E-textbooks are not forever. Most publishers make their academic titles available for only a semester, or a year, after which time, the digital files self-destruct.
Now the University of Michigan Press is trying an even shorter rental period for its e-books. Customers have the option of renting 261 of the press's most popular scholarly texts for either 40 percent or 75 percent of list price, for a rental period of either 30 days or 180 days. Essentially Michigan is combining two emerging trends in the textbook industry: rentals and e-books.
A digital book from the University of Michigan Press that originally cost $22.95 could be rented at $10 for 30 days, or $18 for 180 days. The clock starts ticking when the book is opened, and the digital file can be viewed on up to six devices—whether it be a PC, a Mac, or an e-reader.
Heather Newman, the press’s trade marketing manager, hopes the service appeals to those needing a book for a single citation or a paper.
But what is the advantage of renting a book for almost half a year if you could purchase it for just $5 more?
“A hundred and eighty days is not an overnight kind of use,” she said. “It’s pretty close to the expected lifetime of a textbook, and it’s an opportunity to get a discount if you’re not interested in it beyond that time.”
Ms. Newman said the discount will be more significant, the more expensive the book.
Price points are determined by balancing book-production costs with what customers can spend, she added. The press is also testing both the rental costs and delivery options—attempting to compromise production costs with consumers' budgets.
The press hopes to expand its offerings to 325 books by year’s end.
Albert N. Greco, a professor of marketing at Fordham University’s Graduate School of Business Administration, said digital renting is a smart move from a business perspective.
He believes the model addresses three problems the textbook industry has been facing: competition from used-book sellers, high return rates, and expensive production costs.
In a digital world, all these factors are either eliminated or greatly reduced.
He admits it may be a tougher sell for students because they face a potential financial loss from not being able to sell the book back. Textbooks older than two semesters are also easy to find used.
Although Mr. Greco believes the trend will take off by 2015, he still wonders whether students accustomed to traditional textbooks will make the switch to digital. “It’s a tough question,” he said. “It’s going to be up to the student.”