Showing posts with label OverDrive. Show all posts
Showing posts with label OverDrive. Show all posts

Thursday, July 12, 2012

Libraries are doing it to themselves

Brett Bonfield writes in the Library with the Lead Pipe blog that, by allowing eBook aggregators like OverDrive to license, rather than sell, eBooks, and publishers like HarperCollins to put restrictions on how eBooks are used (and how long they can be used before they expire), libraries are making the same mistakes that they did by turning abstracting and indexing over to companies like Elsevier. He says that libraries are abandoning the First Sale doctrine and fair use. Bonfield writes "We are 'paying for stuff' and we are 'sharing it with our community,' but unlike before, we are not actually buying anything."

Bonfield gives examples of alternate models that give libraries more control over their eBooks. The problem is that all of the models still depend on the cooperation of publishers and eBook platform providers. In addition, at least one of the models he proposes, Sneakernet, is in direct violation of some eBook reseller licensing agreements.
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Tuesday, July 10, 2012

Public libraries have to take charge of their eBook strategies

On The Digital Shift blog, Pat Losinski, the CEO of the Columbus Metropolitan Library, writes that the time for libraries to sit back and accept the conditions imposed by eBook publishers and aggregators, and the refusal to supply eBooks to libraries by some publishers, has passed. While congratulating OverDrive for its pioneering work in making eBooks available to libraries, he says that the company is now dictating terms to public libraries for their supply of eBooks and audiobooks. He also says that those publishers that prohibit sales of their eBooks to libraries have no good reason for doing so--the "friction" that they're looking for to discourage cannibalization of retail eBook sales is already there, by requiring libraries to only checkout each copy to one patron at a time. Limited supplies of eBooks and wait lists encourage patrons to check out other titles or buy the eBooks.

In addition, Losinski points to publishers' and aggregators' policies of licensing, rather than selling, eBooks as another restraint on the ability of libraries to serve their communities. He notes that if a publisher of print books decides not to sell to libraries, those libraries can go to their local bookstores and buy copies of the books, then lend them under "first use" rights. However, licensing terms prohibit them from lending eBooks that they acquire in order to get around a publisher ban. In addition, aggregators are using licensing to lock libraries into their services, since libraries can't transfer their eBook collections from one aggregator to another. Even the Douglas County model falls apart if enough key publishers refuse to sell to libraries.

Losinski writes that between 60% and 80% of the Columbus Metropolitan Library's budget goes toward managing its print collections. eBooks allow libraries to divert some of those expenses for other uses, but only if libraries can offer the same range of titles and publishers in eBooks that they do in print. He points to academic libraries as having far more advanced eBook strategies than public libraries, and he wonders how long patrons will tolerate the difficulty and complexity of downloading eBooks. Losinski says that public libraries need to decide "will publishers and aggregators be allowed to dictate public policy for accessing content in this country, or will access remain a fundamental right of individuals?".

A group of public library executives met at the Columbus Metropolitan Library in early June to come up with a strategy for making more eBooks available to libraries. The group decided not to focus on eBook business models, new pilots or improved technology--those things are far more important to the publishers and aggregators than they are to the libraries, and as libraries have seen, it's very easy for publishers and aggregators to "move the goalposts" to suit their needs.

The group decided to focus on five key activities:
  • Public education 
  • Lobbying 
  • Research 
  • Coordinating and coalescing the various eBook initiatives underway at national associations, state library associations and individual libraries 
  • Publisher, author and vendor relationships 

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Friday, July 06, 2012

Summary of ALA panel on eBook collection development practices

Sue Polanka has published a summary of a panel at the American Library Association Conference on library eBook collection development practices, in which she was a panelist. Here's a summary:

Sue Polanka of the Wright State University Libraries spoke about the various eBook business models that libraries can choose from (or in some cases, where there are no alternative vendors, have to live with.) She said that libraries aren't just purchasing eBooks--they're purchasing the software, user interface and DRM that goes along with them. Polanka recommends that libraries first determine what kind of collection they want: 1) A comprehensive long-term collection, 2) Paying for just-in-time access to titles requested by patrons, or 3) A hybrid of the two approaches. (However, some titles and publishers may only be available under one model.) She displayed a chart of business models, ranging from free, all the way to short term loan/pay-per-use. As the models become more restrictive, the DRM burden increases, and the titles become more temporary than permanent.

Polanka spoke about the OhioLINK consortium's program for purchasing eBooks, which has three acquisition priorities: Shared access for all members, unlimited simultaneous use, and unlimited lifetime use. The consortium currently has about 41,000 titles, and generally acquires publishers' entire frontlists rather than cherry-picking titles. In the most recent fiscal year, 25,000 titles were added, and usage was very high (less than 4% of the titles were not used.)

