1. 30 September 2009Exploiting E-Journals 2 Industry Trends and Tips Carolyn Alderson and Vicky Legge Content Complete Ltd

2. 30 September 2009Exploiting E-Journals 2 Agenda Content Complete in context Trends: Pricing Models Trends: Usage Stats Negotiation Tips CCL’s core service explained Discussion/Questions

3. 30 September 2009Exploiting E-Journals 2 CCL in Context

4. 30 September 2009Exploiting E-Journals 2 Content Complete Ltd (CCL) CCL formed in June 2003 Set up and owned by Paul Harwood and Albert Prior Independent company Seven staff Four of us previously worked for Swets & Zeitlinger, subscription agent

5. 30 September 2009Exploiting E-Journals 2 CCL Team 2009 - Xmas lunch www.contentcomplete.com

6. 30 September 2009Exploiting E-Journals 2 What do we do? Established to meet the growing culture of outsourcing and shared services increasingly emerging in the corporate and UK academic sectors Particularly in e-journals and databases Core: Negotiating on pricing, licenses and access issues. Other CCL services include: – Publisher Payments, Help Desk, e.g. NESLi2, JISC Collections – Usage Stats Collection and Analysis, e.g. IReL – Industry-related consultancy and projects, e.g. JISC Collections

7. 30 September 2009Exploiting E-Journals 2 Who we negotiate with on behalf of our clients Over 100 publishers – STM and HSS content – Primary Full Text, and A&I Databases Major Publishers: ‘Big Deals’ Key titles: US and UK Society Publishers Commercial and Not-for-Profit publishers Publisher’s Representatives, (eg: David Charles, Accucoms)

8. 30 September 2009Exploiting E-Journals 2 Some of the publishers and content providers we have negotiated with: AAAS American Chemical Society American Institute of Physics Annual Reviews BioMedCentral Blackwell Publishing BMJ Publishing Group CABI Cambridge University Press Cell Press Chemical Abstracts Service EBSCO Elsevier Institute of Physics ISI Nature Publishing Group Oxford University Press OVID Proquest Royal Society of Chemistry SAGE Springer Taylor & Francis Wiley Blackwell A wide-range of US and UK Society publishers HighWire Publishers

9. 30 September 2009Exploiting E-Journals 2 The Middle Ground Traditional subscription agents X Publishers’ agents for sales and marketing ( David Charles, Accucoms, Portland, PCG, Burgundy ) X ERM vendors ( Ex Libris, Serials Solutions ) X Outsourced negotiation and licensing specialists for Corporations & Consortia – No commercial relationships with publishers

10. 30 September 2009Exploiting E-Journals 2 Publishers of Journals Datasets, e-Books National and regional purchasing Consortia and Groups Global corporate orgs Membership organizations Publishers’ Reps Content Complete Subscription Agents Link Resolver companies ERM systems E-book sellers Online Content hosts Authentication services Content Aggregators CCL – Where we fit in

11. 30 September 2009Exploiting E-Journals 2 Who uses our negotiation services? Academic consortia (JISC Collections/NESLi2, SHEDL & WHELF in the UK, IReL in Ireland, CARE in Italy) Multi-sited global corporations (3 global pharmaceutical companies) Hospital and Health Service organisations [multi-sited] (NHS – East of England) National Libraries (British Library) Membership organisations (Royal Society of Chemistry)

12. 30 September 2009Exploiting E-Journals 2 Why do clients opt to use CCL’s services? Our general expertise in this area Because they don’t have the time to do it themselves Because it is more cost-effective to outsource the work to us

13. 30 September 2009Exploiting E-Journals 2 CCL’s Specialist Skill Set [1] Commercial knowledge: – Understand the electronic journals and databases environment on a global scale – Know how best to interact with a wide range of publishers – Accumulated knowledge and practical appreciation of publishers’ pricing models – Understand licenses and licensing issues – Appreciate and work towards your aims and objectives

