662 million digital books were borrowed in 2023, up 19%. Don’t tell Markus Dohle!

From The New Publishing Standard:

With the waiting list at 253 million, OverDrive saw demand for almost one billion downloads in 2022.
OverDrive’s digital library lending numbers for 2023 have been announced, and as usual its bad news for the Markus Dohle fantasy world where ebooks are forever 20% of the market.

With digital checkouts totalling 662 million, a 19% rise on 2022, here’s how the numbers broke down for 2023.

Ebooks: 370 million, up 12%

Audiobooks: 235 million, up 23%

Magazines: 56 million, up 75%

Comics and graphic novels: 37 million, up 14%

And to rub salt into Dohle’s wounds, the ebook and audiobook holds/wait list stood at 253 million (+19%). In other words there would have even a further 253 million downloads, taking the total to 915 million. And to put that yet another way, if the content had been available, OverDrive could have clocked close to one billion digital downloads last year.

Globally, 152 public library systems in seven countries (up 13%) clocked more than one million downloads apiece, and among those 72 clocked more than two million, while the front runners saw downloads hit 11 and 12 million. (Details to be published by OverDrive soon.)

. . . .

Unlike retail and subscription – even all-you-can-eat subscription – there is no price friction when it comes to digital libraries.

Yet still ebook consumption outperforms audiobook consumption by 36.5%, with 135 million more ebooks being borrowed than audiobooks.

Don’t tell Markus!

Link to the rest at The New Publishing Standard

Markus Dohle was the Chief Executive Officer of Penguin Random House until he quit in January, 2023.

Markus was dead set against ebook subscription or lending programs for just about anybody, including libraries.

Dohle told the Court during a trial for illegal price-fixing (that snagged most of the big book publishers in the dumbest violation of US Antitrust laws that PG has ever seen or read about) that if subscription got its wicked way there would be no bricks & mortar retail left within three years, and that publishers would be “dependent on a few Silicon Valley or Swedish companies”. That of course is totally unacceptable. Imagine if two German companies dominated the US publishing sector. No, wait…

Here’s a lovely quote from one of Dohle’s side-kicks:

PRH UK CEO Tom Weldon, in full gatekeeper costume, said in 2014, “We have two problems with subscription. We are not convinced it is what readers want. ‘Eat everything you can’ isn’t a reader’s mindset. In music or film you might want 10,000 songs or films, but I don’t think you want 10,000 books.”

The obvious answer is if readers don’t like book subscriptions, they won’t buy/use them. The popularity and success of Kindle Unlimited and your local public library’s ebook borrowing programs just might indicate that the heights (or depths) of traditional publishers are really pretty stupid.

Kindle Unlimited paid out over $250 million to indie authors in H1 as APA reports total H1 ebook market of $500 million

From The New Publishing Standard:

The industry journals are reporting the latest APA figures, summing up June and the first six months of 2022, painting a bleak picture for the ebook format, down 6.3% in June to $83 million compared to 2021, and down 8.5% to $500.4 million for the first six months of 2022.

By value ebooks accounted for just 12.7% of the trade market.

Except that it didn’t. At least not the total market. These figures are just those from the publishers reporting to the APA, and to be clear the APA itself makes no claim to be reporting the whole market. Not that you’d know that from some reportage, which treats the APA numbers as a definitive statement on the US ebook market.

What isn’t the APA counting? Essentially any publishers that do not report to the APA – which means all indie authors, APub, and countless small presses.

Indies of course are famously digital-first publishers, and many are solely ebook focussed. Many non-reporting small publishers are digital first or have a strong digital portfolio. APub publishes ebooks, audio and print, but given Amazon owns the Kindle store it’s a given that its titles own the Kindle store charts, as any glance at the ebook charts will confirm.

Given none of these report to the APA it’s also a given – but not one many in the industry want to say out loud – that the APA statistics only show us part of the picture.

But just how much more in trade value might the APA be missing?

We cannot know for sure, but we can be sure APub is the single biggest player in this uncounted field, and that it won’t be sharing its numbers any time soon.

But Amazon does share the amount it pays out to indie authors through the Kindle Unlimited ebook subscription platform. This doesn’t tell us total revenue, but the “royalty” paid through the “pot”.

