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Rüdiger

2019. Wischenbart

the digital
consumer book
barometer.

e-books and audiobooks in


Canada, Germany, Italy, The Netherlands, Spain & English Imports

in co-operation with
Bookwire, CB, DeMarque, Ingram, Libranda, Readbox and the International Publishing Distribution Association

1
the digital Written by Rüdiger Wischenbart
and Michaela Anna Fleischhacker
consumer book
barometer with sales data provided by
Bookwire, CB, DeMarque edigita,
A report on e-book Ingram, Libranda and Readbox
and audiobook sales
Sponsors
in Canada, Germany,
Italy, The Netherlands
& Spain and digital
imports

2019
www.global-ebook.com

Contributing Partners

Design
Artwork by Rosa Egg
the digital consumer book barometer 2019

CONTENT ICON LEGEND


1. Introduction – 4
About the Barometer. Sponsors and data partners
Canada E-Book Title Life Cycle

2. E-Books – 5
The e-book annual calendar
Germany Audiobook Imports
Sales trends shaped by price
Country comparisons
Sales trends and genre categories €

E-book life cycles Italy Volume Units Value / Revenue


Foreign language imports
Price, genre, evolution € €

3. Audiobooks – 32 The Netherlands Price Median Price

The audiobook annual calendar TOP TOP


10 25
Sales by genre
Sales by price segment Spain Top 10 Top 25

Comparing value and volume

4. Conclusions and outlook – 40 Country Comparison

3
the digital consumer book barometer 2019

Introduction
About the Digital Consumer Book Barometer 2019
The scope, approach and ambitions of this report on e-books and audiobooks
Our partners and sponsors
Digital books are different. vide granular and relevant insights into Additional partners are:
how these digital markets function. • edigita, a leading e-book distributor
With e-books around for a good decade, in Italy;
as a mainstream offer to readers, and now First of all, the Barometer brings together • readbox, a German provider of book
with audiobooks even more swiftly add- aggregated and structured sales data creation, distribution and marketing
ing digital options to lovers of good sto- from distributors whose shared interest it services;
ries and other bookish content, we decid- is to offer their customers the best possi- • cb (formerly Centraal Boekhuis), a co-
ed to both broaden and deepen our ble information about fast changing mar- operative logistics provider specializ-
observations. kets. ing in media and healthcare in the
Netherlands;
The Barometer, started in 2018 as a data Four of these partners support the Ba- • Ingram Content Group, a leading
driven observatory for digital books in rometer also as sponsors: global wholesaler and service provid-
several European countries, has now • Bookwire, a German digital distribu- er to the book industry in the USA and
been transformed into the Digital Con- tor and full service provider with a worldwide.
sumer Book Barometer. presence in Germany, Spain and Latin
America; The Digital Consumer Book barometer, a
We firmly believe that digital books are • DeMarque, a leader in digital content twin report with the Global eBook series,
about to evolve beyond formats. distribution, specifically digital books, is researched and produced by Rüdiger
based in Canada, and the owner of Wischenbart Content and Consulting, in
Authors, publishers, distributors and • Libranda, a distributor of Spanish dig- close cooperation with its sponsors and
readers expect books to be available in ital books for Spain and Latin Ameri- partners.
various formats, physical and digital, in ca;
different offerings, for purchase or in a • The International Publishing Distribu- The Barometer can be downloaded from
subscription, accessible through an in- tion Association, IPDA, in Madrid, and the sponsors and at
creasing variety of channels. organizer of the Readmagine confer- www.global-ebook.com
The ambition of the Barometer is to pro- ences.

4
the digital consumer book barometer 2019

E-Books are read on the beach and on long winter nights.


Digital reading seasons are more continuous than those in print.
Consumers make e-books peak twice every year: By
buying summer reading in July, and then again
increasing purchases for the end-of-the-year holidays.
The Barometer 2019 rolls out trends in a slight slump in January and February. In In Canada, in 2016, the e-book calendar
five different markets for three consecu- the Netherlands though, summer peaks was still much of a roller-coaster. But
tive years, 2016, 2017 and 2018: are higher than elsewhere. from 2017 onwards, a more steady
A comparison between different coun- rhythm evolved, yet one contrasting the
• Canada tries reveals not just similarities, but strong summer sales in Europe with an
• Germany (including also Austria and unique patterns as well. estival slump.
German-speaking Switzerland, or
‚DACH‘) In general, the trending curves between These curves provide a solid framework
• Italy distributed units (or volume) and the gen- of fundamentals for any planning with re-
• The Netherlands erated revenue (or value) are remarkably gard to title launches and marketing
• Spain (the latter including export in synch. strategies.
sales, mostly into Latin America), and
• Foreign (mostly English) language In Germany though, holiday peaks indi-
imports. cate a consumers‘ willingness to spend
on more expensive e-books. This is not
Summer peaks are striking in all coun- the case in any other market.
tries, but are more prominent in the Neth-
erlands than in Germany. Looking at data curves over three years
reflects a clear pattern of a well estab-
Overall, in most markets sales are spread lished routine for when and how consum-
out more evenly along the seasons, with ers do their digital purchases.

