As a member of the first-ever US publishing mission to Cuba, I had the opportunity to attend at speak at the Havana Book Fair. I talked about what the digital transformation has looked like in the U.S. and what that has meant for our industry. Particularly relevant for the Cuban industry right now are what I called the 5 major outcomes of ebooks.

1. Dominique Raccah
CEO + Publisher — Sourcebooks
The Development
of Digital
US-Cuba Mission
Feb 2016

2. About Sourcebooks
• Founded Sourcebooks in my home in 1987
• Today, we publish over 400 new titles a year
• Over 130 employees
• Located outside of Chicago, with offices in NY and CT
• We have dozens of bestselling authors and books
• Publish from how-to to children’s books, both fiction and non-
fiction, including in Spanish
• Entrepreneurial and agile
• Always looking for extraordinary voices in every area

3. 2015 Extraordinary Growth — 17% growth (Bookscan POS)!
Sourcebooks (Adult Nonfic)
Sourcebooks Casablanca (romance)
Sourcebooks Landmark (fiction)
Sourcebooks Jabberwocky
(children’s)
Sourcebooks Fire (young adult)
4%
2%
23%
89%
44%

4. Growth Continuing in 2016 (up 23%)

5. Indie Bestseller + New York Times Bestseller

6. Publishing Innovator of the Year

7. Our Shared Purpose
We are an organization bound
together by the belief that
books change lives

8. The Rapidly Evolving US Book Publishing Industry
Digital today
Online Retail + Distribution
Digital Content + ebooks
5 Major Outcomes of ebooks

9. Important to note
2 transformations taking place

10. Online Distribution/Retail
Print
Digital
Brick and Mortar Retail
Online Retail
Format/Content

11. 1. Online retail + distribution

12. Online retail is
still less than
15% of retail $
in America

13. Online
shopping in US
is dominated
by Amazon

14. Today, U.S.
retailers are
working hard
to buildout
their
ecommerce
capabilities to
compete with
Amazon

15. And we are
seeing the
resurgence of
independent
bookstores
across
America

16. 2. digital content + ebooks

17. 2 type of digital book content—apps + ebooks

18. Very important
to create
efficient
workflows or
you can work
with an ebook
distributor

19. what we experienced during the
development of ebooks

20. eBooks Growth: 2008 – 2013

21. Female
45-54 years old
Clerical worker or
homemaker
Amazon Kindle user
ebook customer in America

22. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Environmental
factors
Searchability
Speed
of
access
Ease
of
acquisiCon
Portability
Readability
(adjustable
font
size)
Affordability
Very
important
All about affordability
© 2014, Book Industry Study Group, Inc.

23. Decline in price of traditionally published e-books
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
E-­‐Books
SoRcover
Hardcover
2008
2009
2010
2011
2012

24. ©
2013,
the
Book
Industry
Study
Group,
Inc.
Adult Fiction
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2008
2009
2010
2011
2012
2013
Hardcover
Mass-­‐market
SoRcover
E-­‐Books
© 2014, Book Industry Study Group, Inc.

25. Today in Books in English: #
Print AND Digital
• In U.S., ebooks are replacing/displacing our cheapest
formats
• BIGGEST impact on fiction sales and narrative
• BIG impact on ebook pricing in these categories
• Much less impact on other categories of books

26. 2015 Print Book Bookscan Unit Sales (52 week)
Industry 2015
Bookscan POS
2.3%!

27. 5 major outcomes of ebooks

28. 1. The Self-
Publishing
Boom —
authors have a
lot more choices

29. 2. Lots more
books/
content = the
challenge of
discovery

30. Mobile — anytime, anywhere
Anytime, anywhere reading.
Anytime, anywhere buying.

31. Global + Rights
The global opportunity?
Can we, must we, rethink
how rights work around the world?

32. Digital has also allowed for development of new models
Subscription
Personalization
Enhanced
ebooks + apps

33. More to come…

34. Why readers love Put Me in the Story
Saying “I Love You”
You are the Star of the
Story
All the ways “I Love You”

35. Why readers love Put Me in the Story
Your child as narrator
Your child’s name woven into
Illustration
Play “I Spy” with your
child’s face
CONFIDENTIAL

36. The challenge of digital
ü Continuous pressure on pricing
ü Struggling to get reader’s time
ü Challenge of discovery

37. The promise of digital
ü Anytime, anywhere buying and reading
ü Print “AND” digital (not “or”)
ü A world of readers—expanding print
AND digital book market
ü Books are more important today

38. “
”
We should
try to be the
parents of
our future
rather than
the offspring
of our past.
“Procuremos más ser
padres de nuestro
porvenir que hijos de
nuestro pasado.”
—Miguel de Unamuno
(1864-1936)
Spanish essayist, novelist, poet,
playwright, and philosopher

39. Gracias!!
Any Questions??