The Development of Digital: US-Cuba Mission

Dominique Raccah CEO + Publisher — Sourcebooks

The Development of Digital

US-Cuba Mission Feb 2016

About Sourcebooks •  Founded Sourcebooks in my home in 1987 •  Today, we publish over 400 new titles a year •  Over 130 employees •  Located outside of Chicago, with offices in NY and CT •  We have dozens of bestselling authors and books •  Publish from how-to to children’s books, both fiction and non-

fiction, including in Spanish •  Entrepreneurial and agile •  Always looking for extraordinary voices in every area

2015 Extraordinary Growth — 17% growth (Bookscan POS)!

Sourcebooks (Adult Nonfic)

Sourcebooks Casablanca (romance)

Sourcebooks Landmark (fiction)

Sourcebooks Jabberwocky (children’s)

Sourcebooks Fire (young adult)

4%

2%

23%

89%

44%

Growth Continuing in 2016 (up 23%)

Indie Bestseller + New York Times Bestseller

Publishing Innovator of the Year

Our Shared Purpose

We are an organization bound together by the belief that

books change lives

The Rapidly Evolving US Book Publishing Industry

Digital today

Online Retail + Distribution

Digital Content + ebooks

5 Major Outcomes of ebooks

Important to note 2 transformations taking place

Online Distribution/Retail

Print

Digital

Brick and Mortar Retail Online Retail

Form

at/C

onte

nt

1. Online retail + distribution

Online retail is still less than

15% of retail $ in America

Online shopping in US is dominated by Amazon

Today, U.S. retailers are

working hard to buildout

their ecommerce

capabilities to compete with

Amazon

And we are seeing the

resurgence of independent bookstores

across America

2. digital content + ebooks

2 type of digital book content—apps + ebooks

Very important to create efficient

workflows or you can work with an ebook

distributor

what we experienced during the development of ebooks

eBooks Growth: 2008 – 2013

Female 45-54 years old

Clerical worker or homemaker Amazon Kindle user

ebook customer in America

0%   10%   20%   30%   40%   50%   60%   70%   80%   90%  

Environmental  factors  

Searchability  

Speed  of  access  

Ease  of  acquisiCon  

Portability  

Readability  (adjustable  font  size)  

Affordability  

Very  important  

All about affordability

© 2014, Book Industry Study Group, Inc.

Decline in price of traditionally published e-books

$0.00    

$5.00    

$10.00    

$15.00    

$20.00    

$25.00    

E-­‐Books  

SoRcover  

Hardcover  

2008   2009   2010   2011   2012  

©  2013,  the  Book  Industry  Study  Group,  Inc.  

Adult Fiction

$0.0    

$0.2    

$0.4    

$0.6    

$0.8    

$1.0    

$1.2    

$1.4    

$1.6    

$1.8    

$2.0    

2008   2009   2010   2011   2012   2013  

Hardcover   Mass-­‐market     SoRcover   E-­‐Books  

© 2014, Book Industry Study Group, Inc.

Today in Books in English: #Print AND Digital

•  In U.S., ebooks are replacing/displacing our cheapest formats

•  BIGGEST impact on fiction sales and narrative •  BIG impact on ebook pricing in these categories •  Much less impact on other categories of books

2015 Print Book Bookscan Unit Sales (52 week)

Industry 2015 Bookscan POS

2.3%!

5 major outcomes of ebooks

1. The Self-Publishing Boom —

authors have a lot more choices

2. Lots more books/

content = the challenge of discovery

Mobile — anytime, anywhere

Anytime, anywhere reading.

Anytime, anywhere buying.

Global + Rights

The global opportunity?

Can we, must we, rethink how rights work around the world?

Digital has also allowed for development of new models

Subscription Personalization Enhanced ebooks + apps

More to come…

Why readers love Put Me in the Story

Saying “I Love You” You are the Star of the Story

All the ways “I Love You”

Why readers love Put Me in the Story

Your child as narrator Your child’s name woven into Illustration

Play “I Spy” with your child’s face

CONFIDENTIAL

The challenge of digital

ü  Continuous pressure on pricing ü  Struggling to get reader’s time

ü  Challenge of discovery

The promise of digital

ü  Anytime, anywhere buying and reading ü  Print “AND” digital (not “or”)

ü  A world of readers—expanding print AND digital book market

ü  Books are more important today

“

”

We should try to be the parents of our future rather than

the offspring of our past.

“Procuremos más ser padres de nuestro porvenir que hijos de nuestro pasado.”

—Miguel de Unamuno (1864-1936)

Spanish essayist, novelist, poet, playwright, and philosopher

Gracias!!

Any Questions??