eBooks, Libraries and Publishers: An Introduction


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An introduction to the issues surrounding libraries and eBooks. In the past 2 years, libraries have seen a sharp growth in e-book borrowing. That trend is transforming the relationship between libraries and publishers.

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eBooks, Libraries and Publishers: An Introduction

  1. 1. Twitter: @epubdirect Linkedin: www.linkedin.com/company/epubdirect.com Company Reg Number: 473566 Libraries
  2. 2. • Ten years marketing experience in the publishing industry. • Responsible for managing strategic partners to grow business, develop new markets and create effective marketing strategies. • Development of relationships between international retailers and client publishers, collaborating with customers to maximize ROI within each channel. • Contact Patrick: pcrowley@epubdirect.com Patrick Crowley: Digital Marketing Manager 2
  3. 3. www.epubdirect.comAgenda 2 About ePubDirect • Background – „Friction‟ • Advantages and disadvantages • Overview of different purchase models • PDA, STL, SUSL, etc • Dealing with • Overdrive • Gardners • Ebsco • EBL • B&T • 3M • Ebrary • The Market 3
  4. 4. www.epubdirect.comePubDirect 2 About ePubDirect 4
  5. 5. www.epubdirect.comPublishers & Libraries 2 About ePubDirect PUBLISHERS AND LIBRARIES: ‘FRICTION’ 5
  6. 6. www.epubdirect.comThe Big 6 & Libraries 2 About ePubDirect As eBook borrowing from libraries skyrockets, publishers fear that borrowing will cut into paid sales of print and digital materials. Big-six publishers met with the American Library Association in Feb 2012 Borrowing a print book from a library involves a nontrivial amount of personal work that often involves two trips-one to pick up the book and one to return it. The online availability of e-books alters this friction calculation, and publishers are concerned that the ready download-ability of library ebooks could have an adverse effect on sales. Digital Content & Libraries Working Group (DCWG) PUBLISHERS AND LIBRARIES: ‘FRICTION’ 6
  7. 7. www.epubdirect.comBest-Seller Comparisons About ePubDirect Library Bestseller NYT Best Sellers 7
  8. 8. www.epubdirect.comContractual Restrictions 2 About ePubDirect Friction in Lending Arrangements Through licensing agreements, publishers and distributors often impose contractual restrictions on libraries and distributors. This “friction” plays a key role in differentiating business models and delineating market segments (e.g., purchasers of books vs. public library patrons). Examples of friction in a contractual agreement include limits on: • ownership (e.g., whether an eBook file is owned, licensed, or subscribed to) • time (e.g., windows on distribution, delays between patron loan request and download, limitations on the permissible period for which a library can loan an eBook to patrons) • age of eBook (e.g., distribution release windows based upon time from publication) • variable price points (e.g., one-time fee, or fees based on use/access) • place (e.g., the location where a patron can access/download an eBook – over the Internet or only on library premises) • scarcity of copies (e.g., a cap on the number of copies accessible per user, per library, etc.) 8
  9. 9. www.epubdirect.comComplexity About ePubDirect CHARACTERISTICS OF BUSINESS MODELS To enable library and retail distribution channels for eBooks to coexist, most business models currently offered to libraries include constraints on how eBooks can be used. Understand Don’t Understand
  10. 10. www.epubdirect.comJargon 2 About ePubDirect Here are 16 factors to consider when discussing eBook platforms: 1. One user/one book model 2. Subscription option 3. STL model 4. PDA model 5. Perpetual access 6. Free viewing period (for PDA) 7. Interlibrary loan 8. Invoicing intervals (monthly, quarterly, yearly) 9. DRM policies 10.Embargo period 11.Limited number of loans 12.Variable pricing 13.Delayed sale 14.Leasing 15.Sub-Collections 16.Concurrent Access 10
  11. 11. www.epubdirect.comBusiness Models 2 BUSINESS MODELS: ADVANTAGES & DISADVANTAGES Because of the fundamental shift facing trade publishing, including the entry of retail companies that currently dominate the eBook market, publishers and authors have much to gain from enabling libraries to distribute eBooks Opportunities: • Enhanced Discovery: Library users are also heavy book buyers, and publishers value the role libraries play in connecting readers with authors. • Sales Channel: Libraries can generate additional sales for the publisher. Often, in new territories that print doesn‟t reach. Threats: • Cannibalization: Publishers fear that eBooks that are available in a public library at no extra cost to patrons will compete directly with e-books sold through retailers. • Piracy: ! 11
  12. 12. www.epubdirect.comBusiness Models 2 About ePubDirect Patron-driven acquisition (PDA) One of the most talked-about models for acquiring eBooks in academic libraries. The PDA model is fairly straightforward: ebook purchases are triggered based on traffic and patron interest in particular titles. This business model guarantees that only the content that gets used gets purchased. Although it is still not common, some vendors have begun experimenting with a PDA option for public library customers. Short-term loans (STL) STLs are similar to the PDA model in that patron demand ultimately drives how the library spends its budget. The key difference is that STLs are rental agreements, not contracts for ongoing access. STL is a good solution for librarians looking to obtain access to content they wouldn‟t otherwise be able to afford. Perpetual Access Single User/Single License & Multi User/Multi License. Under this model, libraries may pick and choose titles that they may archive in perpetuity. Loans are limited to one user at a time for each eBook licence purchased. This often results in waiting lists for popular titles. Pricing per title is at publisher list price 12
