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The Looming Library Lending Battle
smitty777 writes "The NY Times is running a piece on the tug of war between publishers and libraries for e-book lending. In one corner are the publishers, who claim that unlimited lending of e-books 'without friction is not a sustainable business model for us.' For example, Harper Collins claims in this corporate statement that unlimited lending would lead to a decrease in royalties for both the publisher and the writers. The NYT author further states that 'To keep their overall revenue from taking a hit from lost sales to individuals, publishers need to reintroduce more inconvenience for the borrower or raise the price for the library purchaser.' Their current solution is to limit the number of readings to 26 before a book license must be renewed. In the other corner are the libraries, who are happy that e-books are luring people back to libraries, bringing with them desperately needed additional funding. With e-book sales going extremely well this year and the introduction of more capable e-readers, this debate is likely to get worse before it gets better. The Guardian also has an interesting related piece on the pricing practices of the Big Six publishers."
Keyword: "friction", in this context.
Shouldn't changing dynamics of supply and demand dictate the market needs? It sounds like these companies are simply grasping at straws to hold onto the last vestige of their current position by artifically creating demand. It's bollocks, if you can't make a living as a writer then you probably shouldn't be..
"...publishers need to reintroduce more inconvenience for the borrower"... In other words don't read our books.
I'm sure the somewhere in the depths of SOPA, the "library problem" is being handled.
* Carthago Delenda Est *
As this year marked the passing of this brilliant man who struggled with this question all his adult life, perhaps it would be best to read it in his own words.
Help stamp out iliturcy.
Its what the author (copyright owner) says it is, until the works are in public domain. Not the publisher if they are not producing the copies any more.
The good thing I can see it ebooks lowering the cost for indie authors, cutting out the middle man.
The bad thing is publishers can nolonger afford to pay writers $1,000,000 for a best-seller so there are fewer financial insentives for people to write.
For folks who want to read, and maybe even, learn? What is this world coming to?
Where's the Fahrenheit 451 Fire Department, when you need one?
Ironically, it looks like we might see this day, since distribution of physical printed material can't be limited and controlled . . . by whoever wants to control it, for whatever reason.
Printed books . . . they just cause trouble.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
I have yet to meet a debate in which I did not favor the side of the Libraries, if there was one.
... doesn't like when things like lowering their income through radical technology effects them instead of workers. It's ok to look down on the poor and people who's jobs are offshored as not being 'efficient' or 'competitive' but when it happens to business models or "intellectual property" (read: Intellectual monopoly) - heaven forbid!
With the In one corner are the publishers, who claim that unlimited lending of e-books 'without friction is not a sustainable business model for us.'
WTF is "friction"? And what is this "unlimited" thing? I don't know how the Amazon deal works but the Overdrive model allows libraries to loan a specific number of copies of each title. There's nothing "unlimited" about that. I'm patron 19 of 22 waiting for one of 3 copies of a title on my list. And what's "friction"? Do they mean I no longer have to haul my fat ass to the library to get the book? I don't have to do that buy purchase their book in ebook form, either. Seems like a pretty level playing field to me. And the artificial scarcity created by the licensing model might push me towards purchasing since I can get it right now instead of a few months from now. Is that what they call "friction"? If so, again...covered.
Publishers, stop acting like you sell paper. You don't. You sell content. Act like it.
You can start here and read up on it. It's a rather abstract concept. Publishers need a market with friction because they live on the transaction costs people buying books. In a sense, publishers are the friction.
I don't like these guys but this is the correct assessment of the situation. Limitless free library ebooks are the death of them.
Help stamp out iliturcy.
Society didnt show mercy to carriage industry when automobiles came out.
There is no reason why it should show mercy to publishing industry - carriage industry produced something even. publishing industry is just middlemen. and now, unnecessary.
