In the dynamic landscape of book publishing, the rise of digital technology has heralded significant transformations, none more impactful than the advent of ebooks. For publishers, the ebook market opens doors to significant opportunities, especially in the consumer and library sectors. Despite the challenges and misconceptions that have slowed their adoption, ebooks offer substantial benefits. This blog post explores these benefits, examines the obstacles publishers face in making ebooks accessible to libraries, and highlights key trends and statistics underscoring the increased importance of digital lending.

The Consumer Market
 
Ebooks provide consumers with unmatched convenience and accessibility. Significant market shifts occurred with the launch of Amazon’s Kindle in 2007 (available in Australia in 2009) and Apple’s first iPad with iBooks in 2010. The proliferation of smartphones, tablets, and dedicated e-readers enabled consumers to carry entire libraries in their pockets. This portability is especially advantageous for avid readers and travellers, reducing the need for physical space and the burden of carrying multiple books. Despite the jokes about always needing a charger, ebooks quickly became the preferred format for high-volume readers, particularly in genres like science fiction and erotica/romance. Ebooks often come with adjustable font sizes, text-to-speech capabilities, and other features that enhance accessibility for readers with disabilities. These options make reading a more inclusive activity, broadening the potential audience for publishers.
 
The Library Market
 
Libraries have long been pillars of community and education, and the integration of ebooks into their collections only strengthened this role. For publishers, making ebooks available to libraries means reaching a broader audience who may not otherwise have access to their titles. Digital borrowing is particularly beneficial when physical library access is limited, as seen during the COVID-19 pandemic. Although Australian university libraries generally prefer digital formats, the pandemic significantly accelerated the shift to digital, especially for textbook publishers.
 
For the larger publishers, creating their own ebook platform for libraries meant they could encourage direct relationships with their customers but they also worked with the ebook aggregators to ensure they had their content available in all possible sales channels – but saw them as competitors in many instances rather than partners or even solutions in that market. Overtime the number of aggregators decreased as they were acquired and merged into other platforms e.g. ProQuest’s Ebook Central is the platform name created by the acquisition and merger overtime of EBL, MyILibrary, ebrary.

Library Suppliers
 
We first saw the big shift to digital content with the reference publishers - as it was encyclopedias and dictionaries that were the first to transition to digital and impact library supplier revenue back in the mid to late 2000s. To counteract that change, library suppliers would work with publishers directly on a commission basis selling the publisher’s own platform. They also had to partner with ebook distributors so they could continue their role in the library supply chain and meet the tender requirements of their customers, especially if they worked in the academic library space. Library suppliers and ebook aggregators are more or less one entity these days with ProQuest and Ebsco prominent in academic library markets. Overdrive/Libby and Borrowbox are prominent in public library markets but there are a number of options available and publishers should ensure their content is available in all sales channels.
 
Challenges
 
Libraries expect content to made available in all available formats – print, ebook, audiobook, databases, multimedia, online platforms etc – to meet the needs of their readers, students, lecturers or researchers. Despite the clear benefits, publishers have historically faced several challenges in making their ebooks available to libraries:

1. Licensing Models: Traditional one-copy-one-user models have often been at odds with the nature of digital content. Libraries and publishers have had to navigate complex licensing agreements that balance fair use with profitability. Ebook platforms now offer multiple licensing models  to publishers who are able to decide what works best in terms of commercial arrangements as well as aligning it to the company's business philosophy.
2. Pricing Structures: Publishers have sometimes struggled with pricing ebooks for libraries in a way that reflects the value of unlimited digital access while remaining affordable for library budgets. The fear of cannibalising print sales has also influenced pricing strategies.
3. Piracy Concerns: The ease of digital distribution has raised concerns about unauthorised sharing and piracy, prompting publishers and ebook distributors to implement stringent digital rights management (DRM) measures that can sometimes hinder the user experience.
4. Cost of Distribution: If the publisher does not have a distributor who handles their print and ebooks, tech systems capable of making the process easier are not affordable - so manual workflows need to be implemented. Smaller publishers do not the resources to handle ebook distribution for multiple sales channels - particularly as each distribution partner has their own way to ingest metadata (if ONIX is not an option) so data templates needs to be filled in separately, workflows documented and followed, and training available so staff – and new staff - understand the requirements of each platform.
5. Content Restrictions: handling rights and restrictions in author agreements can be tricky at the best of times! It’s critical that only books with digital rights are placed library and consumer platforms.

Trends
 
Despite these challenges, the trend towards digital lending is unmistakable. Recent statistics highlight the increasing demand for library ebooks:
 
Global Rise in Ebook Lending:
According to OverDrive, a leading digital reading platform for libraries and schools, 2023 saw over 500 million ebook and audiobook loans globally, a significant increase from previous years.
 
