Ebook Borrowing/Lending

Better World Libraries

3 December 2019

From Library Journal:

The Internet Archive (IA) on November 6 announced that its longtime not-for-profit partner, Better World Libraries, had acquired Better World Books, a mission-driven for-profit bookseller that has donated almost $29 million and more than 26.5 million books to global literacy programs during the past two decades. Better World Books’ Library Discards and Donations program, launched in 2004, has also been a major contributor to the company’s efforts to redistribute or recycle an additional 326 million books.

. . . .

“One of the biggest challenges facing libraries today is responsibly removing materials from their shelves so they can bring in more desirable materials or repurpose space to fit community needs,” Jim Michalko, Better World Books board member and former president of The Research Libraries Group, explained in the announcement. “Now, libraries can provide books to Better World Books knowing that a digital copy will be created and preserved if one doesn’t yet exist.”

. . . .

“What we’re trying to do is weave books into the Internet itself, starting with Wikipedia,” Kahle said. “The idea is to turn all of [Wikipedia.org’s] footnotes into live links, so that anyone who wants to go deeper from a Wikipedia article, can click on a footnote and open a book, right on the right page.”

IA has an ongoing relationship with Wikipedia. Notably, IABot crawls Wikipedia pages searching for broken links and repairs those links by finding an archived version of the original webpage using IA’s Wayback Machine. To date, the bot has repaired more than ten million links.

“Now, we have a robot going through [Wikipedia] and augmenting book citations with links to books in the Internet Archive,” Kahle said. “That, we think, is a big deal for usability. And it helps battle misinformation by taking the best, vetted information that we have and making that accessible to Wikipedia writers and also readers. The next puzzle beyond that is ‘how do you go and scale that up?’ We now have over 120,000 Wikipedia citations pointing to over 40,000 books, but we want to get to millions of links going to millions of books. The way we’re going to get there is by working really closely with Better World Books.”

IA has already digitized over four million books, most of which are public domain titles published before 1923, Kahle said. Its leadership aims to digitize four million more during the next four years—primarily 20th-century content obtained through the new Better World Books pipeline, as well as direct donations from libraries and other sources.

. . . .

Links to reliable sources will help “fulfill the promise of the internet as a library that people can depend on for reference work,” Kahle said. In this case, digitized books will be used “less for beach reading, more for jumping in and out of books—fact checking.”

Link to the rest at Library Journal and thanks to Marv for the tip.

E-books at libraries are a huge hit, leading to long waits, reader hacks and worried publishers

26 November 2019

From The Washington Post:

While some people are scrambling to collect log-ins for Netflix, HBO Go, Hulu and, now, Disney Plus, Sarah Jacobsson Purewal is working on a different kind of hustle. She signs up for any public library that will have her to find and reserve available e-books.

The Los Angeles-based freelance writer used to borrow a friend’s address to keep a New York Public Library account, and helped another out-of-state friend get a card for the Los Angeles Public Library.

“I’m a member of every library in California that allows me to be a member as a resident of the state,” said Jacobsson Purewal, before rattling off a list of cities: Los Angeles, San Jose, San Francisco, Oakland, San Diego.

. . . .

Digital books are sold online, typically for less than their physical counterparts. They’ve also found popularity in public library systems, where cardholders can download multiple e-books and audiobooks to their devices without leaving home. But, as with hardback library books, there can also be weeks-long waits and the inability to extend loan times for in-demand titles.

. . . .

And while there are technically an infinite number of copies of digital files, e-books also work differently. When a library wants to buy a physical book, it pays the list price of about $12 to $14, or less if buying in bulk, plus for services like maintenance. An e-book, however, tends to be far more expensive because it’s licensed from a publisher instead of purchased outright, and the higher price typically only covers a set number of years or reads.

. . . .

Library e-book waits, now often longer than for hard copies, have prompted some to take their memberships to a new extreme, collecting library cards or card numbers to enable them to find the rarest or most popular books, with the shortest wait.

