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Spain's Digital Market


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Spain's Digital Market

  1. 1. Digital Publishing in Spain<br />TOC Frankfurt<br />October 5, 2010<br />
  2. 2. Markettrends and developmentsAug YTD (print)<br />Source: Bookscan, Jan-Aug 2010<br />
  3. 3. A Snapshot of Spain’s Ebook Market<br /><ul><li>Sony, Kindle, iPhone and the Spanish brand Papyre, are the most popular device brands.
  4. 4. However, Kindle barely offers content in Spanish.
  5. 5. Sony will launch officially in October 2010 with the Reader Pocket Edition™ and the Reader TouchEdition™ (200-250€)</li></ul>- PCs are also popular, with a 46% share. <br />PCs<br />Kindle <br />iPhone/ BBerry<br />Papyre<br />Cybook<br />Sony<br />- An estimated 70-80,000 dedicated reading devices circulate in Spain. <br /><ul><li>Multipurpose devices: 1.5 millioniPhones + iPodTouch, 30,000iPads, plus a huge pool of smartphones.</li></ul>Dedicated vs. Multipurpose:<br />The Spanish consumer:<br /><ul><li>Willing to pay an average of 80€ for a dedicated device.
  6. 6. Expecting significant price discounts from print edition.
  7. 7. Piracy and free content are widely accepted notions.</li></ul>Sources: The Cocktail Analysis; Federación de Gremios de Editores de España<br />
  8. 8. Reading Habits: theEbookConsumer<br />PCs ……………………………….46.1%<br />Smartphones, etc. ………..6.7%<br />E-inkdevices …………………1.1%<br />0.8% readbooks in e-inkdevices<br />SOURCE: “Hábitos de Lectura y Compra de Libros 2010”, Federación de Gremios de Editores de España<br />
  9. 9. Business Model<br /><ul><li>Spain has a fixed price market so AGENCY MODEL applies.
  10. 10. 20-35% price discount over print is the trend.
  11. 11. Currently 18% VAT for ebooks vs. 4% VAT for print; an obstacle for reducing prices.</li></ul>RetailChannels<br /><ul><li>A combination of traditional book retailers, such as Casa del Libro, FNAC and El Corte Inglés, and new online-only players such as and
  12. 12. New players:
  13. 13. Movistar, Spain’s largest mobile operator, will soon launch an online ebook store.
  14. 14. International players: Apple, Barnes & Noble, Amazon, Google and others are looking for digital content in Spanish.</li></li></ul><li>Distribution<br />Up to seven digital content platforms operating to date: <br />Ebook download with Adobe DRM.<br />Some platforms are beginning to develop apps to make ebooks available in Android and Apple devices.<br />With Libranda distributing most larger publishing groups, other platforms are beginning to specialize in retail, digital services like POD or the Latin American market. <br />
  15. 15. Random House Mondadori, Planeta, Santillana, Roca, Edicions 62, SM and WoltersKluwer, have joined forces to set up ebook distributor LIBRANDA. The newly launched company does not sell directly to consumers, and has invited other publishers to participate as distribution clients. LIBRANDA offers: e-delivery to online retailers and mobile devices, browse-inside widget services, digital conversion services, content management for publishers, online access to sales statistics, and Adobe DRM. <br />LIBRANDA’s full launch:<br /> - 18 more retailers<br /> - 16 publishing groups (92 imprints)<br /> - 1.500 titles<br />July 15, 2010<br />Sept.-Oct. 2010<br />Christmas 2010<br />2011…<br />Fall/Winter 2010<br />Possible rollover to selected Latin American countries<br />LIBRANDA launches in beta: <br /><ul><li>10 publishers
  16. 16. 17 retailers
  17. 17. +1.000 titles
  18. 18. Spain only</li></ul>4.000 Spanish-languagetitlesby Christmas 2010.<br />RHM distributes to U.S. retailers through LIBRANDA<br />
  19. 19. Sales<br />Top 5 reflects top five for print. <br />
