A new study says the rise of library e-books is bad news for book sellers. The study, titled “[E]mpirical Study of the Impact of Library E-Lending on the Book Economy,” was done by the Association of American Publishers (AAP) and the Authors Guild. It found a correlation between digital check-outs at public libraries and falling profits in the book market.
The study looks at the new book marketplace, especially in the first weeks after a book comes out. It says the ease of checking out an e-book sends readers away from stores and into library stacks. If someone can simply borrow a digital book instead of buying the hardcover, why would they?
The Study’s Case Against Digital Lending
The study points to several reasons why library e-books might hurt profits:
- E-books now make up nearly half of many libraries’ collections
- Libraries don’t own their e-books; they pay for a license that expires after a set number of checkouts
- When the license ends, rights return to the publisher, forcing libraries to buy the same book again
- Lower licensing fees mean lower publisher profit
- Some states have attempted to remove controls on e-book prices, which the study says makes the problem worse
The study also notes that courts agree with the money people on this point. Licensing fees may keep rising, eating into both publisher profit margins and physical library budgets.
The Problem With the Blame Frame
The study’s framing has a weakness. It risks shifting blame for a bigger problem onto the humble reader or the library itself.
Jane Friedman wrote about this on Substack this spring. She said the real troublemaker is Amazon, the company that started the current, imperfect business model for digital sales. Any analysis that punts the profit problem back to the consumer — the reader — should raise suspicion.
The study’s conclusion is that digital lending as it now works is one more problem for the book industry. But the report’s way of putting the blame is the real issue. It treats the reader or the library as the cause of a system problem.
A Schedule of Key Dates
| Date | Event |
|---|---|
| Top of this month | Study released |
| 2022 | Maryland attempts to remove controls on e-book distribution, purchasing, and pricing |
What the Study Doesn’t Address
The study was commissioned by publishers and the Authors Guild. Its conclusions about licensing fees and library budgets are stated as settled rather than disputed.
There is no evidence given that the courts have ruled on licensing fees. The claim that courts agree with the money people rests on an assertion, not a ruling.
The study also ignores a simpler question: why are book profits falling at all? The report’s answer points to digital lending, but the problem may run deeper.
A Possible Way Forward
The study offers one short-term fix: more funding for libraries. If states pay higher prices for books and share their contents, it seems like everyone should be happy. Higher e-book prices also look good from the publisher’s side.
This is one of those problems where the answer is more — readers, writers, licenses, and books of all kinds.
The study raises real questions about how libraries buy and lend books. But its conclusions about blame and cause need closer inspection. The reader or the library is not the villain here. The system is.
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