With just 30,000 e-book titles, Japan’s publishers have been reluctant to support e-books out of fear losing revenue and challenging their own distribution monopoly.
By Hiroki Kamata
The Japanese e-book industry is estimated to be valued at “$600 million” with “growth in excess of 20% per year,” according to research firm Impres R&D. While these numbers may seem impressive at first glance, as Robin Birtle (CEO at Sakkam Press in Tokyo) noted recently on TeleRead they “belie the fact that comics make up 75% of the revenue, and apart from comics and magazines, there seems little significant advance in broadening the e-book customer base within Japan.” Mobile phone companies providing distribution and payback service platforms for publishers also make up a significant portion of Japan’s total e-book market value.
The number of Japanese language e-book titles has not grown significantly over the last year. According to an article in the SankeiBiz newspaper, there are still just 30,000 e-book titles available in Japan. Why such a small number — especially when Japan is so often at the vanguard of technological innovation? Simply put, publishers continue to remain reluctant to convert their books into digital formats due to cost, as well as their own ongoing fears about digitization.
Why are publishers so suspicious when it comes to e-books? First, they believe e-books will eventually cannibalize their print book business. Second, they suspect the book market will continue to decline and, ultimately, become less lucrative. Third, they think international e-book businesses, especially Amazon’s Kindle e-bookstore, will destroy the Japanese distribution system dominated by two companies, Tohan and Nippan, whose shareholders include a dozen of Japan’s major publishers.
Japan’s book distribution system is unique, and perhaps the most influential factor in publishers’ reluctance to embrace e-books.
...read more