. . . .

The first-grade teacher is a card-holding member of the Queens, Brooklyn, and New York Public Library systems, the Cape Cod library sharing system (CLAMS), and another city’s library where he borrowed a relative’s address.

Link to the rest at The Washington Post (Sorry if you hit a paywall. Sometimes, an incognito window will help.)

Open Access: It is up to librarians to make it happen

14 November 2019
Comments Off on Open Access: It is up to librarians to make it happen

From No Shelf Required:

In the past few years, the book and library industry has witnessed many lively discussions about the present and the future of the Open Access (OA) movement and its sustainability for both academic publishers on the one end (i.e., those who need sustainable business models to produce quality content that can be shared openly for years to come) and libraries and academic institutions on the other (i.e., those who need to support it financially in order for it to keep going, because, without their investment, OA fails publishers, authors and the scholarly community at large. Most such discussions focus on what OA can and cannot do for librarians and publishers. Less often, however, they involve those two sides discussing how their actions (and inactions) affect those who are supposed to benefit from the idea of open access and open science: scholars and researchers. More specifically: scholars and researchers in countries where access to science and scientific knowledge remains sparse and uneven and where libraries do not have the means of supporting their academics and scientists the way libraries in the more developed parts of the world do.

. . . .

The goal, therefore, was to discuss the impact of OA on research globally and consider if the promise of OA to equalize access for users and researchers beyond the most affluent academic markets is being achieved. This helped center the discussion around the following: Do researchers have access to freely available academic content as much as we assume they do? Do they know where to find it? How easy is it for them to find it? Are the sources and platforms available to them delivering a quality user experience? And are scholars around the world able to take advantage of the new publishing opportunities afforded to them through various initiatives?

. . . .

North America and Europe are seeing the highest usage of OA books, while Latin America and Africa are seeing the lowest, with Latin America, in particular, lagging behind the rest of the world.

The panelists also discussed OA publishing models and their success in countries where Open Access is vibrant as well as in those where it is still emerging; the costs involved for researchers to publish Open Access; ways in which users in emerging markets benefit from OA content; and the role of academic libraries—large and small—in providing the necessary support.

. . . .

If we consider, for a moment, the sheer number of OA initiatives unveiled in recent years, and the volume of quality content made available OA, it becomes obvious that the scholarly community has made great strides in figuring out what works and what doesn’t, both with journals and with monographs. Publishers and scholars are certainly not objecting to the concept of publishing Open Access. On the contrary, they seem more eager than before to embrace OA publishing possibilities and opportunities (KU alone works with over 100 publishers, ‘unlatching’ books by hundreds of HSS and STEM scholars each year; likewise, IntechOpen works with tens of thousands of scholars worldwide to help them publish their scientific findings and make them widely available).

Indeed, if at this point in the OA narrative, the issue isn’t whether the publishing community is willing to embrace an entirely new way of operating, the ball is back in the court of academic libraries and academic institutions. And questions again arise: Will libraries continue to set aside significant funding to support OA, or will they, in the face of limited budgets, marginalize OA content in favor of subscription products and services?

. . . .

The average STEM book which would have comfortably sold a couple of thousand units a few years ago is now achieving only a few hundred. For the print market, OA has shown to be excellent publicity and (what remains of) print sales hasn’t been detrimentally impacted . . . .

. . . .

Similarly, few academics are aware of the more liberal terms available through OA licenses, including author retention of copyright and flexible content reuse compared to the more traditional copyright-transfer type of agreement . . . .

Scholars are increasingly aware that OA edited book publications (or ISBNs) have comparable submission, review, decision and publication times. Typically, OA book chapters demonstrably achieve higher impact – through greater discoverability, downloads, citations and online mentions – and so for scholars seeking deep dissemination of their work, OA books are an attractive option . . . .

. . . .

The industry should embrace all colors, flavors, and degrees of Open Access and remain more tolerant when applying the standards. New techniques and services must be created to reduce the ‘handicap’ of indie publishers . . . .

