The introduction of sophisticated e-book readers – such as the hugely popular Kindle – has led to the mind-blowing growth of electronic books.

 

As the BBC reports, the Association of American Publishers (AAP) has revealed that its latest statistics for February show a growth of 202 per cent. The annual figures from January/February 2010 to the same time this year is equally impressive , with a 169 per cent rise to $164m (£100m). Conversely, print books have fared badly over the last year with sales falling 25 per cent to $442m (£270m), however, one area that is bucking this trend, and which does not show up in AAP's figures, is the market for renting books – the printed versions, not the e-book editions.

 

Despite being largely digitally literate, students have proven to be the largest audience for this market, with US-based Chegg positioning itself as one of the leading players in the textbook rental industry. Chegg reports that last year it reached 25 per cent of all US college students, who can rent textbooks for considerably less than they cost to buy – although books are available to purchase as well – and then return them after their semester finishes. Perhaps surprisingly, students are allowed to use highlighters and make annotations in their rented books, although they are asked to do this ‘sparingly’. Books purchased from Chegg can even be sold back, providing they are in reasonable condition.  

 

 

Dan Rosensweig , Chegg’s Chief Executive Officer, says that for students, accessing information in what might be regarded ‘the old-fashioned’ way, it is all about the bottom line. He said:

 

‘Our mission has not been to rent textbooks or not rent textbooks. Our mission has been to save students time, money and help them get smarter.

 

The higher education market textbooks continue to be easily 98 per cent of the market. The reason for that is the technology is only getting ready now. Books have a better battery life. You can always depend on them. But just as importantly, you can rent a textbook substantially cheaper than you can get a new textbook, or a used one, or one that you can buy digitally. Students are looking to get access to the content they want in the easiest format and at the least expense. For the moment, that means renting books.’

 

In January 2010, Chegg claimed it had saved students a total of $100m in terms of the difference between what a student would have had to pay to buy a book versus renting it.

Rosensweig continues:

 

‘This is a $10bn market, with over 200 million books changing hands every year. If a textbook was $120 new to the student it would cost $100 used and we would probably rent it for about $55. That represents a substantial saving at a time when families in the US are struggling and education becomes more and more expensive.’

 

There are a number of other players in the textbook rental and resale markets, such as companies providing a platform where students can sell their books to others, and one which enables students to review how professors use required textbooks in a class, helping others to make informed decisions about whether they should obtain the book themselves before spending money on them.

 

Whilst physical textbooks will play a part for the foreseeable, Rosenweig expects that it’s only a matter of time before the technology is in place for e-textbooks to take hold. He concludes that ‘it is a matter of getting the experience right and the price’ and predicts that 2012 is the year the digital future for textbooks will arrive.