Inside libraries' battle for better e-book access

Where it stands: Publishers typically require libraries to renew the license to each e-book every two years, or after 26 loans — policies that libraries call prohibitively expensive.

• This restricts the number of e-books — particularly popular bestsellers — that they can lend out to patrons, who are angry and baffled by the limitations.
• Readers love the free (to them) apps that allow them to borrow countless e-books and audiobooks: Libby (the dominant one, run by OverDrive) and hoopla.
• But some libraries say that the cost of renewing their contracts with OverDrive and hoopla are prohibitive, so they're dropping the apps — hoopla in particular.

The other side: The Association of American Publishers argues that it must protect the rights of copyright owners — that is, authors — to be fairly compensated for their work.

• hoopla and Libby say they're just the middlemen.
• "It's really not up to us, to be honest," Ann Ford, a vice president at hoopla, tells Axios. "It's the publishers that make the rules."

Driving the news: A Connecticut bill to boost libraries' bargaining power in e-book negotiations was tabled last week after a three-hour debate in the state House of Representatives.

• Similar bills are under consideration in Massachusetts and Rhode Island.
• Seven states took up the issue this year, with about a dozen interested in doing so next year, says Kyle Courtney, a lawyer and Harvard librarian who drafted model e-book legislation for states.

What they're saying: Libraries have a "unique and determinative public mission" that should entitle them to more favorable e-book purchasing terms when using public funds, Courtney tells Axios.

• "These are nonnegotiable contracts, and the libraries have been trying to get a deal for years," says Courtney, co-founder of Library Futures, a nonprofit advocating for libraries' digital rights.
• "We need the coercive power of the state sitting behind us at the table saying, 'We need a special slice of the pie.'"

Flashback: The renewed momentum follows two temporary victories in 2021, when Maryland and New York passed first-in-the-nation laws that were derailed in 2022.

• Maryland's law would have required publishers to supply e-books to libraries on "reasonable terms."
• But after a challenge by the Association of American Publishers on free market and copyright pre-emption grounds, the law was declared "unconstitutional and unenforceable" by a federal court.
• The challenge in Maryland prompted New York Gov. Kathy Hochul to veto a similar measure that had passed through the state legislature virtually unopposed.

How it works: Each publisher sets its own financial terms for each e-book title, with "the big five" publishing houses largely able to call their own shots.

• From there, OverDrive and hoopla take their markup.
• Amazon's publishing arm has been particularly stingy about making its e-books available through libraries.

Follow the money: "For popular trade e-books, libraries often pay $55 for one copy that expires after 2 years (or $550 for one copy for 20 years)," per the American Library Association.

• "Meanwhile, a consumer will pay about $15 for perpetual use."

• "By comparison, libraries can purchase hardcover books for around $18-$20."
• Each e-book can only be lent out to one person at a time, leading to long wait times for patrons.

Reality check: Only a small number of libraries have canceled access because of the expense.

• OverDrive is trying to help libraries slice and dice their collections to provide the maximum number of e-book titles at the lowest cost.
• hoopla offers an analytics program that helps libraries stretch their e-book dollars, plus new features like BingePass that let people stream copious movies and e-books.

"Yes, there still is more progress for us to make" in terms of library pricing, "but we have delivered," Steve Potash, founder and CEO of OverDrive, tells Axios.

• "We will always find opportunities to educate and advocate for publishers, authors and agents that their best interests are served by giving all institutions fair and flexible opportunities to acquire digital books."
• He noted that OverDrive became a certified B corporation in 2017 — and with that, he says, "we have to be advocates for libraries to get the best value proposition."

What's next: Librarians are developing open-source alternatives to Libby and hoopla and testing "experiments with publishers that don't involve restrictive licenses," says Jennie Rose Halperin, director of Library Futures.

• The Palace Project is a nascent e-book delivery platform for libraries backed by the James L. Knight Foundation, a nonprofit called Lyrasis and the Digital Public Library of America.
• The New York Public Library has an open-source initiative called SimplyE.
• A library e-book collaborative called Briet is just getting off the ground.

The bottom line: Librarians are already on the front lines of the nation's social problems — and it's going to be tough for them to simultaneously take on the publishing industry and win.