Consumer Attitudes Toward E-Book Reading

Consumer Attitudes

Toward E-Book Reading

EDITECH Conference | Milan, Italy | June 22, 2012

© 2012, the Book Industry Study Group, Inc.

Standards and Best Practices

Research

Education and Events

2 © 2012, the Book Industry Study Group, Inc.

3 © 2012, the Book Industry Study Group, Inc.

% book buyers who purchased an e-book (US)

3%

13%

0%

2%

4%

6%

8%

10%

12%

14%

4

Rewind (2010 in review)

© 2012, the Book Industry Study Group, Inc.

Trade by format

$5.100.000.000

$5.150.000.000

$5.200.000.000

$5.250.000.000

$5.300.000.000

$5.350.000.000

$5.400.000.000

'08 Ext. Value '09 Ext. Value '10 Ext. Value

Hardcover

Hardcover

5 © 2012, the Book Industry Study Group, Inc.

Trade by format

$5.000.000.000

$5.100.000.000

$5.200.000.000

$5.300.000.000

$5.400.000.000

$5.500.000.000

$5.600.000.000

$5.700.000.000

'08 Ext. Value '09 Ext. Value '10 Ext. Value

Softcover

Softcover

6 © 2012, the Book Industry Study Group, Inc.

Trade by format

$1.150.000.000

$1.200.000.000

$1.250.000.000

$1.300.000.000

$1.350.000.000

$1.400.000.000

$1.450.000.000

$1.500.000.000

$1.550.000.000

'08 Ext. Value '09 Ext. Value '10 Ext. Value

Mass-market Paperback

Mass-market Paperback

7 © 2012, the Book Industry Study Group, Inc.

Trade by format

$0

$100.000.000

$200.000.000

$300.000.000

$400.000.000

$500.000.000

$600.000.000

$700.000.000

$800.000.000

$900.000.000

$1.000.000.000

'08 Ext. Value '09 Ext. Value '10 Ext. Value

E-books

eBooks

8 © 2012, the Book Industry Study Group, Inc.

BISG’s All-Time Favorite Chart!

9 © 2012, the Book Industry Study Group, Inc.

% book buyers who purchased an e-book (US)

3%

13%

0%

2%

4%

6%

8%

10%

12%

14%

10

Rewind (2010 in review)

© 2012, the Book Industry Study Group, Inc.

9%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

11

% book buyers who purchased an e-book (US)

2011 in review

© 2012, the Book Industry Study Group, Inc.

12 © 2012, the Book Industry Study Group, Inc.

Fiction is stranger than truth

13

13,7%

20,9%

22,9%

3,1%

14,0%

8,5%

13,1%

Qtr 12009

Qtr 22009

Qtr 32009

Qtr 42009

Qtr 12010

Qtr 22010

Qtr 32010

Qtr 42010

Qtr 12011

Qtr 22011

FictionRomanceFiction Mystery

Graphic Novels

Biographies

Cooking

© 2012, the Book Industry Study Group, Inc.

“E” questions to answer in 2012

What is the continued growth capacity of Fiction?

When will the other genres get moving?

What roles does technology really play in adoption?

14 © 2012, the Book Industry Study Group, Inc.

15

Power Buyer = someone

who purchases 4 or more

books a month.

© 2012, the Book Industry Study Group, Inc.

16

Consolidated group of your

best customers who share

one common trait,

regardless of ‘p’ or ‘e’…

© 2012, the Book Industry Study Group, Inc.

A book buyer by any name… (or format)

0%

10%

20%

30%

40%

50%

60%

70%

Heavy Book Buyers Heavy Ebook Buyers

17 © 2012, the Book Industry Study Group, Inc.

18%

15%

8%

12%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Jan_11 May_11 Aug_11 Nov_11

Q: When did you buy your first e-book? A: Within last 6 months

© 2012, the Book Industry Study Group, Inc, R.R. Bowker

18

Conversation rate of Power Buyers

© 2012, the Book Industry Study Group, Inc.

Have purchased an ebook

Have never purchased an ebook

Do not own a device

Do own a device

Why?

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What keeps you from buying e-books?

20 © 2012, the Book Industry Study Group, Inc.