Alene Moroni of the King County Library System, said that her libraries' eBook budget has increased by 60% in each of the last three years, although the overall library budget has been flat. To pay for the eBooks, they've diverted print reference collection funds. Initially, they assigned 10% of the materials budget to eBooks, then cut the subscription database budget in half and added the savings to eBook acquisition. To identify which databases to cut, they're monitoring usage by "clicks" to the databases from the library's own website, and are cancelling low-usage databases as they come up for renewal. (They found that vendor usage statistics were unreliable, so they're tracking usage themselves.) In addition, they surveyed the staff to identify the databases they used the most, and looked at the databases in terms of community need, to insure that they didn't cancel databases for which there was a need. The final determinant was cost-per-use.

Linda Di Biase of the University of Washington said that they ran three pilot projects to try to get finer-grained information about eBook usage and preferences:

In the first project, the ran a Patron-Driven Acquisition (PDA) test with ebrary from July 2010 to February 2011, focusing on Social Studies and Humanities titles published from 2005 to 2010. Ten activities, such as printing, copying, reading a set number of pages, or reading for a certain amount of time, triggered a purchase. Some information, such as who was using the titles, was unavailable, but they were were trying to determine if eBooks were being using, how they were being used and how eBook usage overlapped with print versions of the same titles. The conclusions:
  • 59% of the eBooks that were purchased were already owned in print versions, but 17% of those weren't available to be borrowed. 
  • 42% of the titles were owned as print and available, but borrowers preferred the eBook versions. 
  • Higher than average purchases of history, economics, sociology and political science titles. 
In the second project, which is still underway, they're using eBooks from Ebook Library (EBL) with demand-driven purchases. Publication dates are from 2007 to the present. Of $37,000 budgeted for the test, the library has spent approximately $25,000. Results so far are similar to the ebrary test.

In the third test, they participate in a 37-member consortia that has a contract with EBL. The bottom line of this test so far is the PDA titles get more use than titles purchased by libraries without patron input. 20% of the EBL titles that libraries purchased outright got used, vs. 100% of the titles purchased through the demand-driven model. In addition, they've learned that it's okay to purchase both print and eBook copies of the same title if the library can afford it; many patrons still prefer print, and using eBooks to discover titles may increase interest in print.

Anne Lee, Free Library of Philadelphia, said that the library's budget for materials was recently cut by 50%, so they have to be a lot more selective about what they buy. About 72% of the titles they purchase from OverDrive are fiction. They used to buy a print copy for every eBook copy, but now, some titles aren't available in print. The library uses bestseller lists and vendor information to discover titles to buy. They're also putting more effort into discovering self-published titles to acquire, using sources such as Kirkus Reviews. Lee asked some colleagues about their content development procedures for eBooks: One suggestion was to get familiar authors, hot topics and extra copies. Another suggested aiming for balance, especially since not everything is available as an eBook. Some libraries found that old titles were checked out as soon as they got them. Another found that poetry eBooks circulated right away. The Free Library is testing the Freading model, but they're finding that some publishers are pulling titles out of the program, but may put some of them back in at a later date.

Finally, she said that 40% of Philadelphia residents don't have internet access at home. They're trying to figure out how to respond to increased smartphone use, and they've returned to determining how to best purchase print, eBooks and databases to serve all patron types.

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Thursday, June 21, 2012

Penguin to test eBook lending with the New York and Brooklyn Public Libraries--and 3M

The New York Times reports that, after exiting the library market in February, Penguin is planning to reenter the market--with a different distribution partner. Penguin stopped distributing new eBook titles through OverDrive last November when it learned that OverDrive was violating its contract by serving eBooks to Kindle users through Amazon's servers, and cut off all eBooks to OverDrive in February. Now, Penguin is working with 3M, the New York Public Library and Brooklyn Public Library on a year-long pilot eBook lending program to begin in August. Penguin will make more than 15,000 frontlist titles available to the libraries, but there will be a six-month delay from the books' initial publication dates, in order to help prevent cannibalization of eBook sales. According to a Penguin spokesperson, library pricing for the eBooks will be similar to consumer prices, with licensing on a one borrower/one copy basis. If the program is successful, Penguin and 3M will roll it out to libraries around the country.

This test is a huge win for 3M, and a slap in the face for OverDrive, since public libraries that want eBooks from Penguin will have to get them from 3M. The company has already signed up Random House and HarperCollins, and is adding publishers at a rapid pace.
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Wednesday, June 20, 2012

Are library eBook vendors trying to "cut out the middlemen" -- librarians?

The American Library Association's American Libraries blog has a post by Christopher Harris titled "Does OverDrive Really Care About Libraries?". Harris writes about an email that he received from OverDrive as part of its ISTE conference promotions; here's a quote from his article:

"Instead of speaking as a library partner—a company dedicated to helping provide digital books through libraries—OverDrive seems to be presenting itself to the school technology world as a library replacement. 'Lend your students eBooks from a publisher-supported digital library powered by OverDrive,' the ad states. Never mind, this seems to suggest, lending from a school library that includes ebooks; tap into an OverDrive library replacement that your school can buy after laying off the school librarian."

