Publishers vs. Libraries: An E-Book Tug of War

[Kali Yuga]

Originally Posted by JSWolf

I've not agreed to the TOS and yet I am allowed to purchase eBooks. If I don't agree, then it's not binding.

Again, I'm fairly confident you agreed to the TOS when you created your Amazon account. The fact that you forgot doesn't mean you aren't bound by it.

[Fbone]

Originally Posted by ATDrake

When able, it's up to the purchaser to decide what to do and where to get the book from according to what they think best fits their personal ethical choices and common sense, which is what I've been saying (and doing) all along.

Well said.

We're restricted by our own consciences.

[darryl]

It is hardly surprising that Publishers, like record companies and movie studios, try to cling to old but profitable business models. They envisaged technology as leading to some sort of DRM heaven, where they could sell products with all sorts of limitations to suit their marketing needs. Work during the week? How about a discounted ebook or movie you can read or watch only on a weekend? Or that expires after a year? The possibilities must have seemed endless. Until reality caught up.

There are currently a number of DRM systems and I have not kept up to date with them, but when last I looked ebooks protected by all systems except Apple's could have the DRM removed relatively easily. And I will be surprised if Apple's system lasts for long. Hackers see these systems as a challenge, and are prepared to devote substantial time and effort to beating them, even in the absence of monetary reward. And now there are people and organisations with significant investments, albeit illegal ones, to fund the defeat of these systems. So it is extremely doubtful that any DRM system will work for long.

The miracle at the moment is that despite how easy it is to remove DRM from ebooks, or download unprotected ones, the vast majority of people simply don't. EBook sales are thriving, despite ridiculous pricing and even collusion. I would not like to own a traditional bookstore at the moment, as in the longer term I see no need for a physical retail shop which sells computer files. A very few will probably survive and continue to sell printed books, but to a drastically reduced market.

Publishers are terrified, and for good reason. An important part of their function up to now has been arranging for the actual printing and distribution of the books. This is a role which is declining in value. A computer literate author is capable of producing an ebook ready for the market. There is no need for it to be printed. And distribution does not now need to involve access and physical delivery to bookshops. Theoretically, an author could set up their own web-site and keep all the profits from their bestseller. In cases of very well established authors, this may well work. Someone like, for instance, Stephen King, may be able to carry this off. But for new authors and those without such an illustrious reputation, how would potential readers find their ebooks? Instead of a relatively scarce supply of printed books, virtually anyone who fancies themselves an author can now produce a product ready for the market. The role that needs to be filled is that of filtering all of this information to a level where potential readers can cope with it. Publishers currently fulfill this role because they have always done so. However, they are no longer the best placed to do so. Some interesting things seem to be happening at Amazon with so-called "Indie" authors, and one must ask why in the longer term a site like Amazon would deal with a publisher rather than perform a publisher's other roles themselves at a much reduced cost. Likewise Apple with music. If publishers do continue to fulfill these roles it will be at a much reduced share of the overall profits. One would expect that these savings will be divided to some extent between the new publisher/online retailer and the author. Perhaps then authors will even be able to make some reasonable money on their books without them being best sellers.

I do not believe DRM is the answer. People who want to will always be able to pirate ebooks, and the market will need to take account of this reality. In an extreme situation where no one was prepared to pay for books, there would still be books produced, at least by Authors who simply loved to write. But this will not happen. It seems most people are prepared to pay for their ebooks and one would think that more will be prepared to do so if prices are more reasonable.

In the meantime we must all sit through the death throes of the old business model and the birth of whatever is to replace it. Books and to some extent movies now seem to be moving towards a subscription type system, but it is anyone's guess if this will work. I tend to doubt it.

I have not tried my hand at writing a book. I am not an author. However, I do hope that whatever model we ultimately end up with results in the author receiving a vastly increased share of any profits made.

[CazMar]

Some very good points Darryl. It amazes me that the music industry has already thrashed out a lot of this "download/DRM/piracy" issue already, yet booksellers want to reinvent the wheel. Why not have a paid subscription service like many people use for music and videos? Like a public library but with a small monthly fee. Or a one-off borrowing fee for a month's loan. I know you raise some doubts about the viability of these services, but with millions of people worldwide using such a service it would be hard not to make a profit (and even Apple now has this type of service and they don't do anything unless they make money).

[Kali Yuga]

DRM doesn't have much to do with the library issue.

It is unlikely that book publishers will be completely wiped out and replaced by self-publishing houses or free services. The reality is that quality self-publishing requires more work and resources than most writers are willing to handle, especially for those who want to "swing for the fences" and write best-sellers. And without an intermediary service that standardizes loans, libraries would tear their hair out trying to negotiate with tens (if not hundreds) of thousands of individual authors.

As such, libraries will need to deal with publishers. They'll need specialized services like Overdrive. Both they and publishers need to accept that libraries do sacrifice some book sales in the name of a public good, and need to hash out who will pay for it. Even if there was no DRM, if a publisher makes "26 loans and then you need to re-up" a condition of library ebook loans, the libraries need to abide by that. They can renegotiate, but cannot violate, their contracts.