5
the digital consumer book barometer 2019

MONTHLY SALES

#GERMANY #ITALY #THE NETHERLANDS #SPAIN

Units sold in % Revenues sold in % Units sold in % Revenues sold in %


Units sold in % Revenues sold in % Units sold in % Revenues sold in %
13% 13%

10,4% 10,4%

7,8% 7,8%

5,2% 5,2%

2,6% 2,6%

0% 0%
J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D
2016 2017 2018 2016 2017 2018

Units sold in % Revenues sold in % Units sold in % Revenues sold in %


Units sold in % Revenues sold in % Units sold in % Revenues sold in %
13% 13%

10,4% 10,4%

7,8% 7,8%

5,2% 5,2%


2,6% 2,6%

0% 0%
J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D

2016 2017 2018 2016 2017 2018

6
the digital consumer book barometer 2019

MONTHLY SALES CANADA

#CANADA
Units sold in % Revenues sold in %
Units sold in % Revenues sold in %

13%

10,4%

7,8%

5,2%

2,6%

0%
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

2016 2017 2018

7
the digital consumer book barometer 2019

Setting the right price for the right catalog


and the right target audience
Consumers have very diverse price sensitivities and buying preferences.
The surveyed markets show huge differences in consumers’ preferred price points
for e-books. The right pricing is a crucial decision for success.
Many publishers have a clear preference Looking in detail at unit sales (volume), In The Netherlands, a vast majority of
to price e-books at only a limited discount rather than generated revenue (value) digital books are sold at three price lev-
to the print edition. By contrast, inde- provides a sharper picture of these seg- els, just und 4€, under 6€ and - recently
pendently published digital books, often ments. with a strong increase - under 9€.
serial genre fiction, favor massive unit Similar to Italy, e-book unit sales hit a
sales at much lower price points. Canada sees very dynamic growth in the ceiling at around 10€ in Spain, too. But
lowest price segment of under 1$, and an only in Spain, the lowest segment of
So digital consumer book markets often exceptionally broad sphere of mid-priced e-books under 3€ as dramatically surged
are radically segmented. At least three sales, in a wide range between 9 and 18$. in the past year or so.
different realms can be identified, each
reflecting a different sales strategy. In Germany, a vast majority of e-books is Overall, e-book markets seem to shift.
sold at prices below 10€, yet with a de- From the early days of publishers keep-
• A low price segment with e-books cline in the low category of under 3€. In- ing e-book prices up close to print levels.
for less than 5, or even less than 3€ terestingly, e-books offered at either This was followed by the emergence of
or $, for self-published genre fiction, 9.99€ or at 12€ to 12.99€ are expanding, two distinct zones, one for self-published
or for price marketing campaigns to indicating at publishers finding an in- and serial genre fiction, and a separate
help promote series. creasingly stable preferred pricing zone. area, around 10€ or even more, for digital
• A middle price segment between 7 editions of publishers‘ titles.
or 8 and 10€ or $, with e-books of- Italy has a couple of predominating sweet
fered at a similar price as a trade pa- spots, one at right under 3€, the other at Now, in a third move, in each surveyed
perback. around 9.99, probably aiming at two dis- market, several more or less stable price
• A high price sector, close to hardcov- tinct reading audiences, one for self-pub- sectors have formed, each catering to a
er print. lished genre fiction, the other for quality respectively singular target audience.
fiction from traditional publishers. The challenge will be to directly address
one‘s specific group.

