struggling to satisfy demand

the reality of the public library ebook marketplace

Presented to the Connecticut State Library ACLPD’s Ebook

Task Force April 2, 2013

Who am I?

Matt Weaver

Board member, Library Renewal

Web Librarian, Westlake Porter Public Library

Twitter & Facebook: mattrweaver

What is Library Renewal?

“Our goal is to find new econtent solutions for

libraries, while staying true to their

larger mission.”

libraryrenewal.org

Struggling to satsify demand

bit.ly/ebookdemand

About the report:Inspiration

Provides reports with important data points

Could be easily collected, compiled

About the report: Need

Lots of opinion about ebooks in libraries

Most existing data not from the library perspective.

Overdrive “Big data”

Overdrive and Big Data

Overdrive and Big Data

The message:

library patrons are engaged with and BUY publishers' content

Overdrive and Big Data

The libraries

Three members of Library Renewal’s Partner Libraries program:

• Robbins Public Library (MA)• Santa Monica Public Library (CA)• Omaha Public Library (NE)

Two non-partner libraries

• Topeka Shawnee County Public Library (KS)• Westlake Porter Public Library (OH)

limitations

Small data pool: only 5 libraries

Not extensive enough for historical analysis

Missed Fall 2012

Major events: Jan. 2011 - Jun. 2012

Feb 24, 2011: Overdrive announces HarperCollins’ 26 checkout limit on its ebook titles.

Sept 21, 2011: Kindle support comes to Overdrive.

Nov 21, 2011: Penguin restricts access to library lending of new titles.

Feb 10, 2012: Penguin ends library lending of digital content.

March 2, 2012: Random House announces new pricing: some per-title increases as high as

300%.

Patterns in the charts

Patterns in the charts

Patterns in the charts

Patterns in the charts

Holiday Bump

Kindle share of ebook checkouts – month share

Sep-11 22.3%

Dec-11 54.8%

Mar-12 59.5%

Jun-12 57.5%

The Rise of Kindle

Publisher Jan. 2011 Jun. 2012Random House, Inc. 20.19% 32.02%

Penguin Group (USA), Inc. 15.47% 13.17%

HarperCollins Publishers Inc. 13.69% 5.40%

Hachette Digital, Inc. 6.56% 6.47%

Total share 55.91% 57.06%

Publishers' Share of Checkouts

Ebook vendors

3M Axis360 Overdrive Freading

Big 6content

Penguin, RH, HC

RH, Hachette,

HC, Penguin

RH, Hachette (backlist),

HC

no Big 6

KindleSupport

App only App onlyAll wifi-

compatible Kindles,

plus Kindle app

App only

Ebook vendors

3M Axis360 Overdrive Freading

Big 6content

Penguin, RH, HC

RH, Hachette,

HC, Penguin

RH, Hachette (backlist),

HC

no Big 6

KindleSupport

App only App onlyAll wifi-

compatible Kindles,

plus Kindle app

App only

Vendors split between publishers Vendors split between publishers and devices:and devices:

one vendor cannot serve all one vendor cannot serve all usersusers

Ebook vendors

3M Axis360 Overdrive Freading

Big 6content

Penguin, RH, HC

RH, Hachette,

HC, Penguin

RH, Hachette (backlist),

HC

no Big 6

KindleSupport

App only App onlyAll wifi-

compatible Kindles,

plus Kindle app

App only

Without ownership/ability to Without ownership/ability to migrate content: no competitive migrate content: no competitive

benefit to librariesbenefit to libraries

Uncertain future

Usage: in the media

Usage: in the media

Growth in demandstill causes financial strain

Usage: in the media

Peak of 61,650 checkouts in Jan. 2013

Annualized:739,800

System's 2010 circulation: 14.2 million items

Ebooks are 5.2% of circulation

Usage: in the media

Even so, libraries in the system must spend more to keep up with demand.

Usage: in the media

Disproportionate costs of these collections – administrative and content costs – worsen the impact of increased demand

Usage: Jun. '12 (all 5 libraries)

Usage: % of Cardholders

Library Contract start time % of card holders who have checked out at least one title from Overdrive during the contact period through June 2012

Omaha September 2004 5.33

Robbins October 2009 7.49

WPPL June 2010 6.49

Usage: % of Cardholders

Estimating non-use

Registered user: has entered a library card number

Unique patron with checkouts: someone who has checked out a book. A subset of Registered users

Estimating non-use

Library WPPL Omaha Robbins

percentage ofnon-use from start of contract through June 2012

17% 29% 30%

Estimating non-use

Estimating non-use

the takeaways

Ebook usage is device-driven

User loss is content-driven

The market is split by exclusive content/device agreements.

Current content agreements force relicensing expiring content, or paying exorbitant costs to acquire content.

the takeaways

The future of ebooks in libraries looks expensive.

The problems of ebooks in libraries will not be solved by vendors.

A future econtent marketplace will have to be built outside this system.

the takeaways

Budgets are tight, so these agreements are forcing libraries to focus on “the big books.”

There is clear evidence of a high percentage of users who fail to start the service.

Based on the data from these few libraries, ebook/audiobook services are being used by a small percentage of cardholders.