21

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

Dec 2010 Apr 2011 Jul 2011 Nov 2011 Feb 2012 Apr 2012 Jul 2012

Lack of a

good e-

reading

device

Difficult

downloading

process

What keeps you from buying e-books?

© 2012, the Book Industry Study Group, Inc.

22

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

Dec 2010 Apr 2011 Jul 2011 Nov 2011 Feb 2012 Apr 2012 Jul 2012

Prefer

print

Difficult

to share

with

others

What keeps you from buying e-books?

© 2012, the Book Industry Study Group, Inc.

Value of “Power Buyers”

Print ‘E’

22%

of buyers

35%

of buyers

53%

of books

purchased

60%

of e-books

purchased

50%

of $$$

purchased

48%

of $$$

purchased

© 2012, the Book Industry Study Group, Inc.

Power Buyers demonstrate loyalty

20%

15%

27% 24% 22%

32%

41%

45% 44% 43%

0,0%

20,0%

40,0%

60,0%

Within the last MONTH 2 to 6 MONTHS ago 7 to 12 MONTHS ago 1 to 2 YEARS ago 2 or more YEARS ago

only e-books mostly e-books both p & e more print

24 © 2012, the Book Industry Study Group, Inc.

“E” at the expense of “P”

26 15 9 11 12

16 21

15 16 18

42 56 69 66 62

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

Within the last

MONTH

2 to 6 MONTHS

ago

7 to 12 MONTHS

ago

1 to 2 YEARS ago 2 or more YEARS

ago

other

e-book

paperback

hardcover

25 © 2012, the Book Industry Study Group, Inc.

Scenario Planning

26 © 2012, the Book Industry Study Group, Inc.

27 © 2012, the Book Industry Study Group, Inc.

Fiction is stranger than truth

28

13,7%

20,9%

22,9%

3,1%

14,0%

8,5%

13,1%

Qtr 12009

Qtr 22009

Qtr 32009

Qtr 42009

Qtr 12010

Qtr 22010

Qtr 32010

Qtr 42010

Qtr 12011

Qtr 22011

FictionRomanceFiction Mystery

Graphic Novels

Biographies

Cooking

© 2012, the Book Industry Study Group, Inc.

29 © 2012, the Book Industry Study Group, Inc.

9%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

30

% book buyers who purchased an e-book (US)

2011 in review

© 2012, the Book Industry Study Group, Inc.

© 2012, the Book Industry Study Group, Inc, R.R. Bowker

31 © 2012, the Book Industry Study Group, Inc.

Power Buyers demonstrate loyalty

20%

15%

27% 24% 22%

32%

41%

45% 44% 43%

0,0%

20,0%

40,0%

60,0%

Within the last MONTH 2 to 6 MONTHS ago 7 to 12 MONTHS ago 1 to 2 YEARS ago 2 or more YEARS ago

only e-books mostly e-books both p & e more print

32 © 2012, the Book Industry Study Group, Inc.

“E” at the expense of “P”

26 15 9 11 12

16 21

15 16 18

42 56 69 66 62

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

Within the last

MONTH

2 to 6 MONTHS

ago

7 to 12 MONTHS

ago

1 to 2 YEARS ago 2 or more YEARS

ago

other

e-book

paperback

hardcover

33 © 2012, the Book Industry Study Group, Inc.

Spending trends

34 © 2012, the Book Industry Study Group, Inc.

Spending trends

35 © 2012, the Book Industry Study Group, Inc.

36

36

© 2012, the Book Industry Study Group, Inc.

Device preference

37 © 2012, the Book Industry Study Group, Inc.

Device preference

38 © 2012, the Book Industry Study Group, Inc.

On what device do you

purchase your e-books?

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

April 2010 May 2011 May 2012

Computer

Dedicated E-Reader

Multi Function Device

39 © 2012, the Book Industry Study Group, Inc.

Activity by device

40 © 2012, the Book Industry Study Group, Inc.

Select the ways in which

you use your tablet

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 84% 78%

74%

61% 56%

51% 46%

42%

19%

Source: Google AdMob, August 2011

41 © 2012, the Book Industry Study Group, Inc.

I spend more time on

my tablet than I…

0%

10%

20%

30%

40%

50%

60%

59%

52%

43% 41%

34%

11%

Source: Google AdMob, August 2011

42 © 2012, the Book Industry Study Group, Inc.

