Not every part of publishing is flat or shrinking. There is growth and great potential in many digital formats, including audio books. In this session, Dan and Cory will discuss the potential of various digital mediums including audio books specifically, the digital “tipping point” in the variety of formats, and the unique opportunities in this market, including a lesson from the ABA sub rights market.

1. Audiobooks
not just another format

2. Audiobook Annual Sales
Year Sales
2007 $1,033,760,000
2006 $923,000,000
2005 $865,000,000
*SOURCE: AUDIO PUBLISHERS ASSOCIATION

3. 2008 Overview from AAP
Net sales of $24.3 billion in 2008, down from $25.0 billion in 2007,
representing a 2.8% decrease. In the last six years the industry had a
compound annual growth rate (CAGR) of 1.6%.
Audio book sales for 2008 totaled $172 million, down 21% on the prior
year, CAGR for this category is still healthy at 3.1%.
E-books continue to grow significantly, sales reached $113 million in
2008, up 68.4%. (.05% of total publishing revenues)
NOTE: If e-book share of sales grew at an average annual rate of 50%,
in 12 years, they would still amount to less than 10% of all sales.
However, within six years after that they would be 100% of the sales.
*SOURCE: AAP

4. Where did audiobooks sell
in 2007?
Where? %
Public Libraries 43%
Retail Bookstores 27%
Online Retailer 15%
Online Download 9%
Audio-only Bookstore 3%
Audio rental website 1%
File sharing website 1%
Other 1%
*SOURCE: AUDIO PUBLISHERS ASSOCIATION

5. Abridged vs. Unabridged
Format Sales
Unabridged 70%
Abridged 30%
*SOURCE: AUDIO PUBLISHERS ASSOCIATION, 2007

6. Consumer Survey
A web-based survey was
completed by 2,363 U.S. adult
(18+) consumers from May to
July 2008. The sample was
chosen to reflect U.S. Census
data related to age, gender,
education, household income,
region of the U.S. and Number
of people in the household.

7. The top five favorite audiobook genres reported by
respondents of the Consumer Survey conducted in
mid 2008.
1. Mystery/Thriller/ Different age brackets prefer
different genres:
Suspense
The fastest growing age
bracket, 18-24 year olds,
2. General Fiction showed a preference for
comedy and science fiction/
3. Science Fiction/Fantasy fantasy.
Listeners over the age of 35
4. Biography/Memoir showed a preference for
mystery/thriller/suspense and
5. Classic Fiction general fiction.
*SOURCE: APA

8. Audiobook % of sales compared to print
edition on Assorted Top Titles from 2008
in CBA Channels
Title Author % of audio
3:16 Lucado, Max 4.5%
90 Minutes in Heaven Murphey, Cecil 3.5%
Captivating Eldredge, Stasi 2.4%
Five Love Languages Chapman, Gary 1.3%
Forbidden Lewis, Beverly 1%
Have a New Kid by Friday Leman, Kevin 1.5%
Love and Respect Eggerichs, Emerson 3.2%
Shack (audio released July, 2008) Young, Willam Paul 1.6%
*SOURCE: PUBTRACK

9. Format overview 2004-2007
Year CD Cassette Download Other
2004 63% 30% 6% 1%
2005 74% 16% 9% 1%
2006 77% 7% 14% 2%
2007 78% 3% 17% 2%
*SOURCE: APA

10. Format predictions
Year CD Cassette Download Other
2004 63% 30% 6% 1%
2005 74% 16% 9% 1%
2006 77% 7% 14% 2%
2007 78% 3% 17% 2%
2008 75% 1% 21% 3%
2009 71% 1% 24% 4%
2010 64% 1% 30% 5%
2011 57% 1% 37% 5%
2012 49% 0% 45% 6%
2013 39% 0% 55% 6%
2014 29% 0% 64% 7%
2015 18% 0% 75% 7%
*SOURCE: DAN BALOW, OASIS AUDIO

11. Going digital -
it’s not too
late...
The digital media space
provides unique marketing and
distribution opportunities

12. Going digital:
obvious benefits
No inventory
Less overhead
Better margins
Less investment
No physical product

13. Going digital:
factors fueling growth
More awareness and places to buy
Broadband connections & inexpensive storage options
Digital players are inexpensive and widely available
More content
Downloading is getting easier

14. Going digital:
key factors inhibiting
growth
The Reality: for many (most?), downloadable
audiobooks are not easy to use
Format confusion
Player ramp-up / confusion
Metadata issues - spotty data, multiple standards, inconsistent naming
(tagging of files)
No standardized process for downloading

15. Unique
Opportunities:
Not just another format...

16. Unique Opportunities:
Contextual Delivery
iPhone applications
Podcasting
Viral Marketing
Premium offers
Targeted offers

17. Unique Opportunities:
Classic Marketing
Cross media excerpts
Magazine content
Audio samples
First chapters
Sales sheets
Teasers
Streaming content

18. The elephant in the
room? DRM
DRM doesn’t work. It’s easy to
break
It inhibits sales and renders files
virtually unusable in the most of
circumstances
Doesn’t stop file sharing