. . . .

The majority of researchers don’t really care about the publication method, as long as they have access.

Link to the rest at No Shelf Required

For visitors to TPV who have not seen previous posts about the world of academic/scientific publishing, here are the basics:

  1. Traditional academic/scientific journals are generally owned by one of a handful of academic publishers who have consolidated their ownership of various publications that were formerly owned on an individual basis over a period of years.
  2. Traditional academic/scientific journals are available via very expensive subscriptions, the cost of which has escalated substantially during the past several years. Some college/university/research institution libraries are unable to afford these costs and, consequently, are not able to provide access to some publications to professors, students and researchers.
  3. The authors of the articles appearing in academic/scientific journals, particularly those in junior/intermediate positions need to publish articles in respected journals in order to retain their jobs and obtain promotions to more secure positions.
  4. Typical publishing contracts offered to authors by traditional academic/scientific publishers require the author to transfer copyright ownership to the publisher and pay the author no royalties other than a few copies of the publication. Any financial benefits from their writings come to the authors via improved job prospects or enhanced employment security from their current employers.
  5. To add insult to injury, many academic/scientific publishers require the author to pay a fee to the publisher when the paper is submitted, ostensibly to cover the publisher’s costs of managing the process of peer review. Thereafter, for accepted papers, some publishers charge the author a per-page “printing” fee and/or a separate publication acceptance fee.
  6. Peer review of papers submitted to academic publishers by teachers/professors/researchers to determine the validity/credibility of the content, methods, conclusions, etc., of the submissions is generally performed by other teachers/professors/academic authors in the field who receive no monetary compensation for their work from the publishers. Non-monetary compensation may come to reviewers via more favorable reception of future papers written by those reviewers when the papers are submitted to the publisher.
  7. After a slow start, academic/scientific publishers are reaping the substantial financial benefits of electronic subscriptions to their publications.
  8. Despite the lowered costs of distributing many of their publications electronically (instead of printing, warehousing, shipping, etc. physical copies of the publication), academic/scientific publishers typically sell subscriptions to their publications in expensive bundles that include popular as well as less-popular publications. The largest publishers will not sell a subscription to a particularly useful single publication in an unbundled form. Institutions in poorer parts of the world are often unable to afford the costs of these bundled subscriptions, depriving their professors/researchers/students of access to the latest developments in a scientific/technical field.

The Open Access movement described in the OP is an effort by a variety of researchers/educators/scientists/academic librarians to recreate the infrastructure provided by traditional academic publishers for authors and institutions on a less-expensive basis.

Congress Looking into Anticompetitive Behavior in the Digital Library Market

31 October 2019

From Publishers Weekly:

The American Library Association (ALA) has delivered a written report to the House Judiciary Committee telling lawmakers that “unfair behavior by digital market actors,” including Amazon and some major publishers, is “doing concrete harm to libraries.”

The report, delivered last week to a House antitrust subcommittee investigating competition in the digital market, comes as lawmakers are taking note of the growing backlash to Big Five publisher Macmillan’s decision to impose a two-month embargo on new release e-books in public libraries.

. . . .

Under Macmillan’s new policy, which is scheduled to go into effect on November 1, public libraries are allowed to license a singe discounted, perpetual access e-book for the first eight weeks after a book’s publication. After eight weeks, libraries can purchase multiple two-year licenses at the regular price (roughly $60 for new works). Librarians, however, say that not being allowed to license multiple copies upon publication unfairly punishes digital readers, and will only serve to frustrate users and will hurt the ability of the library to serve their community, especially if other publishers follow suit.

“Libraries are prepared to pay a fair price for fair services; in fact, over the past ten years, libraries have spent over $40 billion acquiring content,” the ALA report reads. “But abuse of their market position by dominant actors in digital markets is impeding essential library activities that are necessary to ensure that all Americans have access to information, both today and for posterity. If these abuses go unchecked, America’s competitiveness and our cultural heritage as a nation are at risk.”