8
the digital consumer book barometer 2019

SALES BY PRICE ´16/ ´17/ ´18/ 1Q2019

#CANADA

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

2016 Units
2016 sold
Units in %
sold in % 2017
2017 Units
Units soldsolid
in %in % 2018 Units
2018 Units solid
sold in % in % 1Qsold
1Q2019 Units 2019inUnits
% solid in %

9
the digital consumer book barometer 2019

SALES BY PRICE ´16/ ´17/ ´18/ 1Q2019

#GERMANY

18%

13,5%

9%

4,5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

2016
2016 Units
Units soldsold
in %in % 2017 Units
2017 sold
Units in %
solid in % 2018 2018
UnitsUnits
sold in % in %
solid 1Q2019 Units
1Qsold
2019inUnits
% solid in %

10
the digital consumer book barometer 2019

SALES BY PRICE ´16/ ´17/ ´18/ 1Q2019

#ITALY

18%

13,5%

9%

4,5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

2016 Units
2016 soldsold
Units in %in % 2017
2017 Units
Units solid
sold in %in % 2018 2018
UnitsUnits solid
sold in % in % 1Qsold
1Q2019 Units 2019inUnits
% solid in %

11
the digital consumer book barometer 2019

SALES BY PRICE ´16/ ´17/ ´18/ 1Q2019

#THE NETHERLANDS

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

2016
2016 Units Units
sold in %sold in % 2017 Units
2017 Units sold insolid
% in % 2018
2018 Units
Units soldsolid
in %in % 1Q 2019
1Q2019 Unitssold
Units solid
in in
%%

12
the digital consumer book barometer 2019

SALES BY PRICE ´16/ ´17/ ´18/ 1Q2019

#SPAIN

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

2016
2016 Units Units
sold in %sold in % 2017 sold
2017 Units Unitsinsolid
% in % 2018
2018 Units
Units soldsolid
in %in % 1Q 2019
1Q2019 Units
Units solid
sold in in
%%

13
the digital consumer book barometer 2019

Balancing generated revenue (value) with units sold (vol-


ume): Country comparisons
High unit sales at a low price can be profitable, as well as low volume sales at
higher prices. However, a well balanced overall strategy and the finetuning
must be right.
How much are consumers prepared to A direct comparison between generated But also between $11 and $12.99, some
pay for downloading a good read? revenue and units sold, by price and good business is made in Canada, Ger-
across several countries allows for pow- many, Italy and The Netherlands. Just not
Preferences differ significantly between erful analysis - and subsequent optimiza- in Spain.
countries, and of course also between tion of pricing strategies.
genres.
First, we see structural differences be-
Ebooks have in fact established new seg- tween low-price countries, like Italy or
ments that are defined by price. Tradi- Spain, and much less price-sensitive
tional publishers aim at keeping digital markets like Canada.
pricing close to print. But genre fiction
bets on volume and serial writing, at the Second, we realize that even in markets
lowest conceivable price point. with overall upscale pricing, like Germa-
ny, relevant earnings kick in at low levels
Furthermore, even in strictly price regu- like $2.99.
lated markets like Germany, price mar-
keting has gained in relevance. In crime Everywhere though, 8 to 10€ or $ seem
series, for instance, it has become a com- to form a sweet spot for the average dig-
mon practice to promote a new title by ital reader.
drastically lowering the price of an earlier
title of the same series. €

14
the digital consumer book barometer 2019

COUNTRY COMPARISON

#CANADA #GERMANY #ITALY #THE NETHERLANDS #SPAIN

Canada Germany Italy The Netherlands Spain


REVENUES ‘18
30%

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Canada Germany Italy The Netherlands UNITS SOLDSpain


‘18
20%

15%


10%

5% €

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

15
the digital consumer book barometer 2019

E-Books markets are strongly segmented by genre:


Country comparisons (part 2)
Segmenting e-books correctly (and digital books in general);
Assessing genre categories realistically and in perspective;
Limitations of our current data sets, and some valid lessons to learn nevertheless.
E-book audiences are deeply segment- story, preparing the digital book, and This said, we nevertheless are able to vis-
ed, with huge differences between gen- marketing through Amazon by building a ualize some of the underlying patterns.
res, countries, but also types of publish- community of fans and followers.
ing and distribution channels. After a good decade, we better should By comparing unit sales across coun-
recognize that the new model has ac- tries, sliced by genre category, highlights
E-books - for good and for wrong rea- complished more. It established a new relevant specifics, by country, by genre -
sons - are seen by many observers as a segment of publishing, which benefits and also by identifying some blanks.
fundamentally limited format, specializ- not just the niche.
ing mostly in the not-so-well-recognized In both Education and Children & Young
niches of the writing profession and Particularly the biggest, globally active Adult, e-books have have found very little
reading target audiences. publishing corporations like Penguin traction so far.
Random House, Hachette or Harper Col-
Indeed, genres like Romance, Fantasy or lins have learned to partner, and lever- But this may change soon, as we look at
Science Fiction (SciFi) are largely domi- age, both ecosystems by now. the quickly rising presence in digital audi-
nated by e-books. obooks, as will be documented in the last
The full picture is not evenly represented chapter of this Barometer survey.
Particularly Amazon has been extremely though by our sets of digital sales data.
successful in making its Kindle Direct We miss out on the KDP side. Looking across national market borders
(KDP) program the hub for a by now glob- therefore can be used as an early trend-
al new phenomenon of writings doing it ing indicator, that allows to well prepare
(almost) all by themselves, writing the for a next step in digital books.

