E-pricing models: are publishers and libraries on the same page? Melinda Kenneway, Director TBI Communications Ltd

1. E-pricing models: are publishers and libraries on the same page? Melinda Kenneway, Director TBI Communications Ltd

2. Do we know where we’re going? Do we even know where we want to be? Advocacy Strategy: BMJ Evidence Centre

3. Pricing – what’s the big deal? Is there a problem? - the ‘serials crisis’ that never quite happened - pricing already evolving and becoming more flexible But - risk of accelerating funding contraction - risk of more fundamental changes that reduce demand for content and services we currently provide E-Pricing Models: Are Publishers and Librarians on the Same Page?

4. How significant are threats? • In general terms a libraries proportion of a University’s budget has been steadily falling over 30 years or more • Some (vocal) libraries have seen significant cuts, but others envisage growth and investment in future years - Charleston/CIBER library survey, Dec 2009 (67% respondents US based) - 1/3 anticipating 5% decrease in budgets and 2/3 flat over next 2 years - 32% anticipated increased budgets in “two years time” - 61% of these expected budgets to increase by over 10% • Open access proving a viable option • Institutional repositories – likely to remain poorly funded/structured; subject repositories a greater threat E-Pricing Models: Are Publishers and Librarians on the Same Page

5. The future for publishers? • Reports of imminent collapse of core market exaggerated • BUT selling content set to become much more competitive • Libraries will look beyond demand as a measure of value • Benefits in this for libraries and publishers • - what do users actually NEED and what has most IMPACT? Advocacy Strategy: BMJ Evidence Centre

6. How should publishers respond? • Concentrate on the twin success factors of demand and quality • Review how we might more fairly reflect demand by improving current models • Prepare for loss of revenues from institutions where demand falls below a critical level by developing new models E-Pricing Models: Are Publishers and Librarians on the Same Page

7. What do librarians want? • Provide content to their users • as much as possible! Advocacy Strategy: BMJ Evidence Centre

8. “ …it [is] more and more difficult to justify large programs of speculative purchasing – the likelihood of waste is simply too high, and newly emerging patron-driven acquisition models offer a variety of ways for libraries to acquire only what is needed, at – or very close to – the time the need is felt by patrons.” • Rick Anderson • Associate Director for Scholarly Resources and Collections • Marriott Library, University of Utah • Extracted from: If I were a Scholarly Publisher • EDUCAUSE Review, vol 45, no 4 Advocacy Strategy: BMJ Evidence Centre

9. What do librarians want? • Provide content to their users • as much as possible! • shifting to content that has impact • shifting to serving niche needs • flexible delivery (right time/place etc) Advocacy Strategy: BMJ Evidence Centre

10. What do librarians want? • Provide content to their users • as much as possible! • shifting to content that has impact • shifting to serving niche needs • flexible delivery (right time/place etc) • Fair pricing • transparent • comprehensive • flexible/choice • tailored to the needs/profile of their institution • doesn’t penalize usage • cost/benefit ratio Advocacy Strategy: BMJ Evidence Centre

11. What do publishers want? • Provide content to their customers • as much as possible! • shifting to greater focus on impact/quality • shifting to serving niche needs • flexible delivery (right time/place etc) • Fair pricing • comprehensive • tailored to the needs/profile of each customer • doesn’t penalize usage • returns a fair profit Advocacy Strategy: BMJ Evidence Centre

12. What do publishers want? • Provide content to their customers • as much as possible! • shifting to greater focus on impact/quality • shifting to serving niche needs • flexible delivery (right time/place etc) • Fair pricing • comprehensive • tailored to the needs/profile of each customer • doesn’t penalize usage • returns a fair profit Advocacy Strategy: BMJ Evidence Centre

13. we’re really not so far apart Advocacy Strategy: BMJ Evidence Centre

14. Improving current models • Traditional print pricing based on institutional size • Package pricing has worked on similar principles, with ‘historic holdings’ often giving publishers that size baseline • Still generally based on amount of content and not its value • Tiering and usage-based pricing emerging in past decade • Huge amount of variety, inconsistency, lack of transparency … something clearly needs to change! E-Pricing Models: Are Publishers and Librarians on the Same Page

15. Improving current models • Traditional print pricing based on institutional size • Package pricing has worked on similar principles, with ‘historic holdings’ often giving publishers that size baseline • Still generally based on amount of content and not its value • Tiering and usage-based pricing emerging in past decade • Huge amount of variety, inconsistency, lack of transparency … something clearly needs to change! E-Pricing Models: Are Publishers and Librarians on the Same Page

