Streaming music Vs Streaming books As streaming is becoming the main model for the music industry, will the book embrace the same future

1. Les nouveaux modèles d’accès du livre :
cloud, plateformes de streaming
services d’abonnement @labodeledition #LabLivre
Justo Hidalgo @24symbols
Hélène Mérillon @youboox
Thomas Salomon @Storyplayr
Rémi Bouton @Rbouton
@RBouton - Labo de l'édition - 30 Janvier 2014

2. #1 cultural industry to enter the digital age
Music is THE digital laboratory
1998 first commercial MP3 player released SDMI : secure digital music initiative (more
than 200 IT, consumer electronics, security
technology, ISP and recording companies)
1999 Napster creates the P2P
2001 Apple launch the Ipod + iTunes Music Store
2003
2006 Google buys YouTube
2007 The year of the Deezer - Iphone – Amazon's
Kindle
2008 Spotify is on air
2009 Apple removes the DRM on music
2013 Digital represents around 50 % of the global
music market mainly download
2014 Streaming becomes the main model ?
@RBouton - Labo de l'édition - 30 Janvier 2014

3. “ While industry
executives initially
refused to attribute
the early signs this
year of digital sales
weakness to the
consumer's
growing appetite
for streaming...
… in the second
half of the year
many were
conceding that adsupported and
paid subscription
services were
indeed
cannibalizing
digital sales “
@RBouton - Labo de l'édition - 30 Janvier 2014

4. Streaming is already the king
in North Europe
Norway 2013
CD = 22,3 % of total revenue
Streaming =
84 % of digital revenue
Sweden S1 2013
CD = 25 % of total revenue
Streaming =
94 % of digital revenue
@RBouton - Labo de l'édition - 30 Janvier 2014

5. Reasons of this success
Territories where paid download is
not so much developped
In 2008, the year Spotify launched
in Norway, digital sales
accounted for just 8.5% of total
revenue in Norway Vs 38.7% in
the US
In France streaming = 50 % digital
revenues
12,5 % whole market (S1 2013) : 1/3
paid 2/3 free
2013 : for the 1st time since 2002 the
market is up
@RBouton - Labo de l'édition - 30 Janvier 2014

6. Revenues
0,007 € : the average
revenue for 1 stream
Streaming services' per-stream royalties may seem
small given current listening activity but payouts
will vastly improve when far more consumers are
streaming for more often
29 million subscribers worldwide at the
end of 2013 >191 million by end2018
$5 billion by end of 2013 to
more than $46 billion end 2018
>more than 2x the worldwide
Less than
@RBouton - Labo demarket !!!!!! Janvier 2014
l'édition - 30
(according to ABI Research)

7. Streaming is the futur
Deezer = $ 500 million (late 2012)
Spotify $ 4 billion (late 2013) after invest $
250 million from Netflix
Netflix in the US (33 M subscribers + 11 M
abroad + launch in France next sept.
Turn over $ 4 billion
Launch of Beats Music in the US
Partnership with telecom company
Connected devices will help streaming
grow : better integration for listening at
home and in the car
Youtube is the first musical streaming
service in term of audience and
revenues : ahead of Spotify or Deezer
@RBouton - Labo de l'édition - 30 Janvier 2014

8. Streaming Books ? Are you sure ?

Books have been ATAWAD for centuries...

In France digital is around 3% of the market, when will that grow ?

Music is international (in terme of langage, but also taste) > book is local

Music is interoperable mp3 with no DRM

Signing catalog for music is easy, with only 3 majors and one big indie pool you have 95% of
the offer + collective management (Sacem's style) for authors rights

Right holders had no choice because the had to face piracy

In France music and record shops are not protected with fixed price or "anti-Amazon law"...



Listening to recorded music has always been possible only with a device so everybody has the
habit to use technology
You can still read a book without any devices (maybe some glasses) but you have many
different dedicated and not interoperable reading devices Kindle, Kobo, Ipad, Sony etc
Music listeners are the young Y generation, they have embrassed digital very fast. Book
readers are (in general) conservative people... but the USA show the way
@RBouton - Labo de l'édition - 30 Janvier 2014