16
the digital consumer book barometer 2019

GENRE BY UNITS
Canada Germany Italy The Netherlands Spain

#CANADA #GERMANY #ITALY #THE NETHERLANDS #SPAIN

100%

80%

60%

40%

20%

0%

Education Romance Fantasy & SciFi Thriller, Crime Fiction Nonfiction Children & Young Adult Other

Canada Units sold in % Germany Units sold in % Italy Units sold in % The Netherlands Units sold in % Spain Units sold in %
Canada Units sold in % Germany Units sold in % Italy Units sold in % The Netherlands Units sold in % Spain Units sold in %

17
the digital consumer book barometer 2019

Drilling deeper: Genre splits and pricing


What price points generate the highest revenue in which
category
Comparing main e-book genres by genre category and price point between
Canada, Germany, Italy, the Netherlands and Spain
A radar understand market drivers and to accurately finetune pricing stragegies
E-book markets over time have become aways for the positioning of catalog pro- Pick out one or a couple of genres;
very specific. Unlike print, target audi- files, or for managing individual titles ef- Do more targeted comparisons between
ences are both highly segmented, and fectively. markets;
volatile. Benchmark a small list of specific titles
The Barometer proposes such a toolset. with the overall curve of its category per-
Consumers have become very sensitive formance.
to pricing in some genre categories even To avoid a too granular, too detailed, and
in strictly price regulated markets. But all too sophisticated first glance at an ad- With the Barometer, we bet that such
they feel much less constraint by price in mirably complex and layered field of ob- specific in depth information will be key
their purchases in other categories. servation, we chose just one angle for in optimizing the performance of title of-
this report. ferings against an increasingly thorrough
E-books have taken some categories by competition from the huge increase in
assault, like romance, while remaining For each surveyed country, we show, and overall putput of digital titles, across any
very much niche in others, like education. juxtapose, revenue generated for each format, as well as against the even fiercer
main genre at different price points. battle for consumers‘ attention with oth-
Price sensitivity is very different in, say er narrative media content.
Canada or Italy. The underlying data are very granular, so
that easily, different angles can be cho-
But so far, no handy toolset has been sen alternatively, like
made available to systematically explore Comparing again directly revenue (value)
such issues and distill practical take- and units (volume);

18
the digital consumer book barometer 2019

CANADA: E-BOOKS GENRE BY PRICE, 2018

#CANADA

30%

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Educational Fantasy & SciFi Fiction Children & Young Adult Other

Romance Thriller, Crime Nonfiction Total (price category of all revenue)


Educational Fantasy & SciFi Fiction, Narrativa Children & Young Adult other

Romance Thriller, Crime Non Fiction Total (price category of all revenue)
19
the digital consumer book barometer 2019

GERMANY: E-BOOKS GENRE BY PRICE, 2018

#GERMANY
Education Romance Fantasy + SciFi Thriller, crime Fiction/
70%

60%

50%

40%

30%

20%

10%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Educational Fantasy & SciFi Fiction Children & Young Adult Other

Romance Thriller, Crime Nonfiction Total (price category of all revenue)



Educational Fantasy & SciFi Fiction, Narrativa Children & Young Adult other

Romance Thriller, Crime Non Fiction Total (price category of all revenue)

20
the digital consumer book barometer 2019

ITALY: E-BOOKS GENRE BY PRICE, 2018

#ITALY
/Narrativa

50%

40%

30%

20%

10%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € ≥ 20
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Educational Fantasy & SciFi Fiction Children & Young Adult Other

Romance Thriller, Crime Nonfiction Total (price category of all revenue)


Educational Fantasy & SciFi Fiction, Narrativa Children & Young Adult other

Romance Thriller, Crime Non Fiction Total (price category of all revenue)
21
the digital consumer book barometer 2019

