E-book publishers face potential pressure to reduce prices
In the United States, major publishers control approximately 80% of the trade book market, and libraries face high costs for e-books and audiobooks, causing a predicament. Publishers in the United States and Canada use a variety of specific pricing terms and lending models for these digital books sold to libraries, often involving high costs and restrictive licenses.
Libraries typically pay significantly more for digital books than retail consumers, with prices ranging from $9.99 to $19.99 or higher per title, but under licensing terms rather than ownership. Licensing often limits how many lends a library can make, or places time limits on availability. For example, some laws, like the recent Connecticut law, restrict libraries from buying e-books that prohibit inter-library loans or those with simultaneous time- and checkout caps to protect libraries, forcing publishers to negotiate.
Lending models vary, with most libraries not buying perpetual ownership; instead, they purchase licenses that control lending durations or number of checkouts. Some libraries also use Evidence-Based Acquisition (EBA) or Demand-Driven Acquisition (DDA) models, paying based on usage or acquiring perpetual access to selected content. EBA models allow better budget efficiency while offering perpetual access and usage data, preferred by academic libraries.
Subscription models are also employed, with some publishers shifting from one-time purchases toward subscription-based access, giving libraries access to large content bundles but often without perpetual ownership rights, which has caused concern in the library community. Audiobooks for libraries carry similar high pricing and licensing complexities, typically costing tens of dollars per license and licensed for limited circulation or time periods.
The Connecticut legislature passed a law in May aimed at reducing the cost of library e-books. The law prevents libraries from purchasing e-books with inter-library loan restrictions or time-limited, checkout-capped licensing agreements. Similar legislation has been introduced in other states, such as Hawaii and Massachusetts.
OverDrive's Max, launched in April 2022, offers bundles of up to 100 loans for popular digital books with no expiration date. This move could potentially alleviate the high costs and restrictive lending terms faced by libraries.
However, efforts to make e-books more affordable for libraries have faced challenges. In 2021, New York's governor vetoed legislation aimed at making e-books more affordable for public libraries, citing federal copyright law. A Maryland law aimed at lowering library e-book costs was also struck down by a U.S. District Judge in 2022, for the same reason.
Librarians nationwide have expressed concerns about e-book pricing as a problem for libraries. Long wait lists for e-books in libraries are common despite libraries spending more of their budget on e-books annually. The "one copy, one user" model is used for digital content sales, and publishers set the prices of digital content to ensure equal pricing among booksellers.
Ellen Paul, the executive director of the Connecticut Library Consortium, stated that the new law will force publishers to negotiate e-book prices with libraries. Michael Kozlowski, who has written about audiobooks, e-books, and e-readers for eighteen years, has also highlighted this issue.
Despite the challenges, there are signs of progress. The high costs and restrictive lending terms of e-books and audiobooks for libraries are increasingly becoming a topic of legislative scrutiny, with the aim of improving library access and affordability.
Footnotes: 1. Connecticut Post 2. Publishers Weekly 3. American Libraries Magazine 4. E-Book Newser 5. American Libraries Magazine 6. American Libraries Magazine 7. The New York Times 8. The Baltimore Sun 9. OverDrive 10. Library Journal 11. American Libraries Magazine 12. Connecticut Library Consortium 13. Michael Kozlowski
Libraries often pay higher prices for e-books compared to retail consumers, with costs ranging from $9.99 to $19.99 or more per title under licensing terms that may limit the number of lends or impose time limits. Librarians and advocates continue to express concerns about the high costs and restrictive lending terms of e-books and audiobooks for libraries, which impede access and affordability for library patrons.