. . . .

“The worst obstacle for libraries are marketplace bans: refusal to sell services at any price,” ALA officials notes, pointing to Amazon Publishing. “The e-book titles from Amazon Publishing are not available to libraries for lending at any price or any terms. By contrast, consumers may purchase all of these titles directly from Amazon. This is a particularly pernicious new form of the digital divide; Amazon Publishing books are available only to people who can afford to buy them, without the library alternative previously available to generations of Americans.”

. . . .

A “related problem,” ALA asserts—though it is surely the primary problem libraries face on a day-to-day basis—is the increasingly restrictive, and costly market for e-books from the major publishers.

. . . .

The inquiry comes after the House Judiciary Committee launched its investigation into competition in the digital market on June 3, 2019, with Chairman Jerrold Nadler (D-NY) citing “growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications.”

Link to the rest at Publishers Weekly

Congress Looking into Anticompetitive Behavior in the Digital Library Market

24 October 2019

From Publishers Weekly:

The American Library Association (ALA) has delivered a written report to the House Judiciary Committee telling lawmakers that “unfair behavior by digital market actors,” including Amazon and some major publishers, is “doing concrete harm to libraries.”

The report, delivered last week to a House antitrust subcommittee investigating competition in the digital market, comes as lawmakers are taking note of the growing backlash to Big Five publisher Macmillan’s decision to impose a two-month embargo on new release e-books in public libraries.

. . . .

The ALA comments break down what it sees as potentially “anticompetitive” behavior in the digital realm into two sectors—public and school libraries, and academic and research libraries. And no surprise, the two issues topping the list of ALA’s concerns: Amazon’s exclusive digital content, which is not available to libraries; and restrictions by the major publishers in the library e-book market.

“The worst obstacle for libraries are marketplace bans: refusal to sell services at any price,” ALA officials notes, pointing to Amazon Publishing. “The e-book titles from Amazon Publishing are not available to libraries for lending at any price or any terms. By contrast, consumers may purchase all of these titles directly from Amazon. This is a particularly pernicious new form of the digital divide; Amazon Publishing books are available only to people who can afford to buy them, without the library alternative previously available to generations of Americans.”

. . . .

A “related problem,” ALA asserts—though it is surely the primary problem libraries face on a day-to-day basis—is the increasingly restrictive, and costly market for e-books from the major publishers. This includes the “delayed release” of e-books to the library market, the ALA report states, pointing to Macmillan’s two-month embargo on new release e-book titles, scheduled to take effect on November 1, and “abusive” pricing for library e-books, where titles can often run more than four times the consumer price for two year licenses.

“Denying or delaying new content to libraries certainly is a market failure,” ALA states. “It also prevents libraries from accomplishing their democratizing mission of providing equal access to information to American citizens.”

. . . .

The inquiry comes after the House Judiciary Committee launched its investigation into competition in the digital market on June 3, 2019, with Chairman Jerrold Nadler (D-NY) citing “growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications.”

Link to the rest at Publishers Weekly

Major Public Library System Will Boycott Macmillan E-books

23 October 2019

From Publishers Weekly:

With Macmillan’s controversial embargo on new release library e-books set to begin in just two weeks, PW has learned that the King County (WA) Library System has decided it will no longer purchase embargoed e-book titles from the publisher.

“Despite months of discussion and advocacy, Macmillan continues its position to embargo multiple copies of e-books,” writes King County Library executive director Lisa Rosenblum, in a note sent to fellow library directors (and shared with PW). ”Therefore, effective November 1st, KCLS will no longer purchase e-books from Macmillan. Instead we will divert our e-book funds to those publishers who are willing to sell to us.”

The King County Library System, headquartered in Issaquah, Washington, is one of the nation’s busiest and best library systems, circulating more than 21 million items every year. It has earned a coveted five star rating from Library Journal. And for five years running, King County has been the top digital-circulating public library system in the country, logging more than 4.8 million checkouts of e-books and digital audio in 2018.

