“Consolidation” is the #WordoftheYear 2021 in the Book Business
December 13, 2021 by ruediger
A #publishing #XMas tale (and a few links for further #reading down below).
What does Penguin Random HouseÂ as the world’s largest consumer book publisher have in common with tinyÂ German SchĂ¶ffling Verlag? Certainly a mutual love for cats – as SchĂ¶ffling’s iconic bestseller is the annually updated “Literary Cat Calendar“, and a good reason for the indie publisher’s recent acquisition by Swiss German Kampa Verlag. PRH has listed the sophisticated “Yoga For Cats” among the thousands of titles published worldwide.
Not cats though were the main driver for recent #takeovers among publishing ventures big and small, but a paramount appetite for “#bundling #strengths” through #acquisitions.
Consolidation is summing up in one buzzword what drives and reshapes the global bookbusiness in 2021 across the bord. But at closer scrutiny, a mind boggling variety of different models and trajectories has popped up in what consolidation means exactly. There is a US style “Big-buys-Not-so-big“, a French “private-billionnaire-bingo“, and a German “No-consolidation-here” (and yet, a lot of takeovers occurred in retail, led by Thalia BĂŒcher GmbH, and now between indie publishers as Kampa founder Daniel Kampa announced in recent weeks acquisitions of 2 small indie presses, Austrian JungundJung, and German SchĂ¶ffling).Â There is a Russian “oligarch-style”, or an “All-is-new” in Scandinavia with subscription overtaking per copy sales.
So I spent a good part of my working hours in 2021 at compiling data and analyzing trends around that consolidation in books.
You can watch my analysis at the Frankfurt CEOTalkÂ ;
You can listen to it at CCC‘s podcast series;
You can download andÂ read about it in the Global50 Publishing Ranking.
The #fall2021 edition of the Digital Consumer Book Barometer highlights digital trends in 1HY2021
November 14, 2021 by ruediger
The international consumption of digital books reflects a steady shift of readersâ habits, with mostly stable growth in ebooks and audiobooks and a continuous expansion of subscription, digital lending and streaming.
The Digital Consumer Book Barometer can be downloaded free of charge atÂ https://bit.ly/DigiBaroFall2021Â
The report provides detailed insights and analysis based on solid and exclusive market data on Germany, Austria, Switzerland, Italy, Spain, French speaking Canada, Brazil and Mexico.
The surge in the consumption of digital consumer books, triggered by the Covid-19 pandemic, has stabilized, or even further expanded, in the first half year 2021.
The analysis of distribution data in 9 countries in Europe and the Americas indicates lasting shifts in consumer behavÂior, as has been predicted in earlier editions of the Digital Barometer. Developments not only show quantitaÂtive growth but, more significantly, new consumption patterns emerging.
- First and foremost, early gains in digital consumption have mostly stabilized.
- Second, trends and preferences relative to genre categories and to acceptable pricing levels have shifted with different accents and dynamics respective to overall market characteristics.
- Third, ebooks and audiobooks by now form an ever more integrated field of digital conÂsumption of books.
While in Western Europe and North AmeriÂca, general literature and crime fiction as well as children / juvenile and young adult have most profited from the upswing, educationÂal â including self-help and advice books showed strongest gains in Latin America.
Aside from download purchases one title at a time, new distribution and business modÂels expanded and gained popularity rapidly, such as ebook and audiobook subscription or lending offers from various platforms, inÂcluding public libraries, commercial vendors providing continuous access to a digital book collection, or even (notably music) streaming services.
All three trends have existed already before the pandemic had struck but have been significantly accelerated and gained additional momentum over the past 18 months.
The Digital Consumer Book Barometer provides a granular and efficient toolset for understanding all these complexities and shifting patterns, segment by segment and territory by territory.
The Digital Barometer has been created by Ruediger Wischenbart Content and Consulting and is updated regularly since 2018.
Vienna, in November 2021
The Global50 International Publishing Ranking 2021 is out!
October 18, 2021 by ruediger
TheÂ Global 50 International Publishing Ranking 2021Â is ready for free download atÂ www.wischenbart.com/ranking.com
55 leadling publishing groups worldwide in consumer books, educational, scientific and professional, listed by revenue from publishing activities, plus a detailed analysis of trends and company profiles with key data.