  13. 13. www.epubdirect.comBusiness Models 2 About ePubDirect Limited Number of Loans The library must repurchase the same title after a defined number of loans. This model is essential rental. Variable Pricing Some publishers are setting different library RRP‟s to their trade RRP‟s, with some titles well above the print RRP and some other offered at a discount. Arose as a result of „terms of sale‟ debate. Interlibrary Loans Through license agreements, libraries can share titles among more than one institution. Similar to a physical library allowing loans or circulation to other branches Delayed Sale Publishers sometimes delay sales of eBooks to libraries for a period after the title is released for public sale. This embargo or window may last from a few weeks to several months of more. Subscription Access if offered as part of a collection as a renewable term subscription (annual), for concurrent use by end users. 13
  14. 14. Overdrive 14 About OverDrive OverDrive is a full-service digital distributor of eBooks, audiobooks, music and video worldwide. They deliver eBook services for libraries, schools and retailers, on a global scale. OverDrive hosts more than 1 million premium digital titles from more than 2,000 publishers, including Random House, HarperCollins, Harlequin, and Bloomsbury. Their digital distribution services are utilized by more than 22,000 libraries, schools, and colleges worldwide.  EPUBs and PDFs • One Title/One User (SUSL): For each eBook that is purchased, the distribution outlet is permitted to sell or lend that same number of units to end users at the same time (i.e. if a library purchases 2 copies, they can lend out 2 copies at a time). • Subscription (Max Access): Access if offered as part of a collection as a renewable term subscription (annual), for concurrent use by end users. 25, 50, 75, 100. Business Models
  15. 15. ebrary 15 About ePubDirect US based ebrary is a leading distributor of ebooks to academic, professional, corporate and public libraries across the world. With over 70,000 eBooks, they work with over 600 international publishers, serving over 10,000 libraries worldwide. Academic and higher education are currently their main markets.  PDF only ebrary has multiple business model options: 1. Perpetual Access (most popular and fastest growing): single user or multiuser • Single User Perpetual = 100% of RRP • Multi-User Access Perpetual (up to 3 users at one time) = 125% of RRP 2. Licensed access: Collections, annual renewal e.g. Academic Complete, Internal embargo of one year for frontlist books (frontlist titles go into the perpetual model). The licensed access collections represent a way to extend the "long tail" of your books' sales life. • Pricing based on subscription. Library subscription access/ usage. Library subscription value is based on size and varies from library to library. About ebrary Business Models
  16. 16. ebrary 15 About ePubDirect 3. Corporate rental: Corporate organizations can purchase time-limited access to books for their corporate libraries at prorated prices. • Price based on RRP 4. Short-term loan: Library patrons can purchase time-limited access to specific titles. After 3 short term loan purchases, a perpetual access purchase is automatically triggered. Short terms loans are limited to single user only terms, and are capped at 3 occurrences per library. • Price based on RRP 5. Patron Driven Acquisition: Libraries purchase books based on patron usage -- if certain usage thresholds are met (access 10 pages, viewed for 10 consecutive minutes, any single copy/paste/print performed) a perpetual access purchase is automatically triggered for the library. This is a very popular model with libraries because it allows them to ensure that the content they're purchasing is actually being used. • Pricing based on subscription. Library subscription access / usage. Library subscription value is based on size and is undisclosed Business Models
  17. 17. EBL 16 EBL, www.eblib.com, provides ebooks to academic and research, government and corporate libraries. Formerly part of eBooks.com until acquired by Proquest in 2012, EBL focuses on the specific needs of academic and research-based libraries, and as a result has deep penetration amongst academic and research institutions. Widely used by Academic publishers like Penguin DK, Wiley and Palgrave Macmillan. About EBL Business Models 1. PDA • 5 minutes, copy/print/interaction etc, triggers auto-purchase 2. Lending • Non-Linear lending 325 uses • Non-Linear restricted (3 loans per day/concurrent users) • Non-Linear unrestricted (no limit on users) 3. Sub-Collections • Max 1 chapter, 1 user at a time 4. Short-Term Lending • Initiated by the library for one patron, for a percentage of the list price for non owned books. • Autopurchases occur when libraries elect settings that allow books to be automatically purchased when borrowed X times as a Short Term Loan.