THE NETHERLANDS: E-BOOKS GENRE BY PRICE, 2018

#THE NETHERLANDS

50%

40%

30%

20%

10%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € ≥ 20
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Nonfiction Educational Children & Yound Adult Fiction Professional Total


Non-Fiction Educational Children & YA Fiction Professional Total

22
the digital consumer book barometer 2019

SPAIN: E-BOOKS GENRE BY PRICE, 2018

#SPAIN

30%

25%

20%

15%

10%

5%

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

Educational Fantasy & SciFi Fiction Children & Young Adult Other

Romance Thriller, Crime Nonfiction Total (price category of all revenue)


Educational Fantasy & SciFi Fiction, Narrativa Children & Young Adult other

Romance Thriller, Crime Non Fiction Total (price category of all revenue) 23
the digital consumer book barometer 2019

Life cycles of digital titles:


Selling fast, or steadily
Recognizing, and understanding the specific potential of
quick versus long sellers.
What to make of different characteristics in adjusting marketing approaches.
Looking at a distributor‘s top 25 selling between two German distributors, Book- Following page:
e-book titles in their respective first year wire and Readbox, the curves differ re-
after publication reveals strikingly dif​fer- markably. Comparing the cumulated top 25 e-book
ent dynamics that shape a market. titles, for Germany, with the top 10 indi-
Bookwire‘s aggregated life cycles, from cates that ‚steady‘ sales end up outper-
We drill down by revenue and units, in titles coming predominantly from tradi- forming skyrockets. (Using the ‚median‘
different markets, for different selections tional publishers, have a much steeper value, and not the ‚average‘ assures that
of titles. curve, with generated revenue falling one exceptional title performance cannot
quickly after launch. Readbox with a big- distort the overall pattern.)
For a start, we look at the top 25 titles of ger share of self-published authors who
distributor Readbox in Germany, compar- often successfully build fan communities Data from Canada allow to compare cu-
ing the life cycle curves of each of the top can sustain sales much more steadily. mulated overall top sales with break-out
3 titles, with the average of all top 25. curves for selected genres. Surprisingly,
In The Netherlands, unit sales are spread the trends are strikingly in synch.
T1 is the typical quick sell, skyrocketing more evenly over time, especially when
immediately for three months. But soon compared to Canada, with e-book sales Following page:
afterwards, the title is burned out. T2 has on average declining quickly after the
also a strong start, and a second little launch. Drilling down to a per title level in life cy-
peak in month 4, probably due to some cle analysis opens a wide realm of in-
marketing initiative. But T3 is all different. sights for finetuning marketing strate-
It starts slowly, but then it goes on and on gies: Fast sellers as much as steady
and on, adding up sales after a year that sellers can be used as benchmarks for
almost much those of the furious T1. new title releases, to assess their perfor-
Comparing cumulated top 25 life cycles mance, and in case adjust promotion.

24
the digital consumer book barometer 2019

LIFECYCLE OF TOP 25 TITLES IN FIRST


T3
12 MONTHS
Readbox (Revenue)
T2
#GERMANY #GERMANY
T1
Bookwire (Revenue)
Lifecycle (by revenue) of top e-book titles, Readbox, Germany, 2017/2018, Comparing Top 25 titles of Bookwire and of Readbox
in % of all revenue generated by a title ALL
25%
50%

T1 Readbox (Revenue)
20%
40%
T2 Bookwire (Revenue)

T3
30% 15%
All

20% 10%

10% 5%

0% 0%
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

#THE NETHERLANDS #CANADA

Cumulated Top 25 titles (CB, Volume) CB Volume Cumulated Top 25 titles (De Marque) De Marque
20% 25%

CB Volume De Marque
20%
15%

15%

10%

10%

5%
5%
TOP
25

0% 0%
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

25
the digital consumer book barometer 2019

LIFECYCLE (BY REVENUE):


CUMULATED & MEDIAN PERFORMANCE OF TOP TITLES

#GERMANY #CANADA

GERMANY: CANADA:
Median performance of top 10 e-book titles Lifecycle for cumulated top 25 titles and break out for selected genres.
Median Top 10
in first 12 months, Readbox, Germany,
2017/2018 30%
Median all

15%
25%

20%
12%

15%

9%

10%

6%
5%

3% 0%
M0 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 Rest €
of
'life time'

