Book Trade; eBook Sales and Digital Reader update

From January 24 – 26, the Publishing Industry will gather in New York for the Digital Book World Conference to debate the new technologies. I really wish I was going but, like me, you can follow it on Twitter during the coming week. As Christians in this industry, we simply cannot ignore such immense changes to our market. If you are part of Linked In, you could also join the group, Digital Book World.

Like it or not, the eBook revolution is here. There’s also a lot of puff around with some drawing parallels such as the shift from the horse to the automobile! Somehow I doubt it. Print is still pretty massive! However, a number of commentators, admittedly mostly American, are stating that this Christmas was absolutely a ‘change point’ in terms of the sale of eBooks. Barnes & Noble, the largest USA bookshop chain, announced it sold one million e-books on Christmas Day. The fact that they developed their own ‘Nook’ eReader has been credited with keeping them ahead of faltering rivals, Borders USA.  

USA Today’s ‘Best-Selling Books’ list demonstrated digital’s new popularity; their top six books outsold the print versions in the week following the Christmas holiday. Of the top 50, 19 had higher e-book than print sales. Perhaps not a great surprise when around 3 to 5 million eReaders were activated in that same week resulting in this surge of sales. The big question; is will it continue? It’s obviously still early days but insiders are predicting that by 2012 three in every 10 books could be delivered digitally. Publishers are aiding this trend by very quickly adding more and more back-list titles.

According to AAP sales figures in the USA, eBook sales were significantly up in November. At the same time, adult paperback sales were down 19% compared to the same period the previous year. Their release states, ‘eBook sales continue to grow, with a 130% increase over November 2009 ($46.6 million); year-to-date eBook sales are up 166%’. It will be interesting to see the December eBook figures when they are released as what starts in the USA tends to end up here.

Gartner predicted that more than 15.8 million e-readers will be in use by 2013.  Some in the industry have expressed surprise at the speed of this transition, which has quickly gained ground particularly in the area of mass market fiction. eBooks sales account for about 9% of the USA market. Bowker, the research company says sales may flatten this year but could still be twice as high as they were in 2010.

Within Publishing, there’s a lot of uncertainty about what to do about piracy and DRM (digital rights management). Should DRM be employed at all as it can so easily by cracked? Is piracy really such a threat to book publishers in the same way as it was for the music industry? The answers may be different depending on whether you are a small niche publisher or one producing high volume, high worth, popular titles. These days it’s just so easy to scan and digitise a printed book and put them up on a web site. For a really informative thread; discussion here.

Google’s announcement earlier this week of its acquisition of eBook Technologies, a company that sells the technology used to operate digital reading devices is fascinating. Google by dint of its size, power, wealth and global reach has the ability to utterly transform the eBook landscape. Already consumers can browse and search through more than 3 million free books on its site.

Publishers are on the defensive. As eBook sales rise, the unspoken question is; will authors still need a publisher? It’s just possible than in the fast-approaching digital future that it will be the (online) retailers who will come to dominate the customer relationship. Why? Because it is the retailer who has the knowledge of their consumer base. They have the ability to market a book far more effectively. Why has Tesco been such a successful retailer? In one word; Clubcard! Consumer data and customer knowledge are all.

The future of eBook selling may therefore lie with the likes of Amazon, Apple and Eden. However, as of today, there are no Christian eBooks for sale on Eden.co.uk. As I write, one site launching to sell Christian eBooks is www.10ofthese.com – so I guess we shall see!

But a way does need to be found quickly for small retailers to gain access to this market. Andrew Lacey from GLO has suggested something along the lines of the now defunct Crown customisable website?

What all this tells us is that retail as we know it will need to be reinvented if it is to survive. My view is that we have a few short months to act and make changes before the impact fully begins to bite.

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Book Trade; eBook Sales – One UK Publisher’s figures revealed

At last, some eBook sales figures to help make sense of what’s going on in a confusing publishing market!

Today, in an intriguing report, The Bookseller quoted Tim Hely-Hutchinson, Group CEO of giant Publisher, Hachette UK, owner of Hodder Headline as saying that ‘eBooks now accounted for 5% of Hachette’s total sales in the fourth quarter (of 2010)’.

Other fascinating facts revealed by The Bookseller;

• USA eBook sales have been tripling year on year, from 1% of total sales in 2008 to 9% this year.
• Hachette claim to have a 22% share of e-book sales, ‘outperforming our market leading 15.5% share in print books’.
• Hachette will have 15,000 titles available as e-books by 2012, up from 5,000 now. This would account for 10% of sales.
• Hachette has made major investments this year in order to respond to digital change including ‘Biblio3, an operating system for managing print and digital books from pre-acquisition to publication, a digital asset management system to store and distribute all digital files and a new web system for internal and author websites’.
• Google’s planned move into e-books next year “might be another game-changer“

Buzzle.com published an estimate this month from IT analyst’s Gartner predicting the number of eBook reader sales in 2011. Fascinating stuff, here’s a taste of their report;

‘The global sale of electronic eBook readers will reach up to 6.6 million units by the end of 2010. This will be a stupendous 79.3% rise from the earlier sales figures of 2009, which saw a sale of 3.6 million units worldwide’.

North America has recorded the greatest number of eBook reader sales in 2010, with a share of 4 million units.

Competition in the eBook reader sector is heating up by the day – Amazon’s Kindle, Barnes & Noble’s Nook, Sony’s eBook Reader and Apple’s iPad.

 ‘If demand continues to rise at this rate globally, we can expect the global eBook reader sales to reach the 11 million mark in 2011’.

So game-on, I feel.  There’s no going back now. This Christmas will almost certainly see an increase in the number of eReaders – the Kindle apparently has the largest market share and then there’s that iPad – boosting eBook sales even further.

There are still an awful lot of printed books being sold! It’s not quite reached a tipping point – yet!