BRAZIL Highlights of a tropical and emerging digital market Digital Minds Conference 2013 14th April 2013, QEII Conference Centre Our Economy GNP in 2012: US$ 2.42 trillion Brazilian GNP Growth Rate 8.0 7.0 6.0 Percentual Growth 5.0 4.0 3.0 2.0 1.0 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -1.0 Source: IBGE Forecasted Growth for 2013: 3.0 % Digital Minds Conference 2013 14th April 2013, QEII Conference Centre Our Income Distribution E-Class: US$ 0 to US$ 369 D-Class: US$ 369 to US$ 590 C-Class: US$ 590 to US$ 2541 AB -Class: Over US$ 2541 The Social Classes's Mobility * Monthly family income 60 Percentage of the Population 50 40 E-class D-class 30 C-class AB-class 20 10 0 2003 2004 2005 2006 2007 2008 2009 Digital Minds Conference 2013 14th April 2013, QEII Conference Centre 2010 2011 Source: Centro de Políticas Sociais | FGV The Number of Students Is Up College Students in Brazil 7,000,000 Number of Enrollments 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2001 2002 2003 2004 Private Students 2005 2006 Public Students Source: Censo da Educação Superior 2010 | Inep, MEC Digital Minds Conference 2013 14th April 2013, QEII Conference Centre 2007 2008 2009 2010 The Book Market (2011) Total publishers revenue : US$ 2.576 bi Government purchases: US$ 739 million Government share: 28.7% K-12 share: 53.2% Digital Minds Conference 2013 14th April 2013, QEII Conference Centre 9th largest book market in the world according to The Global Map of Publishing Markets ’12 (Ruediger Wischenbart) The Digital Share Digital Market Share on Trade Books 3.00% 2.63% % on trade books 2.50% 2.00% 1.50% 1.00% 0.50% 0.47% 0.00% 2012 2013 (forecast) Source: www.tiposdigitais.com Digital Minds Conference 2013 14th April 2013, QEII Conference Centre The D-Day Digital Minds Conference 2013 14th April 2013, QEII Conference Centre The Apple-Day Digital Minds Conference 2013 14th April 2013, QEII Conference Centre 50,000 45,000 Dec '12: Amazon, Google & Kobo launches 40,000 30,000 25,000 20,000 Oct '12: Apple launches 15,000 10,000 5,000 Jan '12 Feb '12 Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Mar '13 Digital Minds Conference 2013 14th April 2013, QEII Conference Centre Source: DLD Number of eBooks sold 35,000 DLD Mar '12 eBook Units Sales by Retailer Other Kobo # 5 5,2% 11,8% Apple # 1 28,5% Saraiva # 4 15% Amazon # 2 22% Apple #1 - 28,5% Amazon #2 - 22% Google #3 - 17,5% Saraiva #4 - 15% Kobo #5 - 11,8% Other - 5,2% Digital Minds Conference 2013 14th April 2013, QEII Conference Centre Source: DLD Google # 3 17,5% The Tablets + The Smartphones # of active iPhones in Brazil: # of active iPads: 1,78 mi 1,06 mi # of active Android Smartphones: 8,29 mi # of active Android tablets: 2,64 mi Source: www.TiposDigitais.com Digital Minds Conference 2013 14th April 2013, QEII Conference Centre Around 3 million active iOS users in Brazil Around 11 million active Android users in Brazil The eBookstore Ranking eBookstore ranking in Dec ‘12 eBookstore ranking in Mar ‘12 1. Apple 1. Apple 2. Google 3. Saraiva 4. Amazon 5. Kobo / Cultura 2. Amazon 3. Google 4. Saraiva 5. Kobo / Cultura Digital Minds Conference 2013 14th April 2013, QEII Conference Centre A Good Public Example CAPES, the governmental agency responsible for developing research and post-graduate education in Brazil, spends around US$ 66 million per year on journals and e-books to fill its Portal de Periódicos. They offer over 33,000 scientific journals and 150,000 eBooks to 300 universities in Brazil. Digital Minds Conference 2013 14th April 2013, QEII Conference Centre A Good Private Example MINHA BIBLIOTECA is a consortium of four large high education textbook publishers in Brazil to offer Brazilian universities a full library to be accessible by their students. • Operational in Jan ’12 • Offers 3,500 titles (a 200% growth in 2012) • Has 26 universities (mostly private) as users • Offers eBooks through both cloud licensing and traditional sales models • Uses Ingram’s VitalSource Digital Minds Conference 2013 14th April 2013, QEII Conference Centre The Challenges Legal: Is the agency model legal in Brazil? Tax-related: Are eBooks tax-free in Brazil Production: The Brazilian eBook catalogue is below 20,000 titles Distribution: Digital aggregation and distribuition still limited in the country Device prices: A WiFi Paperwhite for US$ 240? The cheapest iPad4 for US$ 1,050? Digital Minds Conference 2013 14th April 2013, QEII Conference Centre What?!?!? You don’t subscribe to PublishNews Brazil yet? It is free! www.publishnewsbrazil.com Carlo Carrenho Publishing Consultant| Trade Journalist carrenho@gmail.com @carrenho Digital Minds Conference 2013 14th April 2013, QEII Conference Centre