1. Developing a Newspaper Database to Support Licensing Michael Pocock 0207 332 9367 mpocock@nla.co.uk Andrew Hughes 0207 332 9359 ahughes@nla.co.uk

2. Newspaper Licensing Agency Ltd Newspaper licensing must recognise media monitoring Most newspaper use is from media monitoring organisations and their clients  Newspapers are unit value / time sensitive publications  Extensive systematic copying happens daily in many large companies  Different use and applications from journals and books  Newspaper use is primarily corporate + PR  Journals use is primarily scientific + education  Significant greater corporate penetration if newspaper use can be licensed effectively Effective MMO Licensing has potential to develop significant revenue  CFC and NLA suggest revenue range potential €10m - €20m pa from 55m population  Increasing respect for copyright is valuable  Licensing press clippings creates a platform for wider licence rights in corporate sector  Press clippings is a voluntary opt in service, with less state / judicial risk Where strong corporate or press clipping licensing exists, database services can complement, support and enhance that  Most European countries are moving to licence + database solutions

3. Newspaper Licensing Agency Ltd Press cuttings licensing and database solutions are developing fast Country LicensingDatabase ModelOrganisations PlannedLivePlannedLive AustriaYYYYVOEZ licence, APA direct serviceVOEZ / APA BelgiumYYYYLicence + DB (PCA + end user)CopiePresse/ Reprocopy/ MediaArgus / Pressbanking Denmark??YYInfomedia direct data serviceInfomedia / Copydan FranceYYYPilotCFC licensing. eClips France 2012CFC GermanyYYYYVG Wort statutory, PMG servicePMG + VG Wort IrelandYYYLicensing established, db planningNLI ItalyYLicensing started 2012FIEG NetherlandsYYYDB in discussionCLIP / NUV NorwayYYWeb only licensingMBL PolandYNewYYLicensing stalled with PCAsRepropol PortugalYNewLicensing stalled with PCAsVisapress SpainYNewLicensing started in 2011CEDRO SwedenYYTT licensing web newswireTT / Bonus PressKopia SwitzerlandYYStatutory licence, PCA issuesSMD, ProLiteris UKYYYYLicence + DB (PCA model)NLA USAYYCCC v NLG modelsCCC, NLG (AP)

4. Newspaper Licensing Agency Ltd How NLA eClips Works Publishers 1. Send production PDFs NLA, London 1. Forward compressed PDFs to Ninestars 2. Host finished PDFs 3. Control user accounts Ninestars, Chennai 1. Lift XML from page PDFs 2. Cut article PDFs from page PDFs Hi-Res Page PDFs Low-Res Page PDFs XML & Article PDFs Links to articles and pages Search Access XML or PDF Feeds

5. Newspaper Licensing Agency Ltd Why would an RRO want a newspaper database? Commercial opportunity – data service  MMOs increasingly need structured news data feeds (source FIBEP discussion with PDLN, 2011)  Collecting and delivering news to MMOS can be an attractive business  All MMOs scan or process PDFs  Better that one organisation acts to reduce duplicated cost There is a simple industrial synergy in creating a central supply Negotiating leverage with MMOs  Managing a central supply can create licensing sales power  PCAs need data and will need a MMO licence to get it  Potential for RRO / publishers to sell in competition to MMOs Transparency on user access  Online access more traceable and measurable  Licence pricing can be based on usage  Access is tending to replace copying in the long term Publisher services options  Creating a central common data store can save publishers cost  Central data store can improve the licensing body / publisher connection

6. Newspaper Licensing Agency Ltd The commercial opportunity – selling to MMOs Collecting and delivering news content is a business opportunity  All MMOs need to scan and search newspapers, daily  Direct feeds from newspapers are better than scanning and increase appetite for a central database  A database solution for newspaper PDFs is a proven model with known costs Retail model (selling direct to users) has been attractive in Germany, Denmark, Belgium  Higher revenues but lower % profits, given sales costs, and competition risk Wholesale model (selling to PCAs only) used in UK, France  NLA model shows 20% margin on e3m turnover Options to increase operating margin by sharing platform costs  Why build a system if one exists?  NLA and others offering platform options  NLA – CFC agreement shows the shared model working

