54 : The Global eBook Market: Current Conditions & Future Projections Google—via its digitization e orts with libraries and the scanning of copyrighted works—has become an early catalyst for such confrontations, getting local stakeholders out rallying in defense of the American company’s claim to “organize the knowledge of the world,” at least in Germany and France over the past several years. This communal action has resulted in the identi cation of the digitization of books, most broadly as an assault on book culture and on fair compensation for intellectual property. After the downfall of the music industry and the impact of piracy on the music business, lobbying by professional organizations of the publishing industry could nd broad support for its claims. “Digital” has been broadly identi ed with “illegal” or at least “unfair” use of the cultural stock, rst in Germany and France and then over time in many parts of continental Europe. In the context of an ever broader concern about digital information technologies, surveillance, and the loss of privacy, ebooks hit continental Europe at a moment when “digital” or “e” reading is considered to be a threat to citizens’ freedom and Europe’s di cult stand in a globalizing world. Books, in such a context, are swiftly perceived as a strong symbol of resistance, rooted in a genuine European tradition of “Enlightenment” (through books and universal reading and education). At least such is the current argument of the cultural establishment in most European countries, which must not however be identi- ed with readers—the majority of whom are well-edu- cated and media-savvy urbanites—who are largely open to the o erings of the Web, probably including ereaders and ebooks. Yet it is the same cultural elite that is preoc- cupied with losing local “cultural identity.” However, 2012 has seen those ames put out in scores of settlements. In Europe notably for France, while Amazon starts to be perceived, at least among tradi- tional representatives of the book business, as the main threat in landscapes shaped primarily by mid-sized or even small family run businesses. up with localized platforms in major markets, and so do other brands in their international rollout, such as Barnes & Noble. The second half of 2012 will probably provide rst time concrete evidence, and comparisons, between these international campaigns. Probably more de ning than the di erences in those organisations’ tactical choices as they venture into pub- lishing and (e)-book distribution on an international level is that the companies behind the respective book divi- sions are of an entirely di erent scale and scope from what used to reign over publishing in the old days. Pearson, the leader in global (book) publishing, has annual revenues of $8.4 billion from publishing (Pearson education and Penguin, plus another $662 million from the Financial Times). NewsCorp, one of the leading global media companies and the mother of HarperCollins, has recorded a turnover of $58 billion in 2011. This has NewsCorp playing broadly in the same ballpark as Amazon (with $48 billion). By comparison, Apple has recorded revenues of $108 billion, and a market capitalization that recently went north of $700 billion, while Google had revenues of $38 billion at a market capitalization of around $250 billion. In the current battle over emerging ebook and digital publishing markets, we must understand a variety of dynamics between players of not entirely di erent scale, but also contrasting agendas. While turning front- and backlists of new titles into ebooks is an imminent priority for Pearson, or Hachette Livres (at revenues from pub- lishing at $2.7 billion) or Random House (at $2.3 billion), the same transition and outlook will be only part of a much broader picture of Apple, or Google. And even at Amazon, revenues from books are a central element, yet one among several, of a broadening set of services. And such is similarly true for scores of domestic ventures in emerging markets where those global players are cur- rently expanding with their book and publishing related o er. Obviously, this opens much room for friction and competition.
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54 : The Global eBook Market: Current Conditions & Future Projections Google—via its digitization e orts with libraries and the scanning of copyrighted works—has become an early catalyst for such confrontations, getting local stakeholders out rallying in defense of the American company’s claim to “organize the knowledge of the world,” at least in Germany and France over the past several years. This communal action has resulted in the identi cation of the digitization of books, most broadly as an assault on book culture and on fair compensation for intellectual property. After the downfall of the music industry and the impact of piracy on the music business, lobbying by professional organizations of the publishing industry could nd broad support for its claims. “Digital” has been broadly identi ed with “illegal” or at least “unfair” use of the cultural stock, rst in Germany and France and then over time in many parts of continental Europe. In the context of an ever broader concern about digital information technologies, surveillance, and the loss of privacy, ebooks hit continental Europe at a moment when “digital” or “e” reading is considered to be a threat to citizens’ freedom and Europe’s di cult stand in a globalizing world. Books, in such a context, are swiftly perceived as a strong symbol of resistance, rooted in a genuine European tradition of “Enlightenment” (through books and universal reading and education). At least such is the current argument of the cultural establishment in most European countries, which must not however be identi- ed with readers—the majority of whom are well-edu- cated and media-savvy urbanites—who are largely open to the o erings of the Web, probably including ereaders and ebooks. Yet it is the same cultural elite that is preoc- cupied with losing local “cultural identity.” However, 2012 has seen those ames put out in scores of settlements. In Europe notably for France, while Amazon starts to be perceived, at least among tradi- tional representatives of the book business, as the main threat in landscapes shaped primarily by mid-sized or even small family run businesses. up with localized platforms in major markets, and so do other brands in their international rollout, such as Barnes & Noble. The second half of 2012 will probably provide rst time concrete evidence, and comparisons, between these international campaigns. Probably more de ning than the di erences in those organisations’ tactical choices as they venture into pub- lishing and (e)-book distribution on an international level is that the companies behind the respective book divi- sions are of an entirely di erent scale and scope from what used to reign over publishing in the old days. Pearson, the leader in global (book) publishing, has annual revenues of $8.4 billion from publishing (Pearson education and Penguin, plus another $662 million from the Financial Times). NewsCorp, one of the leading global media companies and the mother of HarperCollins, has recorded a turnover of $58 billion in 2011. This has NewsCorp playing broadly in the same ballpark as Amazon (with $48 billion). By comparison, Apple has recorded revenues of $108 billion, and a market capitalization that recently went north of $700 billion, while Google had revenues of $38 billion at a market capitalization of around $250 billion. In the current battle over emerging ebook and digital publishing markets, we must understand a variety of dynamics between players of not entirely di erent scale, but also contrasting agendas. While turning front- and backlists of new titles into ebooks is an imminent priority for Pearson, or Hachette Livres (at revenues from pub- lishing at $2.7 billion) or Random House (at $2.3 billion), the same transition and outlook will be only part of a much broader picture of Apple, or Google. And even at Amazon, revenues from books are a central element, yet one among several, of a broadening set of services. And such is similarly true for scores of domestic ventures in emerging markets where those global players are cur- rently expanding with their book and publishing related o er. Obviously, this opens much room for friction and competition.

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