Charleston | 2014

Kittie HendersonVice President

Academic, Law & Public Library Markets

Budgets, Services and Technology

Driving Change: How Librarians,

Publishers and Vendors are

Moving Forward

EBSCO Overview

Table of Contents:

Library & Publisher Survey Results

Key Trends

Factors that Drive the Market

Focus on the Long Term

1…

2…

3…

4…

5…

EBSCO Overview

1

EBSCO Industries

• EBSCO was founded by the late

Elton B. Stephens in 1944

• EBSCO Industries is among Forbes Top

200 Privately Held Companies

• EBSCO generates over $2 billion in

annual sales

• J.T. Stephens is the Chairman of the Board

of EBSCO Industries, Inc.

• Tim Collins is the President of EBSCO

Industries, Inc.

EBSCO Overview

Collins is only the fourth President in

EBSCO's 70- year history

Library & Publisher

Survey Results

2

Libraries

EBSCO surveyed 200 major North A academic libraries

with whom we do business (24% responded)

48% 52%52%College/

Univ.

48%ARL

EBSCO Survey

Libraries

Roles of those responding

48% 52%52%College/

Univ.

48%ARL

EBSCO Survey

Director/Dean/UnivLibrarian

AUL/AssociateDirector

CollectionDevelopment

Serials or E-resource

Acquisitions

Other

34%

29%

26%

3% 5%

3%

Libraries

Number of end users per library respondent

48% 52%52%College/

Univ.

48%ARL

EBSCO Survey

48%

23%

18%

11% > 25,000 users

15,000-25,000users

10,000-15,000users

5,000-10,000 users

Publishers

EBSCO surveyed the largest 100 publishers with whom

we do business (41% response)

48% 52%52%College/

Univ.

48%ARL

EBSCO Survey

18%

42%

34%

6%

University Press

Society

Commercial STM

Other

Publishers

Roles of those responding

48% 52%52%College/

Univ.

48%ARL

EBSCO Survey

47%

27%

21%

5%

Executive

Sales & Marketing

Operations

Other

Key Trends

3

The Landscape

The economic situation

Packaging content and the big deal

Usage: the key metric

Discovery

PDA/PPV

Open Access

eBooks

EBSCO’s initiatives

Economic situation improving but still tough

28%

17%

39%

17%

11%

24%

42%

24%

7%

24%

38%

31%

2%

20%

52%

26%

2%

16%

47%

35%

0%

10%

20%

30%

40%

50%

60%

Decreased more than10%

Decreased1-10%

Flat Up

2009-2010

2010-2011

2011-2012

2012-2013 (Projected)

2013-2014

Past, Present, and Future

Overview of library budgets

Economic situation improving but still tough

Publishers:81% of respondents indicated their business was

beginning to recover from the economic downturn

Publisher cancellations moderating

Journal Pricing

Serials price increases vs. inflation

Annual EBSCO study of publisher prices

Annual Historical Price Analysis by Library Type (U.S. Libraries)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ARL 9.8% 8.4% 7.6% 8.5% 8.8% 8.3% 5.0% 5.1% 5.7% 5.5% 5.9%

College and

University9.3% 7.9% 7.8% 8.6% 8.8% 9.9% 5.4% 5.1% 5.7% 5.5% 6.0%

Academic

Medical9.4% 8.6% 8.3% 8.8% 9.3% 9.9% 5.9% 5.8% 5.6% 6.1% 6.2%

Consumer Price

Index2.7% 3.4% 3.2% 2.8% 3.8% 0.4% 1.6% 3.2% 2.1% 1.5%

Journal Pricing

Serials price increases vs. inflation

Annual EBSCO study of publisher prices

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual Inflation Price Increases for ARL Libraries

E-packages have smaller price increases

Evaluation of 3,000 e-packages

handled by EBSCO for 2014

EBSCO data for 2014

=6.6%

Average price increase

E-packages have smaller price increases

Average e-package price increase by publisher

EBSCO data for 2014

6.7%

6.1%

3.4%

9.6%

6.1%

5.0%

8.9%

10.6%

5.7%

6.5%

3.0%

15.2%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Publisher L (202 packages)

Publisher K (370 packages)

Publisher J (91 packages)

Publisher I (96 packages)

Publisher H (384 packages)

Publisher G (260 packages)

Publisher F (83 packages)

Publisher E (145 packages)

Publisher D (99 packages)

Publisher C (673 packages)

Publisher B (385 packages)

Publisher A (217 packages)

Expect continued pricing pressure

% of publishers likely to take the following actions

Publisher survey on pricing

91%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Increase content price Decrease content price

Expected average publisher

price increase for

2015 = 5-7%

Dealing with budget realities

% of librarians indicating they employed the

following strategies last year

Librarians’ strategies

86%

46%74%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Moved to E-only (dropped P) Did not renew e-packages

Renegotiated multi-yeare-package deals

Sought alternative Open Accesscontent

Print continues to decline

48% 52%52%College/

Univ.

