turning the page -the future of ebooks expert seminar tax on ebooks 8 march 2013

8
Turning the Page -The Future of eBooks www.pwc.com Expert Seminar Tax on eBooks 8 March 2013

Upload: felicia-jennings

Post on 22-Dec-2015

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Turning the Page-The Future of eBooks

www.pwc.com

Expert Seminar Tax on eBooks

8 March 2013

Page 2: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

PwC has conducted two pieces of research on eReaders and eBooks (study performed in 2010)

Methodology• Online interviews in the U.S.,

Netherlands, U.K. and Germany – recruited via online panel

• N=1,000 respondents per country

• Length of interviews: ca. 10 minutes

Sample• 18-65 years old • Representative demographics

regarding gender, age and occupation

Fieldwork• May 2010

Methodology• Two facilitated in-person

consumer sessions, N=6 each• Online panel, N=15

Sample• In-person sessions: 25-39 years

old, male and female, one group of owners, one group of non-owners

• Online panel: high school and college educators

Fieldwork• February 2010

PwC eBooks Study – quantitative research (May 2010)

PwC Consumer Insight Session – qualitative research (February

2010)

Slide 28 March 2013

Page 3: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

Fast growth expected in the U.S.; other countries will follow(data 2010)

U.S.: most mature market

High consumer interest

Attractive devices

U.K.: mirrors the U.S. (with a lag)

Market kick-off in 2010

Growing awareness

Germany: sentiment improves

Consumer still cautious

Supply improves, but still limited

Netherlands: long way to go

Consumer generally uninterested

Supply still insufficient

Market data eBooks (Consumer Books, million $)

2009 2010 2011 2012 2013 2014 20150.0%

5.0%

10.0%

15.0%

20.0%

25.0%

6.3%

4.4%

14.2%

22.5%

Germany Netherlands UK USA

Slide 38 March 2013

Page 4: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

Consumers expect price discounts for eBooks in comparison with paperbacks (data 2010)

• In general, consumers expect discounts compared to paperback prices.

• In contrast, eBook owners paid higher prices for eBooks in the past than they said they would pay.

• If consumers are really interested in an eBook, they may be willing to spend more.

≤ €2

€2 - €3,99

€4 - €5,99

€6 - €7,99

€8 - €9,99

≥ €10

28

28

26

9

6

3

Germany

≤ $2

$2 - $3,99

$4 - $5,99

$6 - $7,99

$8 - $9,99

$10 - $11,99

$12 - $13,99

≥ $14

17

17

25

16

14

5

4

4

U.S.

≤ £2

£2 - £3,99

£4 - £5,99

£6 - £7,99

≥ £8

29

36

25

7

3

U.K.

≤ €2

€2 - €3,99

€4 - €5,99

€6 - €7,99

€8 - €9,99

≥ €10

29

29

24

8

7

3

Netherlands

If a paperback costs € 10/$14/£8, how much are you willing to pay at most for this book in the digital format?

Slide 48 March 2013

Page 5: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

Fast growth expected in the U.S.; other countries will follow (data 2010)

2009 2010 2011 2012 2013 2014 2015CAGR

2010-2015GermanyeBooks 4 28 95 190 299 394 490 77.1%Print/Audio 6,665 6,756 6,849 6,956 7,061 7,194 7,326 1.6%Total 6,669 6,785 6,944 7,146 7,360 7,588 7,816 2.9%

Share eBooks 0.1% 0.4% 1.4% 2.7% 4.1% 5.2% 6.3%

NetherlandseBooks 1 2 7 14 24 33 41 77.5%Print/Audio 808 812 819 829 843 861 880 1.6%Total 809 815 826 843 868 894 920 2.5%

Share eBooks 0.2% 0.3% 0.8% 1.6% 2.8% 3.7% 4.4%

UKeBooks 8 52 121 214 320 427 534 59.3%Print/Audio 3,541 3,484 3,429 3,370 3,322 3,280 3,238 -1.5%Total 3,549 3,536 3,550 3,584 3,642 3,707 3,772 1.3%

Share eBooks 0.2% 1.5% 3.4% 6.0% 8.8% 11.5% 14.2%

USAeBooks 551 1,518 2,569 3,371 4,302 5,022 5,571 29.7%Print/Audio 19,890 19,620 19,359 19,224 19,110 19,113 19,169 -0.5%Total 20,441 21,138 21,928 22,595 23,411 24,135 24,739 3.2%

Share eBooks 2.7% 7.2% 11.7% 14.9% 18.4% 20.8% 22.5%

Market data books & eBooks (Consumer Books, million $)

Slide 58 March 2013

Page 6: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

Our forecast is based on the following assessments of consumer interest, devices and content in each of the countries surveyed (data 2010)

Consumer interest Devices Content

Germany

• One third of population will not buy eBooks

• Terms “eBook“ and “eReader” still not well known

• First readers with WiFi-accessible store and German content available this fall

• No integrated 3g-reader available

• Overall sales limited

• Only 8.000 eBooks available in ePub (100k in pdf)

• ½ of bestsellers available as eBook

• Publishers catching up slowly

U.S.

• Comparably strong interest in buying eReaders and eBooks

• Market maturity further drives interest

• Variety of tablets and eReaders available

• >5 million devices sold

• Price war and technical innovation

• Almost all content available as eBook

• 90% of NY Times bestsellers available as eBook at launch (2007)

U.K.

• Customers are aware of eReaders and eBooks, willing to buy

• Amazon U.K.-offer generated interest

• Kindle available since summer 2010

• WHSmith reader also available

• Overall sales limited

• More than 400k books available in Amazon store

• Language advantage

Netherlands

• One third of population will not buy eBooks

• Very few eBook owners

• General interest seems to be weak

• WiFi-Readers available but highly priced

• No integrated 3g-reader available

• Overall sales limited

• Only 4.000 native eBooks available

• Situation improving slowly (in 2009: almost no eBooks) Slide 6

8 March 2013

Page 7: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

For more information

Slide 78 March 2013

Download the publication on www.pwc.com

http://www.pwc.com/en_GX/gx/entertainment-media/pdf/eBooks-Trends-Developments.pdf

Page 8: Turning the Page -The Future of eBooks  Expert Seminar Tax on eBooks 8 March 2013

Expert Seminar Tax on eBooks@ PwC 2013

Contacts

Slide 88 March 2013

Werner BallhausIndustry Leader Technology, Media& Telecommunications, PwC T: +49 211 981 5848 [email protected]

Tal HassonEU Business Development ManagerPwCT: +32 2 710 [email protected]

Ine LejeuneGlobal Indirect Taxes Policy LeaderPwCT: + 32 9 268 8300 [email protected]

Sophie ClaessensSenior Manager Indirect TaxesPwC T: +32 3 259 3169 [email protected]