2014 Charleston Conference Presentation by Kittie Henderson, EBSCO Charleston Neapolitan Session Thursday, November 6, 4:30 pm

1. Budgets, Services and Technology
Driving Change: How Librarians,
Publishers and Vendors are
Moving Forward
Charleston | 2014
Kittie Henderson
Vice President
Academic, Law & Public Library Markets

2. Table of Contents:
EBSCO Overview
Library & Publisher Survey Results
Key Trends
Factors that Drive the Market
Focus on the Long Term
1…
2…
3…
4…
5…

3. EBSCO Overview
1

5. EBSCO Industries
• EBSCO was founded by the late
Elton B. Stephens in 1944
• EBSCO Industries is among Forbes Top
200 Privately Held Companies
• EBSCO generates over $2 billion in
annual sales
• J.T. Stephens is the Chairman of the Board
of EBSCO Industries, Inc.
• Tim Collins is the President of EBSCO
Industries, Inc.
EBSCO Overview
Collins is only the fourth President in
EBSCO's 70- year history

6. Library & Publisher
Survey Results
2

7. Libraries
EBSCO surveyed 200 major North A academic libraries
with whom we do business (24% responded)
48%52% 52%
College/
Univ.
48%
ARL
EBSCO Survey

8. Libraries
Roles of those responding
48%52% 52%
College/
Univ.
48%
ARL
EBSCO Survey
Director/Dean/Univ
Librarian
AUL/Associate
Director
Collection
Development
Serials or E-resource
Acquisitions
Other
34%
29%
26%
3% 5%
3%

9. Libraries
Number of end users per library respondent
48%52% 52%
College/
Univ.
48%
ARL
EBSCO Survey
48%
18%
23%
11% > 25,000 users
15,000-25,000
users
10,000-15,000
users
5,000-10,000 users

10. Publishers
EBSCO surveyed the largest 100 publishers with whom
we do business (41% response)
48%52% 52%
College/
Univ.
48%
ARL
EBSCO Survey
18%
42%
34%
6%
University Press
Society
Commercial STM
Other

11. Publishers
Roles of those responding
21%
48%52% 52%
College/
Univ.
48%
ARL
EBSCO Survey
47%
27%
5%
Executive
Sales & Marketing
Operations
Other

12. Key Trends
3

13. The Landscape
The economic situation
Packaging content and the big deal
Usage: the key metric
Discovery
PDA/PPV
Open Access
eBooks
EBSCO’s initiatives

14. Economic situation improving but still tough
28%
Overview of library budgets
Past, Present, and Future
17%
39%
2009-2010
2010-2011
2011-2012
2012-2013 (Projected)
2013-2014
17%
11%
24%
42%
24%
7%
24%
38%
31%
2%
20%
52%
26%
2%
16%
47%
35%
60%
50%
40%
30%
20%
10%
0%
Decreased more than
10%
Decreased
1-10%
Flat Up

15. Economic situation improving but still tough
Publisher cancellations moderating
Publishers:
81% of respondents indicated their business was
beginning to recover from the economic downturn

16. Journal Pricing
Annual EBSCO study of publisher prices
Serials price increases vs. inflation
Annual Historical Price Analysis by Library Type (U.S. Libraries)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ARL 9.8% 8.4% 7.6% 8.5% 8.8% 8.3% 5.0% 5.1% 5.7% 5.5% 5.9%
College and
University
9.3% 7.9% 7.8% 8.6% 8.8% 9.9% 5.4% 5.1% 5.7% 5.5% 6.0%
Academic
Medical
9.4% 8.6% 8.3% 8.8% 9.3% 9.9% 5.9% 5.8% 5.6% 6.1% 6.2%
Consumer Price
Index
2.7% 3.4% 3.2% 2.8% 3.8% 0.4% 1.6% 3.2% 2.1% 1.5%

17. Journal Pricing
Annual EBSCO study of publisher prices
Serials price increases vs. inflation
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Annual Inflation Price Increases for ARL Libraries

18. E-packages have smaller price increases
EBSCO data for 2014
Evaluation of 3,000 e-packages
handled by EBSCO for 2014
Average price increase
=6.6%

19. E-packages have smaller price increases
EBSCO data for 2014
Average e-package price increase by publisher
6.5%
6.1%
6.7%
3.4%
9.6%
6.1%
5.0%
8.9%
10.6%
5.7%
3.0%
15.2%
0% 2% 4% 6% 8% 10% 12% 14% 16%
Publisher A (217 packages)
Publisher B (385 packages)
Publisher C (673 packages)
Publisher D (99 packages)
Publisher E (145 packages)
Publisher F (83 packages)
Publisher G (260 packages)
Publisher H (384 packages)
Publisher I (96 packages)
Publisher J (91 packages)
Publisher K (370 packages)
Publisher L (202 packages)

20. Expect continued pricing pressure
Publisher survey on pricing
% of publishers likely to take the following actions
91%
Expected average publisher
price increase for
2015 = 5-7%
9%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Increase content price Decrease content price

21. Dealing with budget realities
Librarians’ strategies
% of librarians indicating they employed the
following strategies last year
86%
46%
74%
67%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Moved to E-only (dropped P) Did not renew
e-packages
Renegotiated multi-year
e-package deals
Sought alternative Open Access
content

22. Print continues to decline
Publishers’ print revenue this past year
48%52% 52%
College/
Univ.
48%
ARL
28%
34%
28%
4% 3% 3%
> 10% decline
5-10% decline
1-5% decline
No change
> 1% increase
Not sure yet

