Elending in Libraries: Call for Evidence Submission from the Chartered Institute of Library and Information Professionals (CILIP

) Introduction 1.1. The Chartered Institute of Library & Information Professionals (CILIP)1 welcomes the opportunity to respond to this important consultation. Enabling elending is essential if public libraries are to continue to be an integral part of a networked society, promoting the digital skills necessary for full participation in the 21st century. However, the ebook agenda should not be separated from the econtent debate. Libraries must be at the forefront of innovation in the creation and delivery of all digital services. Through public libraries customers can access and engage with other digital initiatives being developed by Government, so we encourage the Government to explore further opportunities to increase their online services by working with libraries and librarians. 1.2. Public libraries support learning, business, enterprise, culture and recreation, and are important centres within the communities they serve. They bring together all parts of society, paying special attention to the needs of disadvantaged people. For this to continue, CILIP firmly believes that elending must be provided free of charge with access to knowledge not dependent on the ability to pay. Charging for the loan of ebooks would threaten the principle of a free public library service as elending seems likely to become a major form of lending in years ahead. 1.3. The terms of reference for this review recognise that Public Lending Right and Digital Economy Act 2010 are UK-wide, and that it may therefore “be necessary for the purposes of this review to consider the systems in place in the devolved
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The Chartered Institute of Library and Information Professionals (CILIP) is established by Royal Charter and is the professional body for library and information professionals in the UK. It has around 18,000 members working in all parts of the UK economy, many in public libraries.

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administrations”2. CILIP believes that it is essential for the position across the UK to be reviewed and trust that the devolved nations will be fully involved in the development of elending business models. The outcomes of the Review will impact on readers and users in Scotland, Wales and Northern Ireland as much as in England. 1.4. The Review focuses on public libraries and elending. Other types of library service also lend ebooks, although mainly of a specialist or academic nature. However school libraries also have a keen interest in promoting reading and children’s literature and so have an interest in the development of workable models of elending with trade publishers and other stakeholders in the book industry. 1.5. We hope that the working party will be informed by what is happening overseas, for example elending pilots in North American public libraries3 and developments in Europe4. 2. The benefits of elending 2.1. CILIP strongly supports the development of elending across the UK because of the huge benefits that come from greater access to reading and knowledge. Through lending and elending libraries promote reading and learning, thereby contributing to key policy objectives, such as the creation of literate and articulate individuals and communities that can better support themselves. 2.2. Free ebook publishing initiatives such as the Gutenberg Project have opened up the world of literature and thought to millions. Likewise, free access to in-copyright works, mediated by public libraries, brings numerous benefits to readers, libraries,

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DCMS, 2012. Independent Review of E-lending in Public Libraries – Terms of Reference See: http://tinyurl.com/8ze3kug [Accessed 1 November 2012] 3 Hachette is conducting a pilot with two ebook library distributors, which will bring a selection of its recent bestselling ebooks to 7 million library users (announced May 2012); Penguin is partnering with 3M to make its ebooks available through the New York Public Library and Brooklyn Public Library for a period of one year (announced in June 2012); Macmillan announced an elending pilot in September 2012 4 The European Bureau of Library, Information and Documentation Associations (EBLIDA) has developed Key Principles on the acquisition of and access to ebooks by libraries. These Key Principles define minimum conditions for libraries when ebooks are acquired and made available, whilst maintaining a balance between the interests of the public and those of the rightholders. The Key Principles will be used as a negotiating point in scheduled meetings with the Federation of European Publishers and the EU Commission.

