1. Springer eBooks and working with consortia ICOLC Meeting, Munich October 20, 2008

2. www.springer.com/ebooks 2 Cynthia Cleto/eProduct Management Agenda Market landscape and business model 3 case studies on working with consortia Usage trends and implications

3. www.springer.com/ebooks 3 Cynthia Cleto/eProduct Management Market leader in STM book publishing (Data from www.puballey.com; if a book is published simultaneously in hard- and paperback editions, only the hardback edition was included) Number of English-Language Titles Published in 2006 3,609 3,386 1,911 1,861 1,489 1,304 1,078 679 382

4. www.springer.com/ebooks 4 Cynthia Cleto/eProduct Management Business Model – Multi Channel approach – Direct Channel Collection based through Springer Library Relations Pick & Choose Book Series & Reference Works – Indirect Channel Collection Based through agents and booksellers – Missing Link, Dawson, EBSCO, YBP, Coutts, etc. – 3 rd Party Vendor Channel Pick and Choose Monographs – Ciando, Ebrary, Netlibrary, MyiLibrary, eBooks.com

5. www.springer.com/ebooks 5 Cynthia Cleto/eProduct Management Service Direct/Indirect collection Business model for e-books Content Ownership model 13 (English/International) and 5 (German) subject specific e- book packages Annual packages based on copyright year Lower title cost than list price Perpetual access to acquired content Content accessed via SpringerLink (Multiple access via IP recognition) Unlimited use

6. www.springer.com/ebooks 6 Cynthia Cleto/eProduct Management Service 3 rd Party Business model for e-books Content Flexible: Pick and Choose Monographs (excl. Ref Works, Textbooks, & eBook Series) Not an ownership model Higher title cost than list price No Perpetual access to acquired content unless purchased at a premium. Content accessed via chosen platform (Netlibrary etc) May have limits on use (DRM, seats, number of copies etc).

7. www.springer.com/ebooks 7 Cynthia Cleto/eProduct Management Proven Business Model Ownership and perpetual access Unlimited usage Virtually no Digital Rights Management (DRM) Technical advantages Integration of content on SpringerLink “Journalization” of content MARC Records (Basic Springer MARCs, OCLC) Counter-compliant usage statistics

8. www.springer.com/ebooks 8 Cynthia Cleto/eProduct Management All books published within the 2008 copyright year: Major Reference Works Book Series Monographs Textbooks Back-years (2005-2007) available at a highly discounted fee What is included? 2008 copyright year only

9. www.springer.com/ebooks 9 Cynthia Cleto/eProduct Management Pricing model based on size and type of institution Size of institution Type of institution (Research intensity) Price # students (FTE’s) Medium e.g. # of Researchers/Research expenditures Small Large Very Small Very Large 1 2 3 4 5

10. www.springer.com/ebooks 10 Cynthia Cleto/eProduct Management Additional discounts Consortia discounts Back-year discounts Discounts may increase depending on number of institutions participating

11. www.springer.com/ebooks 11 Cynthia Cleto/eProduct Management Agenda Market landscape and business model 3 case studies on working with consortia Usage trends and implications

12. www.springer.com/ebooks 12 Cynthia Cleto/eProduct Management The spectrum of consortia out there Centralized Individualized Ideal scenario: Centralized governing body, contract, and invoice Most consortia will lie in between

13. www.springer.com/ebooks 13 Cynthia Cleto/eProduct Management Case Study 1: German-speaking countries 2008 Consortia contracts Bavaria (24 members) North-Rhine-Westfalia (20 members) Friedrich-Althoff (6 members) Saxony (8 members) Mecklenburg-Western Pomerania (3 members) Individual (bilateral) contracts Switzerland Austria Baden-Württemberg Hesse Lower Saxony Reach

14. www.springer.com/ebooks 14 Cynthia Cleto/eProduct Management Case Study 1: German-speaking countries 2008 continued Offer: Pricing is based on size of the corresponding university department – On average, libraries buy 2.4 German eBook Collections Mixed governance: – consortia function as buying clubs – Some groups have catalog unions, others function individually Centralized workflow Headoffice of Catalogue Unions gets Metadata via ftp-server Libraries … in Nordrhein-Westfalen via HBZ in Berlin/Brandenburg via KOBV in Baden-Württemberg via BSZ in Sachsen via BSZ Local Catalogueing Library downloads MARC-records from Springer Website Libraries … Bayern Austria Switzerland