Academic and Scholarly Libraries:
A report from the International Federation of Library Associations and Institutions (IFLA) noted that academic libraries have seen a marked increase in digital lending, with ebooks comprising a substantial portion of their collections. In Australia, for example, academic libraries reported a 25% increase in ebook borrowing in 2022 compared to the previous year.
 
Consumer Preferences:
A Pew Research Center survey found that 28% of American adults had read an ebook in the past year, indicating a steady shift towards digital reading habits.
 
The Australian Context
 
For Australian publishers, the ebook market presents unique opportunities and challenges. The Australian Library and Information Association (ALIA) has been proactive in advocating for better access to ebooks for library patrons. In recent years, ALIA has worked with publishers to develop fair and sustainable ebook lending models that benefit both libraries and publishers.
 
A notable initiative is the National E-Deposit (NED) service, a collaboration between Australia’s national, state, and territory libraries. NED enables publishers to deposit digital publications, including ebooks, ensuring long-term access and preservation. This initiative not only supports the digital infrastructure for libraries but also provides publishers with a streamlined way to meet legal deposit requirements.

The Benefits of Multi-Format Availability
 
For publishers still hesitant to enter the ebook market, it is essential to consider the benefits of making content available in all formats:

• Market Expansion: Offering books in multiple formats—print, digital, and audio—allows publishers to reach diverse segments of the market. This inclusivity can drive higher overall sales and reader engagement.
• Enhanced Discoverability: Digital platforms often come with sophisticated search and recommendation algorithms that can increase the visibility of titles. Ebooks can also be sampled and recommendations shared more easily, fostering word-of-mouth promotion.
• Sustainability: Ebooks contribute to a more sustainable publishing model by reducing the need for physical resources such as paper and ink. This aligns with the growing consumer demand for environmentally friendly products.
• Data Insights: Digital formats provide valuable data on reader preferences and behaviours. Publishers can use these insights to make informed decisions about marketing strategies and future acquisitions.

Summary
 
Ebooks offer clear benefits to both consumers and libraries, providing convenience, accessibility, and broader reach. Although publishers have faced challenges in integrating ebooks into library collections, evolving licensing models, supportive industry initiatives, and growing demand for digital content make a compelling case for embracing this format. For Australian publishers, initiatives like the National E-Deposit service exemplify the forward-thinking approach needed to succeed in the digital age. By offering content in all formats, publishers can meet the diverse needs of their audience and ensure their continued relevance and success in an ever-evolving market


Our director, Rachael McDiarmid, has been in the library ebook space since 2003 and has championed digital content for decades - particularly in academic and scholarly publishing. She works directly with ProQuest for Ebook Central as publisher relations manager for the Australian and New Zealand market and consults regularly on ebook distribution, particularly for libraries. The number of publishers who don't have ebooks available for both consumer and library markets never ceases to amaze her. It's 2024 last we checked.

Recently I was asked to do a presentation at UTS to a delegation of Chinese publishers on digital disruption in the Australian book industry in marketing and distribution. The organiser asked me to include some of the changes to publishing and distribution I've seen in the nearly three decades I've worked in the trade. When I was talking there were smiles as I summarised bits and pieces - now and then and the here and now - so I thought I'd share on the blog ... 

There is no doubt whatsoever that technology has changed what we do, why we do it, how we do it. Digital is part of the every day and it’s hard to imagine life without the internet, apps, mobile devices etc. So to begin let’s wind the clock back three decades. What does Australian publishing look like?
​The bulk of titles, at least for the major and second tier publishers, were imported from UK and/or US head office distribution centres who had a strong say on what was purchased for the ANZ market. Local publishing programs existed particularly in educational publishing, and publishers distributed their titles through their own warehouse, often attached to their building. Orders were phoned, faxed (faxes had recently arrived in the workplace!) and mailed through to customer service, reps took orders when they called on booksellers or at the annual book fair which alternated between Sydney and Melbourne. Basic Bibliographic data was entered into distribution systems manually so orders could be keyed by data entry staff. Price and availability enquiries were predominantly done via the phone lines. Wait times could be long at busy periods.

With regards to inventory: Buying in titles from overseas was done via catalogue information, published twice a year, with titles six months ahead of publication, and metadata which may or may not have been correct at the time of printing, rights information would always change. Textbooks were expensive (which has never changed) so academic publishers like Maxwell Macmillan where I first started my career would have an International Student edition printed, primarily out of Singapore, on cheaper paper and at a much cheaper price for students. We could price the books whatever we wanted to, marked up high for own margins. There was no goods and services tax. We would airfreight in a small number of copies for reps and marketing & publicity and the bulk came through ocean freight. It would take at least 3 months from the UK and 2 months from the US. If booksellers didn’t place their orders in a timely manner, they would not receive them for months unless they paid a special surcharge for us to air in. Orders to warehouses overseas were done every few weeks to consolidate. Everyone waited for their books. We were the only place they could get them. It was the norm. 

