I.R.N. Goudar * and S.L. Sangam** * Head, ICAST National Aerospace Laboratories Bangalore – 560 017 goudar@css

1. I.R.N. Goudar * and S.L. Sangam** *Head, ICAST National Aerospace Laboratories Bangalore – 560 017 goudar@css.nal.res.in **Chairman, Department of L & IS Karnataka University Dharwad-580003 slsangam@yahoo.com Pricing Models for E-journals in a Consortia Environment DRTC

2. 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 Challenges for LICs DRTC

3. 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 Features of an Ideal E-Journal DRTC

4. 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 Expectations of Customers DRTC

5. 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. DRTC

6. E-Journals: Major Players • Primary publishers • Aggregators • Subscription agents • Document delivery agencies • E-print systems DRTC

7. 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 DRTC

8. 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 DRTC

9. 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 DRTC

10. 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. DRTC

11. …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 DRTC

12. ……. 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 DRTC

13. 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 Continue… DRTC

14. …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 DRTC

15. Consortia Values Libraries Vs Publishers Continue… DRTC

16. Consortia Values …Continued Libraries Vs Publishers DRTC

17. Consortia Challenges • Access control and portals • New price models • Transition to e-only • Perpetual access • Archiving • Tight budgets DRTC

18. 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 DRTC

19. 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 DRTC

20. 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 DRTC

21. 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  DRTC

22. 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 DRTC

23. 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 DRTC

24. 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 DRTC

25. 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 (P=x, E=y, P+E=x+y) • Free e-version only • Charge for print if required • British Medical Journal Continue… DRTC

26. …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 • Pay–per–view: Credit cards, Deposit accounts • Free completely – Differently funded • Extra fee for software DRTC

27. …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 DRTC

28. 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 DRTC

29. 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 DRTC

30. 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… DRTC

31. …ContinuedE-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. DRTC

32. 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 DRTC

33. 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 DRTC

34. Strong Links make Strong Consortia Funding Geographical Coverage Strategic Mission Library Types Consortia Issues Payment Programs Practical Staffing Service Technology Governance Tactical DRTC

35. 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 Continue… DRTC

36. 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 DRTC

37. Thank You DRTC