Summary of "Why physical books still outsell e-books | CNBC Reports"

Market Overview & Consumer Preferences

Despite the rise of digital media, physical books remain the dominant format. In 2017, 67% of Americans read physical books compared to 26% who read e-books. The appeal of physical books lies in their tactile experience, collectible aesthetics such as cover design, and social signaling—displaying books at home serves as a form of personal expression.

Different genres perform better in different formats:

Crime, thriller, and romance genres tend to do well as e-books.
Children’s books and cookbooks are predominantly consumed in print.

Younger readers (under 44) are the primary drivers of physical book sales, while older readers (over 45) show a stronger preference for e-books. For example, 75% of U.S. readers aged 18-29 read physical books in 2017.

Industry Sales & Revenue Metrics (2018 Data)

U.S. Book Sales: Approximately $26 billion in net revenue from publisher-to-retailer sales, broken down as:
- $22 billion from printed books
- $2 billion from e-books
- $1.2 billion from audiobooks
U.K. Book Sales: Totaled $8 billion, with $4.5 billion coming from printed books.

Despite the lower production costs of digital formats, physical book sales continue to outpace e-books.

Consumer Behavior & Product Insights

Emotional connection and memory retention are stronger with physical books. Studies indicate readers recall plot details better from paper than from e-readers.
Print books serve as decorative and collectible items, fulfilling lifestyle and emotional needs beyond reading.
E-books initially gained popularity in academic and niche genres such as romantic and erotic fiction, largely due to the anonymity and convenience they offer.

Company Strategies & Market Dynamics

Amazon’s Kindle launch in 2007 revolutionized the e-book market, with the $399 Kindle selling out in just 5.5 hours.
By 2010, Amazon claimed that e-books outsold hardcover books, sparking debate about the future of print.
Amazon applies data-driven retail strategies in its physical bookstores (19 locations as of 2020), using Kindle reading data to stock “unputdownable” books—titles that readers finish quickly.
Traditional bookstores initially struggled with the rise of e-books but have since repositioned themselves as community and experiential spaces, offering offline activities and curated selections.
Barnes & Noble experienced six years of declining sales, leading to its acquisition by activist investor Elliott Management in 2019. Elliott Management also owns the UK chain Waterstones, and both chains are undergoing strategic reinvention.

Entrepreneurship & Publishing Innovation

E-books have enabled new authors to break into mainstream publishing. For example, Hugh Howey’s Wool sold over 300,000 e-book copies before print rights were acquired by Simon & Schuster.
Some legacy authors initially resisted digitization to maintain brand control and pricing but have gradually embraced e-books for accessibility. For instance, JD Salinger’s works were digitized posthumously.

Actionable Recommendations & Frameworks

For Retailers & Publishers

Focus on creating experiential retail environments that attract customers seeking offline, tactile experiences.
Utilize data analytics—such as Amazon’s Kindle reading habits—to optimize inventory and marketing strategies in physical stores.
Segment marketing and product offerings by demographic and genre preferences (e.g., target younger audiences with print books and older audiences with e-books).

For Authors & Publishers

Use e-books as a launchpad for new titles and authors to gain traction before print publishing.
Preserve the emotional and sensory qualities in print editions to maintain their collector appeal.

Industry Outlook

The book industry should embrace the coexistence of multiple formats, recognizing physical books as lifestyle products and e-books as convenience tools.
Innovation in audiobooks and hybrid formats may complement existing channels and expand market reach.