Digital publishing has changed significantly in recent years. The introduction of the Amazon Kindle in 2007 was a major turning point, giving Amazon dominance in the ebook market. Publishers grew concerned about Amazon's pricing power and aggressive discounts. In response, many adopted an "agency" model where publishers set ebook prices rather than retailers. This helped diversify the market among other players like Apple and Barnes & Noble. The ebook industry continues to evolve rapidly, with major American companies like Amazon, Apple, and Google poised to dominate the global ebook market. Local players must find ways to compete through unique local content, customer service, and leveraging their knowledge of local markets. Publishers also need to adapt by focusing

1. Digital Change in Publishing:Lessons Learned in the USMike ShatzkinTo the IfBookThen ConferenceMilan, Italy4 February 2011

2. A brief history of ebooks in the USWhy America was first: 300 million people, one language, one set of commercial lawsIt started complicated in the early 1990s: Voyager Expanded Book and CD-RomsSimple straight text in late 90s: Rocket Book, Softbook, then PDAs (Palm and MS) plus PDFs on PCsSony Reader introduced in 2005Into 2007, Palm “dominates” device reading in a miniscule market2

3. But with the arrival of Kindle, everything changedKindle introduced November 2007: almost instant successWhy? Title selection; direct downloads; good reading experience; Amazon audienceAnd pricingBut that caused problems for publishers3

4. Why publishers wanted to restrain Amazon’s growth in 2009Two segments of growth: online print sales and device-read ebook salesAmazon market share north of 70%, perhaps 80% on bothProven willingness to twist arms for marginOnline sales hegemony probably unassailableKindle alone was locking up heavy readersAmazon’s very aggressive pricing was scary4

5. Agency was their answer; and maybe it workedKey to agency: price set by publisher, not retailerFive of six top US publishers do it; so most top titles are price-controlledAmazon device ebook share drops 30-40%Other factors: Nook, iPad, Google5

6. Experience with ebooks so far:some lessons learnedPrice matters a lot, but high priced branded books can sell (even at $20!)Early device adopters tend to be heavy readers (practical and financial reasons)Effective interoperability was important, but provided within “closed” systemsEbook sales, at least at first, are frontlist-drivenImpact on brick-and-mortar: significant6

7. And now America exports an ebook infrastructureThree big companies might dominate the global ebook market, all American: Amazon, Apple, GoogleWild cards (at the moment): Kobo, SonyAnd longer shots: Copia, Blio, consumer electronics players and mobile phone playersAnd a US player which should go global: B&N7

8. These players come with capabilities and audiencesAll sourcing titles in all languagesAll have multi-device platformsEach has, or is developing, a separate content-focused app market; separate opportunities, separate platform challenges (Apple, Android in flavors, and Kindle – so far)Many have ambitions to control some content exclusively8

9. How can local ebook resellers compete?Carry titles in all languagesDeliver multi-device functionalityKeep up with features (lending, notes, dictionaries)Deliver impeccable customer serviceProvide local propositions for libraries and institutionsDeliver local in-store support and promotion (the B&N example)9

10. And retailers need to play to native strengthsWork with local authors, IP owners, and brands to capture and provide unique contentMaximize knowledge of local content silos, pricing practices, and rightsMarket to your own language-based customers globally!10

11. What publishers should be thinking aboutDon’t waste resources defending print; you can’tRethink your capabilities to gain advantage in digital: products and marketingDon’t be fooled by a currently trivial ebook market, pricing protection, or VAT issues: US tells you change comes faster than you thinkBe conscious of verticals; think about audiences you serve, not just IP you own“Start with XML”: workflows must deliver print andepub11

12. We’re all global publishers nowKnow Amazon, Apple, and Google like an AmericanRethink exploiting your own IP: should you do an English edition? Or a dual-language ebook?Rethink rights acquisition; should you acquire by territory instead of by language?Recognize English-language books as a competitor at home; use price, release dates as weapons when you canAccept this reality: bookstores will decline12