48%ARL

Publishers’ print revenue this past year

28%

34%

28%

4% 3% 3%

> 10% decline

5-10% decline

1-5% decline

No change

> 1% increase

Not sure yet

EBSCO’s total revenue dispersion

by format2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Growth of e-only

48% 52%52%College/

Univ.

48%ARL

EBSCO’s revenue dispersion by format

88%

8%

4%

16%

11%

73%

Print Print & Electronic Electronic

1999 2014

Growth of e-only

48% 52%52%College/

Univ.

48%ARL

Publishers’ e-only business this past year

22%

44%

25%

6% 3%

Individual e-journals

>10% increase

5-10% increase

1-5% increase

No change

1-5% decrease

13%

32%

28%

16%

11%

E-packages

>10% increase

5-10% increase

1-5% increase

No change

Don't know yet

Factors that Drive

the Market

4

86%

46%74%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Moved to E-only (dropped P) Did not renewe-packages

Renegotiated multi-yeare-package deals

Sought alternative OpenAccess content

% of librarians indicating they employed

the following strategies last year

Librarians’ strategies

Dealing with budget realities

56% 44% 31% 27% 25%17% 6%

0%

10%

20%

30%

40%

50%

60%

IndividualeBooks

Individuale-journal

subscriptions

eBookpackages

E-journalpackages

Full-textdatabases

Discoverysolutions

Print books(includingapprovalplans)

% of librarians indicating they are likely to

increase expenditures in the following areas

Where librarians envision spending a greater % of their budget

Planned future spending

In 2014 EBSCO handled more than 17,000

e-packages for over 4,000 customers

EBSCO’s e-package growth

E-packages and the future of the Big Deal

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

56%

Packaged

44%

Remainder

Packaged Content

as a % of EBSCO’s business

2014

The Big Deal

Publishers’ view of the future of Big Deals

Will the big deal be around in five years?

38%

44%

6% 9%

3%

Very Likely

Somewhat Likely

Unsure

Somewhat Unlikely

Very Unlikely

E-packages

Publishers’ plans

% of publishers likely to take actions in each category next year

74%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Offer smaller subset… Offer larger e-packages

E-packagesPublishers’ plans

23% 6%39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Move to standard tieredpricing model for e-

packages

Reduce cost per unit ofe-packages

Increase cost per unit ofe-packages

% of publishers likely to take actions in each category next year

More ContentPublishers’ Content Plans

82%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Start titles Acquire titles

% of publishers likely to take the following actions next year

26%64%

2009

Serials Books

Databases10%

OU University Libraries Materials Budget

15%70%

15%

2013

Databases

Serials Books

R, Luce & K. Rupp-Serrano. “University Libraries and Big Deals”, UO, 2014

Concern over publisher

concentration

Percentage of serials budget consumed by Big Deals

25-50% of Serials Budget

> 50% of Serials Budget

< 25% of Serials Budget

39%

19%

42%

Concern over publisher

concentration

Percentage of serials budget consumed by Big Deals

St. Johns University Libraries:

11 Big Deals accounted for

70% of serials budget

Unbundling the Big Deal with Patron Driven Acquisition of eJournals, IFLA 2011

- Maureen Weicher & Tian Xiao Zhang

Gap between content included in

packages and use

20%

80%

Title Usage

Titles Used

Titles Not Used

Awash in eJournal Data: What it is, where it is, and what

can be done with it.” D. Brennan & N. Butkovich, Penn State Univ., Charleston Conf. 2013

Recent surveys show

that almost all

academic librarians

use usage statistics

to make purchasing

decisions.

