Transcript Day 1 – Carlo Carrenho

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 18th, 2015
General Facts About Brazil
 Population: 202 million (5th in the world)
 Area: 8,5 mi km² (5th in the world)
 GNP: US$ 2.246 trillion (5th in the world)
 Language: Portuguese (Only!)
 Number of Nobel Prizes: None, Zero, Nada
 Number of Soccer World Cup Championships: 5 (Five)!!!
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
The Book Market (2013)
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.
Reading Habits
 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
“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
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
Smartphone Sales in Brazil
50,000
47,000
45,000
40,000
35,000
Thousands of Units
35,000
30,000
25,000
20,000
16,000
15,000
9,000
10,000
5,000
4,900
-
2010
2011
2012
2013
2014
Tablet Sales in Brazil
12,000
10,700
10,000
7,900
Thousands of Units
8,000
6,000
4,000
3,100
2,000
800
100
2010
2011
2012
2013
2014
Can the dedicated eReader samba?
The Digital Growth
The Digital Growth
Digital share of trade copies sold
in Brazil
4.00%
3.50%
3.50%
3.00%
2.50%
2.50%
2.00%
1.50%
1.00%
0.50%
0.50%
0.00%
2012
2013
2014
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.
BRAZILIAN MOTTO FOR LIFE
The Educational Tablet
 Launched in 2012
 600,000 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
SCHOOLS
PUBLISHERS
The School Libraries
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
Enkosi!
Thank you!
Dankie!
Ro livhuwa!
Siyabonga!
Ke a leboga!
Inkomu!
Ngiyathokoza!
It is time for Brazil
to try a new sport
Ndo livhuwa!
Ngiyabonga!
Ke a leboha!
Carlo Carrenho
Publishing Consultant | Trade Journalist
Co-author of Global eBook Report (www.global-ebook.com)
[email protected] | @carrenho