1. Barbara Schleihagen, Miriam Schriefers, German Library Association E-Books in German Public Libraries: business model with aggregators and others NAPLE seminar on e-book business models for public libraries, 13 May 2013, Milano

2. German Library Association | Barbara Schleihagen, Miriam Schriefers Folie 2 Background: German e-book market 2011: 4,7 Mio e-books sold (2010: 2 Mio) 2011: 757.000 e-book buyers (2010: 540.000) 2012: 2,4 % of the customer book market (2011: 1%) 2012: 6,2% of the total turnover in publishing 2015: 17% of total turnover in publishing expected available now are about 741.424 titles (Libreka) (Source: German Publishers and Booksellers Association, 07.05.2013) 13.05.2013

3. German Library Association | Barbara Schleihagen, Miriam Schriefers Folie 3 Background: German public libraries 82 Mio inhabitants 8,131 public libraries altogether: professionally led (2.100) and voluntarily run (6.000) public libaries 7,9 Mio readers are registered public library users 125 Mio patrons visit our public libraries each year 124 Mio media units are held by our public libraries 380 Mio media units are borrowed in pl by users/year Statistical data of 2011 (DBS) 13.05.2013

4. Two aggregators in Germany: Ciando eBooks takeoff in 2003 for scientific libraries since 2011/12 also available for public libraries used by 50 public libraries (2013) 145.000 media units 1.000 audiobooks Loan for end customer foreseen in 2013 (lending fee per title) 13.05.2013 German Library Association | Barbara Schleihagen, Miriam Schriefers Folie 4

5. Two aggregators in Germany: Divibib GmbH Digital virtual libraries started in 2007 only for public libraries, no commercial offer yet, library pass needed for use 2012: participation of 670 public libraries of 2.100 professionally run libraries (2013: 1.000 expected) 2012: 4 Mio loans 2012: 60.000 media units (e-magazines, e-papers, e-books, audiobooks, music and videos) 13.05.2013 German Library Association | Barbara Schleihagen Folie 5

6. German Library Association | Barbara Schleihagen Folie 6 E-lending in German public libraries: Divibib GmbH  Offers complete service with all components (comparable to US-aggregator „OverDrive“):  Implementation of online platform as digital library branch  Internet based service without installation needed  Technical support for running services  Negotiation of licences and distribution of digital contents  Subject indexing and delivery of catalogue entries in MAB2  Small libraries offer divibib in a network with others 13.05.2013

7. German Library Association | Barbara Schleihagen Folie 7 How it works: Registered library users…  Visit homepage of local library  Log-in with personal data before lending  Browse digital content (format, topic, full text)  Put interesting materials into library basket  Download of materials to PC/e-book reader (no streaming, Digital Rights Management in place)  Library determines length of lending/no. of items (2-4 weeks, filing extension possible when no other reservation) 13.05.2013

8. German Library Association | Barbara Schleihagen Folie 8 Business model Divibib GmbH  One supplier that negotiates on behalf of libraries  Single platform for delivery to the user  Package possible (e.g. the whole offer by Penguin), individual titles possible  Current most common business model: M-Licence = one digital copy to one reader at a time 13.05.2013

9. German Library Association | Barbara Schleihagen Folie 9 Business model Divibib GmbH New Licensing models: L-Licence: augmented availability for titles that are 2 years or older, also for former M-Licence books XL-Licence: parallel downloads for current titles possible for an extra price. If all titles are „on loan“, 2 M-licences are automatically available (classic single download) 13.05.2013

10. Selection of e-books almost all books are available to public libraries for the same price as for customer window time for some titles over 650 publishers (2.220 total) are offering their e- material! one big publishing house is missing (Holtzbrinck group – Rowohlt, Klett-Cotta etc., own comercial offer „Skoobe“) on the whole, continous good dialogue with all publishers 13.05.2013 German Library Association | Barbara Schleihagen Folie 10

11. Ownership, long term access, preservation  digital preservation is not a public library task in Germany (modernisation of 10% of the public libraries‘ stock each year)  e-books are not owned by public library  access to e-books via licences, no long term access  Purchase of e-books and digital long term copy only relevant for scientific libraries 13.05.2013 German Library Association | Barbara Schleihagen Folie 11

12. Pricing licence at same prices for public libraries (M-licence) as for end costumer one publisher (Beck) asks for triple price, this seems to be unlawful conversion from loan to sell models: no „buy it“ links yet, but possible 13.05.2013 German Library Association | Barbara Schleihagen Folie 12

13. Access on site remote access for all registered library users coming from the libraries‘ serving area Constraints on access: analogue model for digital world = one copy for one user (friction strategies) amount of loans: if any then set by libraries 13.05.2013 German Library Association | Barbara Schleihagen Folie 13

14. Distribution platform Platform owned by Divibib GmbH Managed by Divibib GmbH Cost unknown (business secret) 13.05.2013 German Library Association | Barbara Schleihagen Folie 14

15. German Library Association | Barbara Schleihagen Folie 15 Integration in library environment Library catalogue: Some library software producers offer interface, DiviBiB offers MAB & MARC data and media covers for integration into catalogues for a maximum of visibility of the digital offer LMS (Library Management System) in place to check the user‘s identification and his library registration Apps for iPad, iPhone and Android platform only for e-books in e-Pub 13.05.2013

16. German Library Association | Barbara Schleihagen Folie 16 Visibility Marketing tools available from DiviBib: digital frames, bookmarks, posters, stickers and labels on media, give- aways, flyer, postcards… Increased local media work at various occasions: new ebook reader, new offers, new applications… Increased advertisement in Internet: Homepage, Facebook, Twitter, Blog, YouTube, mailing… Integration in reference service and training offers 13.05.2013

17. German Library Association | Barbara Schleihagen Folie 17 Commercial business models for E-Book lending  Amazon.de: takeoff in 10/2012; lending-system; limited for prime patrons; one e-book for free per month; proprietary software for Kindle reader; 8.500 german titles  Libreka! : takeoff in 10/2012, lending-system for end customers by German Publishers and Booksellers Association; test phase; 760 titles; lending time 4 weeks; price setting by publishers with rebate system  Skoobe: takeoff in 02/2012; subscription-system for end customers; flatrate: 9,99 Euro/month; joint venture by Arvato, RandomHouse and Holtzbrinck; simultaneous loan of 5 titles possible; available for iPhone, iPad, Android or Kindle Fire; 20.000 titles  Paper C: takeoff in 2013, evolution of a subscription-system for end customers, only scientific and educational books; flatrate: 29,99 Euro/month; about 400 publishers 13.05.2013

18. E-lending legal framework (Copyright): Exhaustion should be extended to electronic books so that libraries won‘t depend on the publishers‘ offer Reduced VAT should also be applied for e-books 13.05.2013 German Library Association | Barbara Schleihagen Folie 18

19. German Library Association | Barbara Schleihagen Folie 19 Thank you! Barbara Schleihagen schleihagen@bibliotheksverband.de www.bibliotheksverband.de 13.05.2013