I've stashed the article to read later, so maybe they discuss this (but I've seen no indication from the comments).
There are two¹ different models for ebook lending at libraries. With Libby/MediaOnDemand, the library purchases an ebook which will have different limitations based on the publisher. For some it's a fixed time frame, for some a fixed number of checkouts, for some it's unlimited. This is meant to be somewhat equivalent to the purchasing process for books and other physical media where it's expected that the book will have a fixed lifetime after which it is no longer lendable.² The price paid, again depends on the publisher, but is generally more than the consumer price for the book.³
The other model is employed by Hoopla. With their catalog, everything is available for unlimited lending with no waiting (although patrons are usually limited to a fixed number of borrows per month). In this instance, the library pays a fee for each borrow, usually around a dollar, but it can vary depending on the media type and publisher.
Ooh, I just remembered a third model, although I don't know if any of the library ebook services employ it. Kanopy, which offers streaming video services for libraries works on a system where when a patron decides to watch something, if someone else at the library has already watched it, it's free, if they haven't then the library is charged for a full-price purchase of the media (I read somewhere that this is in the $80–100 range). The big drawbacks here are that (a) the cost will be unpredictable and (2) the library will feel tied to the service thanks to sunk costs.
We're still in the early days of figuring out how to make digital media work and balance the needs of libraries and publishers. I like the convenience of being able to borrow anything without waiting with Hoopla although their ereader kind of sucks, and because of the economics, if my library has a book in both Libby and Hoopla, I usually prefer to do the Libby borrow since that money's already spent (plus their reader is better), but it's enough of a toss-up that if the Libby copy is checked out, I'll go with the Hoopla one.
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1. At least two. But these are the ones I'm most familiar with.
2. If you ever visit the picture book section of your local public library you will see this limited lifetime exhibited in dramatic fashion.
3. For legal reasons, your library does not purchase it's paper books, DVDs, CDs, etc. at the corner bookstore or Amazon, but through special purchasing agreements that, again, depending on the publisher, will result in the publisher being paid more than they might otherwise get. My first experience of this was when I was publishing a magazine. Library subscriptions almost always came through a service which paid me the full annual subscription price, and then turned around and charged an additional fee to the library. I believe that something similar happens with books where the library pays the service cover price plus X and the publisher receives the full cover price, but I'm willing to be corrected by someone more knowledgeable than me spouting off in a footnote.
>This is meant to be somewhat equivalent to the purchasing process for books and other physical media where it's expected that the book will have a fixed lifetime after which it is no longer lendable.
I wish the people who say, in this thread and everywhere else library ebook lending is discussed, "Why aren't all ebooks always available to an unlimited number of borrowers?" Publishers can reasonably expect that any physical book will, sooner or later, need replacing. An ebook won't.
There is a good debate to be had on whether the Overdrive or Hoopla or some other lending model is more appropriate for ebooks, but that's orthogonal to the above. People need to have a grasp of the basics before discussing anything more detailed.
There are two¹ different models for ebook lending at libraries. With Libby/MediaOnDemand, the library purchases an ebook which will have different limitations based on the publisher. For some it's a fixed time frame, for some a fixed number of checkouts, for some it's unlimited. This is meant to be somewhat equivalent to the purchasing process for books and other physical media where it's expected that the book will have a fixed lifetime after which it is no longer lendable.² The price paid, again depends on the publisher, but is generally more than the consumer price for the book.³
The other model is employed by Hoopla. With their catalog, everything is available for unlimited lending with no waiting (although patrons are usually limited to a fixed number of borrows per month). In this instance, the library pays a fee for each borrow, usually around a dollar, but it can vary depending on the media type and publisher.
Ooh, I just remembered a third model, although I don't know if any of the library ebook services employ it. Kanopy, which offers streaming video services for libraries works on a system where when a patron decides to watch something, if someone else at the library has already watched it, it's free, if they haven't then the library is charged for a full-price purchase of the media (I read somewhere that this is in the $80–100 range). The big drawbacks here are that (a) the cost will be unpredictable and (2) the library will feel tied to the service thanks to sunk costs.
We're still in the early days of figuring out how to make digital media work and balance the needs of libraries and publishers. I like the convenience of being able to borrow anything without waiting with Hoopla although their ereader kind of sucks, and because of the economics, if my library has a book in both Libby and Hoopla, I usually prefer to do the Libby borrow since that money's already spent (plus their reader is better), but it's enough of a toss-up that if the Libby copy is checked out, I'll go with the Hoopla one.
———
1. At least two. But these are the ones I'm most familiar with.
2. If you ever visit the picture book section of your local public library you will see this limited lifetime exhibited in dramatic fashion.
3. For legal reasons, your library does not purchase it's paper books, DVDs, CDs, etc. at the corner bookstore or Amazon, but through special purchasing agreements that, again, depending on the publisher, will result in the publisher being paid more than they might otherwise get. My first experience of this was when I was publishing a magazine. Library subscriptions almost always came through a service which paid me the full annual subscription price, and then turned around and charged an additional fee to the library. I believe that something similar happens with books where the library pays the service cover price plus X and the publisher receives the full cover price, but I'm willing to be corrected by someone more knowledgeable than me spouting off in a footnote.