Library Pricing: Value Propositions

1
Library Pricing Value Propositions

• David Stern
• Director of Science Libraries
• Yale University

david.e.stern_at_yale.edu http//www.librar
y.yale.edu/science/jrnlsol.html
Charleston Conference, November 7, 2003
2
Library Pricing Trends and Futures

• Values and Deliverables
• Value definitions
• Options required and supplementary
• Selection factors
• Alternative options
• traditional commercial paradigm
• new approaches
• Pricing Models
• Individual libraries
• Consortia
• Profiles/Agents
• Alternative models
• Value vs. Risk

3
Values relative to population needs

• Libraries
• Content per Dollar
• Cost-per-use
• Immediacy (browsing) vs doc delivery
• Competitive advantage (ALL packages)
• Functionality per Dollar
• Enhanced (added-value) services
• Links, Sophisticated Searching, etc.
• as options, not implied
• duplicate existing services

4
Values relative definitions

• Readers
• Content and Time
• Coverage (one-stop)
• Convenience/ease of simple delivery
• Immediacy (browsing) vs doc delivery
• Functionality
• Added value services
• SFX research extensibility
• Citation tracking
• Find Similar
• AutoAlerts

5
Values other definitions

• Authors
• Readership
• Priority (claim of originality)
• Subscription domain ( of readers)
• Related to quality of Editorial Board
• Recognition (citation analysis)
• Cost-per-submission
• Functionality
• Added value services
• citation notification
• manuscript management (speed)

6
Values varying definitions

• Editors
• Quality
• Peer review
• Impact Factor
• Recognition
• Functionality
• Added value services
• manuscript management (ease)

7
Values alternative definitions

• Publishers
• Readership
• Revenue
• Subscription domain ( of readers)
• Recognition (branding)
• Mission distribution at fair price
• Return profit to shareholders
• Reduce society dues
• Fund other projects (outreach, education,
  conferences)
• Functionality
• Added value services
• citation notification
• branding (portal of choice)

8
Online Journals Offer New Elements

• Significant New Possibilities
• Core Services
• Basic tools provided as the default
• Supplementary options
• Enhanced for a surcharge
• Optional elements
• Really worth the cost?
• Mis-directed development?

9
Online Elements basic changes and impacts

• Distribution
• 24x7 access (plus no bindery time)
• Convenience (desktop delivery)
• Less lag time
• Reduced fees (possible)
• Archiving and enhancement costs
• Package plans
• Group purchase mentality
• less critical use-based customization
• Reduced incentive due to smaller savings
• Peer review
• Filtering (NO SUBSTANTIAL CHANGE?)
• Software development/support
• Less lag time
• Reduced fees/overhead (possible)

10
Core Service Elements

• Distribution
• Simple distribution (OAI capabilities)
• Archiving (LOCKKS, society, commercial)
• Linking options (OpenURL, CrossRef, etc)
• Peer review
• Software development
• Less management and less cost recovery
• Revenue stream sources
• Subscriptions (Differential pricing options)
• Institutional subsidies (academic and corporate)
• Unbundled and Use-based price models
• Open access with subsidies
• Premium services (navigation aids)
• differential base fee plus Add-on options
• Options for a fee to reduce duplication of
  services
• Citation db links, SFX, ENCompass, WebFeat

11
Optional Elements?

• Formatting
• Possible reduction in effort/cost
• Added-value links and services
• As options for a fee
• Branding
• Not desirable for users vs cost/value
• Portals/Gateways
• Misleading scope and depth
• Online community services
• Not always appropriate for library funding
• Savings creation and RD costs reduced

12
Market Factors

• Selection factors
• Relation to user desires?
• Relation to library requirements?
• Options offered
• Acceptance of presented options or
• Leverage to modify and design alternatives

13
Market Factors

• Librarian selection factors
• Faculty requests
• Editorial boards
• Publications
• Reserve materials
• Perceived quality
• ISI impact factors
• Publisher reputation
• JCR analysis
• perceptions based upon use data
• Cost-per-use studies
• vs. on-demand access options

14
Market Factors

• Author value concerns
• Quality Peer review
• Editorial Board NOT imprint
• Organic Letters
• Evolutionary Ecology
• Reader value concerns
• Federated/Broadcast domain
• Search capability across publishers
• Current awareness capability
• NOT publisher based searching
• NOT publisher based TOC delivery

15
Market Factors

• Additional value issues
• Cost
• SPARC alternatives (_lowest_ possible price?)
• LANL preprint server (peer review overlay for
  PT, not needed to serve as an adequate
  distribution mechanism)
• Enhanced Links
• Integrated Media
• CrossRef, SFX, MetaLib, WebFeat
• convenience vs research options?
• Backfiles (PROLA, ADS, HighWire, Elsevier)
• Metadata (sophisticated searching)
• Charts, Tables, Image captions
• Customization
• Preferences, commenting, Virtual File cabinet
• At top level NOT publisher level (Axiom)

16
Paradigm Changes

• Existing Publisher models
• Subscriptions
• Publisher alternatives
• Big Deal packages
• Differential pricing
• Non-publisher alternatives
• SPARC, OAI, PLoS, arXiv
• Market changes (new factors)
• Library reactions and new pricing models
• Leading to paradigm shift
• From Ownership or Access
• To Ownership of Access
• Free alternatives (the future?)

