netlibrary is a division of oclc online computer library center international coalition of library...

NetLibrary is a division of OCLC Online Computer Library CenterNetLibrary is a division of OCLC Online Computer Library Center

International Coalition of Library Consortia

Poznan, Poland

September 30, 2005

Marge Gammon

Division Vice President, Library & Publisher Services

NetLibrary, A Division of OCLC Online Computer Library Center, Inc.


International Coalition of Library Consortia

Poznan, Poland

September 30, 2005

Marge Gammon

Division Vice President, Library & Publisher Services

NetLibrary, A Division of OCLC Online Computer Library Center, Inc.

Traveling at the Speed of “e”


eDatabases

eJournals

eBooks

ePeriodicals,

Newspapers

eMusiceAudiobooks

eVideo eSpecial Collections


eDatabases

eJournals

eBooks

eNewspapers

eMusiceAudiobooks

eVideo eSpecial Collections

eCONTENT


““Media are Converging. . .Media are Converging. . .

. . . Text, images, audio, and content – . . . Text, images, audio, and content –

and are increasingly interactive in the and are increasingly interactive in the

consumer world. . . Which will drive consumer world. . . Which will drive

the next wave of development for the next wave of development for

eBooks.”eBooks.”

Source: Outsell, Inc., Trend Alert: Books are Back Big Time in the Enterprise, Source: Outsell, Inc., Trend Alert: Books are Back Big Time in the Enterprise, Volume 8, Volume 8,

June 10, 2005.June 10, 2005.


We’re a long way from where the We’re a long way from where the

journey started. . .journey started. . .


Charting a CourseCharting a Course

Growth in NetLibrary Catalog and Libraries ServedGrowth in NetLibrary Catalog and Libraries Served(In Thousands)(In Thousands)

20002000 20012001 20022002 20032003 20042004 20052005

eBook eBook

TitlesTitles 24.524.5 40.040.0 48.948.9 63.663.6 81.581.5 100.0100.0

LibrariesLibraries 2.0 2.0 3.0 3.0 6.8 6.8 7.2 7.2 8.6 8.6 14.0 14.0

Now Also: 5500 eJournals, 1000 eAudiobooks, 23,500 titles Now Also: 5500 eJournals, 1000 eAudiobooks, 23,500 titles from non-U.S. publishers, foreign language materials, 2.1 from non-U.S. publishers, foreign language materials, 2.1 million articles, databasesmillion articles, databases


Points of Departure. . .Points of Departure. . .Preferred Publisher RoutePreferred Publisher Route

Comfort with Known Models

Per Title Economics

“e” Stands for More

Options and Flexibility


Points of Departure. . .

Preferred Library Route

Comfort with Known Models

Per Title Economics

“e Should Provide:

More accesses

Purchase Options


The Case for Shared Collections

Create awarenessReach more libraries via a trusted sourceProvide high value to librariesFacilitate new product adoption & usageSupplement print purchasesActual exposure vs. potential exposureManaged via one book/one user modelResult in additive sales of titles that otherwise

might not be purchased


The Case Against Shared The Case Against Shared CollectionsCollections

Significant departure from traditional sales approachesPotential for print cannibalizationAuthors are as sensitive – or more so – than publishersGrowing adoption leads to corporate scrutiny

within publishing housesRisk-takers must respond to management

Economically not sustainable Economically not sustainable Lost RevenuesLost RevenuesContent devaluationContent devaluation


The data suggests. . .

Decreasing participation in shared collections as

adoption grows

Typical Shared Purchase: 42 Libraries

One Book/One User Model moderates exposure

Average 8 minutes in a book


5-8 institutions in a “typical” consortial shared purchase would likely have purchased copies of the same title in print.

Source: OCLC NetLibrary Research comparing WorldCat print holdings to eBook purchase activity among consortia librariers

The data further suggests. . .


The Current Model. . .The Current Model. . .

Consortia of 42 membersConsortia of 42 members Approximately 500,000 fte’sApproximately 500,000 fte’s Purchases 10,000 eBook titlesPurchases 10,000 eBook titles For $500,000 ($50 per title average)For $500,000 ($50 per title average) Cost per fte: $1.00Cost per fte: $1.00 Cost per institution: $11,905Cost per institution: $11,905 Cost per book per institution: $1.19Cost per book per institution: $1.19


Current vs. Print BehaviorCurrent vs. Print Behavior

Shared “e”Shared “e” PrintPrint# Institutions# Institutions 42 42 42 42Number w/Access to TitlesNumber w/Access to Titles 42 5 42 5Estimated FTE’s Estimated FTE’s 500,000 500,000 60,000 60,000Copies PurchasedCopies Purchased 1 1 5 5Total Rev ($50/title)Total Rev ($50/title) $500,000 $2,500,000 $500,000 $2,500,000Cost Per Inst/TitleCost Per Inst/Title $1.19 $1.19 $ $50.0050.00Cost Per FTECost Per FTE $1.00 $1.00 $ 5.00 $ 5.00-$41.67-$41.67

Publisher/Author RevenuesPublisher/Author RevenuesPer Title per InstitutionPer Title per InstitutionBased On:Based On: $1.19 $1.19 $ 50.00 $ 50.00


NetLibrary’s Goals:Retain what is known and effectiveTransition to a “new place”Move toward what the market is asking forGround the transition process in fact

Provide “stepping stones”Include innovationCreate stability in the decision-making process

Changes are coming. . .


Changes are coming. . .Changes are coming. . .

Be mindful of what will be needed 1-3 years from now

Balance the familiar and stable, with the new and uncertain. . . Take some risk!

Incorporate all constituents in solution development

Monitor and adjust


Merging along the Same Path. . .

