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

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I.R.N. Goudar and S.L. Sangam
Head, ICAST National Aerospace Laboratories
Bangalore 560 017
goudar_at_css.nal.res.in Chairman, Department of L
IS Karnataka University Dharwad-580003
slsangam_at_yahoo.com
Pricing Models for E-journals in a Consortia
Environment  
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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

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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

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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

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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.

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E-Journals Major Players

• Primary publishers
• Aggregators
• Subscription agents
• Document delivery agencies
• E-print systems

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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

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Journals Publishing Costs E-Version

• Existing Print Costs New costs
• Content delivery infrastructure
• Software, hardware ISP
• Customer support
• Access control
• New human resource Production, IT
• Marketing costs
• New content costs tables, maths chemistry
  symbols
• Meta-data costs
• Low distribution costs
• Service costs

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Experiences/Challenges of Publishers

• 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

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Consortia
Consortia is a Strategic Alliance of
Institutions that have Common Interests.
Consortia is a Strategic Alliance of
Institutions that have Common Interests.
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.
This is where Consortia can play a major play.
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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

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. 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 RD

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Library Consortia Expectations Experiences

• 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

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Continued Library Consortia Expectations
Experiences

• 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

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Consortia Values Libraries Vs Publishers
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Consortia Values
Continued Libraries
Vs Publishers
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Consortia Challenges

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

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Consortia Models   Participants Oriented Models

• Geographical location linked
• Ex - 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

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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

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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
  intermediarys commission
• The price is set by the publisher - unaffected
  by any discount
• Charge is defined as the way the consumer is
  charged

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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 
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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

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Business Models  

• The business model is really the totality of
  revenue streams for a product or service.
• The content owners model
• annual fee, sales of journals, discounts on
  bulk purchases
• The mobile operators 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

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Pricing Models Some Facts
No universally acceptable E-journals
Pricing and Licensing Models

• 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

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Pricing Models in Operation

• Bundled Free with print
• AIP, APS, AMS, Elsevier, Wiley
• Print as base surcharge on electronic
• Premium payments range from 10-25
• ACS, OSA
• Electronic only
• Small increase - ACS
• Same price - OSA
• Discount from print AIP, AMS
• Totally unbundled No discount for both
• JBC (Px, Ey, PExy)
• Free e-version only
• Charge for print if required
• British Medical Journal

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Continued Pricing Models in
Operation

• 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
• Payperview Credit cards, Deposit accounts
• Free completely Differently funded
• Extra fee for software

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Continued Pricing Models in Operation

• Separate Current (1-2 years) Archive
• Extra for value added services
• Consortium discount
• Number of sites
• Consortium surcharge
• Access to all consortia titles
• All 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

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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

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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 initiatives
• HighWire Press - U Stanford Library
• Digital Press
• Ingenta, HighWire
• Government-funded initiatives
• PubMedCentral (NIH), SPARC (ARL)
• Archival approaches
• JSTOR
• Creating online communities, portals
• ChemWeb, optics.org, NanoTechWeb
• Journal deconstruction
• Virtual Journals

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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
• gt265,000 submissions since launch in August
  1991
• gt3500 monthly submissions
• Usage 1 to 1.5 connections daily
• Subjects Covered Physics, Mathematics,
  Non-linear Science,
• Computer
  Science and Quantitative Biology.

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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.

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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

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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

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Strong Links make Strong Consortia
Tactical
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Pricing Constraints Specific to Indian Libraries

• 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

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To Conclude..

• We need to develop
• More workable pricing models
• Models that can be understood
• Models affordable by libraries
• Models sustainable by publishers
• Identify pricing incentives

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Thank You