1. Publishing Cooperatives Raym Crow Senior Consultant, SPARC Consulting Group THE SCHOLARLY PUBLISHING & ACADEMIC RESOURCES COALITION 21 Dupont Circle NW, Suite 800 Washington, DC 20036 (202) 296-2296 www.arl.org/sparc First International Public Knowledge Project Scholarly Publishing Conference Vancouver, BC

2. What We’ll Cover 1. Society publishers are economically important

3. What We’ll Cover 1. Society publishers are economically important 2. Society publishers face market & structural constraints

4. What We’ll Cover 1. Society publishers are economically important 2. Society publishers face market & structural constraints 3. Cooperatives offer a model to support society self-publishing

5. First Point: Society publishers are economically important

6. The Mixed Market for Journals ~23,000 scholarly & scientific journals Increasing at ~3. 5% per year For-profit journals increasing at 2X the rate of society journals Per Ulrich’s analysis, 2005.

7. Doubling every 22 years Commercial publishers represent slightly larger slices of much larger pie 68% 32% Per Ulrich’s analysis, 2005. The Mixed Market, 2025

8. Average prices differ by publisher type Per Bergstrom & Dhuey, 2003. The Mixed Market for Journals

9. Journals per Society Almost 90% of publishing societies publish one journal Over 97% publisher three or fewer journals Per Ulrich’s analysis, 2005.

10. Journals by Medium Substantial portion of peer reviewed journals remain print only Per Ulrich’s analysis, 2005.

11. Why Society Publishers Important Scholarly & scientific publishing doubling every 20 years For-profit journals growing faster than non-profits For-profit journals cost 3X to 5X more than self-published society journals

12. Second Point: Society publishers face market & structural constraints

13. Market Pressures Pressure on subscription model –For-profit prices & bundles capturing budget dollars –Tight library budgets –Many small non-profits competing against a few large for-profits –Lack of market share & market power

14. Market Pressures Pressure on subscription model Increased demand for online access & functionality –Requires ongoing technology investment –Online transition can raise member retention issues

15. Market Pressures Pressure on subscription model Increased demand for online access & functionality Market reaction to high commercial prices

16. Market Pressures Pressure on subscription model Increased demand for online access & functionality Market reaction to high commercial prices Exodus from self-publishing

17. Internal Constraints Insufficient staff resources –Core competence in content & certification –Scarce in-house business management resources –Passive approach to subscription model

18. Internal Constraints Insufficient staff resources Lack of investment capital –Hinders response to market demand –Impedes technological innovation

19. Internal Constraints Insufficient staff resources Lack of investment capital Innate conservatism –Affects perception of risk –Desire for control

20. Shared Issues of Society Publishers Very small Marginal market power—as buyers Marginal market power—as sellers Insufficient staff resources Lack access to key services Undercapitalized Conservative & risk averse

21. Third Point: Cooperatives offer a response to the issues society publishers face

22. Cooperatives Are Everywhere

23. Consumer Cooperatives

24. Producer Cooperatives

25. Shared Service Cooperatives

26. Cooperative Basics Owned by members –Member equity based on use of services

27. Cooperative Basics Owned by members Controlled by members –Members exercise democratic control

28. Cooperative Basics Owned by members Controlled by members For the benefit of members –Members determine services –Provides services at cost

29. Co-op Financial Overview

36. Potential Cooperative Structures

37. Cooperative Benefits Collective action to—

38. Cooperative Benefits Collective action to— Increase market power & visibility

39. Cooperative Benefits Collective action to— Increase market power & visibility Reduce costs via scale economies & increased bargaining power

40. Cooperative Benefits Collective action to— Increase market power & visibility Reduce costs Supply missing services

41. Cooperative Benefits Collective action to— Increase market power & visibility Reduce costs Supply missing services Pool capital & share risk

42. Cooperative Benefits Collective action to— Increase market power & visibility Reduce costs Supply missing services Pool capital & share risk Retain control

43. Benefits for Libraries Lower content costs –Maintain moderate prices –Increase society role in creating new publishing channels

44. Benefits for Libraries Lower content costs Provide framework for alternative funding models –Allow publishers to explore new income models –Provide way for libraries to share risk

45. In Sum, Publishing Cooperatives Address society publisher issues— on publishers’ own terms Increase society publishing role Lower publisher & library costs Provide basis for new funding models Complement existing initiatives Scalable & replicable

46. For More Information Raym Crow Senior Consultant SPARC Consulting Group crow@arl.org

47. Next Steps: Prerequisites Adequately defined scope Sufficient scale to warrant group action Able to provide a solution solely on economic terms Culturally, politically & economically appropriate for the group

48. Next Steps: Co-op Launch Process Exploratory meeting: identify unserved needs Float concept proposal that conveys vision Survey potential member universe Analyze feasibility Develop business plan Implement & launch