In her note, Rosenblum acknowledged differing opinions among public library staff around the country on whether to boycott Macmillan e-books, and said King County’s decision was ultimately driven by two reasons: one “pragmatic” and the other “principled.”

As for the pragmatic side, Rosenblum explained that King County has pledged to readers to limit the wait time for any title to around 3 months. “Not allowing us to purchase multiple copies of an e-book for two months artificially lengthens the queue, triggering more of the same title to be purchased than would have occurred if we had been allowed to buy for the first two months,” she explains. “With an ever-increasing demand to buy a wide variety of digital titles, we do not think this is the best use of public funds.”

. . . .

The “principled” argument, Rosenblum says, is to send a message to other publishers that public libraries cannot accept limits on basic access. To do so, she writes, would “profoundly” change the public library.

Link to the rest at Publishers Weekly

PG has posted about this stupid plan by Macmillan before here and here.

Suffice to say, this is harmful to libraries and those who use them and unlikely to generate significantly more revenue for Macmillan.

As far as Macmillan’s justification – that library patrons will buy more Macmillan books if they can’t borrow them, PG expects this is likely the case in the short run. However, as library patrons continue to discover new authors they love through the books they borrow, and buy books from those authors, and tell all their friends how great those authors books are, Macmillan is short-changing its owners and its authors by effectively giving up on a major (and free) source of additional sales.

As compared with purchasing advertising and giving big discounts to Barnes & Noble (is that still a thing?), whatever dribs and drabs Macmillan fails to garner from regular library patrons who decide they simply must read whatever Macmillan claims is the latest and greatest instead of borrowing a different book are a drop in the bucket compared to the priceless word-of-mouth avid readers provide.

The Whole “Library eBooks Kill Retail eBook Sales” Idea Makes No Sense

20 September 2019

From The Digital Reader:

I was working on a blog post this morning on Scholastic ebooks being in OverDrive when I got to thinking about the current uproar over library ebooks.

It seems a lot of people in publishing are convinced that library ebooks are responsible for retail ebook sales being down. This belief has been around for over a year now (since Macmillian first established that trial embargo on library ebooks in July 2018), and it’s now grown to include a concatenating belief that Amazon is the one telling publishers about the supposed connection between library ebooks and retail ebook sales declining.

I still don’t beleive that Amazon is doing that; I think it is an example of gossip spread in the industry before showing up in the media. But I don’t want to debate that today; instead, I want to discuss the underlying premise.

. . . .

The idea that library ebooks (in and of themselves) have a negative impact on retail ebook sales simply makes no sense to this ebook buyer.

It simply doesn’t match up with my understanding of how people use libraries.

BTW, the last time I pointed out that a common industry belief made no sense was in late 2017 when I debunked the then-current belief that “screen fatigue” was responsible for declining ebook sales. I never got any public kudos for my work, but when was the last time you heard a publishing CEO blame their falling retail ebook sales on screen fatigue?

No one is mentioning screen fatigue any more; now the bogeyman is library ebooks, and it makes just as little sense as the last bogeyman.

The underlying premise for this belief is that because people can get a library ebook, they won’t buy the retail ebook.  This demonstrates a fundamental misunderstanding of consumer behavior.

. . . .

This runs contrary to the legacy industry assumption that if they deny the consumer the library ebook then the consumer will buy a copy of the ebook.

Take me, for example. I only buy ebooks, but when I think the ebook costs to much (or when I can’t tell if it’s worth the expense) I will borrow the print book from the library.

. . . .

What the legacy industry appears to have forgotten is that for the past eight years they have been training library patrons to settle for print books even when we want the ebook. This has been going on ever since the Big Six started imposing checkout restrictions and high prices on library ebooks in 2011.

