Libraries pay more for e-books than consumers. State lawmakers are trying to change that

Patrons borrowing an e-book or a digital audiobook from their local library may not realize that libraries pay four or five times more for those materials than the average consumer.

That price difference has suburban library officials concerned about having less money in their budgets for new materials.

It’s also prompted action from state lawmakers.

Legislation approved unanimously by the Illinois House in April and awaiting Senate review would prohibit libraries from being treated differently from individual consumers when purchasing digital books.

Meanwhile, publishers are pushing back, saying they need to charge libraries more for e-books and digital audiobooks to stay financially sustainable.

Higher costs for libraries

Amy Peterson, digital services librarian at the Schaumburg Township District Library, has overseen the e-book and digital audiobook collection for two decades. Increased demand for these formats has increased costs for libraries, she said.

Digital versions of popular titles like “Theo of Golden” by Allen Levi cost libraries significantly more than they do private buyers.

While a consumer can buy the e-book for $12.99, the Schaumburg Library pays $59.99 to license one copy that expires after two years. The digital audiobook costs an individual $16.99 while the library pays $89.99 for a two-year license.

Demand for the e-book and digital audiobook of “Theo of Golden” led the Schaumburg Library to buy 10 licenses for each, which cost about $1,500 for access to one title that will expire relatively quickly.

Some publishers restrict a license to 26 checkouts before it expires, Peterson said. The costs and restrictions are set by the vendor, Cleveland-based OverDrive, based on what the publisher wants.

Libraries say the setup makes them renters rather than owners of a significant part of their collections.

Monica Harris, executive director of the regional Reaching Across Illinois Library System (RAILS), said the timing of the legislation demonstrates libraries have reached a tipping point.

“To me, it’s just a common sense consumer protection issue,” she said.

Opposition to the measure is based on a misunderstanding that libraries want to pay less for new materials, Harris said, when in fact they want to buy more from publishers than they can afford now.

Impact on publishers

Publishers say higher costs and license restrictions are part of a move to restore the so-called “friction” or effort needed to access a book through a public library. The pending legislation seeks to limit libraries’ right to enter into contracts, they say.

The American Association of Publishers (AAP) and the Authors Guild cite a new independent study they commissioned from the economic advisory firm Secretariat Advisors.

The study concluded that without such license agreements, the shift to digital lending is hurting the commercial market for books in the U.S.

AAP President and CEO Maria Pallante and Authors Guild CEO Mary Rasenberger addressed the findings in a joint statement.

“For state legislatures that seek to intrude into the literary marketplace by singling out e-formats for government mandates, the study addresses the significant economic consequences likely to result from such actions,” the statement reads. “It is a central tenet of copyright that licensors and licensees should individually negotiate their terms in competitive transactions that are free of government regulation by state or local governments.”

State Rep. Tracy Katz Muhl noted the unanimous bipartisan support House Bill 5236 received after she introduced it in February.

“That support was a direct result of the tireless advocacy of local libraries and constituents in effectively communicating the importance of the bill to their local representatives,” the Democrat from Northbrook said.

The bill awaits assignment to a Senate committee.

Sen. Mary Edly-Allen of Grayslake said she’s recently taken on the role of chief sponsor and will know more in a few weeks about the bill’s prospects in the upcoming fall veto session.

Kyle Courtney, the executive director of the Social Law Library, served as Katz Muhl’s expert adviser while she drafted the legislation.

Courtney said the measure’s easy passage through the state House shouldn’t be seen as a predictor of its progress in the state Senate.

“The Senate stage is where national publishing lobbyists focus their heaviest behind-the-scenes pressure to stall legislation in committee before it can reach a floor vote,” Courtney said.

epeterson@dailyherald.com