7. Newspaper Licensing Agency Ltd A database services helps MMO negotiations MMOs need a central data source  MMO market moving from clippings to media analysis  Structured data in XML is increasingly important  Scanning does not produce quality XML, and also limits cuttings quality  FIBEP (MMO trade body) have confirmed this trend Where MMOs have moved to fill this need, licensing can suffer  Acceso (Spain), Profactys / KIS (Netherlands), Media Markets / Sentia (Australia), EDD (France) A publisher or RRO data service for MMOs can counter this effect  Content is king  Better content makes accepting a licence the best route for MMOs  UK model shows how this can create a win-win for MMOs, publishers and licensing MMOs also fear a retail model  Danish and German publisher retail services precedents are feared by MMOs  Use of this retail option, or threat, can be a useful tactic  NLA view is a retail service has competition law risk and is not a credible market solution

8. Newspaper Licensing Agency Ltd A database solutions help with licensing end users Knowing who copied what is the dream solution for licensing agencies  Online access to an RRO database means every user has to have a password  Online access allows every view of every article by every user to be tracked  Transparency drives;-  More effective licensing (no access allowed without a licence)  Near perfect revenue distribution (sharing revenue become easy. No more surveys) NLA experience with database showed significant licence revenue impacts  MMOs typically under report users by up to 20%  Users under report content recipients  Database also increased content volumes through greater technical efficiency Alternative access models are also used  CFC allow end user offline access (local copy of PDF)  Less intrusive but lower transparency for licensing  MMOs prefer these less transparent options;- for good and bad reasons  more user functionality  less information for RRO Providing services also helps licensing bodies justify licence fees  Easier to charge when you offer service and rights

9. Newspaper Licensing Agency Ltd Check Usage Against Licensed Numbers Check that the number of articles viewed matches licensee claims Check that the actual active users is within licence terms

10. Newspaper Licensing Agency Ltd Monitor Database Users With No Digital Licence Identify organisations that are likely to be copying digitally Use that information at the time of renewal

11. Newspaper Licensing Agency Ltd Monitor organisations claiming not to need a licence Track orgs that decline a licence on the basis they only have one user Identify and flag to licensing teams when those organisations have multiple active users on eClips

12. Newspaper Licensing Agency Ltd Monitor IP details for evidence of login sharing Track orgs that only have one user Identify and flag to licensing teams when that same login is used from multiple locations over a short time period This has previously proven that organisations are sharing articles on their public websites

13. Newspaper Licensing Agency Ltd A central database can also help publishers Newspaper publishers spend heavily on library and archive services  Research to support journalists  Content distribution to commercial partners  eReader and mobile devices (Kindle, iPad, smartphones) A central database can be a cost saving option for newspapers  Common archive platform lowers cost  Common data formats extend distribution options  Newspapers looking to cut costs and increase secondary (syndication) use UK experience is extremely positive  6,000 newspaper users of NLA archive (ClipShare)  Data feeds to Factiva, Lexis-Nexis and others managed centrally  Annual cost savings of over £2m pa (mostly library staff)  New services for schools, libraries and visually impaired Database services to publishers reinforces the newspaper – licensing body relationship  But there will be challenges establishing how this is managed and controlled  Publishers would need a close connection with managing the database  Licensing model (CFC)  Publisher model (NLA, NUV (Netherlands))  Hybrid models

14. Newspaper Licensing Agency Ltd NLA database supports many publisher applications eClips eClips international ClipShare ClipSearch Newspapers for Schools Kindle, ePapers, eReader Library services New applications??

15. Newspaper Licensing Agency Ltd Adding web content helps both licensing and data services Newspaper websites are a natural extension of both licensing and database services Licensing web content use in paid for services  Adds revenue  Protects press cuttings revenue  Follows precedents in Norway, Belgium, and UK Web content adds value to a database solution  Scraping websites is as inefficient as scanning newspapers  Direct supply through a central database improves quality  More volume  More timely  Richer meta-data NLA experience  Web content added to eClips April 2011  Potential to add web content to all other services (ClipShare etc)  NLA v Meltwater case is proving the licensing model  Also Google v CopiePresse, MBL v Meltwater

16. Newspaper Licensing Agency Ltd NLA experience of running a database is positive Revenues are higher than costs  PCA access fees – subscription model – over £2.5m pa  Number, size and spend of MMOs is important Costs significant (£2m pa plus with 150 newspapers loaded)  Processing c 40% (external).  New technology is lowering these costs  NLA staff c 40%  Systems and IT 20%  Costs are reduced if infrastructure is shared Significant licensing benefits  Higher licence rate – RRO can see client usage and make sure they are all licensed  Higher clippings volumes – MMOs find more stories for clients Publisher cost savings  Collective cost savings exceed £2m  Publishers have replaced own archive systems and library functions  Publishers using eClips to feed Kindle, Factiva, etc