The Global eBook Report: Current Conditions & Future Projections. Update October 2013 by Rüdiger Wischenbart Page B
Authors: Rüdiger Wischenbart
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physically. This bottleneck sales problem might end soon, however. Amazon is starting to sign contracts for physical distribution in Brazil, which means that they will solve the logistical issues in the next months, and when they are able to ship books, they will be able to ship Kindles — or anything — and play ball in a much more aggressive way. Amazon also has a strong local team in Brazil.
Apple Apple opened its iBookstore for business in Brazil in October 2012. Even better, it started to sell Brazilian ebooks on that day, since technically a de facto Brazilian store was never opened. When Apple realized it would be a nightmare to use its agency-based business model in a place where books are tax-free but book-related services are not and no lawyer can ultimately guarantee that agency or even retail price controls are actually legal, it decided to use the American iBookstore to sell in the Brazilian market in American dollars. The result, therefore, is not a traditional Brazilian iBookstore but a window of access to Brazilian content available in the American store. This solution, however, also brought some problems. First, Brazilians pay a 6.38% IOF tax when using their credit cards abroad. Second, purchases must be carried out with international credit cards, and only 15% of the Brazilian population possesses them. Finally, the currency conversion only takes place when the credit card invoice is closed and the customer will only know the final price in Reals (R$) when they pay their credit card bills. However, despite all the odds, Apple succeeded in becoming the #1 ebookstore in Brazil during the first half of 2012. Similar to Google, the reason for that is the huge base of existing iPhones and iPads in Brazil, plus the easy shopping experience that is simple and familiar to an audience that already consumes music and apps. Apple’s main challenge in the short term is to launch a real Brazilian store selling locally in the local currency.
Gato Sabido Gato Sabido was the first Brazilian ebookstore, launched in December 2009. Their startup owners then decided to launch the digital aggregator Xeriph and focus on the new venture. Now, that the Abril group has acquired Xeriph, the future of Gato Sabido is uncertain since Abril already has its own ebookstore IBA. Gato Sabido today offers no ereaders and uses Adobe Rights Management.
Google Google Play ’s bookstore section arrived in Brazil on the same day as Kobo and Amazon, in October 2012. Their contract negotiations were lighter and more discreet. They have been quite successful in selling ebooks thanks to the huge base of Android smartphones and tablets in Brazil. For instance, almost 6 million tablets are expected to be sold in Brazil in 2013, according to IDC, and considering the most recent reports on iOS/Android tablet market share, at least 80% of those will be Android. Brazil also has the fourth largest installed base of smartphones in the world, and according to Nielsen, over 90% of the smartphones sold at retail in the first half of 2013 were Androids. It is fair to say that many of those initial Google sales are people experimenting with ebooks and testing the store. Google actually has a very low customer return rate, and most purchases up to now have been made by first-time customers. While Amazon sells more backlist titles than any other retailer in Brazil, Google Play’s front store accounts for around 80% of the sales, making it a very bestseller-focused ebookstore.
IBA IBA was launched in March 2012 by Grupo Abril, one of the largest media companies in Brazil, with a huge presence in magazine publishing, K–12 book publishing, and cable TV. It presents a very solid platform, with a proprietary DRM control, so the readers do not need an Adobe ID. The purchases are made on the website, and the reading is done in apps for iOS, Android, and PC. It is greatly focused on magazines and newspapers, perhaps even more than on ebooks. It has not gained
Apple Apple opened its iBookstore for business in Brazil in October 2012. Even better, it started to sell Brazilian ebooks on that day, since technically a de facto Brazilian store was never opened. When Apple realized it would be a nightmare to use its agency-based business model in a place where books are tax-free but book-related services are not and no lawyer can ultimately guarantee that agency or even retail price controls are actually legal, it decided to use the American iBookstore to sell in the Brazilian market in American dollars. The result, therefore, is not a traditional Brazilian iBookstore but a window of access to Brazilian content available in the American store. This solution, however, also brought some problems. First, Brazilians pay a 6.38% IOF tax when using their credit cards abroad. Second, purchases must be carried out with international credit cards, and only 15% of the Brazilian population possesses them. Finally, the currency conversion only takes place when the credit card invoice is closed and the customer will only know the final price in Reals (R$) when they pay their credit card bills. However, despite all the odds, Apple succeeded in becoming the #1 ebookstore in Brazil during the first half of 2012. Similar to Google, the reason for that is the huge base of existing iPhones and iPads in Brazil, plus the easy shopping experience that is simple and familiar to an audience that already consumes music and apps. Apple’s main challenge in the short term is to launch a real Brazilian store selling locally in the local currency.
Gato Sabido Gato Sabido was the first Brazilian ebookstore, launched in December 2009. Their startup owners then decided to launch the digital aggregator Xeriph and focus on the new venture. Now, that the Abril group has acquired Xeriph, the future of Gato Sabido is uncertain since Abril already has its own ebookstore IBA. Gato Sabido today offers no ereaders and uses Adobe Rights Management.
Google Google Play ’s bookstore section arrived in Brazil on the same day as Kobo and Amazon, in October 2012. Their contract negotiations were lighter and more discreet. They have been quite successful in selling ebooks thanks to the huge base of Android smartphones and tablets in Brazil. For instance, almost 6 million tablets are expected to be sold in Brazil in 2013, according to IDC, and considering the most recent reports on iOS/Android tablet market share, at least 80% of those will be Android. Brazil also has the fourth largest installed base of smartphones in the world, and according to Nielsen, over 90% of the smartphones sold at retail in the first half of 2013 were Androids. It is fair to say that many of those initial Google sales are people experimenting with ebooks and testing the store. Google actually has a very low customer return rate, and most purchases up to now have been made by first-time customers. While Amazon sells more backlist titles than any other retailer in Brazil, Google Play’s front store accounts for around 80% of the sales, making it a very bestseller-focused ebookstore.
IBA IBA was launched in March 2012 by Grupo Abril, one of the largest media companies in Brazil, with a huge presence in magazine publishing, K–12 book publishing, and cable TV. It presents a very solid platform, with a proprietary DRM control, so the readers do not need an Adobe ID. The purchases are made on the website, and the reading is done in apps for iOS, Android, and PC. It is greatly focused on magazines and newspapers, perhaps even more than on ebooks. It has not gained
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