  20. 20. Opportunities: Case study Random House Mondadori<br />New devices and platforms offer great potential for growth and innovation in electronic content. <br />New business models<br /><ul><li>new monetization models</li></ul>New content formats and platforms<br />Ebooks<br />Apps & Mobile<br /><ul><li>Interactive
  21. 21. Customized
  22. 22. Animated</li></ul> Services<br />Text based ebooks: maximize availability<br />Advertising<br />Enriched Ebook<br /><ul><li>Additional text
  23. 23. Links
  24. 24. Audio
  25. 25. Video
  26. 26. Functionality</li></ul>Subscription<br />Web verticals<br />E-only content<br />Complex ebooks<br /><ul><li>Layout
  27. 27. Color
  28. 28. Navigation</li></ul>Bundling<br />
  29. 29. Books Across Platforms and Devices<br />Standard APPsfornovels and APPsbeyondthebook<br />APPsforourbest-sellingauthors: Julia Navarro’sDime quién soy, Ildefonso Falcones’ La mano de Fátima and Ken Follett’sLa caída de los gigantes.<br />Currently working on APPs for the iPhone/iPad based books, but not with the content of the books themselves. <br />Partnershipstomakeebooksavailable in alldevicespossible<br />Pilot program in partnership with Mobcast to reach VODAFONE 360 customers in Spain. <br /><ul><li>All payments will be done on-bill. 
  30. 30. All phones will be supported (JAVA/Android and JIL) from day one.
  31. 31. iPhone & iPad planned for November.</li></li></ul><li>Opportunities: Case study Random House Mondadori<br />New devices and platforms offer great potential for growth and innovation in electronic content. <br />New business models<br /><ul><li> no content length restrictions
  32. 32. new monetization models</li></ul>New content formats<br /><ul><li> Added content
  33. 33. Additional functionalities</li></ul>Ebooks<br />Apps<br /><ul><li>Interactive
  34. 34. Customized
  35. 35. Animated</li></ul> Services<br />Text based ebooks: maximize availability<br />Advertising<br />Enriched Ebook<br /><ul><li>Additional text
  36. 36. Links
  37. 37. Audio
  38. 38. Video
  39. 39. Functionality</li></ul>Subscription<br />Web verticals<br />E-only content<br />Complex ebooks<br /><ul><li>Layout
  40. 40. Color
  41. 41. Navigation</li></ul>Bundling<br />
  42. 42.<br /> is a social network + blogging platform that allows writers to:<br /><ul><li>open a blog
  43. 43. make friends and interest groups
  44. 44. upload their written work to be read,commented, and ranked by others
  45. 45. comment and rank others’ work
  46. 46. have their work read and possibly published by Random House Mondadori</li></ul>Digital opportunities: print-on-demand, self-publishing, e-publishing, etc.<br />
  47. 47. Challenges<br />Global Market<br /><ul><li>Pricingby country orregion
  48. 48. How do you divide profitsbetweenterritories?
  49. 49. Pub. dates: Willpublishing dates becoordinatedthroughoutSpanish-speakingterritories?</li></ul>Others<br /><ul><li>Lack of devices and content
  50. 50. Highpricingfordevices and ebooks
  51. 51. Lack of promotionbyretailers and publishers
  52. 52. E-commercetrends in Spain have not matched figures in other European countries
  53. 53. Lack of new businessmodels: subscription, lending, etc.
  54. 54. High VAT forebooks</li></ul>Piracy<br />The Spanish association of book publishers estimates that book piracy already costs Spanish publishers 150 million €uros a year. <br />Currently no jointeffortbypublishersoradministrationtocombatpiracy. <br />Rights<br /><ul><li>Some major authors still not in digital (e.g. García Márquez, Isabel Allende, etc.).
  55. 55. Will digital rightscontinuetobedividedbyterritories?</li></li></ul><li>¡GRACIAS!<br /><br />Twitter: @carmenospina<br /><br />