14. 30 September 2009Exploiting E-Journals 2 CCL’s Specialist Skill Set [2] Administrative expertise: – Facilitate publisher payments and access arrangements – Provide consolidated reports in relevant formats – Collection and analysis of usage data to support pricing negotiations – Appreciate and work towards your aims and objectives

15. 30 September 2009Exploiting E-Journals 2 Trends: Pricing Models £$€£$€

16. 30 September 2009Exploiting E-Journals 2 How did e-journal pricing evolve? PRINT PLUS FREE ONLINE ACCESS ONLINE ACCESS AVAILABLE WITH PRINT FOR A SURCHARGE SPLITTING-OUT OF PRINT, PRINT AND ONLINE AND ONLINE- ONLY PRICING COMPLETELY

17. 30 September 2009Exploiting E-Journals 2 Collective purchasing Consortia and multi-site pricing is built out of standard pricing models Understanding each publisher’s e- journal pricing model is crucial when getting started with group purchases

18. 30 September 2009Exploiting E-Journals 2 A typical institutional pricing menu: Oxford University Press - 2009

19. 30 September 2009Exploiting E-Journals 2 Oxford University Press - 2010

20. 30 September 2009Exploiting E-Journals 2 …and one from SAGE

21. 30 September 2009Exploiting E-Journals 2 What other models do publishers use? Based on size of an institution (Full Time Equivalents [FTE]) Type of library – Academic, corporate, government, health

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23. 30 September 2009Exploiting E-Journals 2 What other models do publishers use? Based on size of an institution (Full Time Equivalents [FTE]) Type of institution Based on publisher-created Tiers

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25. 30 September 2009Exploiting E-Journals 2 What other models do publishers use? Based on size of an institution (Full Time Equivalents [FTE]) Based on type of institution Based on publisher-created Tiers Based on the number of hospital beds Based on number of sites Based on classification of an institution (Carnegie, JISC Band)

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27. 30 September 2009Exploiting E-Journals 2 Pricing for an NHS Strategic Health Authority purchase? Tiered/sites pricing (AAP, NEJM) Usage-related (SAGE) Discounted subscription rate plus multiplier (RCGP, OUP) Tracking National Framework pricing - Ovid, Elsevier All the above are based on providing cross- access to all members in the SHA

28. 30 September 2009Exploiting E-Journals 2 Online-only subscriptions The move to online-only has been hampered by (academic) librarians concerns about post-termination access and preservation and VAT Most publishers offer a discount for libraries taking the online-only option A few make no distinction between format and charge the same rate (IOP Publishing)

29. 30 September 2009Exploiting E-Journals 2 Online-only and Deeply Discounted Print The highest level of online-only discount by title in our experience is 15% More usually 5-10% Most publishers offer Deeply Discounted Print (DDP) as an option in combination with online-only subscriptions Typically, 75% discount off the standard print list prices

30. 30 September 2009Exploiting E-Journals 2 The Big Deal concept Institution Y: Subscribes to 40 journals with publisher X and spends £18,000 Institution Y obtains online access to the remaining 460 titles for a fee of £3,000 Publisher X Publishes 500 journals whose combined list price is £225,000 Average cost of a subscription to Publisher X’s titles = £450 Average cost for access to the non-subscribed titles of Publisher X = £6.52 per title

31. 30 September 2009Exploiting E-Journals 2 Big Deals: a win-win situation? Library gains access to many additional titles at a low cost per title Publisher gains additional revenue for little effort Publisher gains additional exposure for titles Libraries have to maintain expenditure with the publisher which reduces flexibility Works for some publishers and some sectors Is it the right model for an SHA?

32. 30 September 2009Exploiting E-Journals 2 Multi-year agreements and price caps Publishers like multi-year agreements as it gives certainty and predictable income Agreements typically 3-5 years As an incentive to libraries, publishers offer price caps: a guaranteed amount that their prices will increase each year, which is generally less than their standard price increase Does this approach work for an SHA? Opt-out clause in licence?

