July 2017 Fiction/Nonfiction THIS BOOK TRAVELS - Kathrin Scheel

SPIEGEL Bestseller List Paperback July 2017 Fiction/Nonfiction THIS BOOK TRAVELS - Kathrin Scheel

Thank you!

THIS BOOK TRAVELS Foreign Rights Agency Kathrin Scheel, Agent and Owner +49 [0] 163 – 7292 168 [email protected] www.thisbooktravels.com mundt agency | Rights & Licensing

The German Book Market Children’s Books

Webinar for Livres Canada Books, 25th July 2017 mundt agency – Rights & Licensing

The children’s book market in Germany

• Between 8,000 and 9,000 new publications p.a. (10-12% of the overall production) • Approx. 16% of the overall turnover can be allocated to the children’s sector (15.3% in 2015, 16.5% in 2016) • 20-24% of all children’s books are translated from other languages • the majority are translations from English originals (60-70%)

100000 81919 79860 76547 80000 73863 72820

60000

40000

20000 785710862 826810731 81429962 90819454 89619882 1905 2005 1997 1812 0 2012 2013 2014 2015 2016

Number of new publications Number of new children's titles Number of overall translations Number of translations in the children's sector

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The children’s book market in Germany - continued

• The licensing of children’s books is of increasing importance • 2016 saw 2.8% less licenses sold, whilst the licenses in the children’s segment rose by 3.8%

8000 7521 7310 45.00% 6855 7000 6466 6443 40.00% 6000 35.00% 30.00% 5000 25.00% 4000 20.00% 2677 2883 3000 2362 2168 2357 15.00% 2000 10.00% 1000 5.00% 0 0.00% 2012 2013 2014 2015 2016

Overall licenses sold Children's books licenses sold Percentage of children's licenses

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The children’s book market in Germany - continued

Story books | Biographies, YA | 12+, Fairy tales | 0.20% 19.90% First-readers,Poems , pre-school, 5.50% 6.40% Non-fiction | Children's Non-fiction literature up picture to 11 yrs., books, 9.50% 28.40%

Play & Learn, Picture 10.50% books, 19.60%

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

SPIEGEL Bestseller List Children’s Non-fiction/Picture Books – August 2017

• The top ten children’s non-fiction list includes two titles that were translated from French originals and three translations from English • The ten best selling picture books include three translations from English – all three are classics: The Very Hungry Caterpillar, The Gruffalo, Good Night Gorilla • The remaining seven picture books are German originals

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

SPIEGEL Bestseller List Children’s and Adult Fiction August 2017

• Six out of the ten best selling YA titles are translations from English originals • With two Harry Potter and one Diary of a Wimpy Kid titles amongst the ten best selling books, this distorts the overall performance of the segment • The top ten children‘s fiction titles are all German originals • Out of the 25 best selling German YA titles in 2016, five are from the Diary of a Wimpy Kid-series, four are Harry Potter titles – a total of 17 titles are translations from English

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Current situation in German children’s publishing: Confidence & pressure

• 8% growth in revenue in 2016 • Confidence that the children’s sector is stable - increase in the number of start-ups, launch of new imprints • Foreign publishers launch German branches • Some start-ups focus on German authors and illustrators • Less books were sold from January to April 2017 (compared to Jan – Apr 2016), but higher retail prices (+2.6%) keep the turnover stable • The plus of 0.9% is due to J.K. Rowling’s Fantastic Beasts and Where to Find Them and the latest Diary of a Wimpy Kid, which distorts the overall figures • Large publishers are streamlining and condensing their lists, searching for strategies to keep business stable • Parts of the target readers, particularly YA readers, are increasingly drifting towards other media

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Children’s book publishers

• Most children’s book publishers are members of the avj (Arbeitsgemeinschaft von Jugendbuchverlagen/working partnership of children’s publishers) - currently counting 102 members (Germany, Austria & Switzerland) • Activities include: • Newsletters for publishers, journalists, booksellers • Recommendations & selections of new titles, current topics etc. • Publication of the magazine New Children’s Books • Promotion of • Seminars • Links to the homepages of all avj publishers (in German): www.avj-online.de/mitglieder/mitgliedsverlage/ • List of German-language children’s publishers with a detailed portrait in English: www.kinder-jugendbuch-verlage.de/en/publishers • Benefitting from an excellent framework • Children’s Books on Tour (organised by the ) • Numerous children’s book awards, trade magazines, high visibility

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Children’s book publishers

Annette Betz – part of Ueberreuter publishing house. Books for children up to 6 years of age. Picture books, songbooks and series, children’s fiction. A list of approx. 200 titles. Arena Verlag – one of the major publishers for children’s and young adult fiction. Books for all ages, from board books to YA. Launching new imprint “digi-tales” for fans of mobile reading in October 2017. List of approx. 2,000 titles. ars – part of the Bonnier Group. Board books, picture books, children’s and YA fiction, children’s non- fiction, gift books and calendars. Incorporates the Bloomsbury children’s and YA list and launched the imprint Bloomoon for YA in 2013. Beltz & Gelberg – founded in 1971, their list covers the entire spectrum from board books to YA. Publish Jutta Bauer, Peter Härtling, Nikolaus Heidelbach, Christine Nöstlinger, Axel Scheffler and the German editions of the best selling Warriors series by Erin Hunter. Carlsen Verlag – part of the Bonnier Group. Founded in 1953 they publish a very diverse list (board books, activity books, picture books and non-fiction, children’s & YA literature, manga and comics). They have also launched LeYo! in 2014, the first multimedia library for children. The German publisher of Harry Potter. cbj – part of Bertelsmann (The Random House Publishing Group). Hardcover and paperback list for children aged 4+ up to young adult. Numerous series (Enid Blyton’s Famous Five, Ingo Siegner’s Little Dragon Coconut, Nele- series). German publisher of Zusak’s The Book Thief and Patrick Ness’s A Monster Calls, Sophie Kinsella’s Finding Audrey, Christopher Paolini’s Eragon and Jonathan Stroud’s Lockwood & Co.

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Children’s book publishers

Coppenrath – established over 240 years ago. Successful range of children’s books launched in 1997. Character publishing, merchandise products. dtv junior – founded in 1971. Originally a publisher of only, they now publish both paperback and hardcover. 6+ to YA/crossover. The German publisher of Kate DiCamillo, M.M. Vaughan, Kevin Brooks, Colleen Hoover, Liz Pichon and many more. Fischer – ambitious literary books for children and young adults across a diverse range of subject matter. Picture books and fiction. John Boyne’s The Boy in the Striped Pyjamas, Cornelia Funke. Sauerländer – part of Fischer Verlage since 2013. Outstanding, high-quality picture books. Anita Jeram, Emily Gravett, Chris Haughton. Gerstenberg – one of Germany’s oldest publishing houses. Picture books, narrative books for children, and non- fiction. Also illustrated books for adults, cook books and cultural history. Eric Carle’s The Very Hungry Caterpillar, Roberto Innocenti, Olivier Tallec. Loewe Verlag – founded in 1863, this is one of the best known publishers of children’s books. Strong first-readers program (Leselöwen series),with more than 300 titles available. Eoin Colfer, Mary Pope Osborn, James Patterson, Cornelia Funke.

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Children’s book publishers

Magellan Verlag – launched in 2014, books for readers from 2 to 18, innovative styles of illustration. Tor Freeman, Hervé le Goff, Emily Fox. Mixtvision – Founded in 2006. Unusual, high-quality publishing program. Oliver Jeffers, Kim Hyang Soo, Barroux. NordSüd - The Swiss publishing house has been creating books for children everywhere for over 50 years. Around 40 new titles per year, illustrated books and stories for children aged 2 - 8. Imprint NorthSouth Books is well established in the US. Oliver Jeffers, Jon Klassen, Torben Kuhlmann. Oetinger – Founded in 1946, the Oetinger publishing group comprises six companies operating in classic print publishing as well as the digital publishing market. They are: Oetinger, Dressler, Oetinger Media, Verlag für Kindertheater, Oetinger Taschenbuch and StoryDocks. The product portfolio spans books, e-books, , audio-downloads, films and interactive apps, as well as a range of promotional merchandise.Astrid Lindgren, Cornelia Funke, The Hunger Games. Ravensburger - Ravensburger publishes books for children and young people of all ages. Picture books for the very young, beginning reader books for school starters, and also and non-fiction books for children and older readers all appear under the company’s blue triangle trademark. Ravensburger publishes some 400 books per year and its program currently spans more than 1,900 titles. Its turnover in 2015 totalled 64,7 million euros.

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Children’s book publishers

Thienemann-Esslinger – part of the Bonnier group - When the Thienemann-Esslinger Verlag appeared on the publishing stage in 2014, it was the result of the union of two of the oldest and best known producers of children's books in Germany. Under the umbrella of Thienemann-Esslinger there are four sectors within the publishing programmes, Thienemann, Esslinger, Planet! and Gabriel focusing on books for children and teenagers and covering all ages between 0 and 18, from high-quality picture books to novels for young adults. Rowohlt - founded in 1972. Picture books, fiction. Tessloff Verlag – founded in 1956, one of the leading non-fiction publishers. Activity books, board books, painting and colouring books, pets, sports, nature & environment, encyclopaedias, reference books. Ueberreuter - children’s & YA literature, fantasy. The imprint “Annette Betz” publishes picture books.

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Current topics in German children’s publishing

• Cross-cultural reality not mirrored in children’s books • Multilingualism • Diversity in children’s publishing - single parents, same-sex marriages, LGBT • Gender marketing • Middle grade fiction • Realism in YA fiction • Fantasy, Dystopia, Romantasy • Topics: pets, football, riding & horses • YA segment • English titles with German subtitles • Fiction as ‘short stories’ in YA (dtv “Shorts”, 90-120 pp.) – as an answer to future reading habits • Extracts delivered via smart phone (Read’n go) • Blogger & influencer

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Selling rights to German Children’s Publishers

• Map out your strategy • Know the list of the publisher you try to sell to • Match a book with the right publisher and the right list • Target-oriented presentation of titles – don’t show too many titles, make an impact with a few selected ones • Follow up with comprehensive material (PDF, info sheet, press reviews, awards, sales figures, rights sold, possible translation funding) • Follow-up on your submissions, send updates, sample copies

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Selling rights to German Children’s Publishers - continued

• Picture books • German picture books usually contain more text than those published in the Anglo-American markets • Children’s non-fiction • Titles dealing with local plants and wildlife are usually not transferable • YA non-fiction • non-fiction works best in the age group up to 10 yrs. • Only some YA non-fiction titles crossing over to adult are successful • Children’s & YA fiction • Some publishers publish fiction in hardcover only - carefully consider where you want to place a fiction title • First readers • Children in Germany learn to read at age 6/7, so the amount of text and style of illustration of first-readers from other countries is usually not compatible • This segment has been very strong for years, with a lot of publishers developing their own series, but sales are now in decline • Publishers increasingly focus on strong characters, less text, larger lettering – new reading concepts

THIS BOOK TRAVELS - Kathrin Scheel mundt agency – Rights & Licensing

Thank you!

mundt agency – Rights & Licensing Anja Mundt Kolhagenstr. 38 40593 Düsseldorf Germany +49 (0)211 3905239 [email protected] www.mundtagency.com

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