Economic textbook authors Glenn Hubbard and Tony O’Brien have found a way to turn their $250 introductory economics textbook into a $90 per semester subscription, reports Quartz. Published by Pearson, the 800-page textbook isn’t just a digitized version of the hardcover textbook though. The new version of Hubbard and O’Brien’s textbook has about half the text of the original, and it includes videos and other interactive components, adapted to the way that college students learn today.

The benefits of the subscription model – and a new type of digital textbook – will benefit all involved.

–          The publisher saves in overhead costs for the ink, textbook materials, printing and distribution. They also get steady recurring revenue where previously they could only count on the original cost of the textbook. After the first purchase of the book, textbooks often go to the secondhand, used textbook market, cutting Pearson out of the loop.

–          Textbook authors also benefit from recurring revenue, and they are able to transform what was previously text and 2D visual aids into a more interactive, agile digital textbook with endless possibilities for learning and interactivity with students.

–          Students get more affordable textbooks costs and a richer, more engaging learning experience which could improve retention of the information.

–          The new textbook model also allows for real-time updates and data gathering, so authors and publishers can get feedback from student study habits, including how long they stay on a page and how well they comprehend materials.

In a blog post by EdScoop, referring to the Quartz article, writer Kate Roddy said the digital textbook poses some issues. In particular, she refers to the accountability of students. If professors can monitor student progress by referring to data collected, they might lose the opportunity to learn personal accountability and task management, Roddy says.

This theory seems like a bit of a stretch, but privacy could be an issue. For example, what personally identifying data is collected and shared when a student subscribes to a specific textbook? Will a professor know that student Jimmy Smith never ‘opened’ his book or that he spent twice as long on one chapter as on any other? Does this violate Smith’s right to privacy in any way?

Pearson’s primary focus these days is education, but last year, Pearson owned a percentage of The Financial Times and The Economist. Pearson sold their stake in both companies in 2016 to focus on education.

‘Pearson is now 100% focused on our global education strategy. The world of education is changing rapidly, and we see great opportunity to grow our business through increasing access to high quality learning globally,’ said Pearson chief executive John Fallon after the sale of The Economist.

In related news, Pearson started a new program in January to make textbooks more accessible and affordable for students. This includes reduced priced on printed books as well as digital textbooks. It immediately reduced the cost of textbooks by as much as 50 percent, and it has partnered with companies like Barnes & Noble to offer textbook rental programs.

Insider Take:

This is an exciting, innovative way to provide textbooks to students, and everyone wins. Textbook authors and the publisher benefit from a more predictable revenue stream (recurring revenue), and students benefit by subscribing to a textbook for a specific period of time, without the hassle of going to a store to buy – or sell – a textbook. This is another great example of how the subscription model benefits both the subscription company and the subscriber. We hope to see other textbook publishers test this model, particularly as textbooks are updated to be more engaging and interactive.