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34. 30 September 2009Exploiting E-Journals 2 Backfile content Most of the major publishers have digitised their backfile to Vol 1 Issue 1 of each title Sales of these backfiles have created an important new revenue stream for them It has also helped libraries make the move to online-only with more confidence

35. 30 September 2009Exploiting E-Journals 2 Pricing models for backfiles Institutions or consortia can purchase the backfile in perpetuity Large publishers make the backfiles available in subject collections Some publishers let institutions buy at title level Some publishers will lease the backfile (AAAS, SAGE) BMJ PG makes their backfile available for free

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37. 30 September 2009Exploiting E-Journals 2 Open Access or ‘Author Pays’ models Open Access has been one of the dominant issues in scholarly publishing of the last decade Most publishers do not like the phrase ‘Open Access’, preferring ‘Author Pays’ The model itself is based on the principle that access to scholarly journals is made available freely to the world based on a payment made by the author or his/her institution

38. 30 September 2009Exploiting E-Journals 2 How publishers have responded to OA Most of the major publishers have developed hybrid policies and brands (Oxford Open, Sponsored Articles) Most publishers claim very little take-up Typical price of for an OA article is around $3,000 Very few genuinely OA publishers (BMC, recently sold to Springer) and Hindawi See: http://www.doaj.org/http://www.doaj.org/ Sept 09: NPG raises issues about variance of OA submissions in connection with sub rates

39. 30 September 2009Exploiting E-Journals 2 Usage-based pricing It was inevitable that publishers would look at pricing models based on usage Usage has been increasing every year since the advent of online journals Other businesses use usage to determine pricing With the advent of COUNTER, there is a degree of trust and reliability in usage statistics produced by publishers Libraries are keen to move away from historic print expenditure as a basis for pricing but remain nervous about pricing based on usage.

40. 30 September 2009Exploiting E-Journals 2 American Chemical Society: the boldest usage move so far? Have de-coupled their 2009 pricing from historic print expenditure Journal prices based on a number of factors including usage, Impact Factor, amount of content The amount an institution pays based on Tiers and World Bank Classification of Country See: http://pubs.acs.org/valuebasedpricing/index.ht ml

41. 30 September 2009Exploiting E-Journals 2 Trends: Usage Statistics

42. 30 September 2009Exploiting E-Journals 2 Usage statistics

43. 30 September 2009Exploiting E-Journals 2 CCL: Usage stats collection and analysis Usage analysis service Receive usage stats from publishers or from client Record key data into common spreadsheet/template agreed with client, for cost/usage analysis. Decide on key indicators.

44. 30 September 2009Exploiting E-Journals 2 Publisher X2008January to December Total Cost Incl VAT£260,500.00 Number of Full text Article Requests184,386 Cost per Article Request incl VAT£1.41 Number of Journals420 Top 10 Journals Article Reque sts % of Total Article Requests Journal 43,8782.10% Journal 13,1741.72% Journal 33,1151.69% Journal 22,2101.20% Journal 51,9811.07% Journal 61,9571.06% Journal 71,9071.03% Journal 101,8401.00% Journal 91,8030.98% Journal 81,6670.90% Total Downloads for Top 1023,53213% Number of Journals with:Number% of Total 0 Requests00.00% 1-9 Requests51.04% 10-49 Requests347.05% 50-99 Requests6814.11% 100-199 Requests9720.12% 200-299 Requests7615.77% 300-399 Requests418.51% 400-499 Requests438.92% 500+ Requests11824.48% Total:482100.00% Usage by LibraryNumber % of Total Article Requests Library 135,42619.19% Library 231,58317.11% Library 330,69516.62% Library 428,44415.41% Library 525,91914.04% Library 622,15812.00% Library 710,4165.64% Total Article Requests:184,641100.00%

45. 30 September 2009Exploiting E-Journals 2 Usage stats to support negotiations Usage Statistics: – Average full text downloads per month – Total FT downloads in year by publisher or title – Average cost per download – Average cost per user – Average cost per title – Access issues, does the usage support this? In conjunction with – Type of content: general or specific – Who is using? Who needs it? FTE; locations – Year on Year Trends – Common currency for comparison

46. 30 September 2009Exploiting E-Journals 2 Comparing publishers, how does usage compare?