Wednesday, 20 October 2021, 14.00 to 15.00 CET
The Global 50 CEO Talk 2021 will investigate deep transformative shifts that currently re-define much of the international book business, notably the strong push in mergers and acquisitions, and the consumer centric business strategies with two pre-eminent guest speakers: New York based investment banker Robin Warner of Oaklin DeSilva+Philips, and Klaus Driever of Munich based Allianz Group, one of the leading integrated financial services providers worldwide.
Having closed more than 50 transactions focused on trade publishing, edtech and education information services, and healthcare to companies that include Amazon, Scribd, IPG (Independent Publishers Group), Oracle, Wiley and Macmillan, Robin Warner will analyze recent consolidation perspectives for the international book industry.
As a digital expert with experience in insurance as well as in in publishing and book retail, Klaus Driever will talk about remarkably similar patterns of digital change across industries.
Building on the new âGlobal 50 Ranking of the International Publishing Industry 2021â, the editors of Bookdao (China), buchreport (Germany), Livres Hebdo (France) and Publishers Weekly (US). The hybrid event in partnership with the Frankfurt Book Fair and with ReBoot Books will be moderated by RĂŒdiger Wischenbart.
The CEO Talk will shed light on a wave of major mergers and acquisitions is re-shaping the global business of books. Bertelsmannâs Penguin Random House is acquiring iconic US publisher Simon and Schuster, Houghton Mifflin Harcourt is picked up by Harper Collins, and Workman is taken over by French Hachette â which in turn has been viewed by the other large media group in France, Vivendi, in what is expected by observers to grow into an acquisition bid at some point next year.
The dynamics are not at all limited to the big consumer book houses. Finnish Sanoma, a specialist in digital education, has acquired the respective activities of Spanish Santillana. In Germany meanwhile, a staggering process of consolidation continues with the largest book retail chain integrating smaller regional players throughout the country. And in Great Britain, Waterstonesâ James Daunt has announced new shop openings for next year.
The context in which the earlier invitation to Hachette Livre had been made has changed, and therefore the programming of the CEO talk has evolved, in agreement between the organizers of the event and Hachette Livre.
A cooperation of four leading trade media outlets, the CEO Talk traditionally features the Global 50 Ranking of the International Publishing Industry, which is researched by RĂŒdiger Wischenbart Content and Consulting, and has been updated every year since 2007, currently representing around 50 companies that each report revenues from publishing of over âŹ150 million. The Global 50 Ranking is sponsored by Bookwire (www.bookwire.de )
At Frankfurter Buchmesse, the CEO Talk is a long-established tradition.
The full Global 50 Ranking will be available at www.wischenbart.com/ranking and the participating publishing publications.
About Klaus Driever and Allianz Group: Klaus is a successful and experienced digital entrepreneur. Already in the 90s he founded his first digital startups and brought companies like buecher.de (Germany) and bol.com (Netherlands) to success. As editior-in-chief and Managing director, he worked for leading companies in the media, retail and book publishing industry like Hubert Burda Media, ProSieben and Verlagsgruppe Weltbild. After holding position as CEO of the direct insurance Allsecur AG, Klaus is currently responsible for the strategically relevant digital projects at Allianz Germany. He holds a PhD in Political Science from Freiburg University in Germany and is also Alumni of Trinity College Dublin. Klaus lives in Munich and is active in honorary capacity for InsurTechHub Munich (ITHM) and for BITKOM, Germanyâs digital association representing more than 2.700 companies of the digital economy.
The Allianz Group is a global financial services provider with services predominantly in the insurance and asset management business. Over 100 million retail and corporate clients1 in more than 70 countries rely on our knowledge, global presence, financial strength and solidity. In fiscal year 2020 over 150,000 employees worldwide achieved total revenues of 140.5 billion euros and an operating profit of 10.8 billion euros. Allianz SE, the parent company, is headquartered in Munich, Germany. Source: en-2021-10-fact-sheet.pdf (allianz.com)
About the magazines and their editors participating at the Global 50 CEO Talk: Sanguo Cheng, founder and president of Bookdao (China), Lena Scherer, deputy editor-in-chief, buchreport (Germany), Fabrice Piault, editor-in-chief, Livres Hebdo (France), and Andrew Albanese, features editor, Publishers Weekly (US).
