International Coalition of Library Consortia

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International Coalition of Library
Consortia Poznan, Poland September 30,
2005 Marge Gammon Division Vice President,
Library Publisher Services NetLibrary, A
Division of OCLC Online Computer Library Center,
Inc.
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Traveling at the Speed of e
International Coalition of Library
Consortia Poznan, Poland September 30,
2005 Marge Gammon Division Vice President,
Library Publisher Services NetLibrary, A
Division of OCLC Online Computer Library Center,
Inc.
3
eDatabases
eAudiobooks
eMusic
eJournals
ePeriodicals, Newspapers
eVideo
eSpecial Collections
eBooks
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eDatabases
eAudiobooks
eMusic
eJournals
eNewspapers
eVideo
eSpecial Collections
eBooks
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Media are Converging. . .

• . . . Text, images, audio, and content and are
  increasingly interactive in the consumer world. .
  . Which will drive the next wave of development
  for eBooks.
• Source Outsell, Inc., Trend Alert Books are
  Back Big Time in the Enterprise, Volume 8,
• June 10, 2005.

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Were a long way from where the journey started.
. .
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Charting a Course

• Growth in NetLibrary Catalog and Libraries Served
• (In Thousands)
• 2000 2001 2002 2003 2004 2005
• eBook
• Titles 24.5 40.0 48.9 63.6 81.5 100.0
• Libraries 2.0 3.0 6.8 7.2 8.6 14.0

Now Also 5500 eJournals, 1000 eAudiobooks,
23,500 titles from non-U.S. publishers, foreign
language materials, 2.1 million articles,
databases
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Points of Departure. . .Preferred Publisher Route
e Stands for More Options and Flexibility
Comfort with Known Models Per Title Economics
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Points of Departure. . . Preferred Library Route
e Should Provide More accesses Purchase Options
Comfort with Known Models Per Title Economics
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The Case for Shared Collections

• Create awareness
• Reach more libraries via a trusted source
• Provide high value to libraries
• Facilitate new product adoption usage
• Supplement print purchases
• Actual exposure vs. potential exposure
• Managed via one book/one user model
• Result in additive sales of titles that otherwise
• might not be purchased

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The Case Against Shared Collections

• Significant departure from traditional sales
  approaches
• Potential for print cannibalization
• Authors are as sensitive or more so than
• publishers
• Growing adoption leads to corporate scrutiny
• within publishing houses
• Risk-takers must respond to management

Economically not sustainable Lost
Revenues Content devaluation
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The data suggests. . .

• Decreasing participation in shared collections as
• adoption grows
• Typical Shared Purchase 42 Libraries
• One Book/One User Model moderates exposure
• Average 8 minutes in a book

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The data further suggests. . .

• 5-8 institutions in a typical consortial shared
  purchase would likely have purchased copies of
  the same title in print.
• Source OCLC NetLibrary Research comparing
  WorldCat print holdings to eBook purchase
  activity among consortia librariers

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The Current Model. . .

• Consortia of 42 members
• Approximately 500,000 ftes
• Purchases 10,000 eBook titles
• For 500,000 (50 per title average)
• Cost per fte 1.00
• Cost per institution 11,905
• Cost per book per institution 1.19

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Current vs. Print Behavior

• Shared e Print
• Institutions 42 42
• Number w/Access to Titles 42
  5
• Estimated FTEs
  500,000 60,000
• Copies Purchased 1 5
• Total Rev (50/title) 500,000
  2,500,000
• Cost Per Inst/Title 1.19
  50.00
• Cost Per FTE 1.00
  5.00-41.67
• Publisher/Author Revenues
• Per Title per Institution
• Based On 1.19
  50.00

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Changes are coming. . .

• NetLibrarys Goals
• Retain what is known and effective
• Transition to a new place
• Move toward what the market is asking for
• Ground the transition process in fact
• Provide stepping stones
• Include innovation
• Create stability in the decision-making
• process

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Changes are coming. . .

• Be mindful of what will be needed 1-3 years from
  now
• Balance the familiar and stable, with the new and
  uncertain. . . Take some risk!
• Incorporate all constituents in solution
  development
• Monitor and adjust

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Merging along the Same Path. . .

• Libraries
• Increase value of unique collections
• Continue shared collections
• Create new products with
• varied content formats
• Create purchase options

• Publishers
• Grow unique collections
• Redefine consortia roles pricing
• Add revenue streams
• Innovate and grow via new business
• models products, and services

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Just over the next hill. . .

• NetLibrarys Proposal to Publishers
• All unique collections new and future be
  provided with two simultaneous accesses for no
  additional charge
• Shared collections will require the purchase of
  multiple accesses
• Publishers opt in or opt out for a period of
  18 months
• Engage and incent consortia to participate in
  other selling programs

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Just over the next hill. . .

• NetLibrarys Proposal to Publishers
• All unique collections new and future be
  provided with two simultaneous accesses for no
  additional charge
• Shared collections will require the purchase of
  multiple accesses
• Publishers opt in or opt out for a minimum of
  18 months
• Engage with and incent consortia to participate
  in other selling programs

D R A F T

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Proposal for Shared Collections

• The level of multiple accesses required is
  predicated on
• number of libraries participating in any shared
  collection.
• Now through July 1, 2006 thru
• June 2006 June 30, 2009
• Members Required Required
• Participating Accesses Accesses
• 2-15 2 2
• 16-30 3 4
• 31-50 4 6
• 50 Special Quote Special
  Quote

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Current vs. New Model

• Current Shared Proposed
• Institutions Participating 42
  42
• Number w/Access to Titles 42
  42
• Estimated FTEs
  500,000 500,000
• Titles Purchased
  10,000 10,000
• Copies Purchased 1 4
• Accesses
  1 4
• Total Cost (50/title) 500,000
  2,000,000
• Cost Per Inst/Title 1.19
  4.76
• Cost Per FTE/Title 1.00
  4.00
• Publisher/Author Revenues
• Per Title per Institution
• Based On 1.19
  4.76

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Implications

• Sticker Shock
• Value of shared collections remains high
• Libraries will re-think selections
• More focused, smaller shared collections
  targeting specific interests and needs
• More options for consortia participation in the
  movement to electronic

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Beyond Shared Collections. . .

• New Products and Services
• eBooks integrated with other content formats
• Custom content creation (e.g., eLearning)
• Disaggregated content options
• Individual chapter, article purchase options
• Short term, high use access business models
• Increased functionality, e.g., linking between
  and among content types
• More audio (launched 2/05), more journals and
  databases
• Advancement into video and music
• More foreign language (Spanish, French, Chinese,
  Japanese, German)

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Beyond Shared Collections. . .

• Promotion and Preview
• Growing preselling program
• Content preview options
• Content summaries, abstracts, reviews

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Beyond Shared Collections. . .

• Purchase Options
• Annual or permanent ownership of monographs
• Annual access plans with substitution options
• Simultaneous e and p purchasing for
  monographs
• FTE pricing for products with combined formats
  and/or annual pricing based on library size and
  circulation characteristics

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Beyond Shared Collections. . .

• New Programs
• Purchase incentives managed by consortia for
  unique collections
• Specialized subject collections targeting
  specific library types for shared collections
• Volume discounts on multiple copies for highly
  focused library requirements (e.g., medical)

Change is as inevitable as the opportunities. . .
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Our travels continue. . .

• We are still in the early stages of a
• long transition period where a
• hybrid model will reign.
• Source ARL

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Dziekuja