turning the page -the future of ebooks expert seminar tax on ebooks 8 march 2013
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Turning the Page-The Future of eBooks
www.pwc.com
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)
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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
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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?
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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 $)
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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
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
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]