To be clear, the pot is paid out only to indie authors and small presses loading to the Kindle store via KDP and that are enrolled in the Kindle Unlimited programme.

Bigger publishers with titles in Kindle Unlimited are paid à la carte quite separate from the pot. The same applies to APub authors.

But what we do know is how much Amazon paid out to indie authors as “royalties” in June – the same month the APA reported a total of $80 million in cold ebook revenue.

In June Amazon’s Kindle Unlimited pot totaled $43.4 million.

That’s more than half as much again as the total APA reported ebook revenue, and again this figure does not include à la carte sales from indies.

Over the first six months of 2022?

The Kindle Unlimited pot value has risen every single month except February. Here’s the running count:

• $42.2 million in January
• $39.4 million in February
• $41.4 million in March
• $41.5 million in April
• $43.3 million in May
• $43.4 million in June
• $251.2 million = H1 total

Yes, read that again, In the first six months of 2022 the Kindle Unlimited ebook subscription service paid out a quarter million in ”royalties” to participating indie authors and small presses, quite separate from its pay-out to APub authors and to bigger publishers with titles in the programme.

That’s more than half as much again of the total ebook revenue – not royalties but hard revenue – reported by the APA, that has not been counted.

Subscription services notoriously do not pay much to authors/publishers – the June rate for indie authors was $0.00458496 per page read, equivalent to a royalty of $1.37 for a 300 page book assuming all pages parsed.

. . . .

Let me end with this thought: if we take the APA’s June count and add only the Kindle Unlimited pot pay-out we know of, and still exclude all other Kindle Unlimited revenue and all other ebook revenue, that alone takes the ebook total to $123.4 million, compared to the $80 million the APA tells us.

And if we take the H1 APA numbers and the H1 Kindle Unlimited indie pot pay-out together we are looking at a revised ebook value of $751.6 million, compared to the $500.4 million the APA numbers alone tell us.

And of course we are still nowhere near counting all ebook revenue.

Link to the rest at The New Publishing Standard

It’s Time to Embrace Physical Media Again

From LifeHacker:

It’s finally time to admit streaming apps and digital distribution have ruined most creative media industries, and maybe physical media was the right choice all along.

Okay, that’s a tad dramatic. But it’s not exactly wrong.

To be fair, streaming apps aren’t all bad. Streaming services and digital storefronts make it easy to access our favorite shows, bands, and video games on just about any device we own. And they give us legal ways to support legacy media without succumbing to greedy scalpers or shady piracy sites. But what started as a way to “cut the cord” and stick it to cable companies and record labels has only birthed a new corporate overlord—one that does not respect its customers, the media it distributes, or the people who make it.

The issue with streaming and digital media

One could argue annoyances like The Office leaving Netflix or that the first Mannequin film is unavailable digitally while Mannequin 2: On the Move is readily available are just part of the reality of the new digital landscape.

But that impermanence is starting to seem a lot more like a bug than a feature. This past week, we learned Warner Bros. Discovery unceremoniously delisted TV shows from the HBO Max app for no reason other than it wanted to stop paying residuals to its creators—sorry if you ponied up your $14.99 per month expecting HBO Max Originals content to actually be available on HBO Max. Meanwhile, digital video games are regularly delisted from digital shelves, making them impossible to purchase or redownload, even as inevitable server shutdowns render multiplayer modes—or even entire games—unplayable even after you’ve purchased and downloaded the game.

It’s not just music, movies, and games—even ebooks and comics are in peril due to streaming and all-digital platforms. Just look at the backlash against Amazon’s recent Comixology overhaul, which made purchasing new comics almost impossible for certain users, and rendered some comics and manga unreadable thanks to unwanted layout changes.

All streaming apps, regardless of media, revoke your access to their free libraries if you unsubscribe, they experience a sudden service outage, or they permanently go offline—not to mention streaming business models notoriously screw over the artists and creators that distribute their work through these apps.

These issues and more make it increasingly difficult for customers to enjoy their purchases, and make media preservation virtually impossible.

You know what doesn’t have those issues? Physical media.

Link to the rest at LifeHacker

PG doesn’t want to go back to printed books. On rare occasions (once per year or so), he’ll purchase a pbook, but he finds the percentage of those which are set aside after reading the first part is quite high.