And look how they threaten new technologies and those who use new technologies - 'without friction' they say. wow. imagine it with carriage industry - if this suing frenzy bullshit had been around back at the start of 20th century, we probably wouldnt be using cars as we are using them today.
i say fuck them. you should say so too. society's progress cannot be held hostage to the desires of a minority interest to protect its private profit.
Read radical news here
I'm a librarian (in Germany, though the issues here are basically the same), and I think the publishers do have a point. Two points, to be precise:
* A digital copy of a book can be borrowed by a library customer without them having to leave their home. No need to actually get to the library, hunt for the book and then having to get it back 4 weeks later. It's all happening online. That makes borrowing digital books from library a million times easier and more comfortable, and thus make libraries far more popular again.
* A digital copy of a book needs to be bought once, and then you'll own it for all eternity. That is, in theory, true for a physical copy of a book as well, but in practice a library has to constantly (re)buy books it already owns, whether the physical copy is starting to get old and worn or because books are being stolen/not returned, etc.
It is not unrealistic to assume that these two points combined might result in financial losses for the publishers, and a solution for this might have to be found. The suggested 26 uses per digital copy would mean that popular titles would have to be renewed roughly every 2 years (assuming a standard borrowing time of 4 weeks). Currently, the rule of thumb is that a (physical) book should be renewed once it is older than 5 years at the latest. Not all titles are borrowed out constantly, though, so it's entirely possible that the costs for the library would not rise even with the 26-uses-per-copy rule.
We have a local clothier with the motto, "an informed consumer is our best customer." I think this applies to publishing.
We are witnessing a paradigm shift in the book publishing industry that rivals the previous one in music publishing. There are some hopeful signs. I think the market will produce more. Consider the changes in the Amazon Kindle service. It has grown rapidly such that now their two largest sellers are Kindle editions. Note that we can now view our content on multiple devices, view sample chapters before purchasing, and rent books. We do this after reading reviews. We see similar encouraging moves from O'Reilly such as providing DRM-free electronic copies of purchased content. Dealing with lending of resources by libraries is the next challenge. No publisher will ever release content if the public can get the content free from a small number of libraries. The parent is correct - that is not a sustainable business model. Safari Books Online is one possible model. It is still a bit pricey for my budget.
As customers, we need to vote with our purchases. Reward vendors who provide good content at fair prices with more purchases. Use the review system to say that we think content is over-priced. At the same time, we need to have realistic expectations. We are paying for infrastructure. Storage for electronic books is not free to the publisher but is likely much less expensive than warehousing paper products. Bandwidth to distribute them and all the infrastructure for secure payment is not free, but is likely less expensive than a distribution channel for paper. Editors, graphics designers, and those who convert the author's electronic input into the proper format for the final document creation software provide valuable services. So do those who market the electronic titles to the distributors. Nobody works for free. That said, we consumers want to share in the cost savings that come from the transition from paper to digital. I think the changes in the music industry suggest that we will have vendors that can thrive when they provide value to their customers. The key will be to find a subscription service that is affordable to the consumer and makes it worthwhile for the publishers to produce and distribute the content.
There's really no difference so long as they adhere to the "if we only have one digital 'copy', then only one person can have it checked out via overdrive at a time". In the past, they only bought the books people actually read anyway (no library has a library of congress size collection of books, and they even sell off their old books to make room quite often).
I'm always amazed that libraries have stayed around as long as they have; very thankful for that, but still amazed. If libraries didn't exist right now, and someone was trying to start some, I'd imagine publishers would be just as scared, even though it means a whole lot of book sales to the libraries, a handy distributed archive for free, and a bunch more potential readers (ex. people that might not have the cash on hand to buy a bunch of books now, but might later on, or even people that simply lack the physical space at home to store them).
Forget this being bad for publishers for a second... ebooks could be very very bad for libraries in general. As long as Overdrive has the copies, there's no need for the libraries themselves (there's still a need for the money to buy the ebooks, but that could get diverted from the libraries to overdrive or similar).