EBSCO Library Collections

and Budgeting Trends Survey 2014,

EBSCO Information Services,

MPS Librarian Survey: Usage Statistics,

MPS Limited, 2010; and Renewals

2007-2011

Usage is key

Librarians’ view

% of librarians indicating a metric as important

when making content decisions

100%

57% 45% 25%0%

20%

40%

60%

80%

100%

120%

Usage Statistics CostPer Use

FacultyRecommendation

Historical PriceIncreases

Value Metrics(Ex. Impact Factor)

A key influencer of use –

discoverability

Librarians and discovery services

76%

20%

5% 10%Have a discovery service

Will purchase a discovery servicewithin a year

Currently have a plan for evaluating adiscovery service

Are planning to re-evaluate currentdiscovery service

Publishers appear to get it

Importance of initiatives to publishers over the

next 12 months

100% 98%

26%

41%

1%1% 3%

71%

60%

97%

0

20

40

60

80

100

120

Increasing Usage Growing Sales Improve HostingSolutions

ImplementationMobile Device

Strategies

ImplementationPDA/PPV

More Important

Less Important

43Source: Canadian Association of Research Libraries, Altmetrics in Context

http://www.carl-abrc.ca/uploads/SCC/CARL2013-altmetrics-EN-FA.pdf

AltmetricsCategories

USAGE(views, downloads)

CAPTURES(bookmarks, favorites, readers)

MENTIONS(Wikipedia, comments, blogs)

SOCIAL MEDIA(Facebook likes, shares,

tweets)

CITATIONS(Scopus, patents)

Changing the focus

COUNTERhow much your university uses the collection

Article-level metrics and

PlumX

how much the world uses your research

on metrics

Patron driven acquisition/

pay per viewLibrarians’ view

% of librarians who agree

69%

50%

0%10%20%30%40%50%60%70%80%90%

100%

PDA/PPV in combo with journalpurchases will replace big deal

Worry PDA/PPV budget will get"eaten up" too quickly by users

Patron driven acquisition/

pay per view

45%

55% Yes

No

NoYes

Librarians’ view

Does your library currently have a PDA/PPV arrangement

where the library pays all or a portion of the cost of content

on behalf of its users?

Open Access

Librarians’ strategies

% of librarians indicating they employed the following

strategies this year

86% 46%74%

67%0%

10%20%30%40%50%60%70%80%90%

100%

Moved to E-only(dropped P)

Did not renewe-packages

Renegotiatedmulti-year

e-package deals

Sought alternativeOpen Access

content

What about Open Access?

Publishers’ plans

Yes

28%No

72%

Publishers likely to add OA titles

this year

Open Access Statistics

1 Directory of Open Access Journals

Large publishers with OA initiatives

Over 10,000 OA titles1

New titles added at the rate of 4 per day in 20131

eBooks expected to grow

Where librarians envision spending a greater % of their budgets next

year

0%

10%

20%

30%

40%

50%

60%

Individual

eBooks

Individual e-

journal subscriptions

eBook

packages

E-journal

packages

Full-text

databases

Discovery

solutions

Print books

(including approval plans)

56% 44% 31%27% 25%

17% 6%

% of librarians indicating they

are likely to increase

expenditures in the following

areas

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ownership(1 book/

unlimited users)

Ownership(1 book/3 users)

Ownership(1 book/1 user)

Subscription Short-term lease

100%

90%

69%74% 57%

eBooks

Librarians’ view – preferred eBook models

Which of the following purchasing

methods would you be willing to use?

0%

10%

20%

30%

40%

50%

60%

70%

Ownership(Unlimited users)

Ownership(1 book/1 user)

Ownership(1 book/1 user)

Short term lease/rental

69%

66%

69%

24%

10% 6% 7%

55%

21% 27% 24% 21%

Likely

Unlikely

Not sure

eBooksModels publishers would consider

Likelihood of eBook publishers participating in

the following pricing models

Ownership(1 book/3 users)

Focus on the

Long Term

5

Financial stability with

intermediaries

Allows prompt payment for orders to be

sent to publishers according to terms

Publishers rate as important

100%

How is EBSCO navigating the

landscape?

• Focus on the long term

– A benefit of being a private family-owned company

• We believe we must provide value in the

information supply chain in three areas:

– Search, discovery and access

– Content

– Acquisition, management and evaluation

– Analytics

How is EBSCO navigating the

landscape?

• Intermediary services

• EBSCONET

– E-package Renewals

– ERM Essentials

– Usage Consolidation

– Usage Analytics (summer 2012)

• AccessNow – institutional PPV product

Acquisition, management and evaluation:

How is EBSCO navigating the

landscape?

EBSCOhost – full-text databases

eBooks on EBSCOhost

Content:

How is EBSCO navigating the

landscape?

• Search, discovery and access:

• EBSCOhost – abstract/indexing databases

(ex: CINAHL, America: History and Life, SocINDEX)

• EBSCOhost – full-text databases

(ex: Academic Search, Business Source)

• EBSCO Discovery Service

• Smartlinks technology

Charleston | 2014

Thank Youkhenderson@ebsco.com