47. 30 September 2009Exploiting E-Journals 2 Which publishers stand out from the crowd? And for what reason?

48. 30 September 2009Exploiting E-Journals 2 Collaborative solutions to monitoring journal usage Shared monitoring of usage Comparing: Cost per article request, cost per title, average cost per article request per title. Who will do the work? Will you split the analysis by library or publisher? Do you have shared needs / publishers where a shared deal would be beneficial? Will you evaluate titles you could share by publisher or by sector e.g. general medical titles, nursing or psychiatry

49. 30 September 2009Exploiting E-Journals 2 Consortium deals : Analysis of usage

50. 30 September 2009Exploiting E-Journals 2 Analysing publisher usage data. The next step: renew deal or renew strategy?

51. 30 September 2009Exploiting E-Journals 2 Quote Vs Usage Usage is a key component in your renewal negotiations What would your cost per download be, using your renewal pricing and this year’s usage? How does this compare to ’08 and ’09’s CPD? Outline your key concerns. How do they compare with other publishers? Would it have been cheaper to have gone via PPV? Is it early days in the deal (1 st year)? You may need time to promote the content and monitor usage. By comparing each deal there will be winners and losers (bearing in mind niche titles)

52. 30 September 2009Exploiting E-Journals 2 Negotiating with Publishers Some Topical Tips

53. 30 September 2009Exploiting E-Journals 2 Negotiating with publishers Most of your negotiations are likely to be by email or telephone But they may involve a meeting It may depend on whether you are acting as a single institution or as consortium, and the amount of expenditure involved (or the fact that a publisher has asked for a meeting with you)

54. 30 September 2009Exploiting E-Journals 2 Preparing for Negotiations: Consider why you want to negotiate What do you want to achieve? To get lower prices /financial terms? To achieve more value for money (eg access by more users; access to more titles or extra content)? To keep within your overall budget? To move efficiently to online-only? To address your specific licensing requirements? To seek efficiencies eg use of your Licence, better usage data Have something to measure against at the outset

55. 30 September 2009Exploiting E-Journals 2 What are publishers seeking to achieve? To keep you as a subscriber / customer (‘maintain expenditure’) To encourage you to take more titles To try to sell you their other products / e-resources or extend existing products To move you to new pricing models (eg usage-based) To get you to promote their products amongst your users To reach their targets

56. 30 September 2009Exploiting E-Journals 2 Before any negotiations, do your homework You’re in a stronger position if you do your research. For example: Check the existing contracts you may have with the publishers – terms, amount paid, length of agreements, content involved etc. Speak to other librarians outside your group about their deals with publishers Look at your (combined) usage data i.e. numbers of article downloads Check the publishers’ websites for relevant information (e.g. latest prices)

57. 30 September 2009Exploiting E-Journals 2 Offers from publishers Generally the issues fall into : – Financial (prices, e-fees, annual increases, etc) – Licensing issues – ‘Technical’ issues (eg authentication, data on titles, etc)

58. 30 September 2009Exploiting E-Journals 2 Some pointers in evaluating offers from publishers Can you understand all aspects of the publisher’s offer (their terms and language)? Cut through the ‘sales’ text Break down the offer into key components Check that publisher’s calculations are accurate Check if the publisher has changed its standard pricing model Use a checklist to evaluate offers Benchmark the Offer against other publishers’ offers you have received.

