Are Library E-Books Really Hurting Book Sales?

Is borrowing a digital book from your local library secretly damaging the publishing industry?

A major study commissioned by the Association of American Publishers (AAP) and the Authors Guild claims that library e-book lending reduces retail sales. Conducted by consulting firm Secretariat Advisors, the report suggests that borrowing digital books instead of buying them cuts into author incomes and publisher profits.

However, librarians, reader advocates, and industry analysts argue that the story is far more complex than a simple loss of sales.

What the Publishing Study Found

The study analyzed years of library data and book sales figures across multiple states. Its main conclusion: the convenience of borrowing e-books directly through apps like Libby makes readers less likely to buy new books.

Key Points from the Report:

• Impact on New Releases: The study found that digital borrowing hurts print and e-book sales most during the first few weeks of a book’s release, when retail interest is highest.
• Loss of Print Sales: Increased digital library holdings correlated with a small but measurable decline in print sales (roughly 0.85% to 1%).
• Bestseller Cannibalization: For major bestsellers, digital lending acts more as a free replacement for a store purchase rather than a tool for discovering new authors.

To combat this, publishing groups suggest “windowing”—delaying when libraries can access new e-books—or raising licensing fees for digital copies.

Why Libraries View E-Books Differently

While publishers see lost profits, public libraries see a completely different problem: unsustainable licensing costs.

Unlike physical books—which libraries own permanently—digital books are leased. Libraries pay publishers expensive, temporary licenses that expire after a set time or a fixed number of checkouts (usually 24 months or 26 checkouts). When the license expires, the library must buy the e-book again.

Book Format	Ownership	Cost Model	Long-Term Access
Physical Book	Owned outright by library	One-time retail/discounted price	Lasts until physically damaged
Library E-Book	Leased temporarily	High recurring license fee	Expires after set time/checkouts

To protect public budgets, several state legislatures have proposed laws requiring publishers to offer e-books to libraries on “reasonable” terms. The publishers’ study was created partly to fight these laws, warning that government mandates could force publishers to pull e-books from library systems entirely.

The Controversy: Do Library E-Books Really Harm the Market?

Many library advocates and publishing critics disagree with the study’s claims. They argue the research overlooks several key realities:

1. Data Flaws and Double Counting

Industry analysts pointed out that the study used data from the Institute of Museum and Library Services (IMLS) that may overcount available e-books. The study treated shared regional library groups (consortiums) as duplicate collections, potentially exaggerating digital availability.

2. Libraries Build Lifetime Readers

Library supporters emphasize that borrowing builds long-term discovery. Readers who discover an author at the library often buy that author’s future physical books, audiobooks, or backlist titles.

3. Big Tech Drives Market Prices

Many critics argue that tech giants like Amazon—which heavily control both self-publishing and traditional e-book distribution—have done far more to lower e-book prices and squeeze publisher margins than public libraries ever could.

The Path Ahead: Can Both Sides Agree?

Both publishers and librarians agree on one thing: libraries need more public funding. Higher state and local budgets would allow libraries to compensate authors fairly while keeping digital collections accessible to the public.

For now, the debate remains unresolved. Readers who love both their local libraries and their digital e-readers may face longer wait times for new releases if publishers begin restricting early digital access.