The digital library dilemma: Why e-book borrowing costs taxpayers more

For a growing number of Americans, reading is more than leafing through a physical book. Between 2011 and 2021, the share of Americans who listened to an audiobook more than doubled, from 11% to 23%, according to the Pew Research Center. At the same time, the share who read an e-book rose from 17% to 30% – all while the number of Americans who read any format of book held relatively steady. 

That, on its surface, sounds like a win for the nation’s public libraries. E-book lending surged during the pandemic and has continued to climb, with digital borrowing increasing 34% between 2019 and 2023. In 2024, libraries and schools worldwide borrowed over 739 million digital titles using OverDrive.

But it comes with a price: E-books and audiobooks tend to cost these cash-strapped organizations much more than a physical version due to “restrictive” licensing structures. And the budget strain has become so severe that some states are crafting new legislation to ease the pain, as book advocates worry that states will decide the cost of stocking shelves could outweigh the benefits

Why are e-books so expensive for libraries to purchase?

Unlike physical books, libraries don’t own their e-books — they license them from publishers, often paying several times the retail price for limited access. It’s a structure that one librarian who spoke with Straight Arrow News likened to “Netflix and Hulu.” 

Each title requires a separate license. And digital titles that cost consumers $15 to purchase can cost a library $60 or more. Even that higher fee comes with caveats: The titles usually expire after two years or a set number of checkouts, whichever comes first. For example, HarperCollins allows each e-book to be borrowed only 26 times before its license expires. This forces libraries to repeatedly repurchase popular titles, straining budgets as demand grows. 

In a digital-first era, some librarians say patrons’ expectations for access and availability are not always being met.

“The true cost of digital content for libraries is often masked by publishers and vendors,” said Robert Roose of the Spokane Public Library. “Libraries are subject to the shift from ownership to a lease-access model, which is both costly and increasingly ephemeral.” 

The nonprofit organization Authors Alliance argues that high licensing fees rarely benefit authors, since publishers set the prices and tie royalties to the wholesale rate.

“The reality is that most authors already have very little control over how their books are distributed, because publishers typically demand near-total control in their contracts,” Dave Hansen, executive director of Authors Alliance, told SAN.

He noted that publishers’ e-book policies often prioritize corporate profits over authors’ interests in preserving and sharing their work. One example he pointed to: The research publisher Wiley abruptly pulled more than 1,300 e-book titles from library access without notifying the authors involved.

Can legislation help make e-books more affordable for libraries? 

The rising costs and restrictive terms of digital lending have prompted state-level action. Earlier this year, Connecticut’s state legislature passed a bill banning public libraries from signing “restrictive” contracts with e-book publishers that limit checkouts to one user at a time. The new law would allow simultaneous checkouts, while doing away with the 26-checkout cap. The law takes effect only after one or more states with a combined population of 7 million people adopt similar measures. (That’s roughly double Connecticut’s population.)

Connecticut’s bill, S.B. 1234, reflects three years of research legal analysis with the eBook Study Group, a nonprofit organization focused on improving library access to digital books, state by state. 

It also reflects an ongoing national effort to improve library e-book access. In 2021, Maryland passed a law requiring publishers to offer e-books to libraries on “reasonable terms.” 

But these efforts have faced strong opposition from publisher groups, author organizations and copyright advocates. The Association of American Publishers sued and successfully blocked Maryland’s law, arguing that the bill forced publishers to license works to libraries on state‑mandated terms, overriding their rights under federal copyright law. A federal judge struck down the law on those grounds in 2022. 

In 2021, the AAP sent a letter urging New York Gov. Kathy Hochul to veto New York’s e-book bill, which was similar to Maryland’s. More than 20 organizations, including the Authors Guild, endorsed the letter. Hochul vetoed the bill, citing conflicts with federal copyright law.

Last year, over 60 Author’s Guild members signed a letter opposing Connecticut’s e-book licensing bill. The bill also drew opposition from Republican legislators, who argued it imposes statewide mandates on towns and interferes with the free market. 

“Towns should be able to make their own contractual choices. This is not something for the state to be taking a role in,” Connecticut State Rep. Anne Dauphinais told SAN.

Those against e-book legislation also argue that giving libraries too much access to digital titles could undercut book sales.

“Compelling publishers and authors to offer e-book licenses under state-mandated terms would cannibalize the publishing business and make it unsustainable to bring new books to market,” Rachel Kim, vice president of legal policy at the Copyright Alliance, told SAN.

SAN reached out to representatives from Random House, HarperCollins, Macmillan and Simon & Schuster. None responded to requests for comment.

New bills target e-book terms

Recent bills have taken a different approach than those in Maryland and New York. Massachusetts, Hawaii, New Jersey and Rhode Island have introduced measures similar to Connecticut’s S.B. 1234, using language that regulates contract terms rather than mandating them. 

This model legislation was developed by librarian and copyright lawyer Kyle Courtney, founder of the eBook Study Group and co-founder of Library Futures. 

“Our work builds model bills grounded in state contract and consumer-protection law, rather than touching copyright,” Courtney told SAN. The e-book licenses turn libraries into renters of their collections rather than owners, undermining their core mission as they morph into something similar to “Netflix and Hulu,” he said. 

“The libraries are thinking about the next 100 years of access, while publishers are thinking about the next fiscal quarter,” he said. “And they should, because they answer to shareholders and are required to make a profit. But libraries have a different mission.”

How do libraries support authors?

Some authors and advocacy groups are speaking out in favor of e-book legislation. The Authors Alliance claims that libraries play a crucial role in helping authors be read, remembered and recommended. 

“Many authors really appreciate the exposure and the encouragement of reading, which is what public libraries provide,” said Clayton Cheever, director of the Morrill Memorial Library in Massachusetts and a member of the eBook Study Group. 

A 2011 Library Journal study found that over half of library patrons later purchased a book by an author they first discovered in the library.  

“We’re promoting reading, and we promote book ownership,” Cheever told SAN. “So many people borrow a book from a library, and then realize they love it and buy a physical or digital copy.”

The real cost of licensing digital library titles

Librarians and advocates say the current licensing system wastes public dollars. 

In just three years, the West Haven Library in Connecticut spent over $12,000 to lease 276 digital titles, 84 of which are now unavailable. 

From 2019 to 2024, Texas public libraries increased spending on electronic materials by 89.5%, while total circulation, including digital items, grew only 5.5% over the same period.

The Spokane Public Library in Washington has spent $3.3 million on 87,000 digital copies since 2012; less than half of those titles are still available. Over the last six months, its e-book collection decreased from nearly 25,000 titles to about 18,500. Digital spending makes up more than a third of its budget. 

“States are seeing little to no return on investment by funding libraries. And states have the absolute authority and power to regulate spending that happens within their state,” Courtney told SAN. “Fair-terms laws — and the commissions that lay the groundwork for them — help ensure authors are paid and libraries can provide what their communities need. Equity, education, small-business support, lifelong learning, literacy and readership all depend on it.”

The post The digital library dilemma: Why e-book borrowing costs taxpayers more appeared first on Straight Arrow News.

Ella Rae Greene, Editor In Chief