The Brazilian Digital Path An overview of e-book development in a BRICS country Bra·zil | \brə-ˈzil\ A former football nation. Carnival, caipirinhas and sunny beaches still available. Carlo Carrenho | Digital Technology Summit | Pretoria, South Africa March 18 th, 2015

General Facts About Brazil Population: 202 million (5 th in the world) Area: 8,5 mi km² (5 th in the world) GNP: US$ trillion (5 th in the world) Language: Portuguese (Only!) Number of Nobel Prizes: None, Zero, Nada Number of Soccer World Cup Championships: 5 (Five)!!!

The Book Market (2013) Market at consumer “cover” prices: US$ 3.09 bi Total publishers revenue : US$ 2.27 bi Government purchases: US$ 625 million Government share: 27.5% K-12 share: Over 50% Digital share in the trade market: 3,5% (2014) 10th largest book market in the world according to Ruediger Wischenbart’s The Global Map of Publishing Markets Source: Brazilian Book Chamber and Global Map of Publishing Markets

An One-language Book Market Only 4,59% of booksellers revenues in Brazil came from foreign books in 2014 according to Nielsen. Foreign language titles sold in Brazilian bookstores add to roughly a US$ 80 million per year, n consummer prices, which is less than 3% of the market. Portuguese is a huge entry barrier.

“As for beach reading, that is something I didn’t see much of in Brazil. And the fact is: when you have so much natural beauty to sightsee, when it comes to reading books, and your brain is half-melted from the heat, why bother?” Ed Nawotka, Publishing Perspectives Brazilians read four books per year on average Half of them are for school purposes Half of them are only partially read Few heavy readers Reading Habits

Digital Cronology Dec. 2009: Gato Sabido, the 1st Brazilian eBook retailer starts its operation June 2010: Saraiva launches its e-Bookstore Oct. 2012: Apple opens its Brazilian iBookstore Dec. 2012: Amazon, Google and Kobo launch their e-Bookstores in Brazil Feb. 2014: Amazon starts shipping the Kindle from their own warehouse Aug. 2014: Saraiva launches its dedicated e-Reader, the LEV Aug. 2014: Amazon starts selling print books

The Resistance

Can the dedicated eReader samba?

The Digital Growth

The Aggregator Factor

The Government Factor TAXES: Government hasn’t yet decided if eBooks are tax free or not. Dedicated eReaders are still imported as tablets. LEGAL: Nobody can tell if the Agency Model is legal or not in Brazil.

Trade Hits and Misses The industry managed to negotiate fair terms with Amazon The industry failed to produce an efficient and extensive aggregator The industry and government failed to update the tax and anti-trust legislation to cover the eBook developments.

“Everything is all right in the end. It it isn’t all right, it isn’t yet the end. B RAZILIAN M OTTO F OR L IFE

The Educational Tablet Launched in ,000 tablets US$ 75 million Delivered in 2014 Neglected “minor”detail: EDITORIAL CONTENT

The Textbook National Program (PNLD) Managed by the Ministry of Education 29 million students 103 million copies US$ 530 million Roughly 90% of government purchases

The Digital Progress at PNLD

The School Libraries PUBLISHERS SCHOOLS

Education Hits and Misses The government has started to experiment with digital Huge lack of planning and dialogue between government and industry. The Ministry of Education doesn’t make definitions Publishers depend on third companies to reach city schools digitally. Publishers found a way to reach the universties through a joint platform

1st KEY WORD: LANGUAGE

2nd KEY WORD: DIALOGUE

Carlo Carrenho Publishing Consultant | Trade Journalist Co-author of Global eBook Report ( Thank you! It is time for Brazil to try a new sport Dankie! Ngiyathokoza! Ke a leboha! Ke a leboga! Siyabonga! Inkomu! Ndo livhuwa! Ro livhuwa! Enkosi! Ngiyabonga!