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E-book publishers could face pressure to reduce their prices

Library expenses for physical books range between $8 and $30 per volume, with the library retaining ownership indefinitely. Electronic books typically cost around $40, necessitating periodic license renewals.

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Publishers face potential mandatory price cuts for ebooks
Publishers face potential mandatory price cuts for ebooks

E-book publishers could face pressure to reduce their prices

Libraries Face High Costs for Digital Books as Publishers Maintain Restrictive Terms

In the world of digital literature, libraries are grappling with high costs and restrictive terms set by major publishers. This issue has been a topic of debate and legislative action in recent years, particularly in the United States.

Launched in April 2022, OverDrive's Max allows libraries to stock bundles of up to 100 loans for popular digital books with no expiration date. However, the high costs associated with these licenses have led to concerns. Libraries in Connecticut, for instance, may not be able to buy many e-books under their current terms due to a new law aimed at reining in the cost of library e-books.

The average cost for an e-book is around $40, and for an audiobook, it's approximately $73; libraries must renew these licenses on a regular basis. These costs have led to legislative efforts in various US states to negotiate more favorable terms or reduce costs.

Publishers typically offer libraries digital content through licensing rather than outright sale. These licenses can be time-limited, checkout-limited, or simultaneous-use models. Some laws, such as in Connecticut, restrict libraries from purchasing e-books under terms that prohibit inter-library loans or combine time limits with checkout caps, aiming to push publishers toward more library-friendly pricing and terms.

Larger states have attempted to pass laws to make e-books and audiobooks more affordable for public libraries, but have faced vetoes or court rulings citing federal copyright law. Policymakers in Hawaii and Massachusetts are exploring e-book legislation, and library advocates are discussing introducing bills in several other states.

For consumers, retail pricing for eBooks is commonly within the range of $2.99 to $9.99, while audiobooks are typically priced between $9.99 and $19.99. Platforms like Amazon Kindle Direct Publishing (KDP) set these prices with significant variance.

In contrast, publishers maintain relatively high pricing and restrictive lending terms for libraries in the US and Canada. This has led to ongoing legislative pressure to lower costs and improve terms for libraries.

The Connecticut law is just one example of this trend. As the debate continues, it remains to be seen how publishers will respond and whether more favorable terms will become the norm for libraries.

Table:

| Model Aspect | Libraries (Canada & US) | Consumers (Retail) | |---------------------------|------------------------------------------------|----------------------------------------------------------| | Pricing | High licensing fees, often near retail price; ongoing legislative pressure to lower costs and improve terms[1] | eBooks: $2.99 - $9.99 common; audiobooks: $9.99 - $19.99 range typical[1][2] | | Licensing Type | Time-limited, checkout-limited, inter-library loan restrictions; flexible models like EBA and DDA in use, especially academic[1][3][5] | Direct purchase or subscription (Kindle Unlimited, Spotify audiobooks) with royalty rates defined[2][3] | | Lending Restrictions | Laws restrict sale of licenses prohibiting inter-library loans or with restrictive terms[1] | Consumer lending via subscription or limited lending libraries (e.g., Kindle Owners Lending Library in KDP Select)[2] | | Subscription Models | Limited adoption due to economic concerns; some experimentation ongoing[3] | Available, but mixed reception due to author income concerns[3] |

[1] Connecticut Legislature passes law aimed at reining in the cost of library e-books. (n.d.). Retrieved from https://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/79849-connecticut-legislature-passes-law-aimed-at-reining-in-the-cost-of-library-ebooks.html

[2] How much do eBooks cost to self-publish? (2021, August 25). Retrieved from https://kdp.amazon.com/en_US/help/topic/G200485470

[3] Library e-book pricing and lending models. (n.d.). Retrieved from https://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/76528-library-ebook-pricing-and-lending-models.html

[4] The one copy, one user model of e-book lending. (n.d.). Retrieved from https://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/76740-the-one-copy-one-user-model-of-e-book-lending.html

[5] The rise of flexible library e-book acquisition models. (n.d.). Retrieved from https://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/76529-the-rise-of-flexible-library-e-book-acquisition-models.html

  1. Despite consumers being able to purchase e-books at prices between $2.99 and $9.99, libraries face high licensing fees, often close to retail price, leading to ongoing legislative efforts to improve terms.
  2. In comparison to consumer access through platforms like Amazon Kindle Direct Publishing, publishers maintain relatively high pricing and restrictive lending terms for e-books, which has sparked debate about affordability and inter-library loan restrictions in libraries across the United States and Canada.

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