Global Economic Crisis: Global Economic Crisis: Impact on Academic Impact on Academic

Libraries Libraries

Greg AndersonGreg Anderson

2008 & the Australian dollar2008 & the Australian dollar

► Last 3 years been good – dollar peaked at Last 3 years been good – dollar peaked at 96 cents USD in July 200896 cents USD in July 2008

► By November – value had dropped to about By November – value had dropped to about 60 cents USD.60 cents USD.

► Exposure high as 75% of subscriptions in Exposure high as 75% of subscriptions in USD and 80-85% of budgets committed to USD and 80-85% of budgets committed to subscriptionssubscriptions

► 2009 subscriptions renewed between 2009 subscriptions renewed between October – DecemberOctober – December

► Accrual accounting – impact would be Accrual accounting – impact would be deferred to 2009/10? deferred to 2009/10?

Impact on budgetsImpact on budgets

►Libraries highly exposedLibraries highly exposed►Small number of libraries have reported Small number of libraries have reported

increases – 5-18% or are accessing increases – 5-18% or are accessing reserve funds or have hedged fundsreserve funds or have hedged funds

►Several have anticipated cuts to Several have anticipated cuts to subscriptions from 10-20%subscriptions from 10-20%

►Reduced spending on monographs – up Reduced spending on monographs – up to 50% to 50%

When enough is enough?When enough is enough?

► 2009 cost projections by Broad subject2009 cost projections by Broad subject Arts & Humanities: 9.5%Arts & Humanities: 9.5% 30% (04-08)30% (04-08) Social Sciences: 9.4%Social Sciences: 9.4% 38% (04-08)38% (04-08) Science: 8.5%Science: 8.5% 40% (04-08)40% (04-08)

Overall increase: 8.7%Overall increase: 8.7%

By continent/country of originBy continent/country of origin

Nth AmericaNth America 8%8% (07-08)(07-08)

EuropeEurope 9%9% (07-08)(07-08)

Australia/NZAustralia/NZ 9%9% (07-08)(07-08)

What is ICOLC?What is ICOLC?

►150 consortia from Nth America, Europe 150 consortia from Nth America, Europe & the Asia Pacific& the Asia Pacific

►2 meetings per annum2 meetings per annum►CAUL’s CEIRC – 76 institutions including CAUL’s CEIRC – 76 institutions including

all University libraries in Australia & NZall University libraries in Australia & NZ►2007 – $218m AUD spent by University 2007 – $218m AUD spent by University

libraries; $117m on electronic libraries; $117m on electronic subscriptions. subscriptions.

ICOLC StatementICOLC Statement

► Flexible pricing that offers customers real Flexible pricing that offers customers real options, including the ability to reduce options, including the ability to reduce expenditures without disproportionate loss expenditures without disproportionate loss of content, will be most successful.of content, will be most successful.

► It is in the best interest of both publishers It is in the best interest of both publishers and consortia to seek creative solutions that and consortia to seek creative solutions that allow licences to remain as intact as allow licences to remain as intact as possible without major content or access possible without major content or access reductions.reductions.

GFC – impact?GFC – impact?

► Budgets have remained flat or have been cut Budgets have remained flat or have been cut to 15%.to 15%.

► Some institutions have withdrawn from Some institutions have withdrawn from consortia dealsconsortia deals

► Some prices have remained flat: Ebsco, Gale, Some prices have remained flat: Ebsco, Gale, Oxford Uni, Proquest, Wilson & Bowker.Oxford Uni, Proquest, Wilson & Bowker.

► Leverage more successful with new products Leverage more successful with new products rather than renewalsrather than renewals

► Europe doing OK; Canada hit hard with 25-Europe doing OK; Canada hit hard with 25-30% currency devaluation. Being used in 30% currency devaluation. Being used in negotiations.negotiations.

Response from Consortia?Response from Consortia?

► California Digital Library – Value Matrix California Digital Library – Value Matrix using cost increases, usage & impact factors using cost increases, usage & impact factors to determine value of the deal.to determine value of the deal.

► CARL – has reviewed print purchases over CARL – has reviewed print purchases over the last 9 years – 30 to 70% of titles not the last 9 years – 30 to 70% of titles not borrowed. Consortia plans for books.borrowed. Consortia plans for books.

► Planning cancellations, price caps (3%) Planning cancellations, price caps (3%) rather than 5-7%.rather than 5-7%.

► Evidence that the current models (based on Evidence that the current models (based on historic spend are about to fall apart).historic spend are about to fall apart).

Publisher’s response: ElsevierPublisher’s response: Elsevier

► Impact of GFC varies – Sth. Korean currency decreased Impact of GFC varies – Sth. Korean currency decreased by 17% but in 3 months was worth more 5% more. by 17% but in 3 months was worth more 5% more.

