Successfully reported this slideshow.
Reset: A publisher’s response to the changing economy<br />Marybeth Manning, <br />Director, SPIE Digital Library Sales & ...
What brings me here today?<br />For 2010, SPIE took the unusual step of rolling back institutional subscription rates for ...
What am I going to talk about? <br />
Who is SPIE?the international society for optics and photonics<br /><ul><li>  A not–for–profit  international society—501c...
  The Society advances emerging technologies via its interdisciplinary information exchange through scientific conferences...
  Nearly 190,000 constituents from 138 countries, 15,000 members
   Supports 150 student chapters worldwide
  Provides nearly $2 million US annually in both dollars and in-kind support for scholarships, grants, and other education...
  Publisher of the SPIE Digital Library.   Also publishes print monographs, Tutorial Texts, Field Guides, reference books,...
Archived via Portico
COUNTER III compliant
MARC records through OCLC
Subscriber co-branding available
IP authentication
No concurrent user restrictions; unlimited downloading
CrossRef linking
Citation metadata for easy download
Indexed in Scopus, Compendex, Inspec, Google Scholar, Scitopia, Chem Abstracts, and others
Multimedia</li></li></ul><li>What was our institutional business model for DL prior to 2010?<br />Subscription Model<br />...
Market segment-based </li></ul>Academic: Carnegie and relevant programs<br />Government: Relevant FTE and programs<br />Co...
International team of sales agents
Upcoming SlideShare
Loading in …5
×

Reset: One society's response to the new publishing economy

626 views

Published on

Presented at the UKSG Annual Conference 2010, this covers the research and philosophy behind SPIE's long-term decision to reset it's Digital Library subscription prices. The economic crisis provided a catalyst to take a longer-term look at how to best disseminate the society's conference and journal content, and at the same time build its subscriber base. The 10% price rollback in 2010 was followed by a freeze in 2011 and a 5% further rollback for 2012.

