The document discusses the growing article economy industry, which was estimated to be worth $1.6 billion in the US and $2.4 billion worldwide in 2003. It outlines several drivers of this industry, including widespread metadata access, high rates of undiscovered relevant articles, and budget cuts forcing libraries to focus on access over ownership. The document then examines various licensing models for articles, such as pay-per-view, bundling by content type, age, market, or region. It emphasizes the need for publishers to define pricing rules carefully and target the right markets to evaluate different strategies in this evolving industry.

1. Licensing in the
Article Economy
Society for Scholarly Publishing
Baltimore 2003
Jan Peterson
VP, Content Development
Infotrieve, Inc.
Los Angeles

2. The Article Economy
 $1.6 billion industry in the U.S. (Outsell
study)
 $2.4 billion worldwide (ingenta Institute
study)
 Document delivery and interlibrary loan
 Journal articles, book chapters,
conference proceedings
Society for Scholarly Publishing May 2003

3. Article Economy Drivers
 Widespread access to good metadata
 High percentage of “discovered” articles
not available from local holdings
 Explosion of scholarly publishing –
impossible to subscribe to everything
Society for Scholarly Publishing May 2003

4. Article Economy Drivers
 Changes in the library world
 Access versus ownership
 Budget cuts
 Usage statistics
 End-user expectations higher
 Linked references (e.g., CrossRef)
 Placing orders directly
Society for Scholarly Publishing May 2003

5. Article Licensing Options
By the drink By content type

By the slice By age
By market By geographic
region
By the bunch for Scholarly Publishing May 2003
Society
By the blink

6. By the Drink 
 aka Pay-Per-View and On Demand
 Just-in-time model supports
 Shifting R&D budgets
 Diminished academic budgets
 Information have-nots
 Transaction-based pricing with royalty +
service fee
Society for Scholarly Publishing May 2003

7. By Content Type
 Article types
 Newsy bits, editorials, letters
 Regular articles
 Review articles
 Proceedings
 Book chapters
 Encyclopedia entries
 Publisher may not own rights to all
content types
Society for Scholarly Publishing May 2003

8. By the Slice and By Age
 Subject slices tailored to market
 Pre-paid Blocs of Docs
 Articles from different journals and
various textbook chapters for course
packs
 Depends on the discipline, but older
articles can sell at a lower price
Society for Scholarly Publishing May 2003

9. By the Market and By Location
 Market differentiation
 Corporate and academic
 For-profit and not-for-profit
 Researchers and students
 Pricing to geographic region
 North America
 Europe
 Asia
Society for Scholarly Publishing May 2003

10. By the Bunch and By the Blink
 Number of hits (bunch)

Timed access (blink) 
 E-Reprints
 FDA approval process
 Marketing
Society for Scholarly Publishing May 2003

11. Reaching New Markets
 Innovative ways to put your content in front of
new audiences in an interactive manner
 Ten-minute no-print preview
 Three-day free trial pass
 Customized packages targeted at niche
markets
Society for Scholarly Publishing May 2003

12. Supporting Technology: DRM
 Digital Rights Management
 Marketing tool
 Enabler of new business models
 Most people aren’t looking for a way to
cheat; they want a way to comply with
reasonable business practices and
pricing models
Society for Scholarly Publishing May 2003

13. The Hard Part
 Defining the rules
 Setting the prices
 Targeting the right markets
 Evaluating response in order to make
better marketing and editorial decisions
Society for Scholarly Publishing May 2003

14. Lessons from the
Entertainment Industry
 Starting to work with the file-sharing
networks, such as Apple’s iTunes Music
Store
 “To be blunt, if we don’t provide
consumers with our product in a timely
manner, the pirates will.” (Michael Eisner
speaking of on-demand services)
Society for Scholarly Publishing May 2003

15. Conclusion
 Now is the time for return on your
electronic investment
 Break the bindings and engage in the
Article Economy
 Dare to try innovative ways to reach
new markets
Society for Scholarly Publishing May 2003

16. Thank you
Jan Peterson
jpeterson@infotrieve.com