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authors, publishers and booksellers. Of these, we wish to draw attention to the following: The benefits of remote access: Where licences allow, ebooks are available 24/7 through the library’s website, even when the physical library is closed. CILIP firmly believes that all supply models should allow for remote downloading in addition to on-site access. In the digital age library users expect nothing less. On-site only elending is overly restrictive, runs counter to social inclusion policies, and will have a detrimental effect on library membership and therefore the public library service, threatening its very existence. The benefit of free access to all: CILIP is of the firm belief that society benefits from a public library service that is, in the main, free at the point of delivery. It means that access to knowledge is not dependent on the ability to pay and so enables libraries to reach out to disadvantaged communities and promote reading, lifelong learning, democratic engagement and citizenship. CILIP has serious concerns about the position of elending under the terms of the 1964 Public Libraries and Museums Act, as there is nothing in the Act to prevent a charge being levied, nor is there anything in the Library Charges Regulations (1991) to stipulate an upper limit. Charging goes against the spirit of the Act, if not its detail, in that the written word is exempt from charging unless the material is lent in a form in which it is readable only with the use of an electronic or other apparatus.5 Clearly ebooks do need a device to read them. Charging for ebooks could be seen as starting to charge for core public library provision as ebooks start to rival printed books, which brings into question the library’s role in ensuring freedom of access to information for all. The benefits to print disabled people: Ebooks offer the greatest potential to increase access to books by blind and partially sighted people. Recent research conducted for the RNIB found that, not including ebooks, only 17 per cent of the
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Section 8.3 of the Act states that no authorisation shall be given for charges for the borrowing of written material providing "the material is lent in a form in which it is readable without the use of any electronic or other apparatus". Ebooks do need a device to read them and therefore a charge can be made with no upper limit being stipulated in the Library Charges Regulations (1991).

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most popular books of 2011 were fully accessible. If ebooks are included, accessibility rises to 76 per cent.6 Ebooks present a dramatic opportunity to end the “book famine” suffered by the visually impaired. However, as restrictions on reformatting text can impede access, we wish to draw attention to the RNIB’s recent leaflet "Can everyone read your books?", which links to guidance for libraries, publishers and booksellers and highlights accessible ebooks.7 The benefits of increased flexibility: Unlike with a printed book, libraries will no longer be constrained by a physical item and, under terms favourable to all parties, will have more freedom to meet demand as and when required. For example, purchasing additional copies of an ebook for a limited duration for the benefit of a book group. The benefits for reader development and elearning activities: Children, young people and hard to reach groups may be encouraged to read and learn if technology is part of the reading and learning experience. Taking children as an example, the reading gap between boys and girls in England is widening and the All-Party Parliamentary Literacy Group Commission recently called for action to tackle this.8 Boys aged five to seven represent the highest potential for growth when it comes to ereading, with 54% wanting to read digitally, but not yet doing so.9 This is important to public libraries, but it is also important to school libraries – they too wish to lend appropriate etitles made available by trade publishers (as distinct from specifically educational publishers). The benefits of increased exposure: Libraries are ideally placed to showcase a wide range of publishers’ output. The Pew Internet Report shows that libraries and librarians are a prominent source (21%) for owners of ereading devices to get
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Creaser, C., 2012. Accessibility of the top 1000 titles of 2011, RNIB http://tinyurl.com/clhywzw [accessed 1 November 2012] 7 RNIB, 2011. Can everyone read your books? Reach more readers through ebooks and other formats http://tinyurl.com/cdl4d8u [accessed October 30th 2012] 8 BBC News, 2012. Boys' reading skills 'must be tackled' http://www.bbc.co.uk/news/education-18644811 [accessed October 30th 2012] 9 From Bowker Market Research, 2012. Understanding the Children’s Book Consumer in the Digital Age

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recommendations for reading materials10. A 2011 study by Library Journal and Bowker PubTrack Consumer reports that 50% of all library users in the USA report purchasing books by an author they were introduced to in the library.11 OverDrive reported that, during March 2012, 5.02 million visitors viewed 146 million pages over 12.6 million visits to OverDrive-hosted digital catalogues. Visitors experienced more than 630 million digital book cover images while browsing.12 Benefits from partnership working: Partnering with other stakeholders adds value to elending and is to be encouraged. By working with publishers and suppliers, libraries can ensure that the download experience is as seamless as possible for the reader. Partnerships with local booksellers and authors will nurture the creative community for the benefit of all. All parts of the book industry share an enthusiasm and commitment to the value of reading and a desire to grow the market for books and ebooks. It is our belief that the showcasing opportunities provided by libraries, and the support they give readers, helps sustain and improve the overall market for books and ebooks. 3. The current level and nature of demand for elending in English libraries, along with a projection of future demand. For example, will elending be in addition to traditional borrowing of print books, or is it likely to transform the way in which library users access services? What is the demand for downloading ebooks remotely, that is, away from library premises? To what extent do owners of ereaders value public elending above what is freely or commercially available elsewhere? 3.1. The current level and nature of demand for elending: Others, such as the Society of Chief Librarians, will be able to provide recent data that will demonstrate the growing provision of, and demand for, elending. We believe that the tipping point has
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Pew Research Center’s Internet & American Life Project, April 2012. The rise of e-reading http://tinyurl.com/9qgskwa [accessed 30 October 2012] 11 Andrew Albanese, 2011. Survey Says Library Users Are Your Best Customers http://tinyurl.com/3nebvb2 [accessed 30 October 2012] 12 OverDrive, March 2012. Library Media Network eBook Report: Summary of Select Traffic and User Behavior Statistics, p2