Contact: RĂŒdiger Wischenbart, founder and president Content and Consulting (Austria),Â firstname.lastname@example.org
A Preview on the Global 50 World Publishing Ranking 2021
July 4, 2021 by ruediger
“Breaks, but no breakdowns: The pandemic and its impact on the international book business” reads the headline of a new preview of the Global 50 World Publishing Ranking 2021.
Download your free copy of this White Paper at Preview Global 50 2021
This âPreviewâ to the next Global 50 looks specifically at the following topics:
â The impact of the pandemic on exemplary leading publishing corporations;
â The drivers behind initially unexpected positive market developments;
â The acceleration of business innovation triggered during the pandemic, with
special highlights on digital, audiobooks and subscription models;
â The opening gap in market developments between selected European countries;
â The ongoing surge in competition, driving industry consolidation, new alliances
and powerful impulses from neighboring media sectors;
â The transformative dynamics of the expanding ânetwork and platformâ economy
as it reshapes book consumption.
The complete Global 50 World Publishing Ranking will be released by the end of August 2021 at www.wischenbart.com/ranking.
More digital book consumption, new audiences, a sustainable upswing:
2020 was a breakthrough year for digital consumer books, bringing new opportunities in reaching new audiences and an expansion in e-book and audiobook consumption in subscription, e-lending and streaming models.
The Digital Consumer Book Barometer provides detailed insights and analysis based on solid and exclusive market data in Germany, Austria, Switzerland, Italy, Spain, French speaking Canada, Brazil and Mexico.
Lockdowns, home office and home schooling have boosted digital consumption of books across all formats and channels, opening new opportunities to the book business, with similar developments across all markets and segments.
Sales soared, triggered in spring 2020 at first by the impact of pandemic restrictions. But soon, after a short lull in summer, the trend turned out to be a sustainable game changer for the entire digital book business.
One of the major surprises was the gain in popularity for subscription services and related models of continuous consumption, as in digital libraries or audiobook streaming from music services. In both German language markets as in Brazil, the increase reached massive gains for subscription and e-elending year-over-year from 2019 to 2020.
Good news for traditional publishers operating in the digital fields is that price levels could by and large be kept stable over the past 5 years in most countries, including Italy, Germany, or French speaking Canada. In more volatile markets such as Mexico or Brazil, the overall average price level went lightly down, but publishers found out, as good news, that consumers embraced not only cheap thrills, but were prepared to pay even more for high quality titles.
Overall, after ebooks having been losing some appreciation by book market commentators lately, a turnaround with sustainable gains seems to be the outcome of 2020, as is shown by the uniquely granular data analysis in this report.
The Digital Consumer Book Barometer, started by Ruediger Wischenbart Content and Consulting in 2018, is regularly updated and dwells on real sales data provided by leading international digital distributors and aggregators, notably Bookwire (German language markets, Spain, Latin America), Demarque (French speaking Canada), edigita (Italy), Libranda (Spain and Latin America), and Readbox (German language).
Download the Digital Consumer Book Barometer here.
In case you have missed the recent online debate at ReBoot BooksÂ on April 21st, find here below some key talking points from the discussions – and a 16 minute video excerpt from the panel “In search of the final consumer“.
As a registered member of ReBoot, you can even view the full three sessions in the ReBoot Box!
The day-to-day challenges under pandemic market conditions for a publishing company are adding up to a long list, said Planeta’s CEO JesĂșs Badenes in his opening statement at the ReBoot online debate on April 21, 2021.
The business has become more complex, with smaller average print runs and other titles gaining in popularity as book buyers’ references changed. For the head of the largest publishing group in the Spanish language, the key to an efficient management response can be boiled down to a four-letter word: Data.
Having the right data at your finger tips allows to better manage the inventory, finding the right balance between increasing digital products, and using flexible print-on-demand solutions for physical books, which helps to lower returns and make ecommerce more customer friendly.
This allowed Gerd Robertz, CEO of German BOD – a provider of both PoD and of author & self-publishing solutions, and a sponsor of ReBoot – to follow up seemlessly. These same solutions are available not just to big corporations – Planeta’s turnover tops that of New York based Simon & Schuster, or French Editis group. Even small independent publishers or a self-published author can provide the same convenience in fast delivery, and harvest resulting data insights, to develop a strong and targetd marketing.
