Exporting English: Digital Publishing Without

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Contents

1. The Global Publishing Market – Exporting English 2. Digital Rights: To Sell or To Hold? 3. English Content in Non-English Speaking Territories

Global Book Publishing $151 Billion

International Publishers Association 2013

Growth of U.S. Exports of English Language Books

• U.S. 2012 reported net revenue from export of books = $833 million or approximately 3% of overall net revenue ($27B) and 7.2% gain over previous year

• eBooks made up 20% of overall net revenues or $166 million • eBook net revenue from exports grew 63% in 2011

Source: 2013 AAP Export Sales Report/ BISG’s BookStats 2013

To Distribute or To Sell Territory

Rights: That is the Question?

• If you own the digital rights use them!

• No printing, no shipping

• Plenty of global outlets for distribution

• Translation may not even be an issue

Who’s Selling Digital Rights at the Territory Level?

Capital in the 21st Century eBook

• Sold more than 50,000 copies

in the original French

hardcover edition

• Harvard Press sold more than

80,000 hardcover copies in US

as of May 2014

• eBook edition hit #1 at Amazon

in April; approximately 30,000

copies sold at $16.26

• Nook eBook $21.99

• Kobo International €21.77

Potential for English Language

Digital Content

Populations of English as 2nd Language

China

300 Million

India

225 Million

Pakistan

92 Million

Philippines

52 million

Germany

51 Million

Bangaldesh

29 Million

Egypt

28 Million

France

25 Million

Italy

20 Million

Brazil

16 Million

Netherlands

15 million

Poland

13 Million

Turkey

12 Million

Spain

10 Million

Index of Demand for English eBooks

Metrics/Infrastructure UnitedKingdom UnitedStates Germany France Spain

Population 60,975,000 316,823,000 80,600,000 65,350,000 47,190,000

EnglishLanguageSpeakers 59,600,000 298,444,149 51,584,000 25,500,000 10,400,000

PercentageofPopulationspeaksEnglish 98% 94% 64% 39% 22%

PercentageEnglishSpeakersRelativetoGermany 152.7% 147.2% 61.0% 34.4%

BooksPublishedAnnually 184,000 304,912 93,600 66,527 76,434

Titlesper1millionpeople 3,018 962 1,161 1,018 1,620

Titleper1MillionEnglishlang. 2,957.28 904.66 743.23 397.23 356.96

PublishingIndustrySize($million) $0 $0 $0 $0 $0 è

eBookas%ofPublishingRev. 20% 20% 10.00% 3.00% 4.00%

eBookTitlesAvailable 500,000 1,500,000 200,000 50,000

EnglisheBookTitlePotential(newreleasesperyear) 34545.73 50758.24 3833.86 303.88 148.50

EnglisheBookPotentialRelativetoGermany 534.03% 915.79% 7.93% 3.87%

TradePerCapita($) 24,297$ 14,750$ 39,833$ 24,421$ 18,450$

TradePerCapitaRelativetoGermany 61% 37% 100% 61% 46%

PropensitytoSucceedwithEnglisheBook 7.48 11.00 1.00 1.30 0.85

SOURCES1,2,3,4,5,6,7

5Eurobarometer©EuropeanUnion1995-20146EuromonitorInternational©2014Euromonitor

7CensusData,USA,Phillipines,Russia,Switzerland

WesternEuropeanTerritoralPropensityforEnglishLanguageeBookSale

1GlobaleBook:AReportonMarketTrends&Development-UpdateSpring2014,RudigerWischenbart,CarloCarrenho,JavierCelaya,VeronikaLicher,MihaKovac,VinuthaMallya

2IPAGlobalPublishingStatisticsInternationalPublishersAssociation,RudigerWischenbart3WhoSpeaksEnglish,April5,2011TheEconomistbyR.L.G.

4MarketAnalysis&Research©1999-2008InternationalTradeCentre

Creating the Index: Four Determinants

There are four primary drivers used to devise this index.

1.Percentage of Population fluent in English

2.Measure of publishing activity – any language– amounts to new

titles per capita, per annum

3.eBook share of publishing revenue

4.Measure of international Trade (per capita)

Index is tied to Germany as a model country for English Language

book sales

Creating the Index

“Several factors correlate with English ability. Wealthy countries do better

overall. But smaller wealthy countries do better still: the larger the number of

speakers of a country's main language, the worse that country tends to be at

English. This is one reason Scandinavians do so well: what use is Swedish

outside Sweden? “

- Who Speaks English?, The Economist April 5, 2011

Index of Demand for English eBooks:

The Trade Factor

“Export dependency is another correlate with English. Countries

that export more are better at English (though it's not clear which

factor causes which).”