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been reached and that in the very near future, ebooks will come to dominate book sales and book lending. Some statistics are provided in Appendix A. 3.2. Current availability of ebooks in libraries: Ebook titles available for loan are not currently sufficient to meet demands. If libraries are to provide the means through which everyone, regardless of their digital skills or connectivity, can take full advantage of new electronic media, they must first be allowed to provide the full range of content. 3.3. The transformative nature of elending: Ebooks are transforming the publishing landscape and, if libraries are to remain relevant, elending has to transform the public library service. If it does not, libraries will have failed in their duty to provide a comprehensive and efficient service for the 21st century and beyond. Not to cater for the increasing demand for ebooks will turn libraries into museums of the book. By removing barriers to elending, however, libraries can utilise technological innovation to become ebook enablers, encouraging and supporting wider use of ebooks and econtent, for the benefit of all stakeholders, including the library service itself. 3.4. Demand for remote downloading: It is our understanding that others are submitting evidence of the substantial demand for remote downloading, especially in the evenings when many public libraries are closed. Remote access is integral to the concept of elending. As stated above (paragraph 2.2) any restrictions on remote downloading will have a detrimental effect on public libraries. 3.5. The added value of public library elending: Libraries enhance, enrich and expand the community of readers, with ebooks being just one aspect of the virtual environment. Librarians bring expertise in reading and learning and act as guides to the mass of data and online information that is increasingly used in daily life. Knowledgeable library staff help their readers to identify genres and authors, experiment with different styles and develop their reading portfolio without cost. The popularity of library based reading groups is testament to the value placed on public

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lending13, as is the growth of bibliotherapy schemes that use guided reading and/or selfhelp materials to support people with mild to moderate mental health problems14. 4. Current supply models, barriers to the supply of ebooks to libraries, and likely future trends. 4.1. Supply models: The most common supply models are set out briefly in Appendix B 4.2. CILIP welcomes the opportunity to input into the development of a wider selection of supply models and pricing structures that will bring benefits to all stakeholders. We would like to draw attention to work currently being undertaken by our European partners. The European Bureau of Library, Information and Documentation Associations (EBLIDA) has developed Key Principles on acquiring and accessing ebooks, which will be available shortly and will be a starting point for discussions with The Federation of European Publishers and other key stakeholders15. 4.3. Barriers to the supply of ebooks: The reluctance of several trade publishers, especially the Big Six, to allow libraries to lend ebooks is the main barrier to supply. Elending is viewed as a threat to business models and piracy is a concern. The range of titles currently available to library users is therefore limited, and the terms of access are often unfavourable. We believe that this position is based on a misunderstanding of how libraries operate and the economic benefits that elending can bring, which stems from an absence of reliable data and knowledge. CILIP supports an approach that is cumulative and knowledge based, and would welcome the piloting of elending models in public libraries, with DCMS/Arts Council funding made available to research the impact of these models. A “step at a time” approach is essential in order to bring about an elending service that everyone has confidence in and can benefit from.
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More information on the ways in which libraries support reading groups is at: http://readinggroups.org/libraryhelp.html [accessed 1 November 2012] 14 For more information about bibliotherapy and Books on Prescription, see CILIP, 2010. Practical Guide: Bibliotherapy/Books on Prescription http://tinyurl.com/cyps5y5 [Accessed 1 November 2012] 15 EBLIDA’s Expert Group on Information Law (EGIL) has developed Key Principles on the acquisition of and access to ebooks by libraries. These Key Principles define minimum conditions for libraries when ebooks are acquired and made available, whilst maintaining a balance between the interests of the public and those of the rightholders. More information is available from EBLIDA - eblida@eblida.org