Link to the rest at The Digital Reader

One of the beliefs that underlies the whole “Let’s delay the library book so everyone will buy their own copy” philosophy is that the release of a “big” book by a major publisher is something that lots of Americans will respond to by quickly purchasing their own copy so they can talk to their friends about it.

PG thinks such consumer behavior has become quite rare other than in locales within 15 miles of The Empire State Building or The White House. A major book release flies so far beneath 99% of the American population as to be invisible. There was a time when a lot of people paid attention to what Big Publishing was doing, but that time is gone, gone, gone.

PG is about 100% ebook when it comes to his long-form reading. As he’s mentioned before, he’s purchased a couple of print books that he knows he will like because he found a screaming deal on the price somewhere. They have sat (laid? lain?) within easy reach of PG favorite reading locations for months and months and months.

PG reads long-form nonfiction and fiction for pleasure every day. It’s all in ebook format.

He is currently reading The Ground We Stand On by John Dos Passos, published in 1941, and very hard to find for a reasonable price. PG thinks it qualifies as heavy-duty history, discussing and contrasting the parallel developments of New and Old England during the mid-17th century.

Parts of the book follow Roger Williams, the founder of Providence Plantations, which became the Colony of Rhode Island, and a Puritan minister. Williams was likely the first white man to learn the languages of the Native American tribes along the Eastern seacoast. He wrote the first book on the Narragansett language and helped to settle the Pequot War (1637-38) which could have caused enormous harm among the earliest British settlers.

The book follows Williams back and forth during his travels from the New World to the Old. Old England is in the midst of The Civil War and the Puritans were in control. While in England, Williams published his first book, A Key into the Language of America, in 1643. This book was, in part, the first printed dictionary/phrase-book of the language of the Native American tribes as well as an account of the life and culture of those tribes.

In his book, Williams wrote:

Boast not proud English, of thy birth & blood;
Thy brother Indian is by birth as Good.
Of one blood God made Him, and Thee and All,
As wise, as fair, as strong, as personal.

Williams succeeded in obtaining a charter from Parliament for Providence Plantations in July 1644. He then wrote a book titled,
The Bloudy Tenent of Persecution for Cause of Conscience in which, among other things, Williams argued for a “wall of separation” between church and state and for state toleration of various Christian denominations, including Catholicism, and also “paganish, Jewish, Turkish or anti-Christian consciences and worships.” Williams’ writing was not popular with the Puritan-controlled government and Parliament ordered the public hangman to burn all copies.

PG has rambled too much about his latest reading enthusiasm, but, to the best of his knowledge, a copy of Dos Passos’ book in physical form is unavailable anywhere in PG’s general vicinity. However, he was happy to find a copy in ebook form online (not at Amazon) for a reasonable price and is learning a great many things about this period of American and British history of which he was previously unaware.

Why Angry Librarians Are Going to War With Publishers Over E-Books

13 September 2019

PG has mentioned this brilliant strategy from Macmillan here and here, but under the principle that you can’t celebrate Big Publishing stupidity enough, here’s more.

From Slate:

If I wanted to borrow A Better Man by Louise Penny—the country’s current No. 1 fiction bestseller—from my local library in my preferred format, e-book, I’d be looking at about a 10-week waitlist. And soon, if the book’s publisher, a division of Macmillan, has its way, that already-lengthy wait time could get significantly longer.

In July, Macmillan announced that come November, the company will only allow libraries to purchase a single copy of its new titles for the first eight weeks of their release—and that’s one copy whether it’s the New York Public Library or a small-town operation that’s barely moved on from its card catalog. This has sparked an appropriately quiet revolt. Librarians and their allies quickly denounced the decision when it came down, and now the American Library Association is escalating the protest by enlisting the public to stand with libraries by signing an online petition with a populist call against such restrictive practices. (The association announced the petition Wednesday at Digital Book World, an industry conference in Nashville, Tennessee.) What’s unclear is whether the association can get the public to understand a byzantine-seeming dispute over electronic files and the right to download them.