  18. 18. EBSCO 17 About ePubDirect EBSCO is one of the biggest global academic library suppliers, offering more than 380,000 eBooks and audiobooks from over 2,200 publishers. It services over 113,000 libraries in total, 32,000 libraries for eBooks, globally. ePub, PDF EBSCO eBooks are offered through multiple distribution models: 1. Single User Model 2. Multi-user Models • <3 users = 1.25x • >3 users = 1.5X 3. Subscription Model • Part of a collection, renewable term subscription (annual), concurrent use 4. Patron Driven Acquisition Model (PDA) • 10 minutes/pages 5. Lease Model • 1 day = 15% of DLP • 28 days = 30% of DLP 6. Concurrent Access Model: 365 uses per year About EBSCO Business Models
  19. 19. Chegg 18 About ePubDirect Chegg is a leading US academic hub that specializes in online textbook rentals (both in physical and digital formats), homework help and scholarships. Chegg is used by over 5 million students on over 7,000 campuses across the US. 1. Subscription model. • 43% of the Digital List Price for a 90-day subscription • 57% of the Digital List Price for a 125-day subscription • 71% of the Digital List Price for a 180-day subscription • 100% of the Digital List Price for a one-time purchase About Chegg Business Model
  20. 20. Gardners 19 About ePubDirect 1. Single User – Single License In the library market they trade through their 3 sister companies: • Askews & Holts Library Services  eBook lending solutions for Public Libraries, Foundation through Primary, Secondary, Further Education, Colleagues, Universities and Academic & Specialist Libraries. Approx. 52 Public Library Authorities and 1,000 Edu Libraries in the UK. • Browns Books for Students  VLeBooks www.vlebooks.com , offers a new way for students to access Publishers eBook catalogue. This unique online platform lets students read via a computer or mobile device without additional software, download to read offline or on an eReader. • Navigator  Navigator.net www.bbfsnavigator.net is already the preferred method of ordering over 16,000 librarians and teachers. Integrated ordering of eBooks together with physical books provides a single source for all reading material for the library and classroom. Gardners Books is the largest book wholesaler in the United Kingdom. They have a stock catalogue of over 850,000 titles from over 4,000 publishers. About Gardners Business Model
  21. 21. Others 20 About ePubDirect 3M Cloud Library has about 40 publishers and more than 100,000 titles. They have secured numerous pilot projects for Penguin, Hachette and S&S. SUSL. About 3M About B&T Baker & Taylor huge traditional print book distributor, with a large digital arm and with a focus on 2 markets, libraries and retail. Titles go into their Access 360 platform where libraries access a time-limited, DRM-protected file from the Baker & Taylor servers. SUSL.
  22. 22. www.epubdirect.comePubDirect 2 About ePubDirect Overdrive & China: At the Beijing Book Fair Overdrive announced steps towards making Overdrive's catalogue of digital content available in China to libraries and retailers. There is no timeline in which the digital ecosystem will be widely available. Sources within the company have speculated that English Schools will be the first ones to make the eBooks available EBSCO Introduces eBook Business Collection: EBSCO have just announced a new assortment of ebooks for academic libraries. The collection is designed to help business school students conduct their research and work on special projects by aggregating top business titles in one unlimited-access subscription collection. Topics in the more than 9,400-ebook grouping include marketing, finance, supply chain management, and entrepreneurship. Students can also find sources on career growth, personal development, communication, and networking. A flat fee will be charged for access to the collection, and libraries will be able to access new titles for free as they are added. News! News! News! 21
  23. 23. Broad Revenue Base 22 About ePubDirect LIBRARIES GENERATING SIGNIFICANT SALES
  24. 24. Sales 23 About ePubDirect 2012 SALES PATTERN
  25. 25. Markets 24 About ePubDirect 2012: MARKETS
  26. 26. www.epubdirect.comGrow eBook sales Twitter: @epubdirect Linkedin: www.linkedin.com/company/epubdirect.com Company Reg Number: 473566 25
  27. 27. www.epubdirect.comwww.epubdirect.comContact Us Contact us: info@epubdirect.com @epubdirect www.epubdirect.com
  28. 28. www.epubdirect.comwww.epubdirect.comContact Us