Published in: Business, Education, Technology
  • Be the first to comment

Reset: One society's response to the new publishing economy

  1. 1. Reset: A publisher’s response to the changing economy<br />Marybeth Manning, <br />Director, SPIE Digital Library Sales & Business Development<br />UKSG 33rd Annual Conference and Exhibition<br />12 April 2010<br />
  2. 2. What brings me here today?<br />For 2010, SPIE took the unusual step of rolling back institutional subscription rates for its Digital Library by 10%.<br />
  3. 3. What am I going to talk about? <br />
  4. 4. Who is SPIE?the international society for optics and photonics<br /><ul><li> A not–for–profit international society—501c3 charity founded in 1955
  5. 5. The Society advances emerging technologies via its interdisciplinary information exchange through scientific conferences, continuing education programs, publications, patent precedent, and career and professional growth activities
  6. 6. Nearly 190,000 constituents from 138 countries, 15,000 members
  7. 7. Supports 150 student chapters worldwide
  8. 8. Provides nearly $2 million US annually in both dollars and in-kind support for scholarships, grants, and other education programs around the world
  9. 9. Publisher of the SPIE Digital Library. Also publishes print monographs, Tutorial Texts, Field Guides, reference books, print and online magazines, and variety of open access content</li></li></ul><li>What is Optics and Photonics?<br />Photonics World Market, Forecast<br /><ul><li> Eric-can you help me out with this slide?</li></li></ul><li>World’s largest collection of scientific and technical research in optics and photonics<br />6,500 volumes of SPIE conference proceedings <br />7 SPIE scholarly journals<br />300,000+ research papers in 2010; 18,000+/year<br />Full coverage from 1990 – present<br />125 eBooks<br />Interdisciplinary content<br />Micro / nanotechnology<br />Sensor technologies<br />Biomedical optics<br />Defense and security<br />Communications<br />Imaging<br />Lighting and Energy<br />Astronomy<br />What is the SPIE Digital Library?<br /><ul><li>Hosted by AIP Scitation
  10. 10. Archived via Portico
  11. 11. COUNTER III compliant
  12. 12. MARC records through OCLC
  13. 13. Subscriber co-branding available
  14. 14. IP authentication
  15. 15. No concurrent user restrictions; unlimited downloading
  16. 16. CrossRef linking
  17. 17. Citation metadata for easy download
  18. 18. Indexed in Scopus, Compendex, Inspec, Google Scholar, Scitopia, Chem Abstracts, and others
  19. 19. Multimedia</li></li></ul><li>What was our institutional business model for DL prior to 2010?<br />Subscription Model<br />Pricing Model<br /><ul><li>Tiered pricing model (4 tiers)
  20. 20. Market segment-based </li></ul>Academic: Carnegie and relevant programs<br />Government: Relevant FTE and programs<br />Corporate: Revenues and relevant FTEs<br /><ul><li>Full SPIE DL (access to everything including backfile) or Topical Collections
  21. 21. International team of sales agents
  22. 22. Originally based on print pricing
  23. 23. Tier 1 (large institutions) as base, with each lower tier more heavily discounted than the one above it.
  24. 24. Consortia pricing based on tier prices; the greater the number of member subscriptions, the higher the discounts.
  25. 25. Regional and country discounts keyed to World Bank and UN HDI economic data
  26. 26. Free or low-cost access to most INASP/PERI and eJDS participating countries</li></li></ul><li>What prompted us to re-assess SPIE DL’s pricing?<br />Plenty of positives<br />But also nagging concerns<br />33% growth in subscriptions from 2008-2009<br />99% renewal rate<br />90% of researchers rated SPIE DL as good or excellent<br />83% would recommend SPIE DL to colleagues<br /><ul><li>Complex model
  27. 27. Anecdotal evidence that pricing was high relative to the competition and perceived value in some parts of the world
  28. 28. Suboptimal penetration into some target market segments
  29. 29. We felt we could not dismiss or minimize the economic realities facing current and prospective subscribers</li></li></ul><li>Was there a better way to do it?<br />Objective<br />Goals<br />To develop a sustainable pricing strategy that <br />increases global access to SPIE content and <br /> supports the research community<br />Achieve an optimal balance of reach and revenues<br />
  30. 30. What did we do to identify and <br />evaluate our alternatives?<br />Situation Analysis<br />Field Research<br /><ul><li>Editorial Content
  31. 31. Subscription model
  32. 32. Pricing
  33. 33. Cost-per-download
  34. 34. Circulation
  35. 35. Revenues
  36. 36. Market size analysis
  37. 37. Competitive landscape analysis
  38. 38. Researcher User surveys
  39. 39. Librarian and customer input—both subscribers and non-subscribers who had expressed interest but not purchased
  40. 40. Sales agent feedback</li></li></ul><li>What did we learn, relevant to <br />our objective?<br /><ul><li>Tiered model understood and acceptable, but
  41. 41. Smaller institutions or larger institutions with smaller or fewer relevant programs need tiering consideration
  42. 42. Corporations prefer pricing based on usage (maybe 2011)
  43. 43. Cost/use for low tiers might be too high
  44. 44. Cost/download increasing important metric
  45. 45. Sales agents and librarians desired room for negotiation
  46. 46. Promotional discounting appealed to market
  47. 47. Topical Collection subscriptions were growing at a faster rate than the full digital library
  48. 48. Market penetration low in some market segments and some price tiers </li></li></ul><li>What environmental factors were <br />at play?<br /><ul><li>Flexible pricing that offers customers real options, including the ability to reduce expenditures without disproportionate loss of content, will be the most successful;
  49. 49. It is in the best interest of both publishers and consortia to seek creative solutions that allow licenses to remain intact as long as possible, without major content or access reductions. </li></ul>Statement on the Global Economic Crisis <br />and Its Impact on Consortial Licenses<br />January 19, 2009<br />Statement on the Global Economic Crisis <br />February 19, 2009<br />
  50. 50. Acknowledging the value in charging<br />less, what alternatives did we have?<br />Lower prices: long-term strategic solution<br />Discount prices: situational<br />flexibility<br />Freeze prices: short-term response to economy<br />
  51. 51. How did we lower our prices?<br />Process<br />Implementation<br /><ul><li>Discussions with executive management
  52. 52. Financial scenarios and impact projections
  53. 53. 10% reduction on subscriptions to full SPIE DL and Topical Collections
  54. 54. New pricing fixed for three years with three-year license commitment
  55. 55. Not applicable to already-discounted consortia arrangements although prices for 2010 were frozen at 2009 levels
  56. 56. Tier revisions: addition of 5th tier and redefinition of tier categories and pricing</li></li></ul><li>Ultimately, why did we change?<br />
  57. 57. How did we address the need to <br />restructure the tiers?<br /><ul><li>Tier revisions
  58. 58. Added a 5th tier
  59. 59. Accommodations made for for smallerorganizations and larger organizations with limited engineering programs or specialized needs
  60. 60. Allowed introductory discounting to enable institutions to test degree of interest
  61. 61. Examine cost per download as factor in assessing value to the institution and appropriate tier placement in renewal.
  62. 62. Corporate pricing changes: still to be addressed </li></li></ul><li>How did we communicate our decision?<br />As a not-for-profit educational society, SPIE strives to meet its responsibility to consider the economic challenges facing the educational and research community. In the current global economic climate, SPIE realizes that libraries are faced with tighter budgets than ever before for acquiring needed resources.<br />A combination of careful stewardship and steady growth of the subscription base since the launch of the SPIE Digital Library in 2003 are enabling the Society to roll back prices without reducing services, features, or content. Through this price decrease, we hope to enable access to this information for many more researchers, students, and inventors around the world. <br />Eugene Arthurs, SPIE Executive Director <br />May 28, 2009<br />
  63. 63. How did we fare?<br /><ul><li>2010 renewals have been robust.
  64. 64. We lost one consortium in 2010 due to the economic crisis.
  65. 65. 99% renewal rate for all other accounts consistent with pre 2010 performance
  66. 66. New business since our announcement in June 2009 has exceeded 2009 growth levels.
  67. 67. New business has been across all tiers, but particularly strong in the new lower tiers.
  68. 68. Looking beyond 2010, SPIE plans to continue to seek ways to moderate price increases and potentially continue rollbacks as our subscriber base grows.</li></li></ul><li>How applicable is SPIE’s response to the scholarly publishing community<br />
  69. 69. Questions for all of us<br /><ul><li>Is one lone not-for-profit’s actions meaningful in any way in the larger context of scholarly publishing? Does that put SPIE’s action under the heading of “titling at windmills” and meaningless in the larger arena?
  70. 70. A number of publishers froze prices in 2010 in respond to the library’s plea for addressing the continued and ever escalating price increases. But is the fundamental dilemma for libraries so rooted in their arrangements with the mega publishers and the ‘big deals” that any action outside of this by any non-profit or non-mega is meaningless?
  71. 71. And if libraries do not, or can not, act by changing their spending approach, in essence voting with their dollars or euros or pounds, who then who is to blame for the continuing trends in increased pricing?
  72. 72. And more importantly perhaps is the question: what does the future hold if all continues without change?</li></li></ul><li>Thank you,<br />Marybeth Manning<br />Director, SPIE Digital Library Sales <br /> and Business Development<br />marybeth@spie.org<br />UKSG Stand # 46<br />

×