Greetings From Ohio
1
Greetings From Ohio
E-W 360 km
N-S 370 km
• 106,765 sq km 35th
in US
• Pop: 11.5 M 7th in
US
• GDP: $373 Billion
• lowest pt.132 m
• highest pt. 473 m
MEMBERS
• State Library
• 49 private
liberal arts
colleges
• 23 public twoyear colleges
• 1 standalone
medical school
(7 total med)
• 2 private
universities
• 13 public
universities
• Includes 9 law
•+499,000 FTE +130 primary delivery sites
OhioLINK viewpoint:
Consortium Electronic Book
Licenses – it’s Just a Serial
Common Licensing Expectations
and Techniques for E-Book
Publishers or E-book Aggregators
learned from E-Journals
4
E-Journal Licensing Lessons for E-books
• There is only one budget for both electronic and
print book formats
• Must reflect dramatic increase in content and
access per monetary unit spent
• Must be a more economically sustainable model
• Must reflect needs for perpetual access, archiving,
preservation
• Must complement Inter-library loan systems
• Must focus on current and future content
• Conclusion – “Big Deal” approach works best if we
are to approach e-book licenses strategically
5
Requirements for E-book Publishers
•
•
•
•
Comprehensive, predictable scope of titles
Electronic version concurrent with print
Separate the back list from front list
Pricing accounts for E-book collection plus
expected print copies – in combination
• Pricing is a reasonable extrapolation of historical
group annual unit and spending levels for a
comparable scope of titles
• Pricing includes additional discounts on print
prices
• OhioLINK can locally load
6
E-books are like Journals because…
• The number of books produced each year by
publishers is often very stable
• The number of books bought by a group each
year is often very stable - as measured by
percent of produced books and copies bought
per title
• At the very minimum, there are often stable
levels and trends which can be used to
estimate future behavior
• Measuring multi-year book histories is like
measuring current journal subscriptions
7
Determining a Group License Price
Part 1
1. Measure annual print purchase history - at least
5 years for a comparable scope of titles
a. Book holdings - titles and copies by school
b. Copies/title
c. Percent of titles produced that are bought by
the consortium
d. Consortium cost at net price per title
2. Extrapolate purchase history trends to determine
future “Status Quo” expected value of the
group’s print business with book publisher
8
Determining a Group License Price
Part 2
3. Create Group License Potential Cost Matrix –
including both electronic and print
a. Range of potential group electronic license
prices
b. Range of potential print purchase levels
below the expected value of Status Quo print
levels at expected discounted print prices
4. Negotiate to reasonable, sustainable win-win
multi-year agreement
5. Divide electronic Group license fee among
members based on shares of purchase history9
Example – Publisher #1
Value Indexed to Annual Maximum
Yearly values indexed to Annual Maximum
100%
90%
80%
70%
60%
50%
40%
Number of titles
30%
20%
10%
0%
1
2
3
Year
4
5
10
Example – Publisher #1
Value Indexed to Annual Maximum
Yearly values indexed to Annual Maximum
100%
90%
80%
70%
60%
Number of titles
50%
40%
Percent of titles
bought
30%
20%
10%
0%
1
2
3
Year
4
5
11
Example – Publisher #1
Value Indexed to Annual Maximum
Yearly values indexed to Annual Maximum
100%
90%
80%
70%
Number of titles
60%
50%
Percent of titles
bought
Copies per Title
40%
30%
20%
10%
0%
1
2
3
4
5
Year
12
Example – Publisher #1
Value Indexed to Annual Maximum
Yearly values indexed to Annual Maximum
100%
90%
80%
70%
Number of titles
60%
Percent of titles
bought
Copies per Title
50%
40%
30%
20%
Amount Spent
10%
0%
1
2
3
4
5
Year
13
Example – Publisher #2
The Status Quo Projection
Net Titles Bought
Imprint
Titles
year Produced
2000
2842
2001
2789
2002
2946
2003
2878
2004
2888
2005
2972
2006
2893
2007
3037
2008
3190
2009
3349
2010
3517
Actual
bought
1862
1688
1968
2084
2260
2305
H
66%
61%
67%
72%
78%
78%
76%
77%
77%
77%
77%
M
66%
61%
67%
72%
78%
78%
72%
72%
72%
72%
72%
Copies per Title
L
66%
61%
67%
72%
78%
78%
69%
67%
67%
67%
67%
H
6.83
6.57
5.70
5.22
5.08
4.77
4.43
4.76
4.70
4.64
4.58
M
6.83
6.57
5.70
5.22
5.08
4.77
4.44
4.61
4.51
4.41
4.31
Expected Library Costs
L
H
L
M
6.83 $1,493,819 $1,493,819 $1,493,819
6.57
$917,982 $917,982 $917,982
5.70
$868,882 $868,882 $868,882
5.22
$903,316 $903,316 $903,316
5.08
$875,293 $875,293 $875,293
4.77
$779,702 $779,702 $779,702
4.45
$814,796 $774,574 $734,619
4.28
$937,710 $851,979 $744,142
4.11
$991,910 $892,669 $764,611
3.87 $1,043,345 $929,767 $764,010
3.78 $1,086,796 $958,444 $786,613
14
Example Publisher #2 - Group License
Potential Cost Matrix – includes both electronic
and print
Electronic Fee as a %
of M Exp Lib Cost
1
100%
$892,669
2
95%
$848,036
3
90%
$803,402
4
85%
$758,769
5
80%
$714,136
6
70%
$624,869
7
60%
$535,602
8
50%
$446,335
Drop in M level Print Copies @ % off
20%
30%
40%
$304,814
$266,712
$228,610
$1,197,483 $1,159,382
$1,121,280
134.1%
129.9%
125.6%
$1,152,850 $1,114,748
$1,076,646
129.1%
124.9%
120.6%
$1,108,216 $1,070,115
$1,032,013
124.1%
119.9%
115.6%
$1,063,583 $1,025,481
$987,379
119.1%
114.9%
110.6%
$1,018,949
$980,848
$942,746
114.1%
109.9%
105.6%
$929,683
$891,581
$853,479
104.1%
99.9%
95.6%
$840,416
$802,314
$764,212
94.1%
89.9%
85.6%
$751,149
$713,047
$674,945
84.1%
79.9%
75.6%
-65%
60%
$152,407
$1,045,076
117.1%
$1,000,443
112.1%
$955,809
107.1%
$911,176
102.1%
$866,542
97.1%
$777,276
87.1%
$688,009
77.1%
$598,742
15
67.1%
Net Result of this Approach
• Strategic objectives met – consistent with
journals and other types of materials
• Expected total cost is realistic and controlled
• Easy to regulate if units and budgets get out
of balance
• Healthier for publishers – status quo trends
show unit declines
• Reductions can be made to total print copies
across the consortium – shelf space saved
• Access is dramatically increased via e-books
16
OhioLINK Status with E-books #1
• NetLibrary – several evolving models – now
inactive with +15,000 titles
• Safari Tech books – annual subscription
only
• Oxford Reference Online Premium –
annual subscription only
• ARTFL – French Literature – annual
subscription
• 15 Chadwyck-Healey American/English
Literature Collections – perpetual licenses
17
– local load
OhioLINK Status with E-books #2
Perpetual Licenses directly with Publishers with
local load
• ABC-CLIO Reference
• Gale Virtual Reference Shelf – their
controlled imprints
• Oxford Scholarship Online
• Oxford Digital Reference Shelf
• Sage Reference
• Springer
• Others in Negotiation – including Aggregator
18
Thank You
[email protected]
19