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4.4. The current evidence base: The research that is available shows that “the majority of readers of ebooks (61%) prefer to purchase their own copies rather than borrow them”16 (see also paragraph 2.2 “The benefits of increased exposure”). With regards to piracy, ebook suppliers wrap their ebooks in robust digital rights management (DRM) software, meaning the file expires after the loan period. There is no evidence of public library loaned items being stripped of DRM and loaded on file sharing websites.17 Digital distribution of scholarly publications to academic libraries is long standing and there are established protocols on the use of the content. Piracy issues have not been a major concern in the academic sector. 5. Systems for remunerating authors / publishers for elending. 5.1. We accept the principle that authors should be remunerated. The printed remuneration method works well (i.e. Public Lending Right) and we support moves to extend it. However, we believe that it should be extended in a more hospitable way than is contained in the provisions (not yet implemented) of the Digital Economy Act (2010). For the reasons set out above, restricting PLR to ebooks lent out from public library buildings is unacceptable and nonsensical in the 21st century. 5.2. In addition to remuneration through PLR, for the reasons set out above (paragraphs 2.2 and 4.4) and below (paragraph 6.1), we anticipate that authors and publishers will benefit financially from the extended audience provided by public libraries.

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Pew Research Center’s Internet & American Life Project, April 2012. The rise of e-reading http://tinyurl.com/9qgskwa [accessed 30 October 2012] 17 Taken from Edwards, S., and Leech, H., 2012. Library e-book lending fears – myth or reality? http://www.goscl.com/scl-position-on-e-lending-in-libraries/library-e-book-downloading-socauth/ [accessed 20 September 2012]

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6. The impact of elending on publishers and their business models. 6.1. As set out above, libraries enhance rather than damage sales and are important customers for publishers. Libraries provide more than just direct economic support for publishers and the wider book industry, however. They are ideally placed to showcase a wide range of publishers’ output and to encourage, engage, support and enhance reading through reader development activities. For many library users library catalogues are respected, trusted and well-used search tools for published materials. If enabled to provide elending public libraries will continue to directly and indirectly support publishers. 7. Any unforeseen consequences of elending. For example, the impact on those who cannot keep up with technology, the likely long-term impact on the model of highly localised physical library premises, skills requirements for librarians, etc. 7.1. It is important that any recommendations put forward by the working party do not attempt to define in too prescriptive a manner an ebook or an ereader. There is a danger of assuming that what we have now is what we will have in the future, which, judging by the current pace of technological change, will not be the case. Elending is just one change in a continuous flow of technological innovation. 7.2. A lack of understanding of the technology, together with a lack of the skills needed to utilise it, is an issue for library users. This is placing justifiable demands on library staff to support customers accessing services through various platforms and browsers and using different devices. The role that librarians play in supporting readers when accessing and using ereading technology, and in the promotion of ereading devices, should not be underestimated, especially by the manufacturers of these products. 7.3. CILIP recognises that many library employees also need to acquire new skills and knowledge. We note the outstanding success of the National Lottery funded training programme supporting the introduction of the People’s Network in 2000, which ensured a library workforce fully enabled to exploit the network effectively for the benefit of users. We recommend a similar national training programme focusing on accessing

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econtent of all types and so addressing the Government’s digital by default and open data programmes as well as ebooks. This would enable all stakeholders to say with confidence that every library authority can offer an excellent service with access to a wide range of econtent, provided in a range of media. 8. Key recommendations:

Elending should be provided free of charge with access to knowledge not dependent on the ability to pay All elending models should allow for remote downloading of ebooks in addition to on-site access DCMS/Arts Council funding should be made available to research the impact of elending pilots A national training programme focusing on accessing econtent should be developed and offered to public library employees across the UK

For more information contact: Yvonne Morris MCLIP Policy Officer, Policy Department CILIP, 7 Ridgmount Street London WC1E 7AE Tel: 020 7255 0629 Email: policy@cilip.org.uk CILIP, 6 November 2012 Registered Charity: 313014