15. www.springer.com/ebooks 15 Cynthia Cleto/eProduct Management Case Study 1: German-speaking countries 2008 continued eBook-packages bought by Bavarian Libraries (eBooks 07 vs. 08) (example: Bavaria Consortium) University Würzburg University Regensburg Univers. Bamberg University PassauUniversity BW München University Erlangen 20072008200720082007208200720082007200820072008 Medicine Math. Beh. Sc.Humanities Medizin GeWiMedizin T+IBiomed.T+I GeWi CS GeWi CS GeWi NaWi B&E NaWi WiWi

16. www.springer.com/ebooks 16 Cynthia Cleto/eProduct Management Case Study 2: ANKOS consortium, Turkey Reach: 51 members in total, 24 joined for eBooks Individualized governance: Each institution joins at their own capacity, depending on budget and need for subject collection – Separate contracts – Send one invoice to agent, agent invoices individually – Separate catalogs Offer: 3 aspects determine price - # collections purchased, # of institutions that join, # FTE for each institution that join Negotiations: Via an agent

17. www.springer.com/ebooks 17 Cynthia Cleto/eProduct Management Case Study 2: ANKOS Consortium, Turkey continued Access: IP authentification on SpringerLink Issues and problem-solving: – Not having complete title list for upcoming copyright year – Provided offer for years already completed, copyright year 2007 with 2005+2006 back- years – MARC Records initially an issue, but training sessions resolved the issue Lessons learned: – Communicate with consortia as an umbrella-organization, but using our salesforce and agents to communicate with each institution individually – Communicate eBooks as a “renewable product” to integrate into yearly budgets – Valuation of content is important

18. www.springer.com/ebooks 18 Cynthia Cleto/eProduct Management Case Study 3: OhioLINK Reach: 89 colleges and universities (16 public/research, 23 community/technical, 50 private, State Library of Ohio), 600,000 students/faculty/staff Content: 40,000 eBooks, complete Springer eBook Collection Central governance: One contract, invoice, and library catalog Offer: Providing complete Springer eBook Collection to OhioLINK in one fee for the whole state – Valuation of content based on larger institutions – Smaller institutions have access Negotiations: Direct with Springer Timeline: – Negotiations with Tom Sanville in Q4 2006 – Multi-year contract end-2006

19. www.springer.com/ebooks 19 Cynthia Cleto/eProduct Management Case Study 3: OhioLINK continued Access: IP authentification on OhioLINK E-book Center, and on SpringerLink Issues and problem-solving: – OhioLINK has repository and required local loading – Process was slow and labor intensive – Springer provided hard-drive delivery during upgrade of the FTP network to increase delivery speeds – OhioLINK and Springer checked that sent files matched received files – OhioLINK has complete title list, and titles are uploaded on-the-fly as available on DDS (file repository for upload onto SpringerLink) Lessons learned: – One point of contact and decision-maker streamlines negotiation efforts – Correct parties required for problem resolution

20. www.springer.com/ebooks 20 Cynthia Cleto/eProduct Management Agenda Market landscape and business model 3 case studies on working with consortia Usage trends and implications

21. www.springer.com/ebooks 21 Cynthia Cleto/eProduct Management SpringerLink Fulltext Chapter Downloads 2007-2008 (in mio) Usage total in 2007: 25.2 mio downloads Jan-Aug 08: 25.6 mio (Jan-Aug 07: 13.6 mio) = + 88% eBooks Usage

22. www.springer.com/ebooks 22 Cynthia Cleto/eProduct Management COUNTER Book Report 2 a sample

23. www.springer.com/ebooks 23 Cynthia Cleto/eProduct Management Added usage dimensions Usage on consortia level Customized usage reports – Core Metrics Tool (coming soon)

24. www.springer.com/ebooks 24 Cynthia Cleto/eProduct Management Trends in eBook Usage Some Titles are part of course material that is given only once a year: usage for a specific title is peaking in that month Mostly only book chapters that match search-string are downloaded Frequently all chapters of a book are downloaded (for future reference?) Students use more books than journals Researchers use journals as well as books

