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Business models for E-Journals

Alternatives for Big Deals

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Business models for E-journals: Alternatives for Big deals

1. Do we have a problem?2. So where is the problem 1,2?3. How expensive are big deals?4. Orderley and successful retreats?5. Shall we overcome? 6. Alternatives 1,2,3 7. An example8. Questions to be answered

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Do we have a Problem? Big deals are still popular: http://www.arl.

org/newsltr/245/bundle.html Best value for money; widest possible

access; reduced price increase Savings on handling costs Savings on stacks Potential savings on administration

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So where is the Problem 1? Pricing still reflects production and

distribution of print Unclear relationship pricing single title vs

bundles Pricing still based on print spendings in the

past Subscribed versus unsubscribed content Participation of new customers (with no

print history) Bundles comprise many irrelevant titles

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So where is the Problem 2? Costdivision within consortia Lack of transparency in price

differentiation

Pricing does not yet reflect the changing nature of the product

Inflexibility of pricing schemes

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Intermezzo: How expensive are Big Deals? Full Access/Cross Access for little

+ money Price increase decreased from > 10 to < 5 Savings in handling, admin and shelving Enhanced efficiency & effectivity for users Substantial usage unsubscribed content Nevertheless: little support for higher

collection budgets; unsufficient shifts in expenditures within the library

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Orderly and successful Retreats? OHIOLINK: connection between price

increase and access; no real savings; relatively large effects on available titles

UKB: similar approach, but in the end no retreat (after 9 month of negotiations!!)

0 % pricecap = loss of 50 % of titles every 3 year!!

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Shall we overcome? Some problems (f.i. cost division)

can be solved within consortia Others need an essentially different

pricing model, that reflects the nature of the product and the relevance of that product for a specific (group of) customer(s), including the relative ‘buying power’ of that customer(s)

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Alternative 1: Who are you?Are you: A Research University A Research Institute A Teaching University A Polytechnic A CollegeAre you (in terms of staff rather than

students): (very) big, medium, (very) small

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Alternative 2: What do you want?

Do you want: Access to a single title: list price Access to a (subject) bundle:

addition of reduced list prices Access to a full portfolio: addition of

further reduced list pricesNB. But what will be the list price?

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Alternative 3: Where do you live? Buying power: mainly a matter of

location Starting Point: GDP (or similar) per

country Division of relative wealth within the

country (This part of the model needs a

more focussed attention)

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An Example Suppose: Title x = $ 1000 average in the

USNature/Size big medium smallResearch U/I 2000 1000 500Teaching U 500 250 125Polytechnic 200 100 50

Price to be corrected for location

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Questions to be answered Are such models realistic from an

administrative perspective? Do we want publishers to develop this

kind of models? Can we imagine to help publishers ? Do we want to promote this actively (as

we did with the Licensing Principles)? Do we have sufficiently articulated ideas

on the architecture of such models?