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Appendix A The current level and nature of demand for elending in English libraries England The Chartered Institute of Public Finance & Accountancy (CIPFA) Public Library Statistics 2010-11 Actuals state that, as of March 2011, 49 out of 151 Public Library Authorities in England provided an e-book lending service. CILIP recently undertook desk based research to get more up-to-date information. Our audit of library authority websites in England, conducted in July 2012, found that approximately 107 are now either lending ebooks or planning to introduce this service before the end of the year. This means that approximately 71% of English public libraries now lend ebooks (July 2012). A projection of future demand Consumer purchasing of ebooks The Publishers Association’s Sales Monitor shows that sales of general consumer ebook titles (fiction, non-fiction and children’s) increased from £30m to £84m between January-June 2011-12. Ebook sales accounted for 12.9% of the total value of sales in January-June, up from 7.2% in the equivalent period in 2011.18 A recent study19 based on online surveys involving 3,000 British adults aged 16-84 found that: Nearly a third of British adults (31%) say they are likely to buy an e-book in the next six months. the percentage of adults who have purchased an e-book has seen an almost threefold increase between February 2011 and March 2012. 40% of those reading ebooks use the Kindle most often to do so.

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Taken from Daily Telegraph, 18 September 2012. E-book sales up 188%, http://tinyurl.com/9x6b9hp [accessed 25 September 2012] 19 Bowker, May 2012. Understanding the Digital Consumer, Bowker Market Research

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Tablet devices have more than doubled market share between February 2011 and March 2012, with 12% reporting that they use them most often. Growth in e-book consumption is being driven by older readers, particularly those aged 45-54. Just over a quarter of this age group bought an e-book in the six months to March 2012, up from 17% in November 2011. Men are more likely than women to buy ebooks, but women buy more and also download more free titles. Children aged 10 and under are reading ebooks on laptops rather than dedicated ereader. However from the age of 11, the Kindle becomes their most widely used device.

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Appendix B E-book suppliers and business models Suppliers20 Publishers Some publishers, including Elsevier, Springer Science+Business Media, Wiley and Cambridge University Press, supply ebooks directly to libraries. Vendors Vendors such as Dawson (Dawsonera) and Coutts (MyiLibrary) sell ebooks on behalf of publishers. The vendor’s role is to provide sales support, and once the purchase is completed (or the subscription arranged) access to the ebook itself is provided via the publisher’s website. Vendors typically offer content from a range of different publishers. Aggregators Aggregators such as, EBSCOhost, Credo, Bloomsbury, EBL (EBook Library), ebrary, NetLibrary and OverDrive supply content from a range of different publishers. Unlike vendors who sell content on behalf of publishers, aggregators license content from them and sell directly to libraries, hosting the ebooks on their own platform rather than the publisher’s website. Business models Several different business models have been developed: some key elements and options are summarised below: Purchasing individual titles or packages Individual titles can be acquired either directly or through library suppliers. Many ebooks are also available in packages (“bundled”) whereby they are grouped by subject (e.g. Palgrave Connect) or publication date (Springer Science+Business Media eBooks). In most cases the selection is made by the supplier (e.g. PsycBooks from the
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Information taken from Grigson, A., 2011. An introduction to e-book business models and suppliers. In Price, K., and Havergal, V., Ebooks in Libraries. London: Facet Publishing

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American Psychological Association) whilst in other cases the supplier offers the library a degree of choice (e.g. Credo Reference)21.

Outright purchase or subscription If an ebook is purchased outright the library can theoretically retain indefinite access to the ebook. The price charged usually bears some relation to the price of the print version. There may also be an annual platform fee to cover ongoing hosting on the supplier’s website22. Alternatively a subscription can be taken out whereby access is granted for a specific period. Prices are set according to subject area and the number of titles offered, and may also relate to the number of potential users (e.g. in HE to the size of the institution and the number of FTE students requiring access to the collection). Discounts are often given for multi-year deals.

A credit system Ebooks are purchased with a number of credits and each use (download or online) deducts a set amount of these credits (e.g. Dawsonera). Once the credits run down to zero the library has to purchase another copy.

Rental Some companies offer the option for short-term rental of individual ebooks (e.g. EBL Rental). If the user sees a title that is not owned by the library, they can request rental. The library pays a fee and the user is granted temporary access. This model is broadly equivalent to interlibrary loan.

21 22

Ibid

Ibid

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