Harris' primary concern is that eBook vendors, faced with declining school and public library budgets, may start selling their collections as a replacement for, rather than an addition to, physical libraries. However, there's scant evidence that library eBook consolidators are bypassing libraries (at least as of yet.)
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Saturday, February 26, 2011

HarperCollins puts limits on library eBook lending

According to Library Journal, last Thursday, OverDrive, the leading supplier of eBooks to libraries in the U.S., sent a letter to its customers that stated, in part:
[W]e have been required to accept and accommodate new terms for eBook lending as established by certain publishers. Next week, OverDrive will communicate a licensing change from a publisher that, while still operating under the one-copy/one-user model, will include a checkout limit for each eBook licensed. Under this publisher's requirement, for every new eBook licensed, the library (and the OverDrive platform) will make the eBook available to one customer at a time until the total number of permitted checkouts is reached.
OverDrive didn't state which "certain publisher" had ordered the new licensing terms, but Library Journal learned that it was HarperCollins. Under its new terms, its eBooks can be checked out a maximum of 26 times before they have to be repurchased or discarded. According to the article, HarperCollins based the 26 times number on how many two-week checkout periods fit into a year.

Print books in libraries eventually wear out due to usage, and have to be discarded or replaced. Publishers get to resell the same titles to libraries for replacement, until the libraries decide to take them out of their collection. On the other hand, eBooks never wear out, so an eBook sold to library would never need to be replaced. To protect its stream of replacement revenue, HarperCollins is implementing eBooks that wear out, at least contractually.

There are many problems with HarperCollins' policy:
  • This licensing change reinforces the fact that customers don't purchase eBooks, they purchase a license to use them.
  • Print books wear out at different rates, depending on how they were bound. Some companies that sell to the library market offer bindings with lifetime guarantees--so long as the title remains in print, if a copy wears out, it will be replaced at no charge. HarperCollins' new model ignores all that and says that an eBook should last a year.
  • The 26-loan limit is bad enough for public libraries that have two-week lending periods, but it's far worse for school libraries that typically have lending periods from three to seven days. A popular new title could "wear out" and have to be repurchased in less than three months.
If this new policy doesn't spread beyond HarperCollins, I suspect that libraries will boycott their titles and the damage will end there. However, if other major publishers implement the 26-time rule, it could greatly impact the adoption of eBooks by libraries. Even worse, if other publishers implement their own variations of the rule (for example, one requires repurchases after 15 loans, while another limits the number of loans to 50), it will be virtually impossible for libraries and eBook suppliers to keep track of all the rules.

HarperCollins and OverDrive will roll out the new licensing terms next week, and I expect public and school libraries to react very negatively. Their reactions may dictate how widely, and even whether, other publishers adopt HarperCollins' rules.
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Tuesday, October 19, 2010

What does the OverDrive/Insight Venture Partners deal mean?

Yesterday, OverDrive announced a "major investment" in the company by Insight Venture Partners. OverDrive enables libraries to lend audiobooks, eBooks and videos, and Insight is an investor in Chegg and two other education-focused companies, as well as many other companies, including Twitter. OverDrive's press release says that the company will use the funds to fuel additional growth. The press release also says that OverDrive has been profitable for 20 straight quarters. Under normal circumstances, that would be a recipe for an Initial Public Offering, but these are hardly normal circumstances, and the market for IPOs is likely to remain small for at least another year or two.

One has to assume that some of the Insight investment is going to OverDrive's owners to allow them to partially cash out, but what about the growth opportunities for OverDrive? The company is in a perilous position; many libraries are adopting Amazon's Kindle readers (which are incompatible with OverDrive's service), even though Amazon's user licenses officially bar lending. Amazon hasn't taken any action against libraries, but the risk for OverDrive is if Amazon decides to officially allow lending and makes a big push into the library market. Amazon's pricing power and Kindle readers would make it very difficult for OverDrive to compete.

One potential opportunity (and this is speculation on my part) is that OverDrive might use part of the proceeds from Insight to acquire Findaway World. Who is Findaway World? They make an audiobook player called the Playaway that's designed for lending and education use. Each Playaway comes preloaded with an audiobook, and when a patron borrows a Playaway, they get the audiobook and headphones. You may think that the idea of selling MP3 players loaded with a single audiobook is crazy, but Playaways are very popular with both libraries and publishers. Libraries check the Playaways in and out just like conventional books. Publishers like the fact that audiobooks on Playaways can't be downloaded or copied.

There's not the frenzy of competitive activity in the audiobook business that there is in eBooks. OverDrive could build a strong competitive position there that would be much less vulnerable to competition from Amazon or other vendors. Findaway World would help OverDrive to sell many more products through its existing distribution channels, to its existing customers. Also, both OverDrive and Findaway World are based in Cleveland, OH, so it would be simple to consolidate the two companies. Finally, Findaway World knows how to build devices that can stand up to heavy usage, which would help OverDrive if it wants to develop its own media devices for the library market.
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