25. www.springer.com/ebooks 25 Cynthia Cleto/eProduct Management Usage by Book Type Average eBooks Chapter Downloads 2007 by Book Type Springer References and textbooks are the book types with the highest average download figures. Proceedings, professional books, monographs as well as contributed volumes follow with some distance. Popular Science books had the least usage. Only major categories are shown

26. www.springer.com/ebooks 26 Cynthia Cleto/eProduct Management Usage by Package – English Language Average eBooks Chapter Downloads 2007 by Package There is a relatively homogenous picture across the STM disciplines. Chemistry & Materials Science which has the highest average download numbers. Social Sciences and Humanities have lower usage numbers.

27. www.springer.com/ebooks 27 Cynthia Cleto/eProduct Management Usage by Copyright Years Average eBooks Chapter Downloads 2007 by Copyright Year Books from 2005 were used almost as frequently as books from 2006, and even more frequently than books from 2007. Unlike for journals content, the age of book content seems not to play a very important role. In an ‘online search environment’ the age of a book is only of minor importance.

28. www.springer.com/ebooks 28 Cynthia Cleto/eProduct Management Distribution of Usage (1) The Top 20% of eBook titles account for ‘just’ 55% of usage Usage is less concentrated than for journals, where usually a 20/80 rule applies Among the top used titles there are many of the ‘usual suspects’ (Dubbel, Springer Handbooks series, Prokaryotes, bestselling textbooks), so ‘content still counts’ But there is definitely a ‘long tail’ of usage, many titles that sell only a few copies are now ‘findable’ and quite frequently used online

29. www.springer.com/ebooks 29 Cynthia Cleto/eProduct Management Distribution of Usage (2) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% # eBooks # full-text chapter downloads 2007 10%20%30%40%50%60%70%80%90%100% Top 20% eBooks account for 55% of total chapter downloads Top 10% eBooks account for 39% of total chapter downloads Springer: Distribution of Citations and Full-Text Downloads

30. www.springer.com/ebooks 30 Cynthia Cleto/eProduct Management Drivers of usage (The “MARC Effect”) Continued…

31. www.springer.com/ebooks 31 Cynthia Cleto/eProduct Management Usage at four selected customers SpringerLink Fulltext Downloads Oct 2007 YTD HEAL-LinkHong Kong Consortium University of Münster Journals ArticleseBooks Chapters University of Chicago

32. www.springer.com/ebooks 32 Cynthia Cleto/eProduct Management Metrics to investigate MetricDescriptionComments Title ReachNumber of book titles that have been used Useful metric. In the print world, many books were never taken from the shelf. Google and MARC records make “less popular” books visible to it’s (smaller) audience. Cost per usePrice paid divided by number of uses Somewhat useful. This is generic and an average. May be useful in proving ROI if figures are high. But remember, Springer eBooks are sold on ownership model. This will decrease over the years. Cost per title used Total Cost divided by number of titles with usage Somewhat, however because books can be accessed perpetually, the cost will go down over the years. Age of used booksIs the age of books relevant when used? Slightly older books are nearly as used as newer books. eBook collection keeps its value over the years. eBook usage compared to journal usage eBook chapter usage compared journal article usage. “Journalization” of book content makes “chapter” and “articles” more similar. Springer sees a 20-50% at some large customers. This will increase over the years.

33. www.springer.com/ebooks 33 Cynthia Cleto/eProduct Management Summary Proven business-model – Ownership, unlimited use, no DRM Case studies – Must be flexible with spectrum of consortia Usage trends and implications – Growing at a fast pace – Unique from journal usage (long tail of usage) – Look at drivers that can be influenced, and metrics to provide measure of ROI

34. www.springer.com/ebooks 34 Cynthia Cleto/eProduct Management Thank you. Questions? Cynthia Cleto Global Manager for eBooks cynthia.cleto@springer.com 212 460-1646 www.springer.com/ebooks Klaus Bahmann Director Licensing Germany, Switzerland, Austria klaus.bahmann@springer.com tel +49 (0)6221 / 487-8726 Dagmar Laging Vice President Sales Germany, Switzerland, Austria dagmar.laging@springer.com tel +49 (0)6221 / 487-8365