1. Quarterly Update – Will Atkinson

2. Ebook share of consumer book purchases (volume) Source: UK Books & Consumers © Bowker Market Research 2013

3. Ebook share of consumer book purchases (volume) * Includes some purchases where not known whether bought for self or other, and which can’t be stripped out. Assuming some are actually purchases for others, the ebook share of self purchases may actually be even higher than is shown here Source: US Books & Consumers © Bowker Market Research 2013

4. Ebook share within category (volume, January-June) Source: UK Books & Consumers © Bowker Market Research 2013

5. Ebook share within category (volume, January-June) Source: US Books & Consumers © Bowker Market Research 2013

6. Ebook share of top 10 genres (volume, Jan-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

7. Ebook share of top 10 genres (volume, Jan-June 2013) NB. Bibles is a top 10 genre in US, but has been excluded here Source: US Books & Consumers © Bowker Market Research 2013

8. Age of buyer of ebooks vs print (volume, January-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

9. Discovery of ebook vs print fiction (volume, Jan-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

10. Discovery of ebook vs print non-fiction (volume, Jan-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

11. Reasons for buying ebook vs print fiction (volume, Jan-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

12. Reasons for buying ebook vs print non-fiction (volume, Jan-June 2013) Source: UK Books & Consumers © Bowker Market Research 2013

13. International markets CountryBook Market SizeE % 2012 US$27.2bn20% of trade UK£3.1bn12.9% Germany€9.6bn2% France€4.587bn1.8% Spain€2.77bn2.4% Netherlands€1.174bn3% AustraliaASD$ 2.3bn10%

14. Bundling from Amazon Launching in October Introducing Kindle MatchBook For thousands of qualifying books, your past, present, and future print-edition purchases will soon allow you to buy the Kindle edition for $2.99, $1.99, $0.99, or free. Available for thousands of great print books purchased new from Amazon, going all the way back to 1995 when Amazon first opened its online bookstore. Read the Kindle edition on any Kindle device or on PC, Mac, iPad, Android tablet, or mobile phone with our free Kindle Reading Apps.free Kindle Reading Apps

15. News from Amazon Integration of Good reads into new Kindle paperwhite device Strong rumours that they will be launching in Australia More pain inflicted on Apple

16. Subscription models EReatah https://www.ereatah.com/https://www.ereatah.com/ 2 books for $16.99 3 books for $25.50 4 for $35.50 Average selling price of an e book last week $6.33 Licenced not owned. Adobe DRM. Launched with 80,000 titles

17. Subscription models Oyster. $9.95 to read as much as you can. 100,000 titles Books from HarperCollins, Workman, Houghton Mifflin Harcourt and self-publishing distributor Smashword Availalble on iphone app Coy about the business model “win-win-win,” for rights-holders, readers and the company and its investors.

18. Other subscription models Safari Books Online offers a selection of ebooks for a professional, technical audience and Bookboard offers kids ebooks, to name two. And, in Spain, 24symbols has created a general-interest ebook subscription service. One enticing proposition for publishers around this new distribution model is the possibility of exposing readers to new authors and new books they may not discover anywhere else. Oyster, for instance, will use a combination of editorial, social and algorithmic recommendations to suggest new titles to readers. Users will see book recommendations through editorial lists, Facebook and Twitter integrations and suggested reading based on reading they’ve already done. For now, publishers will not be offered opportunities to pay for extra exposure for their titles.

19. Spotify for e books In publishing the consumers likely to take up a “Spotify for ebooks” are much older and predominantly female and they spend more than $9.99 a month on books while not pirating anywhere close to the account that a music obsessed teenager would. Thus most publishers would make less money under this model. In other word, trade publishing revenues as a whole would contract. This instantly explains the huge reluctance of major publishers to embrace these services. And for the very same economic reasons publishers are also very cautious in how they make ebooks available to public circulation libraries.

20. Retailers Nook - continue to aggressively discount certain key titles out of their own margin to help drive consumers to their devices and site - the Nook Nudge. Nook tablet now £79 Kobo - Continue to develop new devices aimed at the heavy reader and prices lowering - in the long term they could well be the key second player with their retail alliances Apple Introduces free book of the week alongside free App of the week - will there be upsell opportunities and genuine audience creation Tesco launching own tablet on 23 rd September through Blinkbox platform Libraries – going into testing mode following the Sieghart review

21. Launching October 2013 www.ipg.uk.com/directory/digital