E-book market continues growth trajectory
Latest analysis shows sales in western Europe quadrupled last year and will rise further in 2011
The western European e-book market will tip 32 million paid-for units this year, according to audiovisual market watcher Futuresource.
Fiona Hoy, market analyst at Futuresource, said e-books are gaining even more traction on last year's 400 per cent growth rate to achieve total unit sales of 32 million in 2011.
"During the past 12 months there has been a notable change in the industry's attitude towards e-books, with publishers and retailers alike underlining the importance of a digital revenue stream to help offset the slow decline of the previously stable western European physical book market," she said.
"There are enormous opportunities within the market, and our forecasts show western European e-book revenue will reach €1.6bn (£1.4bn) by 2015, accounting for 15 per cent of total book spend and representing one out of every five books sold in the region."
Hoy said the market is still in its infancy despite this rapid growth in demand, currently representing less than one per cent of total consumer spending on books.
The UK continues to dominate – generating close to half of all the western European spend on e-books last year and on track to buy £100m of e-books this year. The UK buys only 15 per cent of the region's physical books.
"The introduction of Amazon's e-reading device and Kindle Store to the UK during August 2010 was a key catalyst behind the UK's strong growth," Hoy added. "Within a five-month period Amazon sold close to 400,000 Kindle devices and achieved e-book sales in the region of £20m."
Amazon also provided an extensive catalogue of e-book titles at loss-leading price points from key publishers, coupling that with aggressive TV and print advertising campaigns.
Germany has the highest per-capita spend on books in western Europe – about twice that of the UK – and the opportunity for e-books there remains highly favourable. However, local book pricing laws will restrict companies from replicating the loss-leading pricing strategies that have been implemented in the UK and US, said Hoy.