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Summary:

Starting in October, libraries will pay an average of 220 percent more for Hachette’s ebooks. Hachette still does not make new ebooks available to most libraries; all the books affected were published before April 2010. Random House increased prices for librairies earlier this year.

In March, Random House increased the wholesale prices of the ebooks it offers to libraries by as much as 300 percent. Now Hachette, which only offers backlist ebooks (no new books) to libraries, is increasing its prices as well.

Hachette makes older ebooks available to libraries through digital distributor OverDrive. In an email obtained by Gary Price at Infodocket, Hachette tells libraries using OverDrive that it “will be raising its eBook prices on October 1, 2012 on [its] currently available eBook catalog (~3,500 eBook titles with release dates of April 2010 and earlier). On average prices will increase 220%.”

“We believe these terms fairly reflect the value to the library customer, that the ebooks will not need periodic replacement as do print copies, and there is no limit on amount of borrowing activity per ebook copy,” Hachette VP, communications Sophie Cottrell told me.

Separately, Hachette is testing a pilot program that makes new ebooks available to some libraries. That pilot program is presumably not run with OverDrive but with its competitors like 3M Cloud Library and Baker & Taylor’s Axis360.

Random House is the only big-six publisher to offer unrestricted access to its titles, despite the price increases this spring. Penguin recently ended its relationship with OverDrive and no longer distribute e-books and digital audiobooks to most libraries, though it is running a one-year pilot program with 3M with the New York and Brooklyn Public Libraries. Macmillan and Simon & Schuster do not make e-books available to libraries. HarperCollins allows e-books to be checked out 26 times before the library has to buy a new copy.

Photo courtesy of Flickr / Ian Barbour

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  1. markleiser.phd.law Friday, September 14, 2012

    Reblogged this on #Hashtag – Thoughts on Law, Technology, the Internet, and Social Media and commented:
    Hachette to raise ebook prices for libraries by 220%
    Starting in October, libraries will pay an average of 220 percent more for Hachette’s ebooks. Hachette still does not make new ebooks available to most libraries; all the books affected were published before April 2010. Random House increased prices for librairies earlier this year.

  2. Okay, I guess I never thought I would ever promote the HC plan, but it is certainly preferable to the RH and Hachette plans. It would make more sense to jack the price on titles where the library would be more inclined to purchase multiple copies to sate reserve demand. Mid-list authors will be screwed royally — the plans will literally steal market share from within their own publishing program. The best library sales, on average, account for anywhere between 6K and 12K for the bound books. I suppose they think there replacing revenue lost to e-books, but the net result will be that libraries will buy fewer titles overall, focusing only on those that will command a high circulation, and consequently keep the overall producer surplus equal over fewer titles. This suggests they’re creating these policies out of fear, not any hard statistical market research.

  3. Libraries should just stop buying all books from Hatchette not just ebooks. If they want to act like pirates treat them like pirates.

  4. Wow. The Douglas County Libraries’ solution is sounding better and better! http://douglascountylibraries.org/content/ebooks-and-DCL

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