Goudar & SangamDRTC08-10-2004 - 1 I.R.N. Goudar * and S.L. Sangam** *Head, ICAST National Aerospace...

Goudar & Sangam DRTC 08-10-2004 - 1

I.R.N. Goudar * and S.L. Sangam**

*Head, ICAST

National Aerospace Laboratories Bangalore – 560 017

[email protected]

**Chairman, Department of L & ISKarnataka University

Dharwad-580003 [email protected]

Pricing Models for E-journals in a Consortia Environment


Challenges for LICs

Increasing demands of users for information requirements Information explosion and the expansion of electronic resources Proliferation of new and important journals Dwindling budget and decreasing staff Developments in computers and communication networks Commercial publishers controlling journals publishing with lion share Merging/Acquisition of publishers Licensing problems of e-resources Archiving problems of e-resources - Non-availability - Reluctance of publishers to make available back volumes for local archiving - Hardware and software for archiving - Retrieval software, publishers not supplying Lack of IT skills of LIC staff


Features of an Ideal E-Journal

Full text Back issues- Pre-web + PDF files HTML files Advanced search features References linked to full

text and related articles Additional colour possible

Expanded papers- access to raw data Graphics, video and sound, if required Comprehensive help Alerting Usage statistics for librarians Refereed, but quick


Expectations of Customers

Readers

Enhanced content critical mass multimedia, more colour, additional data

Enhanced functionality powerful search, alerting

Seamless access ubiquitous access to past and present

Powerful links abstracts to full text

Authors

Quality imprint journal brand improved visibility

Better author service responsiveness faster publication times web-submissions, web peer review No Page charges


E-Journal Models

E- journal continues to coexist with its print version.

E-journal replaces its print version.

E-journal gets value addition, but continues to coexist

with print.

Print version plus abridged e-version

Born digital and remains digital only.

E-journal with a facility to supply individual articles.

Delayed e-version than its print equivalent. E-version first and then print.


E-Journals: Major Players

Primary publishers

Aggregators

Subscription agents

Document delivery agencies

E-print systems


Journals Publishing Costs: Print Version

First copy costs more - Marginal costs for rest

Article processing costs very high

Refereeing costs

High marketing and admin costs

Physical distribution costs

Commission to agents


Journals Publishing Costs: E-Version

Existing Print Costs + New costs:

Content delivery infrastructure

Software, hardware & ISPCustomer supportAccess control

New human resource: Production, IT Marketing costs New content costs: tables, maths & chemistry symbols Meta-data costs Low distribution costs Service costs


Some publishers’ systems not ready for e-only Parallel publishing environment Test bed for electronic pricing & consortia policies Protection of current revenue Closer to the market (community feedback) Guarantee of new subscriptions? VAT Consistency with consortia overseas

Experiences/Challenges of Publishers


Consortia

Consortia have become the latest strategic front in the electronic revolution and are helping libraries to leverage their bargaining power, and publishers are vying for the market potential that networked consortia represent.

So….There is a need for striking the balance between cooperation and competition both among libraries and among publishers. Both publishers and libraries should look for affordable and sustainable economic models based on values.

Consortia is a Strategic Alliance of

Institutions that have Common Interests.

Consortia is a Strategic Alliance of

Institutions that have Common Interests.

This is where Consortia can play a major play.


…Continued

Consortia Goals …….

