1. The E-Book Era is Now:What does it look like from a consumer perspective and what do we do about it?BEA | May 24, 20111 2011, the Book Industry Study Group, Inc.

2. Two StudiesMethodologyPubTrack Consumer panel of U.S. bookbuying men, women and teens balanced to US Census Report 2 of 4 Survey pool of ~78KApril 2011 book consumers at thetime of last fielding 95% probability threshold2-Year Study 5 publications to date 22 2011, the Book Industry Study Group, Inc. 3. Two StudiesMethodologyPubTrack Consumerpanel of U.S. college students All institution types all grade levels balanced to statistics from American Council on Education 1,500 students per fielding 95% probability2-Year Study 2 publications to date threshold 33 2011, the Book Industry Study Group, Inc. 4. Amazons Kindle E-BooksOutselling Paper Books4 2011, the Book Industry Study Group, Inc. 5. Trade E-Book Market Growth Rate16.0% est. % ebooks purchased14.0%All Markets 14.8% 12.7%12.0% 12.2% 11.50%10.0%9.0% 8.0% 7.0% 6.0%5.2%4.9%4.6% 4.0% 3.9%3.6%4.1% 4.3% 2.8%3.2% 3.5%2.8% 2.8%2.8%2.4% 2.6% 2.0% 1.9% 2.0% 2.0%2.0% 0.0%5 2011, the Book Industry Study Group, Inc. 6. Higher Ed Textbook Market Spring 2011 6 2011, the Book Industry Study Group, Inc. 7. 7 2011, the Book Industry Study Group, Inc. 8. How do you define E-Book? 8 2011, the Book Industry Study Group, Inc. 9. Merging of Software, Hardware, Retail,and Content9 2011, the Book Industry Study Group, Inc. 10. Who is Todays Core Trade E-Book Buyer? Woman (66%) ~44 years old HH Income ~$77K Yr Predominantly Fiction(58% of all e sold)Buyer mostlyRomance10 2011, the Book Industry Study Group, Inc. 11. Core buyer of trade E-Books is growing and has tremendous buying power! Frequency of Purchase11 2011, the Book Industry Study Group, Inc. 12. Tracking the Trade Power Buyers for Clues12 2011, the Book Industry Study Group, Inc. 13. Who is Todays Core E-Textbook Buyer? Male ~23 Graduate Student or Distance Learner More likely pirate print or digital texts then under-classmen Still only buys a small portion of his texts 17% as e 13 2011, the Book Industry Study Group, Inc. 14. E-Texts do not have a clear source for download 14 2011, the Book Industry Study Group, Inc. 15. Kindle is the dominant source for Trade E-Book downloads 15 2011, the Book Industry Study Group, Inc. 16. Dedicated e-readers Now Dominatethe Trade Market16 2011, the Book Industry Study Group, Inc. 17. And Kindle still dominates the tradedevice market45 41 November 2010 January 2011403935302520 1515 10 1010 7 565 430 Kindle iPhoneiPad SonyNook17 2011, the Book Industry Study Group, Inc. 18. Not So in the Higher Ed MarketSpring Semester 2011 18 2011, the Book Industry Study Group, Inc. 19. Feature requirements from studentsare demanding on E-Books19 2011, the Book Industry Study Group, Inc. 20. When given a choice, students chooseprint over e 3 out of 4 timesFormat preference: No preference 13%E- textbook 12% Physicaltextbook75% 20 2011, the Book Industry Study Group, Inc. 21. And findother forms of digital contentmore usefulthan E- Books21 2011, the Book Industry Study Group, Inc. 22. For now, devices are meeting theexpectations of trade E-Book buyers 22 2011, the Book Industry Study Group, Inc. 23. While still lacking functionality, students perceive similar value points to trade 23 2011, the Book Industry Study Group, Inc. 24. Wish list of trade E-Book buyers offer clues for the future24 2011, the Book Industry Study Group, Inc. 25. Similarly, customer satisfaction can offer strong clues as well25 2011, the Book Industry Study Group, Inc. 26. Customer satisfaction can also play a big role in future purchase 26 2011, the Book Industry Study Group, Inc. 27. Recommendation from a friend ondevice purchase plays important role 27 2011, the Book Industry Study Group, Inc. 28. At the end of the day what impactare E-Books having on the HE market?Higher Ed Market Too early to tell Device development Entrenched Traditional Learning Models Digital Fatigue Cost Barriers Maturing Content Platforms 28 2011, the Book Industry Study Group, Inc. 29. At the end of the day what impact are E-Books having on the Trade market? 29 2011, the Book Industry Study Group, Inc. 30. What impact are E-Books having on the Trade market?30 2011, the Book Industry Study Group, Inc. 31. Trade E-Book Consumers are buying more titles31 2011, the Book Industry Study Group, Inc. 32. How does this show in the $$$? 32 2011, the Book Industry Study Group, Inc. 33. Majority of trade consumers nowreport spending more money overall33 2011, the Book Industry Study Group, Inc. 34. The bigger the E-Book market gets34 2011, the Book Industry Study Group, Inc. 35. Thank you!Kelly GallagherKelly.Gallagher@Bowker.comFor Consumer Attitudes StudyAngela@BISG.org35 2011, the Book Industry Study Group, Inc.35