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Continuing the Democratization of Knowledge through eBooks

-- By SylviaDuran - 24 Oct 2011

Just as the printing press was credited with the democratization of knowledge, the electronic book (ebook) has the potential to spread information more efficiently and cost-effectively than ever before. However, publishers’ fear of the Napsterization of their industry has stalled the ebook revolution. This fear is not entirely unreasonable as evidenced by the music industry’s alleged billion dollar losses attributable to peer-to-peer networks. But unlike the music industry, ebook publishers carry an additional responsibility to society – the dissemination of information, which is indispensable to the continued democratization of knowledge. Critics of the music industry note the industry was slow to evolve so the market responded with peer-to-peer sharing. Publishers of ebooks are now making similar mistakes and they are less forgivable the second time around.

New Industry, Same Mistakes

Implementing questionable pricing strategies

When the alternative is "free," ebook publishers hasten the retreat to piracy by engaging in questionable pricing strategies. Consumers express surprise and sometimes anger at current ebook prices as they often mirror print book prices. Consumers note they cannot donate, sell, or generally lend their purchased copies to other parties. In addition, the marginal cost of producing and distributing ebooks is much lower than print books. Publishers justify current pricing as a result of their fixed costs, such as marketing and editorial costs, which constitute the bulk of their expenses. Yet even assuming publishers' explanations are sincere, the perception that publishers are greedy and prices unfair remains. This perception has gained support from the recent class-action lawsuit against Apple and five major publishers claiming the parties engaged in price fixing. The lawsuit says prices of new ebooks have increased an average of 33 to 50% as a result.

Ignoring new business models

The music industry's answer to piracy was to force individual pirates through the legal system. Although these scare tactics worked on some probable offenders, threat of legal sanction did not stop the overall problem - the music industry continued its decline. It has taken ten years for new business models to gain traction, but the industry is finally understanding consumer needs. For example, some copyright owners now allow their content to remain on YouTube? and generate revenue from advertising. Further, new music label contracts, known as 360 deals, take into account other revenue streams including touring, merchandise sales, song publishing, and sponsorships to account for decreased music sales. Although these deals are unfortunate from the musician's perspective, they are a recognition that traditional revenue models are no longer sufficient in an internet society.

Similarly, traditional approaches to publishing will not survive in the internet society. Publishers appear to understand this evolution in some instances, but ignore it at their convenience. For instance, electronic publishers (e-publishers) restrict ownership rights of ebooks in ways print books are not - one cannot sell, donate, or lend endlessly a purchased ebook. This behavior is a response to the realities of the internet society. However, e-publishers have so far failed to embrace the benefits of the online community. For example, e-publishers point to high editorial costs as a reason for high ebook prices. Yet Wikipedia is a perfect example of an alternative to traditional editorial approaches. This is not to say e-publishers can or should rely on online users to edit their ebooks to cut costs, but if their current costs of ebook publication are the same as for print, e-publishers are not innovating or seeking improved efficiencies as they should be. The longer they wait to evolve, the more likely the market will force them to change through Napsterization.

New mistake: Earning the ire of librarians

Libraries, the original information equalizer, could become a formidable opponent to e-publishers. Earlier this year, Harper Collins Publishers began restricting the use of library ebooks, making them expire after 26 uses (26 library check-outs). Once again, e-publishers restrict traditional ownership rights and the restrictions seem arbitrary. Libraries already adhere to the "one user per copy" rule in order to mirror print book ownership, even though this is a fictitious limitation in the electronic world. To further restrict libraries' ability to share knowledge with its patrons is difficult to justify. Publishers argue an e-book cannot have perpetual ownership because print books deteriorate over time, while e-books retain consistent quality. But if any group should benefit from technological advances, should it not be libraries? These are entities promoting literacy and creativity, rather than seeking profits. And with ever-present budget cuts, having to replace "deteriorated" ebooks makes Napsterization a fitting response to an industry preventing the spread of knowledge from traditional channels.

Pirating Books is Ethical

ETHICS

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