Global Economic Crisis: Impact on Academic Libraries

1. Global Economic Crisis: Impact on Academic Libraries Greg Anderson

2. 2008 & the Australian dollar • Last 3 years been good – dollar peaked at 96 cents USD in July 2008 • By November – value had dropped to about 60 cents USD. • Exposure high as 75% of subscriptions in USD and 80-85% of budgets committed to subscriptions • 2009 subscriptions renewed between October – December • Accrual accounting – impact would be deferred to 2009/10?

3. Impact on budgets • Libraries highly exposed • Small number of libraries have reported increases – 5-18% or are accessing reserve funds or have hedged funds • Several have anticipated cuts to subscriptions from 10-20% • Reduced spending on monographs – up to 50%

4. When enough is enough? • 2009 cost projections by Broad subject • Arts & Humanities: 9.5% 30% (04-08) • Social Sciences: 9.4% 38% (04-08) • Science: 8.5% 40% (04-08) Overall increase: 8.7% By continent/country of origin Nth America 8% (07-08) Europe 9% (07-08) Australia/NZ 9% (07-08)

6. What is ICOLC? • 150 consortia from Nth America, Europe & the Asia Pacific • 2 meetings per annum • CAUL’s CEIRC – 76 institutions including all University libraries in Australia & NZ • 2007 – $218m AUD spent by University libraries; $117m on electronic subscriptions.

7. ICOLC Statement • Flexible pricing that offers customers real options, including the ability to reduce expenditures without disproportionate loss of content, will be most successful. • It is in the best interest of both publishers and consortia to seek creative solutions that allow licences to remain as intact as possible without major content or access reductions.

8. GFC – impact? • Budgets have remained flat or have been cut to 15%. • Some institutions have withdrawn from consortia deals • Some prices have remained flat: Ebsco, Gale, Oxford Uni, Proquest, Wilson & Bowker. • Leverage more successful with new products rather than renewals • Europe doing OK; Canada hit hard with 25-30% currency devaluation. Being used in negotiations.

9. Response from Consortia? • California Digital Library – Value Matrix using cost increases, usage & impact factors to determine value of the deal. • CARL – has reviewed print purchases over the last 9 years – 30 to 70% of titles not borrowed. Consortia plans for books. • Planning cancellations, price caps (3%) rather than 5-7%. • Evidence that the current models (based on historic spend are about to fall apart).

10. Publisher’s response: Elsevier • Impact of GFC varies – Sth. Korean currency decreased by 17% but in 3 months was worth more 5% more. • Will work with libraries to convince Administrators that they should invest more in library resources. On average 2% or less of total budgets is spent on libraries. • Information is undervalued in terms of research ROI – Uni of Illinois $1 invested returned $4.38. • Outsourced 5k jobs, increased # of articles submitted (500,000) 250,000 published pa, 7k editors & 70k editorial boards, kept price increases to 5-6%. • Will not offer global discounts – will deal directly with individual institutions.

11. Publisher’s response: Springer • Feeling pain due to decreased advertising revenues and reduced book sales (Amazon) • Will maintain current system which has worked well. • Significant costs associated with digitising content. • Will be flexible at the institutional level. • Hoping current situation will be temporary • Dismissed alternative publishing models: Biomed Central – have no influence over price increases. • Springer is not for sale but is looking for an additional shareholder to strengthen their position.

12. Publisher’s response – Wiley Blackwell • Apologised for disruptions & inability to produce lists of subscriptions • Will not offer blanket discounts but will be as flexible as possible • “Pay more, get more; Pay less, get less.” • Not prepared to reduce profits but also looking at reducing costs. • Advantages of multi-year deals will be available for 1 year only deals. • Moderate price increases are predicted • CAUL negotiating a new 3 year deal.

13. Publisher’s response: APA • GFC has reduced revenue (membership dues etc) and have reduced programs. • APA cannot absorb significant reductions in prices (average increase is 7%) • Will try to be flexible but limited options • Will continue to offer products over multiple platforms.

14. CAUL Statement on the GEC • Maintaining heavily used content will be the priority • Content is more important than platform enhancements • Contraction rather than expansion and price increases must be contained • Reducing costs at the publisher end • Discounts and exchange rate relief

15. CAUL Think tank on the GEC • CAUL, Publishers and Content Providers working together • Publisher’s perspective; Elsevier, Thomson, Wiley Blackwell, CSIRO, Proquest & Ebsco. • CAUL perspective on value vs publishers • Sustainability – David Prosser from SPARC • Changing models - who pays?

16. But its not all bad… • BURF (Better Universities Renewal Fund) • $500m – one off grants • Libraries and student study places • 13 University Libraries will receive BURF funds (Newcastle $3m of the $13.5m) • Value of the AUD increased from .62 USD in March to $.78 USD 20/5.