The Bookseller has a round up of some of the complexities of lending ebooks here. The publishers are worried about copyright and the number of times that a given book can be lent. Responding to changes in technology is one of the key themes of our Libraries Transformation Project, although one that has been generally unaddressed in the public debate. You can already borrow ebooks via Brent's Library Service here.
It may well be that the format of this service will change over time, but any forward looking library service needs to take the rise of kindle etc. into account, just as libraries had to adapt to PCs in the 1980s.
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