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The image shows an open book with a black border and a white background. The book is filled with text and numbers, likely related to loans made by Freedman's Savings and Trust Company.

E-lending crisis threatens Germany's book industry and author earnings

A new study has highlighted the financial strain e-lending places on Germany's book industry. The European Writers' Council (EWC) backs the findings, warning that current licence fees fail to cover losses. Authors and publishers are calling for urgent changes to protect their income. The EWC has endorsed a German study examining how e-lending affects book sales and author earnings. Scheduled for January 2025, the research aims to clarify the financial impact of digital borrowing in public libraries. At present, no data exists on the average yearly losses caused by free e-lending.

A recent scientific analysis confirms that increased e-book borrowing directly reduces sales in both print and digital markets. This trend hits authors' incomes hard, as current licence fees do not offset the decline. The EWC also supports ten recommendations from the Round Table on E-Lending, pushing for fairer compensation models.

Miguel Ángel Serrano, President of the EWC, criticised the current system, stating that German-language authors and publishers effectively subsidise the state's educational goals. He pointed out that e-lending is most popular among affluent, educated users—who then spend less on buying books. Without reform, extending the Public Lending Right (PLR) exception to digital lending could cost the industry up to €170 million.

Currently, around €9 million is distributed to authors and publishers through PLR for printed books, while e-lending licences contribute roughly €16 million. The EWC hopes Germany's approach will set a precedent, encouraging other European countries to adopt similar measures for fairer e-lending conditions. The study and EWC's recommendations aim to address the growing financial gap caused by e-lending. If no action is taken, authors and publishers face continued losses, while library users benefit from subsidised access. The findings will shape future policies on digital borrowing across Europe.

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