Platform Business & Acquisition Models

This section provides a concise overview of key facets of the numerous eBook aggregator business models currently on offer.

 

The term ‘purchased’ as applied to eBooks does not necessarily confer ownership in the traditional sense familiar to public libraries accustomed to print acquisitions.  The key distinction is that eBooks are typically licensed as opposed to sold. The licence agreement of the publisher and sub-licence agreement of the eBook aggregator dictates the extent to which a library ‘owns’ a title and their right of use.  At this juncture eBooks are typically hosted on the eBook aggregator’s platform.  Perpetual access is often conditional upon the library maintaining a continuing relationship with the vendor by paying ongoing platform/maintenance fees.  These fees are usually charged on an annual basis as a surcharge per-title or as a download fee charged each time a title is loaned. 

 

eBooks that are licensed are usually ‘rented’ for a set period under a model that is similar to the subscription model for eJournals. A subscription model is most appropriate for titles that are frequently updated, such as reference works or handbooks.

 

Access to general fiction and non-fiction eBook titles is generally provided under a single user model.  This model replicates the circulation of print titles: one copy equates to one loan per licensed eBook title. Publishers prefer this model as it creates ‘friction’ in the lending process and limits the loan of material over the period of the titles licence.  This model results in lengthy reservation lists for popular titles, leads to libraries purchasing additional licences and/or drives library patrons not willing to wait to purchase their own copy.  Some vendors offer increased multiple simultaneous licences (2-3 users) for certain publisher imprints.  Reference eBook material is often provided under an unlimited simultaneous user licence.

 

Harper Collins (internal link) and Penguin (internal link)  are currently providing titles to eBook aggregators under a defined loan limit licence.  Once the loan limit is reached (e.g. 27 circulations), the library must renew the title lease.  Once again this is an attempt by the publishers to replicate the print paradigm whereby a library would replace titles due to wear and tear.  

 

Some publishers enforce embargoes on the availability of new content for library eLending.  Penguin in partnership with 3M cloud library for distribution of content, currently has a 6 month embargo for new titles (refer to Big 6 internal link) .

 

The pricing structure for titles is dictated to the aggregator by the publisher and as such there is considerable variance in the list price of available items (refer to Big 6 internal link). The typical list price is generally higher than the consumer retail price and in several instances several a number of the main publishers have increased the title price in the order of 200%.  Discounted titles are rare.  

 

Publishers are often reticent about library consortia arrangements for the provision of eBook content, particularly where shared content is requested.  Consortia groups are often required to purchase multiple copies using a formula determined by the aggregator based on population served and the number of libraries in the consortia group.   

 

The ability to inter library loan content on an eBook aggregator platform is generally not permitted under the publisher licence and aggregators sub-licence. 

 

 

This model involves a library’s normal selectors selecting individual titles from the vendor’s catalogue for purchase. This is a labour intensive model, but the library maintains complete control over the selection process.

       

This is similar to approval plans for print formats. Material is selected by the aggregator or agent according to an agreed profile, and the purchase of this material is subject to the approval of the library.

 

These collections are aggregates of titles related to a particular subject. This option makes it easy for a library to quickly establish a collection of eBooks, but there is a high likelihood that many titles will be included that would not otherwise be purchased. These collections are pre-determined and selection is always by the vendor rather than SLNSW. The cost of such collections could be high relative to their potential use.

 

This model generally allows for clients to search across the vendor’s platform and select any title. After a pre-determined number of clients have viewed a title, it is automatically purchased and added to the library’s collection. Limits can be imposed with this model to ensure that the library maintains control. Budgetary limits can be imposed to control over-spending and a library can select categories of material made available for browsing in accordance with existing collection development policies.

 

The main benefit of this option is that only books that clients wish to use are purchased. Academic libraries with this model have reported that the usage of materials selected this way is higher than that of traditionally selected material. This option enables a library to gain a greater understanding of what material clients wish to use.

 

This model is based upon a predetermined fee which is charged once the patron borrows  an  eBook.  There is no requirement for the library to purchase the item.  Short term loans can be used in conjunction with a mediated patron acquisition model.  The library can choose to purchase the item based on the title’s usage.

 

American Library Association 2013, Collection Management: Electronic Resources. Available from: http://www.ala.org/onlinelearning/collection/electronic

 

American Library Association 2013, Transforming Libraries: Collection Development. Available from http://www.ala.org/transforminglibraries/research-0#coldev

 

American Library Association, EBook Business models for Public Libraries.  http://www.ala.org/transforminglibraries/ebook-business-models-public-libraries (2012)

 

American Library Association, Ebook Business Models a Scorecard for public Libraries. http://www.districtdispatch.org/wp-content/uploads/2013/01/Ebook_Scorecard.pdf (2012)

 

Emery, Jill and Graham Stone 2013, 'Techniques for Electronic Resource Management', Library Technology Reports, vol. 49 Issue 2, p1-43 (please note this journal is available in full text via the NSW.net Statewide licenced database MasterFile Premier)

 

IFLA Key Issues for e-Resources Collection Development: A guide for Libraries. Available from: http://www.ifla.org/publications/key-issues-for-e-resource-collection-development-a-guide-for-libraries

 

O'Brien, D, Gasser, U and J, Palfrey 2012. E-Books in Libraries A briefing document developed in preparation for a workshop on E-lending in Libraries. Available from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2111396 

 

Sue Polanka is a leading authority on eBooks and elending.  The following presentation provides a useful overview for any library service considering offering eBooks to their clients.  If you view this presentation on the Slideshare website you can also access the extensive presentation notes that accompany the slides.  Sue has also written a paper, A Primer on Ebooks for Libraries Just Starting With Downloadable Media,  which is available from: http://www.thedigitalshift.com/2012/04/ebooks/an-ebook-primer-many-small-libraries-are-still-just-getting-started-with-ebooks-heres-a-helpful-guide-on-those-first-steps/

Purchasing E-Books for your Library from ALATechSource