As you probably know FOPL has been supporting the eBook Pricing Fairness Campaign. This is a coalition of library organizations across Canada which seeks to achieve more fairness in e-Book licensing conditions and pricing. We are being advised by Impact Public Affairs and this firm is helping us with our influencing efforts federally and in Ontario.
We are about to enter Phase two of this campaign.
Here’s a document which outlines our renewed e-Book pricing campaign Key Messages and empowers you with answers for any questions you may receive.
One goal is to to drive as many of your library users as possible to our website (fairpricingforlibraries.org) to sign up and register their support. Please use your website and social media channels to do that. If you would like to add your library’s logo to the website, please send it to sabram@fopl.ca.
The Q&A is copied below or you can download it here: eBook_Key_Messages_FAQ_national_revised_approved_9sept2015
e-Book Pricing Campaign Key Messages and Q&A
September 9, 2015
Key Messages
- Canadian Public Libraries for Fair Ebook Pricing have formed a coalition to raise awareness of the high prices that multinational publishers charge public libraries for ebooks.
- Demand for ebooks continues to grow rapidly – in fact, digital content is the fastest growing area of borrowing for public libraries.
- But multinational publishers impose unreasonably high prices, creating a barrier for public libraries to offer universal access to this content. As a result, public libraries offer fewer ebook titles, fewer copies for readers to discover and there are often longer wait times for these materials.
- We want as many people as possible to visit org to learn about the issue, let us know what they think and spread the word on social media.
Q&A
Why are Canadian Public Libraries for Fair Ebook Pricing conducting this campaign?
The campaign aims to raise awareness of the high ebook prices that the “Big Five” multinational publishers (Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster) charge public libraries. Canadian public libraries face challenges in ensuring universal access to this content.
We want to let more people know about these issues so they can understand why there are fewer ebook titles, fewer copies for readers to discover and often longer wait times. We also want to collect information that can be shared with multinational publishers and other stakeholders as we work to achieve fair pricing. (See fairpricingforlibraries.org for specific pricing examples).
Who are the members of Canadian Public Libraries for Fair Ebook Pricing?
Canadian Public Libraries for Fair Ebook Pricing is a coalition made up of the Canadian Library Association, Canadian Urban Libraries Council, Federation of Ontario Public Libraries, Nova Scotia Library Association, Ontario Library Association and Toronto Public Library to raise awareness of challenges faced by public libraries as a result of high ebook prices charged by multinational publishers.
Why is ebook pricing an important issue for public libraries?
The popularity of ebooks presents an exciting opportunity for libraries to connect with the public in new ways, but it also presents challenges.
In some cases, libraries pay three to five times more for ebooks than consumers (see fairpricingforlibraries.org for specific pricing examples). There are caps and time limits on ebook use. This means there are fewer titles, fewer copies for readers to discover and often longer wait times. Major publishers have set pricing and terms that jeopardize libraries’ ability to provide universal access to content in all its forms.
Do many people read ebooks?
Digital content is the fastest growing area of borrowing for public libraries. Campaigns to raise awareness of the availability of digital content have resulted in significant increases in borrowing rates.
Public libraries have responded by reallocating budgets and opening conversations with publishers to resolve issues with supply and discoverability. Based on 2013 Canadian Urban Libraries data, e-book budgets for reporting libraries have increased an average of 425% since 2010. Digital content is consuming an ever increasing portion of most libraries’ materials budgets; in 2010, Canadian Urban Libraries spent an average of 13% of their materials budget on digital content, and in 2013 it was 23%. Canadian Urban Libraries spent $5,801,543 on e-books in 2013, and this number will have increased in 2014. We also have purchasing power – in 2014 alone, Toronto Public Library’s budget for downloadable and streaming content was $2.8 million.
Why are ebooks treated differently than print books?
Print books are purchased as physical copies that the library owns. Rights holders typically license – rather than sell – access to digital resources. As licenses are contracts, libraries receive the rights articulated in the agreements including caps and time limits on ebook use.
Does this mean that the library doesn’t actually own the ebook?
Libraries purchase licenses for ebooks – we don’t own them, which is another issue for long-term access.
What information is available at fairpricingforlibraries.org?
Issues facing public libraries are outlined on the web page. The page includes examples of the price gap between consumer and library prices, illustrated by a selection of popular titles. The page includes a poll, social media sharing with the hashtag #FairEbookPrices and email collection for those interested in updates on the issue.
How do you want people to respond to this campaign?
We want as many people as possible to visit fairpricingforlibraries.org to learn about the issues public libraries face with respect to ebook pricing. We’re asking people to spread the word on Facebook and Twitter with the hashtag #FairEbookPrices so we can track the conversation. Those interested in updates on this issue can submit their email address.
We will share the response to this campaign with stakeholders including other public libraries, government and publishers.
We also want people to keep borrowing ebooks and other digital content from public libraries. The booming popularity of this content is one of the strongest arguments for increased access.
