An interactive timeline of digital licensing consolidation, from the ePub victory (2007) through private equity buyouts, rival absorption, and the 2025 licensing cliff. This is how open standards became walled gardens.
Libraries begin lending cassette audiobooks. The First Sale Doctrine—a copyright protection—allows libraries to lend physical media indefinitely without publisher approval or licensing fees.
Libraries own what they buy. No artificial expiration dates. No circulation limits. Publishers are powerless to stop lending.
VictoryMPEG releases the MP3 standard, compressing audio by 90% without losing quality.
The foundation for digital audiobooks is laid.
NeutralOverDrive launches its download service for libraries. First sale doctrine does not apply to digital licenses—publishers can now attach terms, restrictions, and expiration dates to digital files.
One company becomes the de facto middleman. The enshittification begins: convenient service, moderate pricing, then aggressive extraction.
GrowthThe IDPF releases ePub (Electronic Publication). It becomes the open standard for reflowable ebooks.
Libraries gain a non-proprietary format to champion.
VictoryOverDrive kicks off a national tour with a digital bookmobile, traveling to libraries and events to promote their digital lending platform. The initiative symbolizes the shift from library-owned collections to platform-dependent access.
The marketing begins. Libraries become dependent on a single vendor for digital access.
GrowthU.S. Court of Appeals rules that software and digital files are licenses, not purchases. First Sale Doctrine does not apply. Publishers can now legally restrict what libraries do with digital content.
The legal foundation for library vendor lock-in is established. Control shifts from libraries to publishers.
BlockedHachette and other major publishers stop selling ebooks to libraries entirely. Simon & Schuster and Macmillan will not allow library lending of digital titles.
Publishers assert control over the digital market. Libraries begin facing an access crisis.
BlockedPrivate equity firm Insight Venture Partners takes a majority stake in OverDrive (October 2010). The company shifts from founder-led to PE-backed growth mode. Insight Partners adds board members and focuses on scaling nationally and internationally.
The first of three PE buyouts. OverDrive transforms from a library service into a profit-extraction machine. The pressure to maximize returns begins.
GrowthHarperCollins announces that library ebook licenses expire after just 26 checkouts, claiming this matches the "wear and tear" on physical books. Libraries must repurchase licenses repeatedly for the same digital file that never degrades.
The precedent is set. Libraries face indefinite repurchase cycles. Costs spiral.
GrowthIn response to publisher restrictions, Unglue.it is founded as an open-source, crowdfunding platform for library ebook lending. The mission: make ebooks freely available to libraries without vendor lock-in or licensing restrictions.
Libraries gain an alternative path. A reminder that digital lending could be different.
VictoryDouglas County Libraries launches its homegrown digital warehouse after 13 months of planning. They build their own platform to purchase ebooks directly from independent publishers and authors—bypassing Big Publishers and OverDrive. Cost: $200K. Annual savings: $200K+.
Libraries prove an ownership model is possible. But it requires massive upfront investment and technical expertise most libraries don't have.
VictoryPenguin and Random House merge, reducing competition among the Big Five publishers.
Fewer competitors allow stricter pricing and restrictive licensing models.
GrowthJapanese tech giant buys the platform for $410M. Library lending transforms from a niche service to a global profit center.
Market consolidation begins.
GrowthPublisher bans libraries from buying more than 1 copy of new bestsellers for the first 8 weeks.
Libraries forced to accept higher prices & metered access to lift the ban.
GrowthInvestment firm KKR buys OverDrive for ~$775M. The strategy shifts to "Platform Lock-in".
Focus turns to extracting maximum value from captive libraries.
GrowthOverDrive buys its largest audiobook competitor. The RBdigital app is shut down.
Libraries lose their only alternative leverage. Users forced to migrate.
GrowthOverDrive acquires the leading video streaming service for libraries.
One company now controls books, audio, and video distribution.
GrowthFirst state law requiring publishers to license to libraries on "reasonable terms".
A brief moment of hope for fair pricing.
VictoryAAP sues Maryland. Federal judge strikes down the library law, ruling copyright is federal, not state.
Library legislative efforts are crushed.
GrowthStates pivot to "Unfair Deceptive Acts" bills to bypass copyright courts. Focus shifts to the "Buy Now" button.
New legal strategy emerging.
NeutralMass expiration of pandemic-era licenses hits library budgets simultaneously.
Collections shrink despite record demand.
Growth