TOP
10
Median Top 10 Median All Romance Thriller, Crime General Fiction All genres
TOP
25

26
the digital consumer book barometer 2019

COMPARING ‚LIFE CYCLE‘ IN GERMANY AND ITALY:


INSTANT-SELLERS VERSUS LONG-SELLERS

#GERMANY #ITALY

Life cycle (by revenue) of Top 10 e-book titles in first 12 months after pub-
lication, in % Readbox, Germany, 2017/2018 Performance in revenue of Top 10 titles in first 6 months (edigita)

T10

T9

T8

T7

T6

T5

T4

T3

T2

T1

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6

TOP
10

TOP
25

27
the digital consumer book barometer 2019

E-Books travel easily across borders:


What to learn from foreign language imports?
Since Harry Potter becoming a top seller in the English original in Germany two
decades ago, we learned that a relevant reading community embraces books in
foreign languages. This may apply to e-book audiences more than for print.
Choice in e-books is abundant, as no ex- ter a continuous shift, and driven by a Nonfiction has seen a steady increase
tra cost for transport erects a barrier, and steady increase in total imports over this since 2016, in four of the surveyed coun-
e-book audiences tend to be specifically period, three out of four units came at tries. Only in The Netherlands, the share
avid readers and well-educated consum- higher price points, with the strongest of nonfiction did not grow, as it was at
ers. price segments set at around 9.99€, the around 45 percent from the beginning.
popular level for trade paperbacks, plus
With data from Ingram, the world‘s larg- another even bigger portion priced at Genre fiction, by contrast, which is in
est wholesaler for books, print and digi- 20€ or more. large parts such a predominating force in
tal, and a global facilitator of exports and the e-book sphere, plays only a marginal
imports, the Barometer can shed light Both broader availability of titles and role in foreign language reading, with the
into the foreign language niche. more foreign language promotion on re- only exception being die-hard German
tail platforms may have helped. From the fans of science-fiction and fantasy.
Comparing overall imports into five Euro- perspective of audiences, the increase in
pean markets, France, Germany, Italy, the high price ranges hints at consumers These patterns are further sustained by
The Netherlands and Spain, emphasizes who very precisely know what they want, looking into revenue by genre.
a startling transformation from 2016 until without bothering that much about the
today: cost of their pick. Nonfiction once again rules the game, to-
gether with ‚other‘, which probably in-
Three years ago, between 70 and 80 per- The argument is further supported by cludes more specialized categories, from
cent of all imports were titles from the looking at the evolution between genres. academic to professional.
lowest price segment, under 1€ or $. Af-

28
the digital consumer book barometer 2019

IMPORTS INTO EUROPE:


EXEMPLARY PRICE CATEGORIES AND SHARE OF VOLUME, 2016 - 1Q2019, INGRAM

#FRANCE #GERMANY
000-0,99 009-9,99 ≤20
80% 100%

70%
80%
60%

50% 60%

40%
40%
30%

20%
20%
10%

0% 0%
2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

€ 0 - € 0,99 € 0,99 - € 9,99 ≤20 € 0 - € 0,99 € 0,99 - € 9,99 ≤20

#ITALY #SPAIN

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0% 0%
2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

29
the digital consumer book barometer 2019

IMPORTS INTO EUROPE:


COMPARING SHARE OF GENRE CATEGORIES IN VOLUME IN %, 2016 - 1Q2019, INGRAM

GENERAL FICTION NONFICTION

30% 60%

25% 50%

20% 40%

15% 30%

10% 20%

5% 10%

0% 0%
France Germany Italy The Netherlands Spain France Germany Italy The Netherlands Spain

2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

ROMANCE FANTASY & SCIFI

6% 10%

5%
8%

4%
6%
3%
4%
2%

2%
1%

0% 0%
France Germany Italy The Netherlands Spain France Germany Italy The Netherlands Spain

30
the digital consumer book barometer 2019

IMPORTS INTO EUROPE:


REVENUE SHARE OF EXEMPLARY GENRE CATEGORIES, 2016 – 1Q2019, INGRAM

#FRANCE #GERMANY

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0% 0%
2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

Fiction Thriller, Crime Romance Fantasy & SciFi Children & Young Adult Nonfiction All other

#THE NETHERLANDS #SPAIN

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0% 0%
2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