Publishers and retailers must “build a customer journey“, added Jason Spanos, Chief Revenue Officer at KNK, an internationally leading software provider to the book business, and a sponsor of ReBoot. During the pandemic, KNK particularly focused, with a newly established, dedicated team, on monitoring how quickly customer engagement and habits were changing. “We simulated meetings at libraries, or in coffeeshops, or now in their online social exchanges” for learning to quickly adapt to new patterns of engagement.
Gaining data, organizing them within one company, or even sharing data more openly that what is common today triggeredÂ the subsequent lively debate between both speakers and experienced book professionals in the audience.
Today, said technologist Matt Turner, people interact digitally in order to then buy physical books – or opt for entertainment media instead of a book, like series or games in streaming TV.
Thus publishers must learn to better understand their own products and, as Anne Bergmann of the Federation of European Publishers added, explore the co-existence between sales and streaming services for e-books and digital audiobooks, in order to avoid mistakes that had done great harm to the music and the audiovisual services a decade ago.
Companies need to integrate workflows and data flows within their organization, and not just look at data gained through distributors and retailers, argued Brian O’Leary of the New York based industry think tank BISG.
How all this can be brought to fruition in the day-to-day company life was richly illustrated by Julie MacKay from the American subscription platform Scribd, Peta Nightingale from the British author services platform Bookouture, which had been acquired by Hachette, as well as Rafaela Pechansky of the Brazilian reading community TAG.
How well established in innovative forms to connect and network are seen in the trade of rights and licenses will be summarized in a separate blog post in a few days.
You can’t wait to access the full debates in video recordings – and join us also at the next live event on June 15, 2021, then you should become a full member of ReBoot. Registration is simple atÂ https://rebootbooks.org/
5 renowned book industry organizations team up, with support from Creative Europe, to disseminate market insights and practical learnings about novel approaches in publishing.
TheÂ SIDTÂ initiative â standing forÂ âSustaining and Innovating cultural Diversity in literary TranslationsâÂ â introduces a pilot project for professional trainings to small and medium sized independent publishers, distributors, and retailers across Europe.
These actors often spearhead translations of new literary voices across Europe. But in an increasingly competitive market for cultural media, including books, making such cultural diversity work commercially, too, has become a challenge to many stakeholders.
Literature needs to be catered to multiple niche audiences, in print and digital, across various distribution channels, and marketed through dedicated communities of readers. This requires venturing into innovative business and delivery practices, driven by digital tools and platforms.
Overall,Â 4 different training modulesÂ of around 10 to 12 hours each will be offered to interested practitioners, first between April and June 2021, and then a second time in the autumn of this year. Topics will range fromÂ âdigitization of the publishing workflowâ, andÂ âradical innovationâÂ approaches, toÂ âuser-centric marketingâÂ andÂ ânew business modelsâ, notably in publishing operations specializing in translated fiction.
Each module will introduce a group of around 20 to 25 trainees to market overviews and practical case studies, elements of innovative business practices and hands-on group work. Experienced industry practitioners will act as trainers, together with professional moderators.
Participation in the modules is free but subject to submitting an application with a detailed questionnaire and a motivational letter, available (with more details on the project and the modules) atÂ www.sidt-books.eu; the project management board will retain the final decision on applications.
SIDT is a joint initiative ofÂ Beletrina Academic Press, Ljubljana, Slovenia, theÂ Federation of European Publishers, Brussels, Belgium, theÂ FundaciĂłn GermĂĄn SĂĄnchez RuipĂ©rez, Madrid, Spain,Â Lietuvos LeidÄjĆł AsociacijaÂ (Lithuanian Publishersâ Association), Vilnius, Lithuania, andÂ RĂŒdiger Wischenbart Content and Consulting, Vienna, Austria, as a project coordinator.
The project is co-funded under theÂ Creative EuropeÂ programme by the European Commission.
The seasonâs first workshop in the âReBoot: Books, Business and Readingâ on 25 Feb 2021 took off with promises of a wild ride between some countries and segments where the book trade significantly expanded, driven by an increase in reading, while other markets and segments of the industry had to confront loss and swings in consumer habits.