59. 30 September 2009Exploiting E-Journals 2 Some pointers in evaluating offers from publishers Ask colleagues to evaluate the offer also Are cancellations allowed? What is the discount for moving to online-only? How is the ‘Base price’ calculated? How are e-fees calculated (eg e-access, cross-access, Big Deal, etc) What are the price increases for the first year of new offer. What are standard price increases? What price cap is offered for multi-year deals?

60. 30 September 2009Exploiting E-Journals 2 “ 10% price cap is our final offer ”

61. 30 September 2009Exploiting E-Journals 2 Some pointers in evaluating offers from publishers How are Authorised Users defined? Post termination access. Is there a charge for access? Is the publisher willing to use your model licence? What is the publisher’s policy with regard to access to new titles (launches, acquisitions, transfers)? What is the publishers policy with regard to access to titles transferred to other publishers? Are they compliant with the TRANSFER Code of Practice Obtain a definitive list of titles

62. 30 September 2009Exploiting E-Journals 2 Some pointers in evaluating offers from publishers How many years of backfile access are included? Does the publisher have any ‘open access’ journals that are freely available? Which authentication methods are used? Athens, Shibboleth, IP only Can the publisher offer a free trial? For how long Currency?

63. 30 September 2009Exploiting E-Journals 2 The Negotiation meeting: Before it starts, review your research notes Ensure you chair and manage the meeting Concentrate on areas for biggest wins Make sure you get explanations for all ‘unclear’ aspects Don’t let the publisher turn the meeting into a sales presentation Control the time and keep the meeting focussed

64. 30 September 2009Exploiting E-Journals 2 The Negotiation meeting: Make sure you don’t forget to address all your key issues Let the publisher know at the meeting if you are unhappy with revised proposals But don’t show enthusiasm Inform the publisher that you will review things and get back to them

65. 30 September 2009Exploiting E-Journals 2 The Negotiation Meeting “Get ready, get set, negotiate”

66. 30 September 2009Exploiting E-Journals 2 Negotiation Techniques Let publisher see you have all facts & figures (do more homework than the publisher!) Utilise usage data Use examples from other publishers’ offers Use the size/prestige of your consortium for better terms Be aware that publishers are competing for your business The power of silence (“Too many people just can’t stay quiet, they blink and fill in the silence with words that drain all the power out of their rejection”)

67. 30 September 2009Exploiting E-Journals 2 Negotiation Techniques Avoid rapid decisions (don’t take their ‘deadlines’ too seriously) Use real calculated examples to show impact of publishers’ terms Use your local rate of inflation to fight publishers’ increases Refer to better terms given to other libraries

68. 30 September 2009Exploiting E-Journals 2 Negotiation Techniques Find out under what conditions the publisher would offer for improvements: if you agree to a longer contract; central payment; payment by agreed date Seek period of free access, pro-rata (depending on timing) Remember the salesperson needs the business and can be your ally

69. 30 September 2009Exploiting E-Journals 2 Negotiating the deal: pricing Price Deal: £,$,Euro Pric e cap E- acces s fee DD P Athens authenti- cation Length of contract free trial Sites and FTEs Content & exclusion s Pricing model changes Online- only discounts Pro-rated access spen d Back files PPV figs Usag e stats

70. 30 September 2009Exploiting E-Journals 2 Negotiating the deal: licence Study packs Digitize User Rights Archival access Inter Library Loan License s Titles changing hands Health Information Levels of service Authorise d Users Definition Compensation Usage stats Legal jurisdictio n Braille (EoE) NHS Model Licence

71. 30 September 2009Exploiting E-Journals 2 Happy negotiating!

