Spain's Digital Market

Digital Publishing in Spain
TOC Frankfurt
October 5, 2010

Markettrends and developmentsAug YTD (print)
Source: Bookscan, Jan-Aug 2010

A Snapshot of Spain’s Ebook Market
Sony, Kindle, iPhone and the Spanish brand Papyre, are the most popular device brands.
However, Kindle barely offers content in Spanish.
Sony will launch officially in October 2010 with the Reader Pocket Edition™ and the Reader TouchEdition™ (200-250€)
- PCs are also popular, with a 46% share.
PCs
Kindle
iPhone/ BBerry
Papyre
Cybook
Sony
- An estimated 70-80,000 dedicated reading devices circulate in Spain.
Multipurpose devices: 1.5 millioniPhones + iPodTouch, 30,000iPads, plus a huge pool of smartphones.
Dedicated vs. Multipurpose:
The Spanish consumer:
Willing to pay an average of 80€ for a dedicated device.
Expecting significant price discounts from print edition.
Piracy and free content are widely accepted notions.
Sources: The Cocktail Analysis; Federación de Gremios de Editores de España

Reading Habits: theEbookConsumer
PCs ……………………………….46.1%
Smartphones, etc. ………..6.7%
E-inkdevices …………………1.1%
0.8% readbooks in e-inkdevices
SOURCE: “Hábitos de Lectura y Compra de Libros 2010”, Federación de Gremios de Editores de España

Business Model
Spain has a fixed price market so AGENCY MODEL applies.
20-35% price discount over print is the trend.
Currently 18% VAT for ebooks vs. 4% VAT for print; an obstacle for reducing prices.
RetailChannels
A combination of traditional book retailers, such as Casa del Libro, FNAC and El Corte Inglés, and new online-only players such as Leqtor.com and todoebook.com.
New players:
Movistar, Spain’s largest mobile operator, will soon launch an online ebook store.
International players: Apple, Barnes & Noble, Amazon, Google and others are looking for digital content in Spanish.

Distribution
Up to seven digital content platforms operating to date:
Ebook download with Adobe DRM.
Some platforms are beginning to develop apps to make ebooks available in Android and Apple devices.
With Libranda distributing most larger publishing groups, other platforms are beginning to specialize in retail, digital services like POD or the Latin American market.

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.
LIBRANDA’s full launch:
- 18 more retailers
- 16 publishing groups (92 imprints)
- 1.500 titles
July 15, 2010
Sept.-Oct. 2010
Christmas 2010
2011…
Fall/Winter 2010
Possible rollover to selected Latin American countries
LIBRANDA launches in beta:
10 publishers
17 retailers
+1.000 titles
Spain only
4.000 Spanish-languagetitlesby Christmas 2010.
RHM distributes to U.S. retailers through LIBRANDA

Sales
Top 5 reflects top five for print.

Opportunities: Case study Random House Mondadori
New devices and platforms offer great potential for growth and innovation in electronic content.
New business models
new monetization models
New content formats and platforms
Ebooks
Apps & Mobile
Interactive
Customized
Animated
Services
Text based ebooks: maximize availability
Advertising
Enriched Ebook
Additional text
Links
Audio
Video
Functionality
Subscription
Web verticals
E-only content
Complex ebooks
Layout
Color
Navigation
Bundling

Books Across Platforms and Devices
Standard APPsfornovels and APPsbeyondthebook
APPsforourbest-sellingauthors: Julia Navarro’sDime quién soy, Ildefonso Falcones’ La mano de Fátima and Ken Follett’sLa caída de los gigantes.
Currently working on APPs for the iPhone/iPad based books, but not with the content of the books themselves.
Partnershipstomakeebooksavailable in alldevicespossible
Pilot program in partnership with Mobcast to reach VODAFONE 360 customers in Spain.
All payments will be done on-bill.
All phones will be supported (JAVA/Android and JIL) from day one.
iPhone & iPad planned for November.

Opportunities: Case study Random House Mondadori
New devices and platforms offer great potential for growth and innovation in electronic content.
New business models
no content length restrictions
new monetization models
New content formats
Added content
Additional functionalities
Ebooks
Apps
Interactive
Customized
Animated
Services
Text based ebooks: maximize availability
Advertising
Enriched Ebook
Additional text
Links
Audio
Video
Functionality
Subscription
Web verticals
E-only content
Complex ebooks
Layout
Color
Navigation
Bundling

www.megustaescribir.com
Megustaescribir.com is a social network + blogging platform that allows writers to:
open a blog
make friends and interest groups
upload their written work to be read,commented, and ranked by others
comment and rank others’ work
have their work read and possibly published by Random House Mondadori
Digital opportunities: print-on-demand, self-publishing, e-publishing, etc.

Challenges
Global Market
Pricingby country orregion
How do you divide profitsbetweenterritories?
Pub. dates: Willpublishing dates becoordinatedthroughoutSpanish-speakingterritories?
Others
Lack of devices and content
Highpricingfordevices and ebooks
Lack of promotionbyretailers and publishers
E-commercetrends in Spain have not matched figures in other European countries
Lack of new businessmodels: subscription, lending, etc.
High VAT forebooks
Piracy
The Spanish association of book publishers estimates that book piracy already costs Spanish publishers 150 million €uros a year.
Currently no jointeffortbypublishersoradministrationtocombatpiracy.
Rights
Some major authors still not in digital (e.g. García Márquez, Isabel Allende, etc.).
Will digital rightscontinuetobedividedbyterritories?

¡GRACIAS!
cospina@rhm.es
Twitter: @carmenospina
http://es.linkedin.com/in/carmenospina

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Spain's Digital Market

by cospina on Oct 06, 2010

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