Amazon.com has announced that it now sells more e-books than printed books. This has happened occasionally in the past, but Amazon says the sales pattern is now sustained; its digital sales have tripled in a year. Amazon UK, now sells twice as many digital books as hardcover books.
In a recent blog post, Surviving the digital onslaught with a new marketing strategy, I reported that it is estimated that digital books will represent 40% of book sales within 5 years. This year, e-book sales in the US are predicted to be US$1.2bn this year, compared to US$9.3bn for print – that’s about 11%, so there is still some way to go. But this market is only going in one direction.
Although shipping and production costs (eg printing, binding, shipping) are lower, digital books retail for less than $10 so the publisher and retailer margins are lower too, a lot lower.
It’s difficult to see how the volume of books sold will increase substantially just because the format is changing, as people are unlikely to start reading twice as many books. Unless they can find new readers, the total sector revenue will decline significantly from the $10.5bn, which puts great pressure on everyone in the value chain. It’s a time of change.
The Marketing thought
Look out for creative marketing solutions to this problem as the retail market moves rapidly from brick and mortar stores to e-stores and more authors bypass the big marketing machines and either go direct or through new independent marketing organizations.
Just a thought
Tim
Reference: Globe & Mail, Kindle sales eclipse print at Amazon
Photo taken and licensed by Paul Watson.
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{ 2 comments… read them below or add one }
Hey Tim,
I read about 50 books a year, so by most peoples standards I read a lot.
The kindle has made it easier, quicker, cheaper, and most importantly more convenient. When I am done a book I can download the next in 2 minutes without a commute to a book store.
The other topic you did not touch on is the increased volume of audio books that itunes, and audible are selling.
Both digital formats allow for ease of purchase and in my particular case have led to increased volumes. Not sure if this applies to others.
Stuart
Thanks for your comment Stuart,
I know others who also love using the new electronic readers. As in your case, the number of books individuals read may increase, but that’ll do nothing for the old brick & mortar stores.
Happy reading
Tim