17
Historical Trends
18
Historical Trends
(83)
19
Publisher Reactions

• New paper journals
• Niche products
• SPARC lower cost titles?
• NOT removing higher priced titles
• any added value compared to others?
• Electronic journals
• Alternative publication models
• Commercial (SPARC, HighWire)
• ARLO (page charge library fee approach)
• ATMP (overlay on free material)
• PRST-AB (page charges sponsors)
• OAI servers (Budapest, CogPrint)
• Public Library of Science (page charges)
• BioMed Central
• Open access Institutional subsidies
• Corporate contributions?

JOURNALS

20
Other market changes

• Non peer-reviewed alternatives (Deep Web)
• IBM genetics database (non-published data)
• Cost models
• Package deals (individual/Consortia)
• Differential pricing
• Soros Foundation/eIFL Direct (free journals)
• Pay-per-view (Removal of subscription model)
• Post publication peer review
• eBooks
• expansion of inflation factor
• Unbundled options
• Seamless packages (searching across ALL
  products)
• Books (chapters, tables), Series, Encyclopedic
  material, Journal articles)

21
Initial Library Reactions

• Shift in allocations
• Journal/Book allocations shift
• Change book purchase scope/methods
• Approval plans (some reductions)
• Continuations (Reduced/Shifted to Firm)
• Firm orders (Reduced)
• Increased back order wish lists
• Document Delivery
• hopes for improvement
• new seamless PDFs to desktop
• credit accounts to subsidize (a la LSU)

22
Creative Library Reactions

• Differential Pricing models
• Call for more equitable subsidies
• based upon use or projected use
• within consortial packages
• Utility over Quality issues
• ILL time lag concern being reduced
• ILL image quality issues removed?
• Seamless access for users

23
Pricing alternatives

• Pricing models
• local vs group options
• Differential pricing
• Unbundled materials
• Purchasing agents
• Alternative Peer Review options

24
Reactions to Higher/New Costs

• Individual libraries
• Use studies
• Cancellation
• Elimination of duplicate print titles
• Cancel to buy new titles/splits
• Selected e-journal purchases
• E-journal package plans
• Document Delivery option
• Added-titles surcharge
• With or without annual caps
• Carry-over of unused funds
• CCC fair use double-pay?

25
Alternative Price Models

• Differential Pricing
• APS - Carnegie classifications
• AMS - productivity based
• Science - FTE
• AGU
• one seat, per user, site plans
• Unbundled items
• Sub-article material (XML definitions)
• new technical tracking/charging
• across media and format types
• within packages
• across packages

26
Consortial Pricing

• Less specific analysis
• Emphasis on lowest price
• Added value?
• Subsidize lesser journals
• (Flawed) user behavior studies
• Questionable value
• Migration to use-based pricing over time
• Best for small libraries
• Tiered pricing within consortia
• Consortia perform this calculation

27
New Pricing Models

• Paradigm shift
• Accountability related to use
• Migration to use-based pricing
• Tiered subscription levels
• Block pre-purchases
• Transactional

28
Trends/Directions

• Future
• Fewer books purchased
• Society based editorial boards
• Fewer commercial journals/packages
• Unbundled instant delivery
• Replacement of subscription model?
• Less expensive e-print servers
• with peer review overlay
• Post publication peer review

29
The Tiered Model
30
(No Transcript)
31
Post Publication Peer Review
Search Tools ()
Editorial Board(s) Peer review process
AI Services
Free E-print server(s)
High Energy Physics Moderator
Medicine Moderator
Organic Chemistry Moderator
32
Post Peer Review Options
33
Alternative Models Risk

• Users
• Readers little risk/change
• Librarians little risk if involved in design
• Standards
• Perpetual access (functionality)
• archiving
• Support Systems
• Authors/Editors
• learning curve
• fewer edited journals, now overlays
• still the same peer review
• revised Promotion and Tenure criteria
• Publishers
• new technologies evolving (inevitable)
• new technical tracking/charging methods
• new revenue streams (inevitable)