Apple launches local iBookstore but smaller publishers unhappy

Apple has finally opened the iBookstore in Australia several months after the iPad launched, with local iOS users now able to browse and buy books from major publishers including Macmillan and HarperCollins.

But some publishers are angry with the tech giant, accusing the company of ignoring smaller distributors and giving them no notice of when the store would finally open.

However, Telsyte research director Foad Fadaghi says Apple has entered the market at an opportune moment. He says only about 5% of Australians buy e-books, and sales are set to increase ahead of the Christmas period.

“I really think the e-books market in Australia is only beginning to take off, and Apple’s timing is quite good, actually. A lot of people are buying gadgets like the Kindle and the iPad, and they now have a big choice in terms of buying what they want.”

“There is a huge gap to fill for people buying electronic books. There is always going to be a gap to fill, and there will always be a market for physical books, but the convenience of buying electronic books will bring people over the line.”

The e-books market has exploded overseas, especially in the United States, where Amazon has pushed its Kindle device as a superior alternative to the more expensive iPad.

In Australia the market has been relatively weak. The Kindle has launched here, along with the Barnes & Noble Nook and the RedGroup Kobo, but all three have failed to make a significant dent in the market.

However, Telsyte believes Apple has sold over 250,000 iPads in Australia, and says this existing user base will allow Apple to hold an advantage over its rivals, even against the Nook and Kobo, which have libraries with millions of titles.

“I think the other angle is that research we have indicates people who spend money on iPads and the iTunes store are more willing to spend money on digital goods overall. On average they spend more, and this leads Apple to having a natural advantage.”

Apple’s iBookstore has been operating for some time, but until now the only material available were titles whose copyright has lapsed. Now, major publishers Macmillan, Hachette, Hardie Grant, HarperCollins and Murdoch Publishers and Wiley will distribute their titles.

But the publishing industry isn’t all happy. Australian Publishers Association chief executive Maree McCaskill says several smaller publishers weren’t given any notification the store would be opening.

“There are some publishers that have been chasing the iBooks Store in Australia, waiting for some indication of when they would be approached and that hasn’t happened for them. There has been some considerable disappointment among smaller publishers.”

However, McCaskill also says the iBookstore is a good platform for publishers to access – she just thinks smaller publishers need more representation.

“Any channel designed to get more books out there is a good thing… but it’s a peak time for book sales, and there has been disappointment among smaller publishers.”

Fadaghi says it’s a shame Apple has taken so long to open the book store here, but also says the company has picked a good time to launch ahead of Christmas.

“Globally, it’s a shame they have been so slow when we are such a digitally connected population. But from a marketing and sales strategy, it’s immaculate timing.”

Apple was contacted for comment this morning but no reply was received before publication.