Improved infrastructure Enhanced image of the library - Visibility for smaller libraries Improve existing library services -Boosting professional image Harness developments in IT - Facilitate building digital libraries Cost sharing for technical and training support - Access from

desktops of users

Increase user base


……. Consortia Goals

Increase the access base - More e-Journals

Rational utilization of funds - A little more pays a lot

Ensure the continuous subscription

Qualitative resource sharing - Effective DDS

Avoid price + models - Pay for up-front products not for R&D


Flexibility for cancellations and multi-year deals Quick and Simplified Negotiations Single offers cannot meet all needs Pricing options desirable Extended electronic access desirable Unresolved terms and conditions Publishers are experimenting with pricing Clarity on VAT

Library Consortia: Expectations & Experiences

Continue…


Regional, State, National consortia can be influential Option for unbundling electronic from print Mixed views for access to all titles of publishers Price alone is not the only factor Standardised licensing Clear archiving policy Price including back files Capped annual inflation

…Continued

Library Consortia: Expectations & Experiences


Consortia Values Libraries Vs Publishers

Libraries Publishers

Usefulness Members driven Lower price Full text access Expert vs. Student Accessing Internet resources Combined purchasing power Simplify purchase procedure Distribute financial and other

risk

Pricing/Education Usage Reporting, Interface

options Linking/Delivery Indexing/Filtering Gain credibility with libraries Protection of current revenue Single point payment Increased marketing/ Uncertain

new subscriptionContinue…


Consortia Values …Continued

Libraries Vs Publishers

Libraries Publishers

Increase participation of

members No storage & documentation problem Instant Access Quality of services Free flow of information Sharing – ideas, information Contribution – time, resources

Reduced cost of production Reduced surcharges like

mailing Less extra efforts and

expenditure for new customers Get consortium tool

o Gather library informationo Invoice librarieso Products support


Consortia Challenges

Access control and portals New price models Transition to e-only Perpetual access Archiving Tight budgets


Consortia Models Participants Oriented Models

Geographical location linkedEx: - Bangalore Special Libraries Group

Libraries in the same discipline

Ex: - Aerospace Libraries Group

Libraries belonging to the same parent organization

Ex: - CSIR LICs Libraries of academic organizations

Ex: - INFLIBNET


Consortia Price Influencing Factors Quantum of business

Number of consortia members Types of institutions Contract period Number of IP enabled nodes Number of campuses Value added services Rights to archive Perpetual access Training facilities Multi year agreement


Charging /Pricing

Users are almost universally divorced from the direct

funders of libraries – universities, local authorities

Discontinuity – between library and publisher. Most

transactions are handled by intermediaries

Generally agents take a commission from the publisher

Discount to libraries comes out of the intermediary’s commission

The price is set by the publisher - unaffected by any discount

“Charge” is defined as the way the consumer is charged


Charging Model

Familiar charging models in information publishing include one-

off lump sum payments for unlimited access, shorter and longer periodic charges, units of content and units of time.

Elements in Charging Models

- the basic charging models(One-off, time based, client based)

- time of charges

- what is unitized

- rights at end of payment period

- mechanics of payment


Unit-based Charges

Units can consist of content – e.g. Journal articles

Access

The number of people access

Consumption the information resources

Combination of above


Business Models

The business model is really the totality of revenue streams for a product or service.

The content owner’s model

annual fee, sales of journals, discounts on bulk purchases

The mobile operator’s model

one-off connection charges, monthly subscriptio

time and volume access charges, advertising revenue

fees for add-on services, subsidies/discounts

Super-distribution services

A user pays for access

Then pass the content on to another user

The new user pays for it

A part of the commission to first user


Pricing Models: Some Facts

Varies from publishers to publishers Varies from same publishers to different customers

Ongoing experimentation

Negotiation possible

Charge for content

Delivery format optional

Increasingly will be based on usage

No universally acceptable E-journals

Pricing and Licensing Models


Pricing Models in Operation

Bundled – Free with printAIP, APS, AMS, Elsevier, Wiley

Print as base + surcharge on electronicPremium payments range from 10-25%ACS, OSA

Electronic only

Small increase - ACS Same price - OSADiscount from print AIP, AMS

Totally unbundled – No discount for both

JBC (P=x, E=y, P+E=x+y) Free e-version only

Charge for print if requiredBritish Medical Journal

Continue…


…Continued


Membership/Community Fee Sponsorship/Advertising/Govt. Funding Authors funded – Page charges Usage based pricing - Concurrent users - Site population, Based on FTE