With regards to marketing: Marketing was much simpler. We did A LOT OF MAILINGS! There was one computer for marketing staff who had to book it in advance in order to create price lists and order forms in Wordperfect. We often only had US marketing materials and naturally Australian booksellers wanted to have prices in AUD. Design departments would also grow with graphic designers using Apple’s Pagemaker and they would create promotional materials for us. Four colour printing for marketing was unheard of. We often used the photocopier and may have even used colour paper to make something look more presentable. By the late 90s we could sent to a printer using 1 colour ink. That was very exciting.

As there was of course no internet, we worked off US catalogues sometimes we wouldn’t find out we didn’t have the rights to sell a book in our region for months after we would take it to market – finding out only when we chased supply with our international warehouses or if a bookseller phoned us to say they had seen the same title from another publisher. 

Review copies with media releases were posted out extensively. Sometimes you even used the fax to send out media alerts. You often didn’t know when something was reviewed unless a bookseller mentioned it on the phone to customer service or you heard or watched it firsthand. We paid clipping services - an expensive service that would scan the print media and send clippings of all the reviews. They were like gold in your hand.

Fast forward three decades to now....

It is rare for a publisher to do its own distribution unless you are one of the majors and you offer third party services to keep costs down and make some money from a competitor. Many publishers use a larger distribution centre and their software and workflows to manage their inventory. New title workflows vary between publishers but there will always be a trade release date for the majors so third party publishers have to make sure they have their stock in, inline with the release schedule. There are KPIs, there are penalties, and there are very real costs for storage of books, orders and returns. Every transaction has a fee. Large print runs are not normal except for first tier authors due to cost, space and risk. Printers turn around requests quickly – there is option for short runs and of course Print on Demand. Nielsen BookScan provides data to publishers on what books are selling through the registers at the bookstores and other channels. Publishers can better forecast when to press the reprint button. Technology and the information it provides has helped with inventory management and competitor information. It has also provided solutions.

You want to read the winner of the Booker prize which has just been announced on Twitter. Can’t access the print book? There is the option of immediately downloading the ebook when you purchase through Amazon, Apple, Kobo or see if it is available to borrow through your library through platforms like Overdrive, BorrowBox, Axis360. These digital suppliers are available via the web from your computer or through a handy app on your mobile device of choice. If it’s a scholarly book you would be looking for access through your university library. YOU expect access through the university library. And yes, you can now access etextbooks through vendors like Proquest and their Ebook Central Platform.

Publishers will either do their own distribution of ebooks and upload them to multiple sales partners directly via FTP or will outsource this to other providers. Ingram for example plays a core role in both ebook distribution as well as some of the larger print distribution warehouses like IPG in the US.

Many publishers have thriving local publishing programs. They make the decision locally as to what to import from their overseas offices and often do a local print run or format change rather than freighting books in – in this market we prefer trade paperbacks over the hardcovers for example. More often than not there are global release dates. Distributors of other publishers products release a month later when airfreight stock come in however others books that are not time sensitive still have a two month delay for their ocean freight to arrive to keep costs down. However they will have gone to market already with that title and have had some copies aired in. 

Orders from booksellers are sent via edi. Others are scanned and sent via email. Faxes still exist but many publishers don’t have one anymore, but the distributors do they have to for the older booksellers who still use them. Key accounts will have electronic workflows so they receive edi notifications, electronic invoices, advance shipping notices, credits, statements etc. 

Pricing of books has changed. The majority are overseas price converted plus GST (no markup as the customer will know – the customer is very savvy – the customer has the internet), some prices may even be cheaper than overseas however that presents problems for textbook publishers in particular who have a re-exportation issues which I won’t go into here.

Price and availability is only a phone call to a distributor as a last resort. Your first point of call as a bookseller is Titlepage – the web based APA initiative that has about 80% of the industry onboard. If booksellers can’t find it on Titlepage they will then open up Baker & Taylor’s database or Ingram’s ipage. You then Google it to try and find the publisher directly. There are still calls to distribution call centres but most of the correspondence they receive is via email, particularly re order management so there is a written trail of correspondence and requests from customers. 