► Will work with libraries to convince Administrators that Will work with libraries to convince Administrators that they should invest more in library resources. On they should invest more in library resources. On average 2% or less of total budgets is spent on average 2% or less of total budgets is spent on libraries.libraries.

► Information is undervalued in terms of research ROI – Information is undervalued in terms of research ROI – Uni of Illinois $1 invested returned $4.38.Uni of Illinois $1 invested returned $4.38.

► Outsourced 5k jobs, increased # of articles submitted Outsourced 5k jobs, increased # of articles submitted (500,000) 250,000 published pa, 7k editors & 70k (500,000) 250,000 published pa, 7k editors & 70k editorial boards, kept price increases to 5-6%.editorial boards, kept price increases to 5-6%.

► Will not offer global discounts – will deal directly with Will not offer global discounts – will deal directly with individual institutions.individual institutions.

Publisher’s response: Publisher’s response: SpringerSpringer

► Feeling pain due to decreased advertising Feeling pain due to decreased advertising revenues and reduced book sales (Amazon)revenues and reduced book sales (Amazon)

► Will maintain current system which has worked Will maintain current system which has worked well. well.

► Significant costs associated with digitising Significant costs associated with digitising content.content.

► Will be flexible at the institutional level.Will be flexible at the institutional level.► Hoping current situation will be temporaryHoping current situation will be temporary► Dismissed alternative publishing models: Biomed Dismissed alternative publishing models: Biomed

Central – have no influence over price increases.Central – have no influence over price increases.► Springer is not for sale but is looking for an Springer is not for sale but is looking for an

additional shareholder to strengthen their additional shareholder to strengthen their position.position.

Publisher’s response – Wiley Publisher’s response – Wiley BlackwellBlackwell

► Apologised for disruptions & inability to Apologised for disruptions & inability to produce lists of subscriptionsproduce lists of subscriptions

►Will not offer blanket discounts but will be as Will not offer blanket discounts but will be as flexible as possibleflexible as possible

► ““Pay more, get more; Pay less, get less.”Pay more, get more; Pay less, get less.”►Not prepared to reduce profits but also Not prepared to reduce profits but also

looking at reducing costs.looking at reducing costs.► Advantages of multi-year deals will be Advantages of multi-year deals will be

available for 1 year only deals. available for 1 year only deals. ►Moderate price increases are predictedModerate price increases are predicted► CAUL negotiating a new 3 year deal.CAUL negotiating a new 3 year deal.

Publisher’s response: APAPublisher’s response: APA

►GFC has reduced revenue (membership GFC has reduced revenue (membership dues etc) and have reduced programs.dues etc) and have reduced programs.

►APA cannot absorb significant reductions APA cannot absorb significant reductions in prices (average increase is 7%)in prices (average increase is 7%)

►Will try to be flexible but limited optionsWill try to be flexible but limited options►Will continue to offer products over Will continue to offer products over

multiple platforms.multiple platforms.

CAUL Statement on the GECCAUL Statement on the GEC

►Maintaining heavily used content will Maintaining heavily used content will be the prioritybe the priority

►Content is more important than Content is more important than platform enhancementsplatform enhancements

►Contraction rather than expansion and Contraction rather than expansion and price increases must be containedprice increases must be contained

►Reducing costs at the publisher endReducing costs at the publisher end►Discounts and exchange rate reliefDiscounts and exchange rate relief

CAUL Think tank on the GECCAUL Think tank on the GEC

►CAUL, Publishers and Content Providers CAUL, Publishers and Content Providers working togetherworking together

►Publisher’s perspective; Elsevier, Publisher’s perspective; Elsevier, Thomson, Wiley Blackwell, CSIRO, Thomson, Wiley Blackwell, CSIRO, Proquest & Ebsco.Proquest & Ebsco.

►CAUL perspective on value vs publishersCAUL perspective on value vs publishers►Sustainability – David Prosser from Sustainability – David Prosser from

SPARCSPARC►Changing models - who pays?Changing models - who pays?

But its not all bad…But its not all bad…

►BURF (Better Universities Renewal Fund)BURF (Better Universities Renewal Fund)►$500m – one off grants$500m – one off grants►Libraries and student study placesLibraries and student study places►13 University Libraries will receive BURF 13 University Libraries will receive BURF

funds (Newcastle $3m of the $13.5m)funds (Newcastle $3m of the $13.5m)►Value of the AUD increased from .62 Value of the AUD increased from .62

USD in March to $.78 USD 20/5.USD in March to $.78 USD 20/5.