- Who Speaks English?, The Economist April 5, 2011

Western Europe

As per Economist forecast small countries of unique native tongue

that are active traders and strong publishing programs are likely

most responsive to English Language e-Books

Metrics Germany France Spain Italy Portugal Netherlands

Pop. 80,600,000 65,350,000 47,190,000 59,619,290 10,623,000 16,770,000

EnglishSpkrs 51,584,000 25,500,000 10,400,000 20,300,000 2,900,000 15,030,000

%EngSpkrs 64% 39% 22% 34% 27% 90%

Eng.eBookIndex 1.00 1.30 0.85 1.18 1.11 3.36

Metrics Austria Norway Sweden Finland Denmark Switzerland

Pop. 8,415,000 5,100,000 9,517,000 5,410,000 5,543,000 7,637,300

EnglishSpkrs 6,150,000 3,500,000 8,200,000 3,800,000 4,770,000 4,680,000

%EngSpkrs 73% 69% 86% 70% 86% 61%

Eng.eBookIndex 2.51 2.75 2.66 2.08 2.82 3.35

WesternEuropePropensityforEnglishLanguageeBook

Central/Eastern Europe

Receptive to English eBooks

• Smaller Central European economies are strong but not as strong as Western

Europe

• English speakers are a higher percentage in Western Europe

• Slovenia showed the highest per capita publishing (1000 titles per 1 million English

speakers next closest is Lithuania which showed 407 titles)

• Slovenia had largest per capita trade $32,570 next highest was Czech Rep. at

$27,600

Metrics Germany Slovenia Lithuania Bulgaria Hungary Poland CzechRep. Romania

Pop. 80,600,000 2,050,000 3,053,800 7,640,238 9,982,000 38,501,000 10,562,214 19,043,767

EnglishSpkrs 51,584,000 1,210,000 1,160,000 1,900,000 2,000,000 12,700,000 2,850,000 5,900,000

%EngSpkrs 64% 59% 38% 25% 20% 33% 27% 31%

Eng.eBookIndex 1.00 1.74 1.10 0.61 0.88 0.82 1.12 0.65

CentralEuropePropensityforEnglishLanguageeBook

Asia

Metrics Germany Japan China HongKong India PakisatanPop. 80,600,000 127,341,000 1,200,000,000 6,808,433 1,210,000,000 188,400,100EnglishSpkrs 51,584,000 30,000,000 300,000,000 3,136,784 225,246,449 92,316,049

%EngSpkrs 64% 24% 25% 46% 19% 49%Eng.eBookIndex 1.00 0.85 2.32 4.44 0.34 0.78

Metrics Thailand SouthKorea Malayasia Philippines SingaporePop. 63,038,247 50,000,000 27,170,000 92,337,852 5,076,700EnglishSpkrs 17,121,187 10,000,000 5,580,000 52,292,884 4,822,865

%EngSpkrs 27% 20% 21% 57% 95%Eng.eBookIndex 0.61 0.94 0.74 0.94 6.28

AsianPropensityforEnglishLanguageeBook

• Hong Kong and Singapore huge traders $146,000 per capita and $189,000 per

capita respectively. Larger than any other country, Germany is $3,833 per capita

• India falls off because of low publishing volume – less than 70 titles per 1 million

English language speakers. China’s stat is 370 titles per 1 million Eng. language

speakers

• Both Hong Kong and Singapore are active publishing countries with 2000+ titles

per 1 million Eng. Language speakers USA is only 1,000 titles per 1 million

Middle East

• Middle East is not conducive with the exception of Israel

• High propensity to publish 700 + titles per million Eng. language speakers

• 85% of population speaks English

• Trade is $2853 per capita

Metrics Germany Israel Egypt Lebanon Turkey

Pop. 80,600,000 7,303,000 83,239,500 4,265,600 70,586,256

EnglishSpkrs 51,584,000 6,205,000 28,101,325 1,706,000 12,000,000

%EngSpkrs 64% 85% 34% 40% 17%

Eng.eBookIndex 1.00 1.51 0.56 0.64 0.41

MiddleEastPropensityforEnglishLanguageeBook

Latin America

Metrics Germany Brazil Mexico Argentina Chile Columbia Venuzuela Peru

Pop. 80,600,000 201,072,700 106,682,100 42,192,500 16,634,603 47,661,368 25,017,387 30,800,000

EnglishSpkrs 51,584,000 15,881,583 4,855,000 2,752,681 1,585,027 2,012,950 2,000,000 3,000,000

%EngSpkrs 64% 8% 5% 7% 10% 4% 8% 10%

Eng.eBookIndex 1.00 0.20 0.32 0.22 0.44 0.15 0.29 0.37

LatinAmericaPropensityforEnglishLanguageeBook

• Latin America is not a good prospect

• Population of English speakers is relative small

• While trade per capita is pretty strong $3,000 to $10,000 per capita vs.

Germany $3833 per capita. Trade is mostly among themselves, thus

smaller English language population

Global eBook Distribution by Leading

Channel Partners

Thank You

Manage. Transform. Publish.

Walter W.J. Walker

President, codeMantra US, LLC

wwjwalker@codeMantra.com