Booksellers don’t expect to wait for books. Ironically they can get overseas published books faster from the overseas wholesalers than from a local distributor. The way booksellers order has changed – smaller copies more frequently and of course expecting the publisher to have a consistent flow of stock to meet demand. They know they lost many consumers to Amazon and The Book Depository years ago so those booksellers who are still standing, and even thriving particularly independents and online, have to provide a high level of service locally for those that appreciate service above cost. It’s been estimated over many years that the Australian book market has lost between $200-300 million in sales to Amazon etc. I think it's more.

Bibliographic data is comprehensive. ONIX is the standard for disseminating that information. Nielsen and Bowker have core roles to play with title data and of course Nielsen has BookScan which has revolutionised the way publishers receive information about the sell-thru of their titles and those of their competitors. Salesforce and other CRMs keep tabs on customers and business development opportunities. For those that require training on resources or who are very remote there is the option of Webex or Skype for Business etc.

These days It’s about search and discovery. And the internet. And SEO. Don’t include an image and customers think it’s not available. No description. Customers will move on. Even the way publishers design their cover images has changed. They have to imagine how the cover looks like on the web and how to make it attractive (white covers are not practical unless they have interesting borders for example).

Pricing. Consumers are pricing savvy. They know how to search for cheap books. Booko for example will collate information from the web and show them the prices offered by online booksellers and chains.

So speed to market is critical. Competitive pricing and service are essential. These cost money but margins are being reduced on all sides in order to give the consumer what they want. What they demand. As without the customers everyone wouldn’t exist.

Marketing has changed dramatically. Database marketing and analytics mean we know more about the customer better from their online activities. We know what they read, what they click through to, what they purchase. At least online. We have Google Alerts and Google Analytics. We have Google fullstop!

Print promotional materials, particularly catalogues are less in demand, postage costs have almost disappeared as marketers have moved to email marketing. Marketing systems like Mailchimp, Marketo, Campaign Monitor, Constant Contact help profile customers and link into other systems effectively for better analytics. They are also free to a point. We have social media opportunities to explore all sides of publishing – Twitter, Facebook, Instagram, YouTube, Pinterest and others present different channels for sharing content, ideas and engagement – with authors, with consumers, with customers. Authors and author branding have become key in this online world as has genre marketing – sci-fi, romance and of course the big one YA.

Event marketing, writers festivals, conferences have provided more avenues to reach both an existing and potential customer base. With the rise and rise of Print on Demand and better options for short run printing, publishers can produce Advance Reading Copies, often unedited, to get booksellers and reviewers engaged early. For those that prefer ebook over print there is NetGalley. Get them talking about forthcoming books using new channels and sites like GoodReads. Create a buzz. Hashtag. #itsallaboutthebuzz

And when I say get “them” talking. I’m not talking about traditional book reviewers. The space in mainstream media for book reviewers has decreased. Literary editors predominantly review only books from the major publishers, with whom they have a direct relationship with their publicists. It’s the Instagrammers, The YouTubers “vloggers” that have social media influence and tens of thousands if not hundreds of thousands of followers who note their book recommendations. This is particularly strong in YA. 

And of course we have multiple formats of products – print, ebook, online, app. Digital has presented many opportunities to exploit content. And marketing has had to accommodate in all the different channels and vendor partners to support sales and product development. Print and promotional marketing still has a role but it is digital marketing has seen the most investment and focus from publishers. ​​

ProQuest has engaged Rachael McDiarmid (RM Marketing Services) to work with ANZ publishers to help them with their ebook sales in the global academic library market. Rachael will be working with new sign-ups and existing publishing partners to ensure their participation in the most appropriate models.

Rachael says:

I'm actually really proud of coming on board as ANZ publisher relations consultant (P/T) with Proquest. As Publisher Relations Manager at James Bennett for 11 years I was involved with ebook content acquisition and working with publishing clients on sales and marketing initiatives across multiple platforms.  I worked closely with our owners during this period - Blackwell Library Services (UK and US) and then with Baker & Taylor/YBP after the company was sold to them in December 2009 - and I enjoyed working with the content acquisition and publisher services teams in particular. 

I feel like I've almost come full circle. James Bennett/Blackwell was an early vendor for EBL (2004) and post the company sale to B&T/YBP I worked with the Ebrary team in the U.S. Both are now part of Proquest (as is MyiLibrary) so I feel like I'm among "my people". I'm looking forward to working with Australian and New Zealand publishers on the best models in the Proquest platforms and ensuring their content is available to libraries, particularly academic libraries, locally and internationally.

RM Marketing Services will be working 10 hours a week with ANZ publishers for Proquest.
You can contact me on +61 409 772 850   email: [email protected] 

You can read more about Proquest at www.proquest.com or follow them using the social media links below.