Publishers:

Grow unique collections

Redefine consortia roles & pricing

Add revenue streams

Innovate and grow via new business

models products, and services

Libraries

Increase value of unique collections

Continue shared collections

Create new products with

varied content formats

Create purchase options


Just “over the next hill”. . .Just “over the next hill”. . .

NetLibrary’s Proposal to Publishers:NetLibrary’s Proposal to Publishers:

All unique collections – new and future – be provided All unique collections – new and future – be provided with two simultaneous accesses for no additional chargewith two simultaneous accesses for no additional charge

Shared collections will require the purchase of multiple Shared collections will require the purchase of multiple accessesaccesses

Publishers “opt in” or “opt out” for a period of 18 monthsPublishers “opt in” or “opt out” for a period of 18 months Engage and incent consortia to participate in other Engage and incent consortia to participate in other

selling programsselling programs

D R A F T


D R A F T

Just “over the next hill”. . .Just “over the next hill”. . .

NetLibrary’s Proposal to Publishers:NetLibrary’s Proposal to Publishers:

All unique collections – new and future – be provided All unique collections – new and future – be provided with two simultaneous accesses for no additional chargewith two simultaneous accesses for no additional charge

Shared collections will require the purchase of multiple Shared collections will require the purchase of multiple accessesaccesses

Publishers “opt in” or “opt out” for a minimum of 18 Publishers “opt in” or “opt out” for a minimum of 18 months months

Engage with and incent consortia to participate in other Engage with and incent consortia to participate in other selling programsselling programs


Proposal for Shared CollectionsProposal for Shared Collections

The level of multiple accesses required is predicated The level of multiple accesses required is predicated onon

number of libraries participating in any shared number of libraries participating in any shared collection.collection.

Now through Now through July 1, 2006 thruJuly 1, 2006 thruJune 2006: June 30, 2009June 2006: June 30, 2009

# Members # Members Required Required Required RequiredParticipatingParticipating Accesses Accesses Accesses Accesses

2-152-15 2 2 2 216-3016-30 3 3 4 431-5031-50 4 6 4 650+50+ Special Quote Special Quote Special Quote Special Quote


Current vs. New ModelCurrent vs. New Model

Current SharedCurrent Shared Proposed Proposed# Institutions Participating# Institutions Participating 42 42 42 42Number w/Access to TitlesNumber w/Access to Titles 42 42 42 42

Estimated FTE’s 500,000Estimated FTE’s 500,000 500,000 500,000Titles Purchased 10,000 10,000Titles Purchased 10,000 10,000Copies PurchasedCopies Purchased 1 1 4 4# Accesses 1 4 # Accesses 1 4 Total Cost ($50/title)Total Cost ($50/title) $500,000 $2,000,000 $500,000 $2,000,000Cost Per Inst/TitleCost Per Inst/Title $1.19 $1.19 $4.76 $4.76Cost Per FTE/TitleCost Per FTE/Title $1.00 $1.00 $4.00 $4.00

Publisher/Author RevenuesPublisher/Author RevenuesPer Title per InstitutionPer Title per InstitutionBased On:Based On: $1.19 $1.19 $4.76 $4.76


ImplicationsImplications

““Sticker Shock”Sticker Shock” Value of shared collections remains highValue of shared collections remains high Libraries will re-think selectionsLibraries will re-think selections More focused, smaller shared collections More focused, smaller shared collections

targeting specific interests and needstargeting specific interests and needs More options for consortia participation in the More options for consortia participation in the

movement to electronicmovement to electronic


Beyond Shared Collections. . .Beyond Shared Collections. . .

New Products and ServicesNew Products and Services– eBooks integrated with other content formatseBooks integrated with other content formats– Custom content creation (e.g., eLearning)Custom content creation (e.g., eLearning)– Disaggregated content optionsDisaggregated content options– Individual chapter, article purchase optionsIndividual chapter, article purchase options– Short term, high use access business modelsShort term, high use access business models– Increased functionality, e.g., linking between and Increased functionality, e.g., linking between and

among content typesamong content types– More audio (launched 2/05), more journals and More audio (launched 2/05), more journals and

databasesdatabases– Advancement into video and musicAdvancement into video and music– More foreign language (Spanish, French, Chinese, More foreign language (Spanish, French, Chinese,

Japanese, German)Japanese, German)


Beyond Shared Collections. . .Beyond Shared Collections. . . Promotion and PreviewPromotion and Preview

– Growing preselling programGrowing preselling program– Content preview optionsContent preview options– Content summaries, abstracts, reviewsContent summaries, abstracts, reviews



Purchase OptionsPurchase Options– Annual or permanent ownership of Annual or permanent ownership of

monographsmonographs– Annual access plans with substitution optionsAnnual access plans with substitution options– Simultaneous ‘e’ and ‘p’ purchasing for Simultaneous ‘e’ and ‘p’ purchasing for

monographsmonographs– FTE pricing for products with combined FTE pricing for products with combined

formats and/or annual pricing based on library formats and/or annual pricing based on library size and circulation characteristicssize and circulation characteristics



New ProgramsNew Programs Purchase incentives managed by consortia Purchase incentives managed by consortia

for unique collectionsfor unique collections Specialized subject collections targeting Specialized subject collections targeting

specific library types for shared collectionsspecific library types for shared collections Volume discounts on multiple copies for Volume discounts on multiple copies for

highly focused library requirements (e.g., highly focused library requirements (e.g., medical)medical)

Change is as inevitable as the opportunities. . .


Our travels continue. . .Our travels continue. . .

““We are still in the early stages of aWe are still in the early stages of a

long transition period where a long transition period where a

hybrid model will reign.”hybrid model will reign.”

Source: ARLSource: ARL


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