Personally, I think the requirement that ebooks only be checked out 26 (or whatever) times before they have to buy another copy is just ridiculous! I'll concede that restricting each copy to only be used by one person at a time is an understandable correlation to the current physical world, but even that is 100% arbitrarily imposed. Unless society allows things to become extremely draconian and Fahrenheit 451 -ish then, at some point, ebooks and mp3's are almost certainly going to be freely available to all (maybe after some tax to support the storage and bandwidth)... there's simply no technical reason to prevent that.
It's the printing press all over again, and the world will adapt (er... the world at large will drag the small minority that are part of the publishing industry along kicking and screaming the whole way). If I were in print, I'd be scared too - they're going to go the way of monks handwriting bibles eventually.
The real question is how the authors will get paid. If we did have a universal system that had all ebooks freely available, then I'd suspect all other ebook distribution would damn near stop (including giving your friend a copy of your ebook, since they could just go get it themselves for free). If that happens, then we'll have very solid stats on downloads per-title. That could be used to pay the authors. Number of music tracks owned per-person is certainly much higher now than it was in the days of LP's and tapes. Number of books owned is likely to go the same route. Thus, authors could be paid a very small amount per download of their book, and still make approximately what they make today.... we'd just have to get that money into that system somehow (tax?). This is probably a good 20years off still before it gets anywhere near that point... in the meantime, I expect a lot of fighting/kicking/screaming/drm/laws/etc from the industry.
So why does your business model need to be sustained?
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
They just need to make eBooks cheap enough to make it not worth a trip to the library to borrow a free eBook (I don't know if you actually do have to go to the library to borrow an eBook, but maybe you should, causing some friction to the process).
If a eBook costs $10, then it might be worth it for me to go to the library to check it out for free.
Lower the price to $3, and then it's not worth the trip for me. Lower it to $1 and I'll likely buy books just to try out an author, rather than staying with my normal safe choices of authors I know or recommendations.
I've bought a lot of content from Smashwords (usually paying between $0.99 and $4.99 for an eBook). I've bought very few eBooks from Amazon - it's hard to justify paying more for an eBook than it costs to have a paper book (often used, sometimes new) mailed to me.
Sorry, both jobs involve work. The analogy is reasonable. As a software developer, I'm in the same boat as authors. If I can't get paid for my work, then I should go do something else - even if that "something else" involves mowing lawns. Whether or not my skills as a software developer are more useful to the world than my skills mowing lawns is secondary to the question of whether I can afford to make a living doing those jobs.
Reduce the friction. Get rid of it entirely. Then count the usage levels of any given work. (Yeah, yeah, I know That's not simple, but it would be a whole lot more straightforward than the current mess.) Then pay the artists / authors / coders / whatever based on how much their work is used or enjoyed.
Then the reduced friction would be in everyone's interest, both the users' and the creators'.
Of course, the publishers would still go fairly extinct. Is that a problem?
"I'm sorry ma'am, but federal law requires that I incinerate this ebook!"
"But... WHY?"
"It's already been looked at 26 times."
?
I borrow my books from library.nu because they've generous lending terms.
Authors and editors are valuable, but publishers are basically parasites nowadays.
The Christian religion has been and still is the principal enemy of moral progress in the world. -- Bertrand Russell
And in the third corner are the consumers, who just want to read the damn books and just go to the next Torrent site, don't care about copyright anymore because the greedy cooperations have made a farce out of copyright. We just download a 200MBytes Torrent with about 100 e-books and don't give a crap.
You know how to increase competition and profits? Just limit the copyright term back to the good old 7 years (+7 years extension). That would finally open the market, break up the monopolies we have now, and bring the entertainment industry much more profits overall.
I really can't understand how your American people are good with it that you grand one company an unlimited monopol-right to a good. Aren't you all for pro-markets, pro-competition and anti-regulation of markets?
http://www.mueller-public.de - My site http://www.anr-institute.com/ - Advanced Natural Research Institute