Understanding the Pace of Change -- Presented by Jonathan Nowell, President, Nielsen Book At Publishers Launch Frankfurt, Frankfurt Book Fair, 8 October 2013 In this presentation, Jonathan Nowell, head of Nielsen’s Book information businesses, looks at how the market for books has changed in the US and the UK, and he offers insights about the pace of change in other markets. He looks at the growth of both ebook and online purchasing, as well as the competition the book as a medium faces from other entertainment sectors.

1. BOOK MARKETS
FORMATS AND CHANNELS
NIELSEN INSIGHT INTO THE BOOK MARKET
At the vanguard of the retail revolution

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AGENDA
• Nielsen Book’s recent acquisition
• Latest print and ebook trends (US and UK)
• Online sales trends (US and UK)
• The new/old challenge

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0
100
200
300
400
500
600
700
800
900
2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
US Print Book Market (excl. Walmart)
US LONG TERM TRENDS
CAGR 2004-2012 - 1.31%
Source: Nielsen BookScan

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BOOKSCAN US – TOTAL MARKET
0
100
200
300
400
500
600
700
800
900
2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
US Market
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Adult Fiction
0
50
100
150
200
250
300
350
2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Adult Non Fiction
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
All Juvenile
CAGR 2004-2012 -1.31% CAGR 2004-2012 -2.74%
CAGR 2004-2012 +2.98%CAGR 2004-2012 -1.63%
Source: Nielsen BookScan

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BOOKSTATS – US TRADE MARKET $M
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2010 2011 2012
Millions
CAGR 2010-2012 +4.35%
Source: BookStats

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£0
£500
£1,000
£1,500
£2,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
UK TCM
UK LONG TERM TRENDS
Source: BookScan UK

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Percentage of the UK population aged 13-79 that have bought an e-book: 2011-2013
3.5%
11.6%
19.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
23-Jan-11
20-Feb-11
20-Mar-11
17-Apr-11
15-May-11
12-Jun-11
10-Jul-11
07-Aug-11
04-Sep-11
02-Oct-11
30-Oct-11
27-Nov-11
25-Dec-11
22-Jan-12
19-Feb-12
18-Mar-12
15-Apr-12
13-May-12
10-Jun-12
08-Jul-12
05-Aug-12
02-Sep-12
30-Sep-12
28-Oct-12
25-Nov-12
23-Dec-12
20-Jan-13
17-Feb-13
17-Mar-13
14-Apr-13
13-May-13
09-Jun-13
UK-DIGITAL CUMULATIVE PENETRATION
Market penetration in percentage terms
Nielsen Insight into the E-book Consumer Market: September 2013

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Volume sales through the 24-week period ending 09-Jun-13
versus comparative periods in previous years
125.9m
108.7m
84.7m
6.6m
19.8m 22.0m
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
2011 2012 2013
Printed books E-books
UK SALES REPORT – ALL BOOKS YTD
Year-to-date update: printed books versus e-books
Nielsen Insight into the E-book Consumer Market: September 2013
Value sales through the 24-week period ending 09-Jun-13
versus comparative periods in previous years
£764.0m
£676.1m
£540.5m
£23.8m
£60.8m £66.2m
£0
£100,000,000
£200,000,000
£300,000,000
£400,000,000
£500,000,000
£600,000,000
£700,000,000
£800,000,000
£900,000,000
2011 2012 2013
Printed books E-books

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Volume sales per four-week period, through the period ending 09-Jun-13
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
23-Jan-11
20-Feb-11
20-Mar-11
17-Apr-11
15-May-11
12-Jun-11
10-Jul-11
07-Aug-11
04-Sep-11
02-Oct-11
30-Oct-11
27-Nov-11
25-Dec-11
22-Jan-12
19-Feb-12
18-Mar-12
15-Apr-12
13-May-12
10-Jun-12
08-Jul-12
05-Aug-12
02-Sep-12
30-Sep-12
28-Oct-12
25-Nov-12
23-Dec-12
20-Jan-13
17-Feb-13
17-Mar-13
14-Apr-13
13-May-13
09-Jun-13
Print books
E-books
Trendline
UK SALES REPORT – VOLUME TREND BY MONTH
Volume sales of physical books and e-books since 2011
Nielsen Insight into the E-book Consumer Market: September 2013

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0
5
10
15
20
25
30
35
40
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
YTD
Ineternet Value Share
Percentage
Source: Kantar Worldpanel
UK VALUE SALES – INTERNET SHARE
• Value Sales Share Physical books- Annual

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Percentage
Source: Bowker Market Research
US VALUE SALES– INTERNET SHARE
• Value Sales Share Physical books- Annual
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2009 2010 2011 2012 Jan - June 2013
All Internet(Value $)
All Internet(Value $)

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LEISURE TIME ENTERTAINMENT ACTIVITIES
Source: Nielsen Entertainment’s Music 360 2013 (August 2013)
CSOC. Hours of leisure time spent on each of the following, when it is your primary activity - Mean Summary (Including Zero)
Watching Video Content (net)
Using Social Networks (net)
Other Entertainment Activities (Hobbies,
Personal Wellness, Exercise, Sports, Dining Out,
Shopping For Fun, Going To A Park, Beach, Etc.)
Reading (net)
Listen To Music (Cds, Digital Tracks/Albums,
Radio, Streaming, Or Other Forms Of Music)
Play Video Games (On A Console, Handheld,
Computer, Cell Phone Or Online)
Weekly Hours of Leisure Time Spent by Activity
Total US
% of Total
Leisure
Time
45%
15%
12%
10%
8%
6%

13. THANK YOU
HALLE 8.0 H.6
Jonathan Nowell Nielsen Book
Jonathan.Nowell@nielsen.com
www.nielsenbook.co.uk
www.nielsen.com

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KANTAR WORLDPANEL INFORMATION & METHODOLOGY
General overview
• Nielsen BookScan’s Total Consumer Market (TCM) covers approximately 90% of all consumer printed book sales in the
UK, collecting point-of-sale transactional-level data from more than 6,500 book retail outlets. The TCM offers an
extremely accurate analysis of the size and shape of the printed book market in the UK down to individual title level.
• The Kantar Worldpanel, on the other hand, can be utilised to extract detail on the UK book market that is not currently
available to BookScan – specifically data referring to the purchasers of books, rather than just sales of books. However, it
is unable to provide sales by individual title.
• Kantar Worldpanel data also offers other major attractions: its continuous panel of 15,000-plus UK-based consumers
reports on where they bought books without needing the agreement of the retailers in question (unlike Nielsen
BookScan), while its panel of consumers also reveals the formats of their purchases. Kantar data therefore gives, for the
first time, a robust picture of the digital book market in the UK, including e-book sales from Amazon.
• Although both the Nielsen BookScan and Kantar Worldpanel data-sets do not provide perfect, 100% coverage of UK book
sales (not all UK book retailers are members of Nielsen BookScan’s TCM panel, while Kantar’s Consumer panel consists of
13-79 year old individuals domiciled in the UK only), both data sets trend in the same way and, as such, compliment each
other to produce an incredibly accurate overview of the UK consumer book market.
Nielsen Insight into the E-book Consumer Market: September 2013