1. Electronic Publishing and the Economics of Information Part II Implications for Libraries Carol Tenopir University of Tennessee, Knoxville ctenopir@utk.edu http://web.utk.edu/~tenopir/tenopir.html Donald W. King University of Pittsburgh dwking@mail.sis.pitt.edu

2. What factors affect demand? Price Journal attributes Availability & relative cost of alternatives Combinations of distribution means and media are finding a niche

3. Average Annual Price Increase (%) in Scientific Journals

4. Average Cost Per Title: Science Journals 1996-2000

5. Why have journal prices spiraled upward? Size and Inflation – 56% Drop in personal subscriptions Addition of new, low-circulation journals – 17% McCabe thesis High profit / net revenue

6. To understand price one must understand publishing costs Five publishing functions: –Article processing (=$190,000) –Non-article processing (=$19,500) –Reproduction (=$101,000) –Distribution (=$80,500) –Support (=$168,500) –Total (=$559,500)

7. Average Cost per Subscription

8. Average Number of Personal Subscriptions to Scholarly Journals

9. Comparative Costs Individual Subscription Library Use Break-Even Point (36.5) Number of Readings of the Journal

10. Cost of Subscribing vs. Library Use 117.6$1,000 59.4$500 30.3$250 18.7$150 12.9$100 Break-Even Point (Readings) Individual Price ($)

11. Individual Subscription Prices <0.1$1,000 0.7$500 3.2$250 8.7$150 15.0$100 Proportion of Journals to which Scientists can Economically Subscribe Individual Price

12. Subscribing vs. Separate Copies 56.5$1,000 30.4$500 17.3$250 12.1$150 9.5$100 Break-Even Point in Number of Readings Institutional Price

13. Library Owning vs. Borrowing Article Copies Break-Even Point ILL/Document Delivery Institutional Subscriptions

14. Library Subscription Prices 49.0$1,000 65.5$500 78.2$250 84.6$150 88.9$100 Proportion of Journals to which Libraries can Economically Subscribe Institutional Price

15. Purchasing vs. Document Delivery Document Delivery Fees Journal Prices $0$5$10$20$30 $10017.411.88.96.04.5 $25031.921.516.210.98.2 $50055.937.828.519.114.4 $1,000104.070.253.035.626.8

16. Electronic Journals vs. Separate Copies Article Access Fees Subscription Price ($) $0$5$10$20$30 $10019.610.47.14.33.1 $25046.024.416.710.27.3 $50090.147.832.619.914.3 $1,000178.394.864.539.428.3

17. Effects of Price Changes on Subscribers (1998) Price Changes Individual Subscriptions Institutional Subscriptions FromToFromToLossFromToLoss $100$1502,5001,4501,0502,5002,379121 $150$2502,5009201,5802,5002,311189 $250$5002,5005471,9532,5002,094406 $500$1,0002,5001112,3892,5001,870630

18. Usefulness & Value of Scholarly Articles Information serves many purposes Highly important to these purposes Readers are willing to pay a high price for the information in their time Information results in improved performance

19. Usefulness, Value, and Impact of Information 198 readings per professional Evidence of the consequences of reading –Considerable savings result –Improved productivity, quality, and timeliness of work –Achievers read more than others –What users are willing to pay for information –Purposes of reading –Importance compared with other resources

20. The Contribution that Libraries Make to this Use, Usefulness, and Value

21. General Approach Examine overall communication forms and patterns How users spend time communicating Role of libraries in supporting communication activities

22. Examples of roles of libraries: Reduce communication time Make communication time more efficient and effective Provide better information, faster and less expensively Strive to increase the productivity, quality, and timeliness of users’ work, teaching, research, and other purposes for which information is used

23. Proportion of Readings of Library-Provided Documents and Documents From Other Sources Which Result in Savings

24. Productivity of Professionals, As a Function of Amount of Library Use

25. Proportion of Readings of Library –Provided Documents and Documents From Other Sources Which Result In Improved Quality of Work

26. Proportion of Readings of Library-Provided Documents and Documents from other Sources Which Result in Performing Work Faster

27. Comparison of Library Use by Persons Recognized by Special Awards, “Fast Trackers,” and Cohorts

28. Library Cost, Value, and Worth Library cost - $610 per professionals User price/cost of information - $5, 190 User cost to acquire information - $1,090 Current organization cost - $1, 700 Cost of alternatives to library - $5, 010 Potential “lost” benefits - $12, 200

29. Indicators of Value and Worth Ratio of user cost to acquire information to library cost 1.8 to 1 Ratio of “willingness to pay” value to library costs 8.5 to 1

30. More Indicators of Value and Worth Ratio of cost alternatives to current organization cost 2.9 to 1 Ratio of potential “lost benefits” to current organization cost 7.2 to 1

31. Without Information With Information CenterCenter Professionals SpendProfessionals Spend Professionals Have 121 Hours27 Hours94 Hours Available Acquiring InformationAcquiring InformationFor Thinking, Experimenting, Etc.

32. Time of OneEquivalent of Information Saves Five ProfessionalProfessionals’ Time

33. Special Library Helps Achieve Parent Organization Goals Increase profit (or productivity) and get more for less Perform work better and with greater quality Speed products from discovery to the marketplace

34. Increased Profit (or productivity) >1/3 of library uses result in saving time or money >40% of library-provided readings result in saving time or money Amount of library use correlated with 5 indicators of user productivity 5 studies show a positive correlation with information-related expenditures and/or productivity

35. Better Performance and Greater Work Quality ~ 40% of library use said to be “absolutely required” ~ 60% of visits to libraries said to result in doing work better > 60% of readings from library-provided documents result in improved quality Professionals who use libraries more than cohorts and non-awards winners recognized through awards, etc.

36. Speed Products From Discovery to the Marketplace ~ 40% of library visits are said to help professionals perform work faster ~ 40% of readings of library-provided materials lead to doing work faster

37. Librarians Have Unique Knowledge of… How their community acquires and uses information The availability of alternative media, sources, and pricing options The economic trade-offs among these alternatives What is generally best for the entire organization

38. Future Roles of Special Librarians Decision makers for how organization adopts to electronic environment, by – –Keeping up with options and specific products –Figuring real costs (cost per use; total costs) –Negotiating leases –Voice of reason Purchasing / negotiating for entire organization

39. Goals for Librarians Discuss e-publishing issues with your boss Identify true costs of communication Predict what to expect with electronic journals and share information concerning e-journal realities Develop negotiating skills and knowledge of source and media options