Originally Posted by CazMar

Why not have a paid subscription service like many people use for music and videos?

Because it wouldn't work.

Casual music listeners or video watchers can go through a high volume of content, which can be provided easily in a mass medium. It takes less time, less effort, less engagement to enjoy these works. Music in particular can be used in the background.

Reading takes more time, more involvement, more attention. Most people only read 1 or 2 books a year, so subscription services won't appeal to them. The readers who would benefit the most are the frequent readers, who normally read/buy 15 or more books a year, who are a relatively small slice of the public (15%) and make up an outsized percentage of sales (50% iirc). Limit their spending on books with an all-you-can-eat buffet, and everyone -- publishers, retailers and authors -- will suffer.

[tubemonkey]

Originally Posted by CazMar

Why not have a paid subscription service like many people use for music and videos? Like a public library but with a small monthly fee. Or a one-off borrowing fee for a month's loan.

That would be nice, but I doubt the market is there. I don't think there are enough people out there interested in such a plan as to make it profitable for the publishers.

Amazon is kinda heading that way by offering a max of one book per month as part of their Prime package; which also includes unlimited video streaming and free 2-day shipping. The cost is $79 per year ($6.58 per month).

The book selection is quite large at 65,923 titles when compared to the largest public libraries, which are in the 30,000 ~ 33,000 titles range.

[EscapeVelocity]

I found this a fascinating informative read. Thanks everyone!

[stonetools]

Originally Posted by Fbone

Well said.

We're restricted by our own consciences.

And, I might add, by the law.

[stonetools]

Originally Posted by tubemonkey

That would be nice, but I doubt the market is there. I don't think there are enough people out there interested in such a plan as to make it profitable for the publishers.

Amazon is kinda heading that way by offering a max of one book per month as part of their Prime package; which also includes unlimited video streaming and free 2-day shipping. The cost is $79 per year ($6.58 per month).

The book selection is quite large at 65,923 titles when compared to the largest public libraries, which are in the 30,000 ~ 33,000 titles range.

I've argued on another thread that Amazon intends to create some sort of subscription plan based on the Prime package . It might be a books only plan, or a multimedia plan that includes a certain number of books per year. We'll see come the new year.

[Sydney's Mom]

I too think publishers are being short-sighted. As the price of ereaders comes down, I think they will soon be in the hands of most school children. But just because the kid has an ereader, doesn't mean they can afford books. Unless those children get used to reading for pleasure from the library, the publishers are not going to be able to market to them as adults. Again, this is from my experience. I could possibly have gotten an ereader for Christmas, but there would have been no money for books.

[stonetools]

Originally Posted by Sydney's Mom

I too think publishers are being short-sighted. As the price of ereaders comes down, I think they will soon be in the hands of most school children. But just because the kid has an ereader, doesn't mean they can afford books. Unless those children get used to reading for pleasure from the library, the publishers are not going to be able to market to them as adults. Again, this is from my experience. I could possibly have gotten an ereader for Christmas, but there would have been no money for books.

My preference would be that children start out by reading pbooks anyway. There is no question about publisher support for children pbooks.

[tubemonkey]

Originally Posted by stonetools

I've argued on another thread that Amazon intends to create some sort of subscription plan based on the Prime package . It might be a books only plan, or a multimedia plan that includes a certain number of books per year. We'll see come the new year.

I'm sure they're headed for a subscription model too; only with video as the main attraction. Once they beef up their video content, they'll go head-to-head with Netflix and Hulu+; sweetening the offer with free 2-day shipping and book lending.

[stonetools]

Originally Posted by tubemonkey

I'm sure they're headed for a subscription model too; only with video as the main attraction. Once they beef up their video content, they'll go head-to-head with Netflix and Hulu+; sweetening the offer with free 2-day shipping and book lending.

Come to think of it, a video subscription model would be the way to bet. However, with 65,000 authors willing to sign up for KDP, I have got to think that Amazon wants to do something more than just offering books as an add on.

[EscapeVelocity]

Originally Posted by Fbone

Well said.

We're restricted by our own consciences.

That is why morality is so important, and the informal enforcement of that morality via stigmatization and discrimination is just as important as formal enformcement via the legal code.

But at base, what society and parents teach to their children matter. This idea that anything goes and their are no moral absolutes, moral and cultural relativism, multiculturalism...is dissasterous.

[tubemonkey]

Originally Posted by stonetools

Come to think of it, a video subscription model would be the way to bet. However, with 65,000 authors willing to sign up for KDP, I have got to think that Amazon wants to do something more than just offering books as an add on.

If I were doing it, I'd use books and shipping as a bonus to videos to get people to switch from Netflix to Prime. Then when it's fairly established, I'd see about spinning off the books, creating Prime Video (w/ shipping) and Prime Books (w/ shipping). But first, video content needs to be beefed up quite a bit in order to compete with Netflix.