72. 30 September 2009Exploiting E-Journals 2 CCL’s Core Negotiation Service Planning and preparation Price and Licence Negotiations – New deals – Renewals and Amendments Reporting and communication Licence preparation Access arrangements Order confirmations Publisher Payments (optional) Help Desk (optional) Usage Stats: Collection and Analysis (optional)

73. 30 September 2009Exploiting E-Journals 2 Planning: clarity of purpose We need a clear understanding of how/ where we fit in with organizational objectives Which agreements? Transitioning publishers to using your ‘Model Licence’ or key clauses Timely payments to publishers

74. 30 September 2009Exploiting E-Journals 2 Planning: Getting to know your consortium SHA Purchasing Hub P Publ C Publisher B Publisher A Publisher X P Publ D P P P Foundation Trust Primary Care Trust Foundation Trust Foundation Trust Primary Care Trust Primary Care Trust Primary Care Trust Foundation Trust Foundation Trust Foundation Trust

75. 30 September 2009Exploiting E-Journals 2 Preparation: We need to understand the organisation Technical and organisational scenario – Who? Relevant FTE; Where? Sites; Athens addresses Kinds of deals required – Electronic only; print plus electronic – Which publishers and titles – Renewals of deals already in place - values Methodologies – Pricing objectives; acceptable increases; KPIs – Current subscription values/values – Usage statistics – Licence approach – Communication and reporting channels – Payment process

76. 30 September 2009Exploiting E-Journals 2 Preparation: what we need to know Technical and organisational scenario – Who? – Relevant FTE, Where? - Sites, Athens IDs Kinds of deals required – Electronic only; print plus electronic – Publishers and titles – Renewals of deals already in place - values Methodologies – Pricing objectives and acceptable increases – Usage statistics; – Licence approach – Communication and reporting channels – Payment process

77. 30 September 2009Exploiting E-Journals 2 Example objectives 10 SHA-wide agreements outside Framework Agreement Key titles based on previously shared subscribed content Identified new content Price for SHA to reflect small increase on shared subscription values. Use of a model licence if possible and key clauses otherwise Timely payments to publishers. All agreements in place by X date.

78. 30 September 2009Exploiting E-Journals 2 Activity Phases JUNEJULAUGSEPOCTNOVDECJANFEBMARAPRMAY Planning Pricing Agreements Payments Access and maintenance Usage analysis Licence Agreements

79. 30 September 2009Exploiting E-Journals 2 Case Example: ECLaKSA Year 1: gather quotes for a list of publishers for SHA- wide access and make one challenge to the publisher; use publisher’s standard licence Year 2: – Negotiate the renewal for 11 publisher agreements to enable cost savings – Prepare EoE NHS model licence from NHS model licence. – Negotiate use of EoE model licence or key clauses – Assist with usage stats collection and analysis Report: http://www.cilip.org.uk/publications/updatemagazine/a rchive/archive2008/julaug/LomasJuly08.htm http://www.cilip.org.uk/publications/updatemagazine/a rchive/archive2008/julaug/LomasJuly08.htm

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82. 30 September 2009Exploiting E-Journals 2 UKSG 2010 Conference Breakout sessions ECLaKSA case study Lyn Edmonds with CCL 12-14 April 2010 at the Edinburgh International Conference Centre. http://www.uksg.org/event/conference10

83. 30 September 2009Exploiting E-Journals 2 Critical Success Factors Consensus over your aims and fundamental requirements Centralised budget and decision making power Agreed processes and communication channels Project-based: clear time line

84. 30 September 2009Exploiting E-Journals 2 Measures of success Price % increase from last year to this year is within target increase Total of all agreements within budget allocation Payment made to publishers and access available by X date Key licence clauses are included in all contracts New content now available across organisation

85. 30 September 2009Exploiting E-Journals 2 CCL as a negotiating partner Highly familiar with the issues involved A detailed and comprehensive approach based on recent experience Availability ‘Negotiations / savings’ driven approach Full reporting back as required Experience of negotiating for SHA-wide access

86. 30 September 2009Exploiting E-Journals 2 Thank you for listening calderson@contentcomplete.com vlegge@contentcomplete.com Questions?