Ralf Schlozer, Infotrends

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  • 1. Book On Demand Xplor Spain Ralf Schlözer Director On Demand Printing and Publishing 1.12.2009 © 2009 InfoTrends, Inc. www.infotrends.com
  • 2. Book Trends - Spain • Total number of copies published reached 255.5 million in 2008 Up by 12.6% over 2007 • More titles published than ever in 2008 In 2008 86,300 new titles were published – an increase of 15% over 2007 • Average Run length decreasing further In 2008 the average run length was 2,970 copies, a drop of 4.9% compared to the year before • The back catalogue is increasing About 18.500 of reprints were published, or 17.6% of all books - This is a much lower rate than in France, Germany or UK • More books in regional languages • Increases in exports © 2009 InfoTrends, Inc. www.infotrends.com 2
  • 3. Publishers Needing to get more Effective • Publishers need to rethink cost and revenue opportunities • Challenging the amount of unsold books Depending on source can range from 10% to 40% Spain had return rates from 15% to 24% in 2004 (small/large publishers) Each return costs an additional €0.50 to €1.50 in handling • Challenging the warehouse costs According to an source: Warehouse space costs between $8 and $12 per square foot per month. A pallet of 2,387 printed books takes up 13 square feet of floor space, so it costs about $130 or $.054 per book and month. - Electronic storage would cost $.00026 per month and book. • Increase the amount of titles in print © 2009 InfoTrends, Inc. www.infotrends.com 3
  • 4. The Long Tail Head Popularity Long Tail Products © 2009 InfoTrends, Inc. www.infotrends.com 4
  • 5. The Long Tail – For Books Mega Seller Popularity Majority of books in print Not very efficient to produce in offset Not printed today due to lack of production methods Products © 2009 InfoTrends, Inc. www.infotrends.com 5
  • 6. The Publisher’s Dilemma • Every book is a gamble It is difficult to forecast demand • Publishers traditionally focus on unit cost This tends to favor offset • Cash outlay and inventory control May favor digital © 2009 InfoTrends, Inc. www.infotrends.com 6
  • 7. The Digital Strategy © 2009 InfoTrends, Inc. www.infotrends.com 7
  • 8. Book On Demand - Business Models Production type: Short Run Run of 1 Professional Customer Group: Self-Publisher Publishers Distribution Wholesale/ Direct Sales model: Book dealer Higher Efforts Higher Margins © 2009 InfoTrends, Inc. www.infotrends.com 8
  • 9. Print On Demand (POD) Books • Short Run Digital Books: Generally less than a 1,000, but more than 50 or 100 copies Shorter than runs than what would be economically feasible in offset A small batch of books is ordered and then sold one at a time Small amounts of inventory and lower risk of obsolescence Order taking and finishing must be adapted to short runs Just an extension of the traditional publishing chain © 2009 InfoTrends, Inc. www.infotrends.com 9
  • 10. Print On Demand (POD) Books • True Print On Demand: Represents one-off printing The book is not printed until an order is received There is no physical inventory Short cycle time It is only feasible with highly automated digital print set-ups It is relatively rare, but it accounts for a growing segment of the market © 2009 InfoTrends, Inc. www.infotrends.com 10
  • 11. The Book Publishing World is Changing A Look at the U.S. • 2009 statistics about the U.S. book publishing market show that U.S. title output for traditional books decreased by 3.2% between 2007 and 2008, shrinking from 284,370 to 275,232 new titles and editions1). • However 2008 was extraordinary year for on demand short run books. Bowker projects that 285,394 on demand books were produced in 2008, representing a 132% increase over 2007‘s 123,276 titles 2008 was the second consecutive year of triple-digit growth in the on demand segment, and 2008 levels were 462% above what was seen as recently as 2006 1). 1) Bowker information management, 2009 © 2009 InfoTrends, Inc. www.infotrends.com 11
  • 12. How Long Is the Long Tail? • The jury is still out • Publishers are implementing programs and measuring results • What is the impact of open and searchable access to content? Does this limit or drive sales of hard copy books? • What is the future of the printed book anyway? Google digitizing books Emergence of E-readers © 2009 InfoTrends, Inc. www.infotrends.com 12
  • 13. E-Books Screen Reading Preferences Q.6: What statement describes your opinion regarding print on screen? (please select one) I generally try to avoid reading text on-screen, by printing out the text or using an available I do not mind printed version reading text on a 9.8% screen, even I prefer reading when the text is on-screen multiple pages documents as 42.5% they can have integrated multimedia content 14.1% If a text is longer I prefer to read a printed version 33.6% N = 1,341 Source: InfoTrends, Consumer Media Preferences in Advertising and Publishing, 2009 © 2009 InfoTrends, Inc. www.infotrends.com 13
  • 14. E-Books Unresolved Problems • Still a nascent market Q.7: Do you now own or do you expect to buy an electronic reader such as Sony Reader or Amazon Kindle? N = 1,341 Source: InfoTrends, Consumer Media Preferences in Advertising and Publishing, 2009 © 2009 InfoTrends, Inc. www.infotrends.com 14
  • 15. E-Books Unresolved Problems • Still a nascent market • Will only appeal to portions of the population • Multitude of devices and standards • Proprietary formats and closed shops • Unresolved issues on lending and exchanging e-books • Prone to piracy • Expensive readers make investment only worthwhile for very heavy readers • Covered by fixed price agreements? © 2009 InfoTrends, Inc. www.infotrends.com 15
  • 16. Summary © 2009 InfoTrends, Inc. www.infotrends.com 16
  • 17. Recommendations • There are big unexploited opportunities in the Long Tail Many publishers are still reluctant to exploit the back-list opportunity • A variety of market opportunities and niches exist for Book on Demand By type of publishers (large, small, self publishing), by type of book, run length spectrum, type of distribution,… • Set-up of end-to-end production system is necessary The more of the production & distribution chain is covered, the higher the margin – however expenses increase accordingly • Finishing is critical for short runs • Set-up or access to distribution network is critical • Have an eye on the E-Book situation © 2009 InfoTrends, Inc. www.infotrends.com 17
  • 18. ralf_schlozer@infotrends.com © 2009 InfoTrends, Inc. www.infotrends.com 18