All titles of publishers with print optional Subject clusters Virtual Journals: Narrow subject from single/multiple collection Pay–per–view: Credit cards, Deposit accounts Free completely – Differently funded Extra fee for software


Separate Current (1-2 years) + Archive Extra for value added services Consortium discount

Number of sites Consortium surcharge

Access to all consortia titlesAll titles of publisher

Subscription to core titles – Rest pay-per-view Slice and dice pricing

– Single article sales– Deposit accounts– Article bundles– Current and archive subscriptions

…Continued



A Lot More for a Little Extra

Access to all titles of publishers for little surcharge

Multi year agreements with fixed annual price cap

Users happy – Wider access

Publishers happy – Guaranteed revenue, greater

visibility of titles

But what about non-major publishers?

Discount on multiple print copies


Academic/Open Access Initiatives and Pricing Academic self publishing

Journal of High Energy Physics - SISSA e-prints (see arXiv.org)Open Archives Initiative (OAI)

Library initiativesHighWire Press - U Stanford Library

‘Digital’ Press Ingenta, HighWire

Government-funded initiativesPubMedCentral (NIH), SPARC (ARL)

Archival approachesJSTOR

Creating online communities, portalsChemWeb, optics.org, NanoTechWeb

Journal deconstruction ‘Virtual’ Journals


E-prints Archives

Initially started as Physics E-Print Archive (www.arxiv.org) - hosted by Los Alamos National Lab and recently moved to Cornell University - supported by academic, government funding Free at point of use, very popular >265,000 submissions since launch in August 1991 >3500 monthly submissions Usage: 1 to 1.5 connections daily Subjects Covered: Physics, Mathematics, Non-linear Science, Computer Science and Quantitative Biology.

Continue…


…

Continued E-prints Archives

CERN Document Server (http://cdsweb.cern.ch/) Over 650,000 bibliographic records, including 320,000 full text

documents Particle physics and related areas Preprints, articles, books, journals, photographs

Mathematical Physics Preprint Archive mp_arc (http://www.ma.utexas.edu/mp_arc/mp_arc-home.html)

mp_arc is an electronic archive from 1991-present Mathematical Physics and related areas.


Pricing Models: Issues

Underlying Prices should be publishers’ responsibility. Pricing should be market-based not formulaic. Senior scientists/ librarians may resist to the transition from print to electronic. Small publishers like professional societies not enthusiastic about consortia pricing. Publisher – Customer disconnect Subscription/site vs. transactional choices Perception: Electronic Costs less than Print Reality: Electronic + Print costs more than Print


Trends in Pricing Models

National licenses for major resources Increasing in numbers offer electronic-only journals Virtual Journals Continued experimentation of models More publishers to offer consortia pricing More subject specific packages Price decreasing More will offer pay-per-view/transactional allowance Print as ‘add on’: Optional at discounted price Choice of format and added functionality Pricing based on size (FTEs, research activity) Ongoing access to core and occasional to peripheral material The increasing archive will have a price on it


Strong Links make Strong Consortia

Tactical

Consortia Issues

Strategic

Practical

Mission

FundingGeographical

Coverage

Library Types

Programs

Service

Technology Governance

Staffing

Payment


Entering consortia requires initial investments in licenses and

information and communication technology

Work procedures are still centered around the physical document

Inadequate funds

Single point payment

Rigid administrative, financial and auditing rules

Problems of defining asset against payment

Pay-Per-View not yet acceptable

Big brother attitude

Pricing Constraints Specific to Indian Libraries

Continue…


We need to develop:

More workable pricing models Models that can be understood Models affordable by libraries Models sustainable by publishers Identify pricing incentives

To Conclude…..

Goudar & SangamDRTC08-10-2004 - 1 I.R.N. Goudar * and S.L. Sangam** *Head, ICAST National Aerospace...

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