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ALA Calls Penguin's Decision to Pull New Library Ebooks an Insult  

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by SLJ Staff November 23, 2011

The American Library Association is calling Penguin's decision to deny libraries the ability to buy new releases in digital format an "insult to libraries when we have been publishers' most valuable customer for years."

Penguin last week notified ebook distributor OverDrive that it was reviewing the terms for library lending of its ebooks. In the meantime, OverDrive was instructed to suspend availability of new Penguin ebook titles from its library catalog and disable its "Get for Kindle" functionality for all Penguin ebooks, OverDrive says in a blog post.

Carrie Russell, ALA's director of the OITP Program on Public Access to Information, responded by saying that libraries create readers who borrow books-regardless of format. And those readers also buy books. In fact, Russell says, a recent study of library patrons indicates that 40 percent of regular library users' end up purchasing a book previously borrowed from the library.
"Readers come to the library to learn about ereaders and ebooks, Russell says. "We even have librarians going to Best Buy and other outlets to teach new ereader customers how to download books. We enable the ebook market."

ALA did say it was pleased to learn that Penguin planned to reinstitute access to library ebooks in the Kindle format through OverDrive. "This is a big step in addressing challenges libraries would have faced in denying access to library patrons," Russell says. "Unfortunately, Penguin has not lifted the embargo (or waiting period) for access to new future releases in ebook format, leaving libraries in a quandary about when they'll be able to provide access to the latest titles requested by their patrons."
Russell went on to say that libraries pay publishers more for ebooks than print books. "Library spending on ebooks has doubled or even tripled over the last year," she says. "New York Public Library alone is spending $1 million a year on ebooks."

While Amazon's PrimeLending program charges customers for ebook lending, libraries seek no financial reward. "We support free lending because the nation greatly benefits when access to information is available to any citizen, regardless of ability to pay," Russell says. "We support free ebook lending because a good number of our users want the digital formats, and we strive to meet that need."
In short, Russell adds, "We are good for your bottom line. Are you shooting yourself in the foot by excluding libraries?"

Penguin explained its move in a statement, saying, "due to new concerns about the security of our digital editions, we find it necessary to delay the availability of our new titles in the digital format while we resolve these concerns with our business partners."

The publisher went on to say it's a "long-time supporter of libraries" with both physical and digital books. "We have always placed a high value on the role that libraries can play in connecting our authors with our readers," the company continued. "Penguin's aim is to always connect writers and readers, and with that goal in mind, we remain committed to working closely with our business partners and the library community to forge a distribution model that is secure and viable. In the meantime, we want to assure you that physical editions of our new titles will continue to be available in libraries everywhere."

Amazon and OverDrive in September said that more than 11,000 U.S. public and school libraries in the OverDrive network would be compatible with Amazon's Kindle. The long-awaited rollout, first announced in April, ended the notable absence of the popular Kindle device from library ebook lending.

Simon & Schuster and Macmillan don't allow digital library lending, while HarperCollins limits library lending to 26 per ebook.

"If Penguin has an issue with Amazon, we ask that they deal with Amazon directly and not hold libraries hostage to a conflict of business models," ALA president-elect Maureen Sullivan said in a statement. "This situation is one more log thrown onto the fire of libraries' abilities to provide access to books-in this case titles they've already purchased. Penguin should restore access for library patrons now."

All existing Penguin eBook titles in a library's catalog are still available and additional copies can be added.

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