31
the digital consumer book barometer 2019

Digital audiobooks in Germany


The new growth segment that is rapidly expanding digital
Digital audiobooks, both for download and in streaming, have rapidly gained
traction with a broad readership in English language markets. Now audiobooks see
similar dynamics in several European countries, notably in Germany.
44 percent of adult Americans have lis- The German audiobook market repre- On the following pages and figures, we
tened to an audiobook in 2018, according sents 180 m€ in revenue, according to follow the same approach as with
to a survey by the US Audio Publishers research by Bookwire, and accounts for e-books, looking at
Association. 30 to 50 percent of all digital revenue for The sales distribution along the calendar
participating publishers. year, for the past three years;
The market dynamics reflect well how Comparisons between volume (units)
the entire ecosystem around audiobooks Growth in digital audiobooks has been and value (revenue) in specifically popu-
has been re-created in recent years. Dig- remarkable lately, in both generated rev- lar genre categories;
ital audio can be purchased as an individ- enue and in units sold. The relevance of pricing strategies in all
ual title, or come with a subscription. of consumer audiobooks, and in the key
With mobile gaining popularity quickly, Revenue Units genres.
audio is in a consumer‘s pocket all the
2016 > 2017 20% 41%
time. And with smart speakers, audio has Audiobook usages, and as a result the
found a new paramount presence in the 2017 > 2018 38% 33% audiobook calendar differs significantly
home, available to all generations. from the consumption of e-books. 53
The audiobook audience is estimated at percent of audiobook listeners tap into
The first Barometer survey on audio- 18 million adults in 2018, up from 4 million their au­diobooks on public transport, 50
books is based on data of just one distrib- in 2016, with 83 percent listening to an percent also while driving in a car.
utor, Bookwire - a sponsor of this report, audiobook at least one time every month.
and statistics cover only digital sales, no (Kantar Emnid) The strongest seasons for audiobooks
subscriptions. So the scope is limited. are early spring, summer vacations and
the end of the year.
Nevertheless, it allows to portraying
some fundamental patterns of the busi-
ness and the common usage.

32
the digital consumer book barometer 2019

GER AUDIO VALUE Monthly


GERMANY AUDIO % OF SALES (VALUE), 2016 + 2017 + 2018

15%

12%

9%

6%
January February March April May June July August September October November December

2016 2017 2018

GER AUDIO
GERMANY VOLUME
AUDIO Monthly(VOLUME), 2016 + 2017 + 2018
% OF COPIES

15%

12%

9%

6%

3%
January February March April May June July August September October November December

2016 2017 2018

33
the digital consumer book barometer 2019

Genre preferences are different in digital audiobooks


and e-books
The curse of overwelming pre-dominance of genre fiction in e-books
is not repeated in audiobooks.
The promising trend is an increasing diversification in genre preferences.
Audiobook consumers have remarkably In a second projection of genre prefer-
different preferences than readers. ences from 2016 to 1Q2019, we see even
more clearly how a diverse and balanced
First of all, units and generated revenue field emerges in audiobooks.
are largely in synch - with no low-price
genre complicating the the picture. Education appears as an open question
so far. Educational publishers probably
Romance, fantasy and science-fiction oc- need to be more experiental to better un-
cupy pretty marginal sales. derstand how audio can support the
learning environment.
The main appeal of listening to a book
seems to be to get drawn into great nar-
ratives. Thrillers and crime, general fic-
tion, and a fair share of nonfiction are at
the center.

Interest in nonfiction is on the rise, and so


are the children and young adult seg-
ments.

34
the digital consumer book barometer 2019

AUDIO VALUE GENRES YEARS


GERMANY AUDIO VALUE % PER GENRE

40%

30%

20%

10%

0%
Education Romance Fantasy & SciFi Thriller, Crime Fiction Nonfiction Children & Young Adult Other

2016 2017 2018 1Q2019

AUDIO VOLUME GENRES YEARS


GERMANY AUDIO VOLUME % PER GENRE

40%

30%

20%

10%

0%
Education Romance Fantasy & SciFi Thriller, Crime Fiction Nonfiction Children & Young Adult Other

2016 2017 2018 1Q2019

35
the digital consumer book barometer 2019

AUDIOBOOKS IN GERMANY BY CATEGORY OR GENRE (2016 – 1Q2019)

BY REVENUE BY UNITS
Education Non-Fiction Science-Fiction
Romance Fantasy

100% 100%

Fiction
80% 80%
Children & Young Adult

Thriller

Fantasy
60% 60%
Romance

Science Fiction

Nonfiction
40% 40%

Educational

20% 20%

0% 0%

2016 2017 2018 1Q2019 2016 2017 2018 1Q2019

36
the digital consumer book barometer 2019

Pricing works differently in audiobooks


Experimenting with price has only started
Audiobooks have a well established high price segment above the 20 € line.
But children & young adult have some good music also playing at a low price sweet
spot.
General trade and genre fiction are two Most bets, however, are put on the high
largely different and separate worlds, price side at 20 € and more, in both gen-
when it comes to audiobooks. eral trade, and in genre fiction.