Publishers are going through a tough time. Are the high prices justified?
We recognize publishing in Canada and around the world is undergoing great change, but imposing unreasonably high prices for ebooks is not the answer.
Public libraries play an integral role in a vibrant book industry. We promote literacy and a love of reading that encourages people to acquire more content of all varieties, both borrowed and purchased.
What is the status of these multinational publishers selling to libraries?
Refer to pages 5 and 6.
Has anything else been done to achieve fair pricing?
Advocacy efforts for fair ebook pricing and access have been underway in Canada since 2010. There has been significant progress with much improved access to ebooks for public library customers. Many Canadian independent publishers make their content available as do the major publishers. However, multinational publishers continue to impose terms such as unreasonably high prices.
Who are the multinational publishers the campaign refers to?
The “Big Five” publishers are Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster. Together these companies control roughly two-thirds of the North American consumer book publishing market.
What about independent publishers?
We do not face the same pricing issues with independent publishers. Many independent and Canadian publishers make their ebooks available at reasonable prices and with reasonable terms of use.
Do public libraries in Quebec face the same pricing issues?
Public libraries in Quebec face the same pricing issues when it comes to the “Big Five” publishers. However, Quebec publishers make their ebooks available at reasonable prices, much as independent publishers do in the rest of Canada.
What about fair compensation for authors?
We support fair compensation for authors and we are not suggesting we should be paying the consumer price. What we are saying is that unreasonably high ebook prices mean we are limited in what we can purchase for our readers. We have a mandate to provide universal access to a broad range of content regardless of the format.
What is the pricing model that would work for libraries?
We are advocating for a hybrid of existing pricing models as one that would work far better because it introduces both fairness and flexibility into the model. This hybrid model offers libraries of all sizes the ability to make choices about maintaining copies in perpetuity at a higher price, and other copies of the same title at a lower price within a restricted timeframe. As an example, if 100 copies of an ebook are selected, a public library could choose to pay a premium price for 10 copies with ongoing and perpetual access. The remaining 90 copies could be purchased at a lower rate with those copies expiring in a year. This allows libraries to meet customer demand for copies when they are most popular and preserve access to the content in the longer term with fewer numbers of copies than were required up front.
As part of this model, we have advocated that the $85 and $100 pricing is too high as a premium price. Something in the $40-$60 range is more reasonable as a premium price. The lower price option could be higher than the consumer price, but not significantly as the content would expire in a year.
Note: This model allows libraries to choose how to build their collections in both the long and short-term. For some titles, libraries may only want copies that expire in a year. The point is, libraries make this decision as part of the selection process and have these different options for the same title.
What will happen if prices don’t come down?
If prices don’t come down, we’ll have trouble fulfilling our mandate of access to information for all. We’re not able to buy as many copies as required and can’t maintain our ratio of xxxx [fill in the number based on the specific library] holds per copy for some publishers’ eBooks because of high prices, meaning that customers will be waiting longer than they do for print.
Overview of Issues with Canadian Public Library Access to Ebooks
| Publisher | Terms | Prices | Notes |
| Random House Canada | One copy per use; no cap or time limit on use | $85 for new hard covers
$30-$60 for paperbacks |
OverDrive announces at the OLA Conference in February 2011 that Random House Canada and a number of independent publishers are making their content available.
In March 2012, Random House (U.S.) announces up to 300% price increase for e-books available to public libraries. |
| HarperCollins Canada | One copy per use; 26 use cap per copy | $25 for new hard covers
$4-$16 for paperbacks |
HarperCollins (U.S.) announces in March 2011 the introduction of a 26 use cap per copy.
In December 2012, HarperCollins Canada content is available on OverDrive. |
| Hachette Book Group | One copy per use; no cap or time limit on use | $95-$130 for new hardcovers
$10-$40 for paperbacks |
In October 2012, Hachette announces 100-200% price increase for its backlist e-books available to public libraries.
Hachette makes over 5,000 current and backlist titles available to libraries in May 2013. |
| Publisher | Terms | Prices | Notes |
| Macmillan Group | One copy per use; 52 use cap per copy or 24 months, whichever comes first
|
$60 for virtually all content – hard cover, paperbacks & eBook original shorts.
$40 for some older content |
Macmillan announces in January 2013 it is starting to make its backlist e-books available; in July, the entire catalogue is available. |
| Penguin Group | One copy per use; re-purchase copies after one year | $23 for new hard covers
$8-$16 for paperbacks |
In December 2013, U.S. content from Penguin is available; In July 2014, Penguin Canada is available. |
| Simon & Schuster | One copy per use; re-purchase copies after one year | $24 for new hardcovers
$4-$16 for paperbacks |
Available in November 2014. |
| Independent Canadian Publishers | One copy per use; no cap or time limit on use | $16-$25 for new hard covers
$8-$15 for paperbacks |
These publishers have willingly worked with libraries to make content available and to find mutually beneficial solutions. |
| Scholastic |