Should Overdrive Develop Its Own e-Reader? | Good E-Reader - eBooks, Publishing and Comic News
Feb
20

Should Overdrive Develop Its Own e-Reader?

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Overdrive is the company responsible for the facilitation of ebook lending from your local libraries in digital format. The company is in a unique position in that it offers a purely digital service with no real tangible product related to said libraries. I think the company should develop and market its own e-reader directly to K12 schools and the libraries it deals with.

There really has been no greater time for companies to get involved and develop their own e-readers. The costs of e-ink screens and the chips are at an all time low and there is many ODM and OEM companies based in China and Taiwan that can easily make low-cost devices. Overdrive is in the perfect position, having a well developed back-end system developed for libraries that agree to tap into its ecosystem of audiobooks and ebooks. If Overdrive developed its own cheap reader and allowed libraries to loan the devices out to patrons who did not have an e-reader or tablet, the company could win in more ways than one.

Over the next year, Overdrive will face competition from 3M and its cloud library service. 3M has developed its own e-reader that library staff can lend out to patrons. The e-reader works only with books from libraries supporting its platform. If you steal it, the device deactivates and becomes unusable. The library then sends the user a bill for the device or implores then to return it. In the 30 libraries participating in this beta test, reception has been warm.

Obviously, Overdrive dominates digital lending in libraries across Canada, the USA, Australia, and the UK. It currently has a Test Drive program out where it directly supports three tablet computers and the Sony PRS-T1 e-reader. It does not sell the readers itself, but does guide libraries to vendors. In order for Overdrive to take its business to the next level, it needs to develop a super cheap reader that only taps into their ecosystem and can be offered for 50$ or less.

I think the public would really benefit from being able to borrow a device geared specifically for public libraries and schools. A device geared towards only reading and nothing else. Something very bare bones can be made and sold at a very cost effective price. Not only would Overdrive make a bit of money selling them to libraries, but library staff would find it easier to be trained on an official device rather then the 100′s of e-readers on the market.

What do you guys think? Should Overdrive develop its own e-reader instead of relying on 3rd party ones? Should 3M serve as an example how a cheaply made device can be used as a selling point?

Michael Kozlowski (2938 Posts)

Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about electronic readers and technology for the last four years. His articles have been picked up by major and local news sources and websites such as the Huffington Post, CNET and more. Michael frequently travels to international events such as IFA, Computex, CES, Book Expo and a myriad of others. If you have any questions about any of his articles, please send an email to michael@goodereader.com


  • http://twitter.com/mattrweaver Matt Weaver

    Overdrive was charged with doing just that by the Chief Officers of State Library Agencies in 2010. They started talking with manufacturers in China, but the success of their apps negated a lot of the perceived need. After that, the ereader project went on the back burner. Since Overdrive’s pricing structure is very a la carte, and production would not generate the same economies of scale as the Kindle, Nook, etc., a system for ereader lending would be just another exorbitant expense.

    The problem with ebooks in libraries is that while ebooks have become a mainstream book format generally, in libraries they are premium-priced systems. Administration costs (which do not include any content, just back-end subscriptions) for the State Library of Kansas would have gone from $10,000/year to $75,000/yr in just three years under a renewal contract that it rejected. 3M hardware for libraries isn’t cheap, either.

    Overdrive should get involved to help facilitate ereader lending programs so libraries could acquire their own devices; but often the licensing terms for hardware manufacturers (Amazon especially) make such programs very difficult to manage. Buffy Hamilton, a school librarian in Georgia and the person who runs what has to be one of the largest ereader lending programs in the country, quit the Kindle because Amazon changed the terms of use for the device. B&N’s policies aren’t much better.

  • Lisaw

    Don’t agree with this – readers should be free to use whichever ereader device/software they prefer, or already own…

  • Joe Reynolds

    I’m not sure a $50 ereader is even possible.   Amazon doesn’t make any money on the sale of the Kindle but on the sales of books and other items available on Amazon.  An e-ink reader is probably going to cost at least $70 wholesale if it’s a design with parts that are readily available.   I do think it is a great idea for Overdrive to further it’s market share and customer service to libraries by offering a lendable ereader as part of its package.   It could even be offered for sale through the library’s Friends of programs and a marke up made to support the library.   Go for it!

  • http://goodereader.com/blog/ Good E-Reader

     It is, you only have to look at far as aliababa.com which is a Chinese e-Comm Site. Tons of indie e-readers are on sale from 20 to 50.00 there. It is super cheap to make e-readers and if they just did a basic interface that tapped into their system it would work.

  • Dan Gilligan

    I think the more pertinent question to ask is how do you think books will be distributed in the near future. Will cities and communities continue to spend money on lending books though their libraries when they are relatively inexpensive to “rent” by individuals just like a DVD? Those who have the need for a more concrete library of titles can buy them just like you can a movie but many may want to just rent them for a few weeks and move on to the next book,

    If we continue to see new services come on line where you can rent immediately without having to wait for the title to become available or purchase books how will Overdrive compete unless they offer a rental service directly to the public for a set monthly or annual fee?

    If this type of model comes into play will Overdrive also want to be in the hardware business? It’s getting to be a very crowded space.