1. JISC Collections Negotiating with who and for what? Challenges for negotiators as business models collide Paul Harwood JISC Collections 26 th September 2012 Bibliotheca academica 2012

2. JISC Collections 17 staff Offices in London and Oxford Responsible for delivering the NESLi2 e-journals service and central negotiations for many other online resources Over 200 separate agreements covering content of all kinds NESLi2 SMP for smaller and medium-sized publishers

3. JISC Collections NESLi2: Evolution Pilot Site Licence Initiative (PSLI) 1996-98. Top slicing/3 publishers NESLI (1999-2002) Open Consortium model Managed by Swets NESLi2 (2003-present) Open and closed consortium model Emergence of SHEDL and WHELF Introduction of Open Access offers to members

4. JISC Collections NESLi2 today Over 1,000 orders from 200 institutions Covers 17 publishers Provides access to over 7,000 journals Has achieved savings for the community both in terms of content and process

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6. NESLi2: Librarians like A trusted third party managing the process The benefits of focussed price negotiations A common set of terms and conditions via the Model Licence

7. JISC Collections NESLi2: criticisms The open nature of our consortium The conflict with regional purchasing consortia agreements with agents Lack of flexibility in the agreements themselves Perpetuating the Big Deal and squeezing other non-NESLi2 publishers Issues around timeliness and administrative overheads in managing the agreements

8. JISC Collections And when we are not negotiating...... Journal Usage Statistics Project (http://www.jusp.mimas.ac.uk/about.html)http://www.jusp.mimas.ac.uk/about.html Electronic Licence Comparison and Analysis Tool E-book studies and reports for HE and licensing for FE Post-termination access and archiving initiatives (UK LOCKSS alliance, PECAN etc) Open Access studies in the area of e-books (OAPEN UK) and administration of Gold OA for journals

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10. In the age of print, we didn’t negotiate..or did we? Blackwell, Faxon, Bailey’s, Collets, Dawson, Bumpus......... All gone....

11. JISC Collections  A $5-$6 billion industry  Around 23,000 peer-reviewed scholarly journals  Around 1.4m articles published each year  Between 3-10% published under Gold OA  Over 97% of science, technology and medicine journals are now available online, and over 90% for humanities and social sciences To be able to negotiate effectively you need to understand what drives the other side

12. JISC Collections The scholarly publishing landscape The strategy of the big commercial players Learned Societies and online publishing Pricing and business models

13. JISC Collections The strategy of the big players  Work out what to do about OA  Further consolidation? Unlikely although rumours re-surface now and again about Elsevier and Wolters Kluwer and Springer and T&F  By-pass the library and consortia and work with senior management at universities  Further segmentation of the marketplace/re-structuring of the sales force: concentrate on the main research institutions  Maintain market share at all costs  Reduce costs  Grow the portfolio of titles  Drive usage

14. JISC Collections Learned Societies and online publishing Societies have become quite promiscuous Looking for publisher partners who can offer them visibility and growth Their decisions can cause significant disruption to access for libraries and users They have justifiable concerns about the impact of OA on their income Publishing is a very important part of their income stream

15. JISC Collections Learned Societies sources of revenue Q: Provide a rough breakdown of revenue by category as a percentage (26 responses) %

16. JISC Collections Business and pricing models: all publishers  Retain the status quo for as long as possible  No attempts so far by the big players to move to a usage model in the academic sector (although ACS value-based and AAAS Usage-based)  Multi-year agreements with price caps offer shareholders comfort and reduce overheads  Attempts to integrate e-book and e-journal package pricing  Elsevier and Springer’s ‘licence everything we publish’ model

17. JISC Collections E-journal pricing in the age of the Big Deal: Isn’t it complicated? Subscribed content €50k E-access fee €5k Level of expenditure must be maintained Fee gives online access to subscribed content Cross access or unsubscribed access fee €7k Fee gives online access to ‘unsubscribed’ titles Price cap 3% Agreed cap on price increase in multi-year deal Discount for moving to online-only? Does VAT Apply? Total price for 2007: €62k (excl VAT) 2008: €67,580

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19. “Do I know the difference between my e-access fee and my content fee?” “What are my post- termination access rights for unsubscribed titles?” Losing too much sleep over complex Big Deal pricing arrangements?

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21. JISC Collections Negotiations based on usage COUNTER provided a series of standard reporting formats that enable librarians and publishers to review credible and consistent usage data Some publishers attracted by the model based on other industries, but is it appropriate for scholarly journals? When will usage start to plateau? How much time should we spend analysing usage?

22. JISC Collections Usage data: what can you do with it? Cost per download (subscribed titles) Cost per download (unsubscribed titles) Benchmark with other publishers Zero and low use titles High use titles Proportion of titles that make up 75%, 90% of usage

23. JISC Collections The Bucknell critique of analysing usage data Publisher platform design affects usage The extent of content is not the same All subjects are not the same All content types are not the same Usage spikes Transfers between publishers and between platforms Title changes Group titles Hybrid journals Aggregator platforms Is the correct cost being used? Statistical fluctuations “A balance needs to be struck between usage analyses being rigorous but time consuming and being pragmatic but good enough” (Taken from ‘Garbage In, Gospel Out’ published in The Serials Librarian, 63: 192-212, 2012)

24. JISC Collections Value-based pricing: more refined and reasonable? Using a basket of measures to determine the value of a journal and hence pricing: –Impact Factor –Usage data –Number of articles published –Size or nature of institution

25. JISC Collections The ACS and value based pricing International Academic Market Primary Metric: –World Bank Index (High, Upper Middle, Lower Middle, Low) Secondary Metrics: –Full-time enrollment –Usage bands (COUNTER compliant full-text downloads) Consortia Discounts –All titles – 60% Discount First released in 2008 –3-5 Year Migration plans offered to assist in managed transition 25 International Tiers AB 1 2 3 4 5 6

26. JISC Collections The ACS and value based pricing: Proving hard to convince librarians…

27. JISC Collections The present and the future: negotiating gold oa fees?

28. JISC Collections Gold Open Access – the many flavours Full OA - ‘Author’ fees for all articles Hybrid - Journal is a combination of both OA and subscription articles (Oxford Open, Open Choice, Online Open) Institutional membership. Eg OUP’s Nucleic Acids Research: subscription gives reduced author fees ‘National’ agreements – eg BioMed Central Back volumes all freely accessible after 6, 12 months (Washington Principles) Others currently being devised?

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32. Who will be negotiating with whom, and for what? “Get ready, get set, negotiate” Funders? Authors? Librarians? Consortium Bodies? Universities?

33. JISC Collections It would be good to know...... How long a transition from subscription licensing to Gold OA will take? Whether Gold OA will gain a foothold and become the dominant model? How Green OA will develop? How investors see the future of commercial publishers in this environment? How society publishers adapt? Whether the role of the library in the scholarly publishing chain will increase or decrease?

34. JISC Collections Happy negotiating! Thank you for your attention Paul Harwood p.harwood@jisc- collections.ac.uk