1 Business models for E- journals Usage Based Pricing (UBP)

2 Business models for E-journals: Usage Based Pricing 1. What ’ s the problem 2. The JISC survey 3. The Publisher ’ s Perspective 4. Pay per View (PPV) models 5. Presuppositions of UBP 6. What we don ’ t know about usage 7. Pay per view implications for libraries 8. Why UBP is not compatible with the nature of the library 9. Conclusions

3 What ’ s the Problem? Big Deals are inflexible Pricing of e-content lacks transparency Growing need for cost division within consortia Growing need for alternatives for outdated pricing models

4 The JISC Survey Survey 2005 by Rightscom Ltd among librarians and publishers ( Priorities of librarians: widest access; financial predictability; reduced costs Priorities of publishers: continuity; predictability; simplicity NB. Simplicity is not a librarians priority?

5 The Publisher ’ s Perspective PPV is endlessly flexible PPV is ultimately transparant PPV is a perfect alternative for outdated models PPV is a perfect instrument for cost division Above all: usage is always going up!!

6 PPV models Usage Based Pricing versus PPV PPV models tend to be very complicated JISC: PPV converting into subscription; Core collection + PPV for peripheral content PPV as hidden Price Increase Driver Does PPV really increase flexibility and/or reduce costs??

7 Presuppositions for UBP Usage has a calculable value User can/must decide to use or not to use User has to pay for usage Usage can be controlled: attributed to (groups of) customers, eventually restricted

8 What we don ’ t know about usage Who is using what? And Why? Does usage somehow reflect relevance? Does usage somehow reflect value? Why is usage increasing year after year? How do users deal with information? To what effect? Is information becoming a volatile, omnipresent commodity?

9 PPV: implications for libraries Restricted access Monitor users performance Administrations for charging usage

10 Why UBP is not compatible with the nature of the library We don ’ t want to restrict access but to encourage usage We don ’ t want to measure and monitor usage The usage of library materials is not sufficiently uniform to connect pricing UBP does not improve transparency nor, probably, reduce costs

11 Conclusions UBP does not meet libraries ’ priorities UBP tends to make life more complex UBP is not a suitable alternative for big deals PPV maybe useful as additional service to the customer, in case of smaller packages and in the format of digital document delivery