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Link to John Blossom: Team Member Profile    
The Quiet Revolution: How Public and STM Libraries are Powering eBooks Growth
 
    15 March 2004
SUMMARY:
 
 
The Open eBooks Forum's conference on eBooks in the Public Library this week highlights the quiet but significant strides that eBooks library systems are making in institutional content markets. These lending systems are using digital rights management (DRM) capabilities to enforce lending and usage rules in very sophisticated ways, driven by the need to accommodate a wide variety of usage models supported in traditional libraries that must have electronic equivalents. Turns out that these adaptations may be just the thing to help power significant changes to how publishers' content is sold - both for books and for other kinds of premium content. It's early days still for eBooks, but their day may be upon us from many angles very soon.

Left for dead more times than a horror movie series star, the eBooks marketplace refuses to go away and continues to power a quiet revolution for specific marketplaces in which the ability of eBooks distributors to manage reference and entertainment content stands out. This revolution is overshadowed by relatively modest unit sales compared to paper-based books publishing, even though the eBooks marketplace is surging ahead at truly stratospheric rates in terms of sales growth percentages (see Shore Senior Analyst Jean Bedord's comprehensive report on the eBooks marketplace and her complimentary report on considerations for eBooks deployment in libraries).  But the most significant action for eBooks is in lending libraries serving the public and major institutions. An interesting example is the recently launched eBooks lending platform at the San Jose, California Public Library using OverDrive lending and rights management infrastructure. SJPL also services the local state university campus, training multiple generations of tech-equipped readers in this Silicon Valley outpost on how to use eBooks effectively in professional and academic settings. Popular novels have their own following in San Jose, but not surprisingly it's titles covering hardcore technology and business topics that seem to have the deepest waiting lists. Put simply, serious content consumers are taking eBook lending very seriously.

In the Science/Technical/Medical sector, eBooks are surging forward with the launch of eBook Library, the institution-oriented arm of eBooks.com parent eBooks Corporation. EBL has announced the availability of titles from Cambridge University Press, Kluwer, Oxford University Press, Springer, Taylor & Francis and World Scientific - core STM publishers who aim to use EBL as a leverage into both academic institutions and corporate libraries. EBL has numerous features tailored for maximizing content value on an institutional basis, including non-linear lending models, reserve materials and course pack assembly, as well as "photocopying"-like digital rights management. These capabilities go to the heart of how institutions need to consume many kinds of premium content on a variety of platforms, providing a continuity of flexible access control and management that most professional subscription management companies and consumer media companies can only dream about. As both academic and corporate institutions trade in bookshelf space for virtual space and manage service cutbacks in a tight economy, the cost-effectiveness and ease of maintenance and access provided by eBooks library systems provides inarguable advantages.

Be it via public or institutional libraries, the free availability of reader software, rapidly evolving lending and management models for eBooks and a growing abundance of premium materials are creating a fertile environment for developing the eBooks industry far more rapidly than its critics may imagine. What are some of the directions that this movement may evoke in the months ahead? Here are a few potential developments to consider:

  • Expansion into other kinds of premium materials. The economic and user benefits of eBooks library systems are attractive enough that they are capable of becoming institutional and public standards very rapidly. As they do so, they will begin to establish innovative content access and usage models that can be extended to other kinds of premium content. Access to common titles is just the beginning: the ability to manage access to portions of a title concurrently, redistribution management and automatic expiration of access provide an environment for managing premium content that is more responsive to many of the real needs for managing content value at the institutional level than traditional user-takes-all subscription models. Though purchasing patterns and formats for journals and other kinds of subscription content are different from eBooks, subscription models are not terribly difficult to manage within an eBooks library systems framework. The pressure that many institutions feel to manage subscription costs more effectively may find eBooks systems to be just the right leverage to help them make effective progress in managing content value.
  • Wider acceptance of DRM capabilities at the institutional level. Despite the flurry of activity with digital rights management in consumer media, DRM has made very little headway at the institutional level for supporting premium content. Getting past the installation of DRM controls is still somewhat of a headache, and database-driven subscription content circulates freely without DRM. But the repetitive use of an eBooks facility gives users motivation to get past the installation hurdle and to get used to its uses and benefits, while institutions begin to discover its potential benefits for cost management and auditability. Conflicting standards still present challenges, but DRM used for circulation control can easily be supporting content purchases, subscriptions and redistribution capabilities for a wide variety of materials. Most importantly DRM features for eBooks help to facilitate the ease of enabling content value as much as they help to enforce publisher rights - a key factor for DRM acceptance.
  • New content monetization models. DRM-supported eBook systems open the door to many new kinds of monetization models for both book publishers and subscription-based publishers. DRM helps to restore the "it-ness" of content, defining highly portable content objects that can be integrated easily via technologies such as Web services and stored with auditable integrity as easily accessed "Fixed Content" in the latest content archival systems. Delivery is then not as central to collecting revenue as enabling usage of content already delivered, opening up the doors to new revenue streams from borrowed, shared, purchased or licensed content that mix and match attributes of these models on an as-needed basis.

The technology of eBooks viewing does not yet lend itself naturally to all kinds of content: its DRM capabilities are tightly coupled to eBooks file formats and eBooks readers. But it may well be easier to start with today's eBooks distribution management systems that are so well attuned to institutional purchasers and to extend their delivery capabilities for broader content types and models than to try to retrofit DRM capabilities into aggregation systems that are not as attuned to the real patterns of institutional usage. With many aggregators and publishers failing to grow revenues in the institutional space, the quiet successes of eBooks in libraries may be just the revolution that publishers of all kinds have been looking for. Put away your wooden stakes, folks, eBooks are here to stay.

- John Blossom

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