Google Checks Out Interest
In Online Book 'Rental' Plan

Search Giant Approaches
At Least One Publisher
About Fee-Based Program

By JEFFREY A. TRACHTENBERG and KEVIN J. DELANEY
Staff Reporters of THE WALL STREET JOURNAL
November 14, 2005; Page B4

Search company Google Inc. has approached at least one book publisher to measure interest in a program for consumers to "rent" an online copy of new books for a week.

According to this publisher, the books wouldn't be downloadable or printable. Those features may be worked out at a later time, he said. Although this publisher said that the proposed fee to end users -- 10% of each book's list price -- is too low, he said it still may represent a significant opportunity for publishers to tap the budding digital-book market.

While the exact shape of any rental approach by Google doesn't appear to be final, the current discussion with the publisher is a strong indication the Internet-search company plans to head in the digital book-renting direction. "Google Print is exploring new access models to help authors and publishers sell more books online, but we don't have anything to announce," a Google spokesman said.

A separate program called the Google Print Library Project has prompted backlash from the publishing community. Under that program, which is proceeding despite the controversy, Google is scanning millions of books held in five university and public libraries and letting consumers search their texts for keyword phrases.

In recent days, several companies have announced plans that will enable users to pay for the right to view books on a page-per-view basis. Bertelsmann AG's Random House, for example, says it intends to eventually sell the content of its books on that basis with the provision that the material won't be downloadable. Authors will share in the proceeds.

Amazon.com Inc. has announced two programs that it expects will be launched next year. One, Amazon Pages, will enable users to buy a page, a section or a chapter of a book to read online for a few cents per page. In addition, Amazon said it intends to enable people who buy a book to access an online copy of it for an additional fee. Both programs are designed to respect copyrights and result in new revenue streams for authors and publishers.

Such efforts are aimed at expanding the audiences for books and revenue generated from them. But they could well run up against consumer's traditional reluctance to actually read books online. Publishing industry buzz a few years ago about so-called ebooks -- digital book files that consumers can read on computers or on special screen-based devices -- failed to generate the big sales the book industry hoped.

Robert Miller, president of Walt Disney Co.'s Hyperion book arm, said he hasn't yet been approached by Google regarding the new rental project. Although Mr. Miller said he wasn't certain that the 10% rental fee under discussion would be a fair price, he noted, "This is a welcome step as long as authors are compensated for their work."

David Steinberger, chief executive of Perseus Books LLC, a unit of Washington private-equity firm Perseus LLC, said, "Anything that generates revenue at the point when a consumer wants it is something we need to look at."

But Mr. Steinberger expressed two concerns. First, he wants to be certain that any rental program supplements sales of physical books rather than cannibalizes them.

He also would like to see more companies offering such opportunities to buy digital content. "The best thing is to have a healthy market with several ways to access digital material," he said.

Write to Jeffrey A. Trachtenberg at jeffrey.trachtenberg@wsj.com and Kevin J. Delaney at kevin.delaney@wsj.com