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.

For years I've been recommending distributors for overseas based publishers looking for representation in the ANZ marketplace. I've also managed a business unit responsible for book distribution to booksellers, specialist accounts and direct/academic sales. I've been a publisher, I've been a customer, I've been a supplier/distributor, I've been a competitor, I've worked for one of the largest wholesalers in the world. Many, MANY hats so I've seen the ANZ supply chain from a number of angles and to be honest, I don't like what I see anymore. The ANZ book supply chain is shot.

One of the problems we have in Australia is the lack of a physical wholesaler. The overseas wholesalers (Baker & Taylor, Ingram, Gardners, Bertrams) have a presence in Australia in one form or another (staff, agent etc) but they don't have a warehouse here filled with books. As most of us know, there are real benefits with the consolidation of orders to a wholesaler, not to mention metadata workflows, customer service, and operational efficiency. With their economies of scale and commercial pull, orders can be sent to Australia and New Zealand within a couple of days - something the local market cannot compete with no matter how hard they try. But that's wonderful for the major US and UK publications. What about locally published books?

United Book Distributors (owned by Pearson) is arguably the best DC in Australia but there are other good operations like ADS (Hachette), HEDS (Harper Collins), Random et al. But they are not interested in taking on the smaller guys. It is not financially viable. The options for distribution with the mid to smaller presses is shrinking. We have Footprint (academic and specialist publishers), NewSouth (UNSW + local and international trade, specialist publishers), Woodslane (predominantly trade), Capricorn Link (trade), Peribo (trade), Dennis Jones (trade/independents) and a handful of others. But getting one of these guys to take on your list isn't easy. Publishers complain about the amount of calls and the set-up process, and then when they have distribution, they complain about lack of attention, lack of sales, and other issues that come from too many presses being distributed within one organisation.

No one is really interested in one book distribution - there isn't any money in it! Even publishers who do a dozen titles a year, that might sell a few hundred - or a couple of thousand even - is not worth it, particularly if the book is cheap. Margins have eroded, the sales aren't there to support it, costs of distribution are high, and if you are also doing sales & marketing representation, you really need high priced books to justify all your costs. 

Overseas publishers, particularly niche, scholarly presses and those that publish less than 25 books a year, are having a hard time finding someone to represent them. The majority of these presses don't provide enough wholesaler discount to entice a supplier, costs of freight (particularly from overseas) are high, and returns are a nightmare for everyone. So my question for overseas publishers in particular is DO YOU REALLY NEED AN AUSTRALIAN DISTRIBUTOR? You are already doing sales and marketing in your own territory, you should already be working with the major wholesalers, and you should be digital. Can you do it yourself? Do you need a sales & marketing agent or someone on the ground in Australia to oversee things? There are dozens of questions you need to answer. Let RM Marketing Services guide you in this process.

What are YOUR THOUGHTS on the Australian book supply chain? With changes over the years at Tower/Scribo, DA/Central Book Services, the MDS closure, and future changes (Inbooks, Wiley rumours?); changes to the print and digital landscape; changes to consumer/bookselling buying habits - what are your concerns and issues? Are you a publisher? Are you a distributor? Share your story with others....

Well, it's what many of you are thinking so I thought I would just say it. Why not start my new blog with the bleeding obvious!

After nearly 11 years working for a key account for local and international publishers, with responsibilities that covered everything from retail (wholesale) distribution to library supply (academic and public), print products to digital (online reference and ebooks), marketing communications that included website, social media, enewsletters, print promotions and more - I've got more than enough experience to help others with the Australasian marketplace.  

During my time at James Bennett/Inbooks I was always asked - and respected - for my advice on the publishing industry. From international wholesalers to small publishers, my role as Publisher Relations and Marketing Communications Manager was utilised by many - for free! *

And let's not ignore my 13 years in publishing prior to that - product, sales, marketing, key account management, business development....my career has been extremely varied and wonderfully rewarding.  It's covered trade, professional and vocational education publications and all facets of marketing. And it's seen an awful lot of change - remember ordering everything via ocean freight (and adding two months to publication dates) or faxing through price and availability enquiries to overseas suppliers (no internet or email)?  Ah, the good old days...

At the end of the day, the publishing industry is in my blood. I can't help it. Warts and all, it's a fascinating - and changing - industry. And the one thing that I've noticed the most - particularly for the larger organisations - is that they are now run by accountants. The nature of publishing has changed. Everything is counted, every cost reviewed, every cost saving initiative is introduced.  No one seems to have enough resources - or time - to do even the most basic of jobs. There isn't the same flexibility, there isn't the same money available, and sadly there is also not the same level of experience in the book trade that there used to be. Too many people come and go because they have "digital" skills but they don't GET the industry, they don't take the time to learn it, and many lack basic customer service skills.  

Isn't it the first rule of business? No one exists without the customer.  It's about giving them what they need in order to sell or consume your product.  I fear publishers have lost sight of that and I'm here to help.

In starting this enterprise of mine it took me all of two seconds to come up with my mission: helping publishers do what they do best.**  Contact me today for any marketing service you require help with.

Disclaimers:
* OK there was the odd bottle of wine presented as a thank you gift
** And if you don't know what that is, you will definitely need my help!