In children & young adult, a clear peak is An interesting question will be to ask
set between 5 and 7 €, followed by a sec- wether audiobooks will cannibalize hard-
ond peak on the high price end at 20 € cover sales, similar to what e-books did
and more. with paperbacks.

Interestingly, no significant low price Further developments need to be


peak emerges in revenue generated from tracked.
genre fiction.

However in units sold we find a clear


peak at the low price end, in both general
trade (with thrillers and nonfiction, yet
not in children and young adult), but
again in romance and in fantasy & SciFi.
Some publishers have obviously started
to experiment with low pricing as a mar-
keting tool, for instance in serial titles,
repeating a common practice in e-books.

37
the digital consumer book barometer 2019

GERMANY AUDIO > GENERAL TRADE


VALUE 2018 BY PRICE SEGMENT
GENERAL TRADE VALUE 2018
Thriller, crime Fiction/Narrativa Non Fiction Children & Young Adult Total (price category of all revenue)
15%

12%
Thriller

9% Fiction

Nonfiction
6%

Children & Young Adult


3%
Total

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

GENERAL TRADE VOLUME 2018


GERMANY AUDIO > GENERAL TRADE
Thriller, crime Fiction/Narrativa Non Fiction Children & Young Adult Total (price category of all revenue)
VOLUME 2018 BY PRICE SEGMENT
20%

15%
Thriller

10% Fiction

Nonfiction

5%
Children & Young Adult

Total
0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

38
the digital consumer book barometer 2019

GERMANY AUDIO > GENRE FICTION


VALUE 2018 BY PRICE SEGMENT

20%
36%

15%
Romance

10%
Fantasy & SciFi

5% Total

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

GERMANY AUDIO > GENRE FICTION


VOLUME 2018 BY PRICE SEGMENT
20%

15%
Total

10% Romance

Fantasy & SciFi


5% €

Total

0%
€ 0,01 €1 €2 €3 €4 €5 €6 €7 €8 €9 € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 ≥ 20,00
- - - - - - - - - - - - - - - - - - - -
€ 0,99 € 1,99 € 2,99 € 3,99 € 4,99 € 5,99 € 6,99 € 7,99 € 8,99 € 9,99 € 10,99 € 11,99 € 12,99 € 13,99 € 14,99 € 15,99 € 16,99 € 17,99 € 18,99 € 19,99

39
the digital consumer book barometer 2019

Conclusions and outlook


Combining data and analysis of e-books and of audiobooks open the perspective
on a much wider market of ‘digital consumer books’ across formats, business
models and channels to the consumer.
The ambition of the Barometer 2019 has The Barometer is meant to provide a tool The next iteration of our work will be the
been to develop a broader view on digi- to better navigate these complexities. Global Audiobook and eBook report,
tal. However, we are far from satisfied with which we prepare for release in Septem-
what we have achieved so far, as the ber 2019.
From both the angle of a consumer and of landscape that we are allowed to map at
a publisher (and of course, of an author) this stage has far too few islands in the This Global report will be more descrip-
‚format‘ has lost its central significance. rough and uncharted waters all around. tive than the very much data focused Ba-
rometer.
Already in the past, juxtaposiong print We will work on further expanding the
and ‚e‘ was a questionable concept. Any territories and the data sources. The descriptive approach will allow to bt-
state-of-the-art digital retail platform is ter shed light on trends and develop-
offering consumers an array of different Also, we will need to find ways to include ments regarding e-book and audiobook
appearances of a story, and this tenden- streaming and subscription models in our markets in sectors and territories where
cy is likely to become ever more preva- observations. we have few, or hardly any data. So the
lent. Cross-marketing between books, Barometer and the Global reports will
movie adaptations or even games will be- Therefore we look out to finding new complement each other.
come commonplace. partners, new data and new support.
And not to forget, more critical feedback. Stay tuned!
But recognizing the specifics of each for- Register for our updates at
mat, each price segment and each retail www.global-ebook.com
channel is getting critical to design effi-
cient marketing and customer approach-
es.

40

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