Activity by device

43 © 2012, the Book Industry Study Group, Inc.

44 © 2012, the Book Industry Study Group, Inc.

What about the global

e-book experience?

45 © Bowker Market Research 2012

GeM details and methodology

10 country study

Australia, Brazil, France, Germany, India, Japan, South

Korea, Spain UK and USA.

Conducted online so that the samples effectively

represent the populations with Internet access in

each country.

46

© Bowker Market Research 2012

GeM details and methodology

Fielded in early 2012

Weighted representative country sample* of >1000

persons 18+

The samples were designed and weighted to be

representative of the adult (age 18+) population in

terms of age, sex and region.

*India this was confined to the main cities

47

© Bowker Market Research 2012

World-wide e-book penetration

Country

Total pop

% with

internet use

Est. % of total

pop purchased

e-book

m % %

Australia 22 89.8 19

Brazil 203 37.4 7

France 65 69.5 3

Germany 82 79.9 10

India 1189 10.2 2

Japan 127 80.0 6

South Korea 49 82.7 12

Spain 47 62.2 8

UK 62 82.0 17

USA 313 78.3 16

48 © Bowker Market Research 2012

Projected number of e-book buyers

58

24

14 11 8 8 6 4 4 2

0

10

20

30

40

50

60

70

US India Brazil UK Germany Japan South

Korea

Australia Spain France

# who have bought an e-book in past 6 months

(millions)

49 © Bowker Market Research 2012

World-wide e-book penetration

21

18

5

13

24

8

14 13

21 20

Base: All online adults

50 © Bowker Market Research 2012

Free as a driver in emerging markets

32

47

11

23

53

11

42

33 30

25

Base: All online adults

51 © Bowker Market Research 2012

Future growth potential

52 © Bowker Market Research 2012

Future digital behaviors – No Interest

Country No interest past or future

- % Japan 72

France 66 USA 59

Germany 56 UK 52

Australia 45 Spain 38

South Korea 26

Brazil 16

India 11

53 © Bowker Market Research 2012

Future purchase intent Assessing market potential for purchased e-book

15

29

6 10

23

4

18 9

17 16

17

29

12

14

31

9

23

21 16 14

Very likely (4) Fairly likely (3)

Base: All online adults

54 © Bowker Market Research 2012

Genre profiles

55 © Bowker Market Research 2012

E-book genre - Fiction

0

20

40

60

80

100

69

57

80 80

60 66

47

67

80

72

55 53

69 65

52 56

44

65

79

67

Bought Free

Base: All buying complete/downloading for free

56 © Bowker Market Research 2012

E-book genre – Professional/Business

0

20

40

60

80

100

39

74

46 49

80

51

73

37

25 22

35

71

31

43

75

39

58

41

19 22

Bought Free

Base: All buying complete/downloading for free

57 © Bowker Market Research 2012

Crowded E-Reader Market

Devices used most often for reading

40

72

50

46

76

59

37

47

30

23

23

14

28

18

9

12

18

18

14

29

22

8

12

13

11

20

39

10

15

11

13

2

8

22

2

1

4

22

36

36

1

1

1

1

2

4

2

2

3

7

3

3

4

0 20 40 60 80 100

Australia

Brazil

France

Germany

India

Japan

S. Korea

Spain

UK

USA

PC/laptop Tablet Smartphone Ereader Games console Other

Base: All downloaderss

59 © Bowker Market Research 2012

E-book purchase sources

0% 20% 40% 60% 80% 100%

Austr…

Brazil

France

Germ…

India

Japan

S. Korea

Spain

UK

USA

35

9

26

43

16

13

5

30

66

61

10

23

12

12

24

12

16

14

4

4

23

8

20

10

11

19

20

7

11

7

8

21

5

12

21

16

16

10

3

5

8

21

27

7

10

11

22

17

6

13

17

19

11

16

19

29

22

23

10

11

Amazon/Kindle Publishers Apple iBookstore/iTunes

Indie booksellers High street chains Direct sellers/other

Base: All paid downloaders

60 © Bowker Market Research 2012

Angela Bole

Deputy Executive Director

Book Industry Study Group

Website: www.bisg.org

Email: angela@bisg.org

61