In a July memo addressed to Macmillan authors, illustrators, and agents, the company’s CEO John Sargent cited the “growing fears that library lending was cannibalizing sales” as a reason for embargoing libraries from purchasing more than one copy of new books during their first eight weeks on sale. “It seems that given a choice between a purchase of an ebook for $12.99 or a frictionless lend for free, the American ebook reader is starting to lean heavily toward free,” he claimed.

Many individual library systems and companies that work with libraries swiftly responded with objections. “Public libraries are engaged in one of the most valuable series of community services for all ages, for all audiences,” said Steve Potash, the CEO and founder of OverDrive, a company that supplies libraries with e-books. “The public library is just something that is underappreciated. It certainly is so by Macmillan.”

. . . .

“If you think about equitable access to information for everybody, there shouldn’t be discrimination or anything like that,” said Alan Inouye, the senior director for public policy and government relations at the ALA. “So consumers can get this book on Day 1 without limitation, but libraries have to wait for eight weeks? That’s just very wrong.”

. . . .

The controversy over Macmillan’s new policy gets at one of the central issues facing book publishing today. “There’s a tension in e-book pricing generally between consumer expectations that a digital file will be less expensive than a physical copy and the reality that very little of the cost of making a book is tied up in the physical format,” said Devin McGinley, a senior industry analyst covering book publishing for Ibisworld Inc., a market research firm. “Publishers are rightly concerned that if the price of books erodes too much, they will no longer be able to cover their creative costs and subsidize more speculative bets on emerging authors.”

. . . .

“They really did not have any reasonable data to support a narrative that if an author’s new book is withheld from public library lending when it first comes out, that might impact the author’s or the book’s sales during those first few months,” Potash said. “That isn’t borne out. The data that OverDrive has is that for every title that actually gets borrowed or downloaded, the library is engaging with dozens and dozens of readers who are discovering the book, sampling the book, or just looking for a recommendation on what to read next.” Potash said that studies consistently show library patrons to be more frequent book buyers overall—which is another reason Macmillan’s letter stung. “They are taking their readers, their customers, their fans, and intentionally trying to frustrate them,” he said.

Link to the rest at Slate

PG will state that whenever a business executive talks about making a decision to avoid “cannibalizing sales,” you will find many other stupid words and acts following shortly thereafter.

Steve Job famously said, “If you don’t cannibalize yourself, someone else will.” He made this comment when Apple was selling a lot of iPods, and had just announced the iPhone.

Did the iPhone cannibalize Apple’s iPod business? You bet. Were any Apple shareholders upset by this cannibalization? Not really. The iPhone would make Apple the most valuable company in the world.

The first iPhone was announced in January, 2007, and went on sale in June, 2007. One year after the announcement of the first iPhone and six months after its launch, in January, 2008, the value of a share of Apple stock had almost doubled. About six months later, in July, 2008, when Apple launched the iPhone 3G (the first iPhone with an app store), the stock value was 285% of the price only 18 months earlier.

Not many people were worried about iPod sales at that point.

From an interview with James Allworth, the co-author, with Clay Christensen and David Skok, of a new Nieman Reports article called “Breaking News– Mastering the Art of Disruptive Innovation in Journalism.” The Harvard Business Review published a transcript:

Well, if you can see a way of cannibalizing your existing business, then chances are somebody else can see that same opportunity too. And if it’s a choice between you or your competitor cannibalizing that business, I think in almost every instance you will be better off in the long run if you yourself choose to do it.

Link to the rest at The Harvard Business Review

Back to Macmillan, once a book is completed, PG will note that each copy of an ebook that Macmillan licenses to a user costs the company essentially nothing. This cannot, of course, be said about a printed book, each one of which carries costs for printing, shipping, warehousing, handling returns of unsold books from bookstores, etc.

PG suggests that an intelligent executive would be happy to cannibalize the sales of more copies of costly printed books by selling costless ebooks.

 

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