1. The #1 Digital Platform for Book Publishers.

2. Distribution – Analytics – Market Intelligence Worldwide Distribution. Sales reporting and analytics Retailer monitoring – over 11m print and digital titles per day. 500 + publishers worldwide

3. The decline of ebooks... maybe

4. Typical digital disruption

5. Gartners Hype Curve

6. What do we see at Vearsa? A huge, untracked shadow industry exists. 3-tier market for eBooks: “Plateau” primarily affecting tier 1. Higher prices have reduced publisher volumes. Other markets and non top tier retailers have much stronger growth.

7. The “Shadow Industry” The shadow industry is growing at the expense of mainstream content. Digital content not monitored in the same way as print.

8. The bigger picture Higher prices + Shrinking publisher market share = Illusion of an ebook decline?

9. The indie landscape: A snapshot Top 3 Genres 1. Romance 2. Erotica 3. Mystery & Detective Top 3 Fastest Growing Genres 1. Literary Fiction 2. Humorous Fiction 3. Paranormal Juvenile Fiction Fastest Growing Territories 1India +425% 2.Philippines +356% 3.Brazil +336% 4.Germany +237% 5.Austria +233% Fastest Growing Retailers + Top 3 Genres (YTD) 1. Tolino a.Romance b.Erotica c.Mystery & Detective 2. Kobo a.Romance b.Erotica c.Coming of Age 3. Apple a.Romance b.Coming of Age c.Erotica 4. B&N a.Romance b.Mystery & Detective c.Erotica DRAFT2DIGITAL: Total sales up 99% year-on-year

10. The “Shadow Industry” Nov 2015 Top 10,000 Bestsellers Big 5 – 27% titles, avg $8.22 Other – 73% titles, avg $4.58 May 2015 Top 10,000 Bestsellers Big 5 – 18% titles, avg $9.47 Other – 82% titles, avg $4.57 Average Big 5 drop of 9 points in market. Allied to an average price increase of 15% Coincidence ???

11. Life beyond the top 2

12. What does this mean for you? eBook demand remains, playing field has shifted 12% growth CY for a median cohort of publishers Growth is possible but requires the right strategy

13. The wide world of eBooks

14. Pricing depends on genre and market

15. What does all this mean? Naturally, the exploding ebook market has slowed down in the last 12-18 months. Previous exponential growth could not be sustained. This has certainly been influenced by pricing and publishers’ strategies. Its also a natural lull in a disrupted market. The average ebook portfolio is robust and growing, albeit at lower rates. Clever manipulation of market data and pricing can generate significant, consistent growth across multiple markets and reduce over-reliance on core markets..

16. Thank you! Follow me for a link to this presentation @garethcuddy @vearsabooks