The Global eBook Report: Current Conditions & Future Projections. Update October 2013

card bills. However, despite all the odds, Apple succeeded in becoming the #1 ebookstore in Brazil during the first half of 2012. Similar to Google, the reason for that is the huge base of existing iPhones and iPads in Brazil, plus the easy shopping experience that is simple and familiar to an audience that already consumes music and apps. Apple’s main challenge in the short term is to launch a real Brazilian store selling locally in the local currency.
    Gato Sabido Gato Sabido was the first Brazilian ebookstore, launched in December 2009. Their startup owners then decided to launch the digital aggregator Xeriph and focus on the new venture. Now, that the Abril group has acquired Xeriph, the future of Gato Sabido is uncertain since Abril already has its own ebookstore IBA. Gato Sabido today offers no ereaders and uses Adobe Rights Management.
    Google Google Play ’s bookstore section arrived in Brazil on the same day as Kobo and Amazon, in October 2012. Their contract negotiations were lighter and more discreet. They have been quite successful in selling ebooks thanks to the huge base of Android smartphones and tablets in Brazil. For instance, almost 6 million tablets are expected to be sold in Brazil in 2013, according to IDC, and considering the most recent reports on iOS/Android tablet market share, at least 80% of those will be Android. Brazil also has the fourth largest installed base of smartphones in the world, and according to Nielsen, over 90% of the smartphones sold at retail in the first half of 2013 were Androids. It is fair to say that many of those initial Google sales are people experimenting with ebooks and testing the store. Google actually has a very low customer return rate, and most purchases up to now have been made by first-time customers. While Amazon sells more backlist titles than any other retailer in Brazil, Google Play’s front store accounts for around 80% of the sales, making it a very bestseller-focused ebookstore.
    IBA IBA was launched in March 2012 by Grupo Abril, one of the largest media companies in Brazil, with a huge presence in magazine publishing, K–12 book publishing, and cable TV. It presents a very solid platform, with a proprietary DRM control, so the readers do not need an Adobe ID. The purchases are made on the website, and the reading is done in apps for iOS, Android, and PC. It is greatly focused on magazines and newspapers, perhaps even more than on ebooks. It has not gained much traction in the ebook market so far.
    Kobo Following its strategy tested in Europe, Kobo ’s business model for Brazil was to partner with a strong local retailer, and they found one in Livraria Cultura, one of the most important Brazilian booksellers, with 16 stores around the country. Livraria Cultura also has a very strong ecommerce background since it pioneered selling books online in Brazil during the late 1990s. Kobo took advantage of the existing Livraria Cultura ebookstore — that they merged into their platform — allowing them to save several months in contract negotiations and to launch in December 2012. Kobo offers Touch, Mini, Glo, and Aura devices in the Brazilian market, so far always sold through Livraria Cultura. The level of exclusivity in the partnership deal has not been disclosed, but Kobo has been making an effort to have all contracts now signed directly with publishers and distributors. Kobo keeps a local team in Brazil.
    Saraiva Livrarias Saraiva is the largest Brazilian bookstore chain, with over 100 stores around the country. Along with the publishing and educational divisions, they are part of a larger public company that ranks among the top three publishing groups in Brazil. They also have a strong online presence in the book market with a well-known ecommerce platform that also sells electronics, computers, and telecom products. Their ebookstore was launched in early 2010. Their platform is non-proprietary, based on BlueFire technology and on Adobe’s DRM. They do not offer a device but have iOS, Android, and PC apps. The main challenges that Saraiva faces today are global competitors and the need to find a way to better use its brick-and-mortar presence and brand to increase their ebook sales.
    Submarino Submarino could be called the Brazilian Amazon. It is a large Brazilian e-retailer that sells everything from books to wine, cosmetics, and perfumes. They started an ebookstore in a partnership with Gato Sabido, but in September 2011, they canceled the