16. Improving current models • Tiering is likely to see increasing uptake • initial stage of differentiating value before more widescale changes to come • Can be relatively sophisticated but still comprehensible • Offers smaller/non core institutions a cheaper price • Gives large institutions an incentive to move to e-only and to organize consolidation of their purchasing to get best value • Requires some adjustment to existing tiering models, but can keep to general principles to aid market comprehension E-Pricing Models: Are Publishers and Librarians on the Same Page

17. Improving current models TBI case study in Learned Publishing vol 24, no 1, January 2011 • Phases • Phase one: data audit • Phase two: market research • Phase three: data cleansing • Phase four: data modeling • Phase five: applying the model • Phase 6: communicating the changes • Phase 7: customer response • Phase 8: sales growth plan E-Pricing Models: Are Publishers and Librarians on the Same Page

18. Improving current models • Metered and usage-based pricing for institutions • Potential to cause conflict between student and faculty needs • Increasing evidence that article usage strongly correlates with an institution’s overall success • Usage on its own is relatively meaningless • Limited appeal in academia for access to core collection of content • Potential for extended access to non-subscribed-to content • More options should be developed for corporate market E-Pricing Models: Are Publishers and Librarians on the Same Page

19. Improving existing models • More sophisticated models for individuals • Aimed at patrons attached to institutions with minimal usage or not attached to an institution at all/supports advertising • Bundles of tokens managed at the department level • Need ability to vary PPV rates: IP range, country, journal/article title, record usage data at same level • Offer article level access via intermediaries such as Amazon and DeepDyve • I-tunes based purchase models to make it quick and easy • Google and Apple subscription models E-Pricing Models: Are Publishers and Librarians on the Same Page

20. where to next? Advocacy Strategy: BMJ Evidence Centre

21. Developing new models ♯1 Algorithmic-based pricing for institutions • Content: amount/relevance/quality • User: type/size (by discipline)/location/budget • Usage: what/who/format (print, online, mobile, integrated etc) • Requires industry standards, systems for self-service and ongoing management etc • Requires federated access management • Future may embrace dynamic pricing algorithms E-Pricing Models: Are Publishers and Librarians on the Same Page

22. Developing new models ♯1 Algorithmic-based pricing for institutions • Content: amount/relevance/quality • User: type/size (by discipline)/location/budget • Usage: what/who/format (print, online, mobile, integrated etc) • Requires industry standards, systems for self-service and ongoing management etc • Requires federated access management • Future may embrace dynamic pricing algorithms E-Pricing Models: Are Publishers and Librarians on the Same Page

23. Developing new models ♯2 Patron-driven acquisition (PDA) • Librarian and patrons establish a profile based on subject, educational level, publication date, cost and other criteria • Innovative access rules being developed: e.g. Ingram Digital MyiLibrary and EBL • Could be extended to journals to help evaluate a range of titles (principle already in place with evaluation panels) • Analysis used to negotiate price and core content access • Actual user activity to non-subscribed to content triggers prices and business rules to extend access E-Pricing Models: Are Publishers and Librarians on the Same Page

24. Developing new models ♯2 Patron-driven acquisition (PDA) • Librarian and patrons establish a profile based on subject, educational level, publication date, cost and other criteria • Innovative access rules being developed: e.g. Ingram Digital MyiLibrary and EBL • Could be extended to journals to help evaluate a range of titles (principle already in place with evaluation panels) • Analysis used to negotiate price and core content access • Actual user activity to non-subscribed to content triggers prices and business rules to extend access E-Pricing Models: Are Publishers and Librarians on the Same Page

25. Developing new models • Role of intermediaries • Setting of standards • Management of institutional pricing algorithms • Management of library profile for patron-driven access • Negotiations for pricing and access to cross-publisher corpuses • I-tunes type payment systems for individuals • Potential of services like ExLibris, EBSCO’s EDS etc E-Pricing Models: Are Publishers and Librarians on the Same Page

26. Developing new models • Beyond paying … • Business model is just one of a number of variables, others include: delivery methods, content/services we provide, segments we serve • Search becomes the predominant paid for service • Semantic enrichment and text mining • Workflow support • Knowledge not information (synthesis, learning, practical application, segmentation presentation…) E-Pricing Models: Are Publishers and Librarians on the Same Page

27. “In an era of abundance, where anyone can publish, where any content is quickly commoditized, and where expertise is leveled – services that support content producers become more valuable than the content producers themselves.” • Kent Anderson • CEO/Publisher • Journal of Bone and Joint Surgery • Illuminea, OUP, October 2010 Advocacy Strategy: BMJ Evidence Centre

28. Thank you Melinda Kenneway TBI Communications Melinda.Kenneway@tbicommunications.com