Harper Collins has initiated limited access licenses to e-content for library circulation purposes. A new model meant to retain old print and ink attritions renewal profits. Appears publishers are having a hard time giving up an old print profit process that is simply no longer required in the new “E” world…I guess you can’t blame them.
Christopher Platt, director of collections and circulation operations at the New York Public Library, has some trade-offs from the library’s viewpoint that make a lot of sense and should make the adjustment to library ebook circulation much smoother.
Christopher Platt writing in Publishers Weekly:
The Happy Reader Equation: A Librarian on HarperCollins’s E-Book Pricing Model
HarperCollins generated a lot of controversy and debate with its new pricing model for e-books capping usage. In this week’s issue of PW, Connecticut librarian Kate Sheehan weighs in on the issue, and in PW Daily today we offer another piece by NYPL’s Christopher Platt, who takes a slighter different tack.
Recently, Harper Collins announced a new pricing model for e-books that caps usage, after which it would require a library relicense the title again for another set of uses. They further clarified that by mimicking the hardcover-to-paperback replacement purchase model, the price of the title would come down as it ages.
It has been a momentous few years for publishers and libraries. The economic downturn hit publishers hard, forcing cost-cutting, downsizing, and a review of business models. During all of this, the rapid advance of e-reading became the bright spot on publishers’ balance sheets, and now they are focusing intensely on ways to provide interesting content, engage new readers, and generate revenue in that arena.
Libraries were hit hard too, many of us enduring major fiscal challenges that strained our resources in the face of skyrocketing use. Libraries have downsized, cut back spending and services, and in some cases even closed during a time when their communities needed them the most. For many librarians, the announcement of e-book use limits from a major publisher must have felt like yet another in a long line of punches to the gut.
HarperCollins is a publisher that has worked hard to build up a great track record supporting libraries, and I know they are a team of dedicated individuals who recognize the value we bring to the table. They, like many of us, are tasked with the difficult job of revising long-held models to stay profitable and relevant. As content and demand have grown in the e-book retail market, publishers have been revising e-book pricing models, and it’s no surprise they are now looking at the library market. I know the other trade houses are watching with great interest, and I applaud HarperCollins for being courageous enough to make the first move. This call for understanding is directed to all trade publishers and my respected library colleagues.
Librarians: public libraries are valued institutions. Remember that we are just one portion of the formula that gets titles to readers, and the only step that is not-for-profit:
Author + Publisher + Wholesaler + Library = Happy Reader
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