OverDrive, Inc.

History

OverDrive was founded in 1986 and originally converted analog media to digital formats, such as interactive diskettes and CD-ROMs. In 2000, the company opened Content Reserve, an online eBook and downloadable audiobook repository from which its distribution business developed.

Before entering the library market, OverDrive distributed eBooks to online stores. In 2002, OverDrive was selected as the distributor of HarperCollins’ eBooks to the publisher's online retail stores. OverDrive launched web stores for Harlequin Enterprises in 2005. In 2008, OverDrive announced that it would provide download services for Borders Books.

On September 21, 2011, OverDrive began supporting Kindle public library book borrowing.

In 2012, the company announced a series of service upgrades, including a browser-based eReader, and audiobook streaming, which enabled access to audiobooks via the company’s OverDrive Media Console app. The company also developed a media station, which allows users to browse their library's digital collection on touchscreen monitors and internet workstations. An API is available which allows developers to integrate OverDrive content into various apps and platforms.{{cite press release

In 2014, OverDrive completed its headquarters in the Cleveland suburb of Garfield Heights, Ohio.

In April 2015, Rakuten bought OverDrive for $410 million, with the deal set to close in April 2015. OverDrive CEO Steve Potash remained in his position and OverDrive kept its name while operating under Rakuten USA.

In 2019, it was reported that private equity firm KKR would be purchasing OverDrive from Rakuten. The estimate market value was $775 million in 2019.:11 The acquisition was finalized in June 2020.

In June 2020, RBMedia sold its library assets to OverDrive; this includes RBDigital, an app and service for the distribution of digital content. RBMedia and OverDrive are both owned by KKR, with KKR's OverDrive purchase concluded in June 2020. The sale of RBMedia's library division to OverDrive represents a merger of KKR's related assets.

On June 9, 2021, it was announced that OverDrive had reached a deal to acquire Kanopy, a leading on-demand streaming video platform for public and academic libraries. The acquisition was completed on July 15, 2021.

In March of 2023, the company announced plans to sunset its flagship OverDrive app on May 1, 2023. OverDrive's new business model is to transition users to the newer Libby reading app, which allows public, corporate and academic library systems to provide digital content to members of their respective library's network. The content consists of digital books, audiobooks, magazines and an extras section displaying all the databases and streaming media services that public, corporate and academic libraries have to offer to their users.

Reception

Connection to local library

The 2023 American Library Association report on the Digital Public Library Ecosystem found that younger users of the apps largely did not realize that local libraries paid for the services they received through apps like OverDrive's Libby.:13

Data privacy

The 2023 American Library Association report on the Digital Public Library Ecosystem could not determine what user data Amazon could use and access from books read on the Kindle app through the partnership with Libby.:11-12

State funding

In March of 2025, the Missouri Secretary of State Denny Hoskins suspended state funding to OverDrive for use in K-12 school libraries pending investigation of "allegations regarding inappropriate materials accessible to minors." The news release announcing the suspension did not provide any details on the nature or source of the allegations. In response to the funding suspension, the Missouri Library Association stated that school librarians have direct control over what materials students can access on OverDrive's platforms, and that librarians are able to categorize access based on students' age to ensure that younger students cannot access materials that are suited for older students.

References

References

1. (February 26, 2018). "OverDrive steering success in Northeast Ohio".
2. McDonnell, Sean. (December 16, 2023). "Libraries loaning e-books; There's the Libby app for that, and a Clevelander made it". [[The Plain Dealer]].
3. "eBook Distribution Goes Global; OverDrive Content Reserve Creates International and Multi-lingual Marketplace.".
4. "HarperCollins Launches Four Ebook Stores".
5. "Harlequin Enterprises Announces the Launch of E-Book Program".
6. "OverDrive Powers Digital Audiobook Service for Borders".
7. Fleishman, Glenn. (September 23, 2011). "OverDrive Adds Kindle-Format Titles to Library Ebook Lending".
8. "LexisNexis Announces LexisNexis Digital Library".
9. "OverDrive and Nokia Reading".
10. Lunden, Ingrid. (May 11, 2012). "No Tablet News From Nokia, But It's Launching A Reading App Powered By OverDrive". [[TechCrunch]].
11. (April 12, 2013). "Fast-growing OverDrive shows off new HQ".
12. Gross, Daniel A. (September 2, 2021). "An App Called Libby and the Surprisingly Big Business of Library E-Books".
13. Milliot, Jim. (March 19, 2015). "Rakuten to Buy OverDrive". Publishers Weekly.
14. (March 19, 2015). "Rakuten Buys Ebook And Audiobook Platform OverDrive For $410M".
15. Milliot, Jim. (June 9, 2020). "KKR Completes OverDrive Purchase". [[Publishers Weekly]].
16. Scott Suttell. (June 24, 2020). "Digital media company OverDrive buys the library assets of audiobook producer RBmedia".
17. (June 23, 2020). "OverDrive to Acquire RBdigital from RBmedia". prnewswire.com.
18. (June 9, 2021). "L Squared Capital Partners Announces Pending Sale of Kanopy to OverDrive".
19. Perez. (March 28, 2023). "PS Library e-book app OverDrive to shut down on May 1st, readers directed to Libby instead".
20. "Secretary of State Hoskins Suspends Funding to Overdrive Vendor Amid Content Concerns".
21. "Missouri Secretary of State pauses funding for OverDrive, used at K-12 libraries".
22. "Missouri Secretary of State pauses funding for OverDrive, used at K-12 libraries".