In Sweden, publishers recorded gains in revenue of 8.7% in 2020 â and a stunning surge of +21.5% in (mostly digital) units. For the first time digital overtook physical sales, and most of digital turnover was earned through audiobook subscriptions.
The USA saw 9% more copies shipped, while revenues stayed flat with +0.8%. The real drama however required to go into the details, as online sales surged by +43% in 2020, bringing print books up +8.2% in revenue, and ebooks +12.6%, while physical bookstores, drowned by -28.3%.
Germany (-2.3% in book revenue) and France (-4.5%), the two usually boringly robust European markets saw each an up and down along the Covdid-19 year, shaped by lookdowns and closures of bookstores, followed by bold interim recoveries, praised as proof for the resilience of the book sector. But again, a deep rift opened, setting apart the overall market performance from a much more challenged brick and mortar retail sector, where turnover dropped by -8.7% and unit sales even by -12%.
In Poland, unit sales were remarkably robust, but returns fell off quickly, as heavy discounting led to price wars. E-commerce moved mainstream even in countries with a particularly low digital penetration, like Greece.
Overall, the ReBoot workshop provided data and analysis on some 20 different territories all over Europe and the Americas, covering namely Argentina, Austria, Brazil, China, Finland, France, Germany, Greece, Portugal, Sweden, Norway, Turkey, UK, US, and by industry segment fiction and nonfiction, as compared to children and young adult, as well as by formats and sales channels â notably print, ebooks, audiobooks, e-commerce, and subscriptions, as well as digital library lending.
In many countries publishers found themselves in a stronger position than retailers. Pandemic sales hit hardest the big chain bookstores, while giving some advantages to small independents and, of course, online (or omni channel) shops. Digital library loans soared. Backlist titles gained ground, while front-list â put aside a few blockbusters â saw their share in decline. And in many parts of the industry, new alliances and new fields for experimentation opened.
We are grateful to all participants, and in particular to those sharing their insights and learnings, including Andrew Albanese (US), Johanna Brinton (UK), Carlo Carrenho (BR/SE), Giacomo DâAngelo (IT), Sonia Draga (PL), Michalis Kalamaras (GR), Thad McIlroy (US), Gerson Ramos (BR), Enrico Turrin (BE/EU), and Burcu Ărsin (TR).
A complete video recording of the session, and presentations with rich data and detail, will be made available to all registered ReBoot members in the ReBoot Box.
Register now at www.rebootbooks.org to get your pass offering access to the Box and to the next Reboot events on April 21st and June 15.
Launching ReBoot 2021: The Repair Shop. Assessing the damage and fixing it!
December 14, 2020 by ruediger
After a widely received first season in fall 2020, with four Preparations Workshops and a 6-hour state of the industry debate on October 13 â attended by 200 experienced industry leaders from 28 countries in a unique mix of heads of worldwide corporations and small local innovators â, it is time to move on.
In the first half year of 2021, ReBoot proposes a systematic assessment of the damage, based on a rich survey of multiple data sources and intertwined with a structured set of workshops, with the goal of comparing lessons, experiences, and proposed solutions.
ReBoot will focus on how authors, publishers, suppliers, and retailers:
- Operate in highly dynamic markets, defined by changing consumer habits and mounting competition for consumersâ attention and budgets;
- Manage seamlessly multiple formats, business and distribution models, while new entrants from other media industries approach the same audiences;
- Learn to directly target consumers, build sustainable communities around more granular audiences, and attract the best creative talent for books and readers.
The Repair workshop calendar foresees three units of 2-4 hours in the first half year of 2021:
- 25 FEB 2021: Assessing the damage, and identifying the key lessons for looking forward;
- 21 APR 2021: How to fix what is broken, and who can offer the best tools for that aim;
- 15 JUN 2021: Navigating to new islands and sailing with the winds of change.
You can subscribe to all three ReBoot units plus get permanent access to the ReBoot Box, which contains rich and relevant documentation plus video recordings of all sessions,Â at a flat rate of âŹ 149, or buy tickets for each unit separately at âŹ 99.
We invite sponsors and partners to engage with ReBoot on a continuous basis, with customized cooperation packages starting at âŹ 5,000 for 1HY2021.
Find out about all details, and register right away at www.rebootbooks.org.
Follow us for updates on Twitter at @rebootbooks
You can recap ReBoot in fall 2020 in 3 blogposts: