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Media Trend Outlook E-Books on the Rise Media Trend Outlook E-Books on the Rise The white paper “E-Books on the Rise” provides an overview of current developments and future prospects of the e-book market in Germany, Belgium and the Netherlands. Media Trend Outlook Published by PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft (PwC) By Werner Ballhaus, Kristin Lulei, Dr. Anastasia Hermann, Jheroen Muste, Rajendra Sitompoel, Eddy Dams and Sophie Claessens May 2014, 20 pages, 5 figures, softcover This material may not be reproduced in any form, copied onto microfilm or saved and edited in any digital medium without the express permission of the editor. This publication is intended to be a resource for our clients, and the information therein was correct to the best of the authors’ knowledge at the time of publication. Before making any decision or taking any action, you should consult the sources or contacts listed here. The opinions reflected are those of the authors. The graphics may contain rounding differences. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. © May 2014 PwC. All rights reserved. In this document, PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Table of contents Table of contents Introduction .............................................................................................................4 E-books: a market overview .....................................................................................5 The users’ perspective: consumer survey..................................................................7 The experts’ view ...................................................................................................12 The e-book market in five years: a look ahead ........................................................16 Sources ..................................................................................................................19 Contacts .................................................................................................................20 Media Trend Outlook 3 Introduction Introduction It has taken quite some time, but now E-books are finding increasing accept- Special thanks go to Rita Bollig, director e-readers are rapidly becoming part of ance among European consumers. In the of Bastei Entertainment at Bastei Lübbe, everyday life in continental Europe. The past year, turnover generated by Geert Decock, e-publishing manager at share of e-books in the total revenue of electronic fiction books in Germany has Lannoo, and the International the book market is small, but all signs nearly tripled, fully offsetting losses in Publishers Association (“IPA”) for point toward growth: publishers, the print segment. While for the presenting their perception of the especially the bigger ones, now also Netherlands and Belgium turnover market and its prospects in their guest offer a large part of their new releases increased over 50% and 55% respec- pieces. and backlisted titles in digital form and tively. Examples from the US and UK are creating an attractive range of show how this market may develop over I wish you an enjoyable and informative product offerings around digital books. the long-term – in these markets more read. E-readers now offer good technical than 20% and 15%, respectively, of quality at consumer-friendly prices and turnover in the book market in 2012 was as a result of increasing tablet sales, generated through e-book sales. In more casual readers have access to Germany, as well as in the Netherlands Werner Ballhaus books in electronic form. Simpler and Belgium, the digital transition in Head of Technology, purchase and use of e-books also fuel the book market is proceeding at a much Media and Telecommunications demand. slower pace, with e-book market shares Germany still below 10%. Nevertheless, we expect In the course of the consumer survey we that the share of overall turnover conducted for this study, we discovered generated by e-books in consumer book that Germans, Belgians and the Dutch segments will consistently rise and by are now not only well aware of e-books, 2017 will reach around 16% in but for the most part also receptive to Germany, 15% in the Netherlands and the new technology. In Germany, more 22% in Belgium. than half of respondents read e-books either occasionally or regularly; and In addition to an analysis of the current 53% stated that even though they will market environment, this white paper continue to read printed books, they will contains the results of our consumer also give electronic books a try. On the survey and presents our forecasts of how other hand, less than 33% of the the e-book-market will develop through Belgians are familiar with digital books. 2017. Nevertheless, 60% of them would attempt to read an e-book in the future. In the Netherlands, about 60% of consumers have never purchased an e-book– nearly the same portion of respondents wants to try digital book versions. Media Trend Outlook 4 E-books: a market overview E-books: a market overview E-readers are becoming better In 2012, the consumer book market During the past two years, e-readers and cheaper, and the selection in Germany posted turnover of have become increasingly differentiated €4.8 billion and was thus the fourth- in terms of functionality and price. of e-books is growing. But is largest market worldwide. The Dutch Whereas prices for e-readers were still it possible for the market to consumer book market had a volume well in the low to average three-figure offer even more? of €560 million and consumers in range in 2010, popular models now are Belgium spent about €220 million on available for as little as €59. consumer books. However, the share of total turnover generated by digital The introduction of Apple’s iPad book sales is still small: in Germany for represented another milestone in example, a mere 3% of turnover in the the market for digital books. Tablet fiction segment was generated from computers offer significantly more e-book sales in 2012. Nevertheless, in functions than e-readers and are thus all three countries, after an initially a good option for casual readers – slow start, the e-book market is gaining resulting in a significant expansion in momentum. the potential audience for e-books in all three countries. In Germany the conditions for solid growth in electronic book sales have Players in the traditional book market been established over the past several have reacted as well: bookstore chains years. Offerings of e-books in the are offering e-books on site, online or German language have multiplied, via app, operate their own distribution and the selection of reading devices in platforms, and market their own the German market has expanded on devices; a large share of German a continuous basis. On the other hand, publishers have likewise made the the limited offer of e-books in Dutch investments necessary to be able to and Flemish remains one of the most supply all relevant distribution channels important market blocking factors in with e-books. Several bookstore Belgium and the Netherlands. chains joined efforts with Deutsche Telekom in 2013 and introduced the There are the large internet retailers Tolino Shine to the market in association who initially got the ball rolling: with a sales platform by the same name. Amazon introduced the first e-reader In Belgium, bookstore chains mostly do to gain great public awareness, the not offer e-books directly through their Amazon Kindle, in the US in 2007. The own website, but prefer to use third Kindle also has had a decisive impact on party distributors as Bol.com and the e-reader in market in Europe. It was Proxisazur.be. An exception is introduced in the German and French Standaard Boekhandel, who has its markets in 2011, followed by the Dutch own website. Furthermore, the Flemish and Belgian markets in 2013. government, in collaboration with Boek. be and Bibnet, is currently developing In Belgium, we see an uptake of the sale its own digital platform, which will be of e-books in 2013 although the market called VEP or Flemish e-book platform. is not as evolved in comparison to the UK or US. In comparison to 2012, the number of people who read e-books in Flanders doubled in 2013. Media Trend Outlook 5 E-books: a market overview Most e-books are offered in the open operated by the German Publishers format EPUB, Apple’s iBook format or and Booksellers Association, has also Amazon formats MOBI, AZW and Kindle supplemented its product range with Format 8. PDFs and text formats such its own lending systems. Divibib, a as DOC, TXT and RTF are of almost no collaboration between German digital relevance to today’s reading devices. libraries, offers members a virtual EPUB3 has been placed on hold for borrowing system for e-books via some time and is now enjoying greater libraries participating in the “Onleihe” distribution; this format permits the system. In this model, the publishers realisation of enhanced e-books that receive revenue generated by the include additional material such as sale of licenses. In February 2014, a graphics or animation. new service named Readfy started in Germany offering a free, advertising The primary sales model for books funded e-book flat rate for 15,000 titles. continues to be retail sales even in the Although this platform does not yet have digital environment. Files that have any books from the biggest publishers, been purchased are downloaded to the surge of consumers on their website the user’s hard drive or added to the on the launch day far exceeded the purchaser’s virtual bookshelf, from power of their servers and clearly where they can be transmitted to a illustrates the interest for such kind reading device. of services. In Belgium, the currently being developed VEP will also allow However, other business models the possibility to lend e-books. In the based on flat rates or rentals have also Netherlands, Yindo launched their evolved.
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