23. EBSCO’s total revenue dispersion
by format
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

24. Growth of e-only
EBSCO’s revenue dispersion by format
1999 2014
48%52% 52%
College/
Univ.
48%
ARL
88%
4%
8%
16%
11%
73%
Print Print & Electronic Electronic

25. Growth of e-only
Publishers’ e-only business this past year
Individual e-journals
E-packages
16%
11%
48%52% 52%
College/
Univ.
48%
ARL
22%
44%
6% 3%
25%
>10% increase
5-10% increase
1-5% increase
No change
1-5% decrease
13%
32%
28%
>10% increase
5-10% increase
1-5% increase
No change
Don't know yet

26. Factors that Drive
the Market
4

27. Dealing with budget realities
86%
Librarians’ strategies
46%
74%
67%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Moved to E-only (dropped P) Did not renew
e-packages
Renegotiated multi-year
e-package deals
Sought alternative Open
Access content
% of librarians indicating they employed
the following strategies last year

28. Planned future spending
Where librarians envision spending a greater % of their budget
56% 44% 31% 27% 25%
17% 6%
60%
50%
40%
30%
20%
10%
0%
Individual
eBooks
Individual
e-journal
subscriptions
eBook
packages
E-journal
packages
Full-text
databases
Discovery
solutions
Print books
(including
approval
plans)
% of librarians indicating they are likely to
increase expenditures in the following areas

29. E-packages and the future of the Big Deal
EBSCO’s e-package growth
In 2014 EBSCO handled more than 17,000
e-packages for over 4,000 customers
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

30. Packaged Content
as a % of EBSCO’s business
56%
Packaged
44%
Remainder
2014

31. The Big Deal
Publishers’ view of the future of Big Deals
Will the big deal be around in five years?
38%
6% 9%
44%
3%
Very Likely
Somewhat Likely
Unsure
Somewhat Unlikely
Very Unlikely

32. E-packages
Publishers’ plans
% of publishers likely to take actions in each category next year
74%
27%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Offer smaller subset… Offer larger e-packages

33. E-packages
Publishers’ plans
% of publishers likely to take actions in each
23% 6%
39%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Move to standard tiered
pricing model for e-packages
Reduce cost per unit of
e-packages
Increase cost per unit of
e-packages
category next year

34. More Content
Publishers’ Content Plans
% of publishers likely to take the following
82%
50%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
actions next year
Start titles Acquire titles

35. OU University Libraries Materials Budget
2009
Databases
10%
Serials Books
64% 26%
Databases
15%
2013
70%
15%
Serials Books
R, Luce & K. Rupp-Serrano. “University Libraries and Big Deals”, UO, 2014

36. Concern over publisher
concentration
Percentage of serials budget consumed by Big Deals
25-50% of
Serials Budget
< 25% of
Serials Budget
> 50% of
Serials Budget
19%
39%
42%

37. Concern over publisher
concentration
Percentage of serials budget consumed by Big Deals
St. Johns University Libraries:
11 Big Deals accounted for
70% of serials budget
Unbundling the Big Deal with Patron Driven Acquisition of eJournals, IFLA 2011
- Maureen Weicher & Tian Xiao Zhang

38. Gap between content included in
packages and use
20%
80%
Title Usage
Titles Used
Titles Not Used
Awash in eJournal Data: What it is, where it is, and what
can be done with it.” D. Brennan & N. Butkovich, Penn State Univ., Charleston Conf. 2013

39. Recent surveys show
that almost all
academic librarians
use usage statistics
to make purchasing
decisions.
EBSCO Library Collections
and Budgeting Trends Survey 2014,
EBSCO Information Services,
MPS Librarian Survey: Usage Statistics,
MPS Limited, 2010; and Renewals
2007-2011

40. Usage is key
Librarians’ view
% of librarians indicating a metric as important
when making content decisions
100%
57% 45% 25%
120%
100%
80%
60%
40%
20%
0%
Usage Statistics Cost
Per Use
Faculty
Recommendation
Historical Price
Increases
Value Metrics
(Ex. Impact Factor)

41. A key influencer of use –
discoverability
Librarians and discovery services
76%
5% 10%
20%
Have a discovery service
Will purchase a discovery service
within a year
Currently have a plan for evaluating a
discovery service
Are planning to re-evaluate current
discovery service

42. Publishers appear to get it
Importance of initiatives to publishers over the
next 12 months
100% 98%
71%
26%
60%
41%
97%
1% 3% 1%
120
100
80
60
40
20
0
Increasing Usage Growing Sales Improve Hosting
Solutions
Implementation
Mobile Device
Strategies
Implementation
PDA/PPV
More Important
Less Important

43. Altmetrics
Categories
USAGE
(views, downloads)
CAPTURES
(bookmarks, favorites, readers)
MENTIONS
(Wikipedia, comments, blogs)
SOCIAL MEDIA
(Facebook likes, shares,
tweets)
CITATIONS
(Scopus, patents)
Source: Canadian Association of Research Libraries, Altmetrics in Context 43
http://www.carl-abrc.ca/uploads/SCC/CARL2013-altmetrics-EN-FA.pdf

44. Changing the focus
on metrics
COUNTER
how much your
university uses
the collection
Article-level
metrics and
PlumX
how much the
world uses
your research

45. Patron driven acquisition/
pay per view
Librarians’ view
% of librarians who agree
69%
50%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PDA/PPV in combo with journal
purchases will replace big deal
Worry PDA/PPV budget will get
"eaten up" too quickly by users

46. Patron driven acquisition/
pay per view
Librarians’ view
Does your library currently have a PDA/PPV arrangement
where the library pays all or a portion of the cost of content
on behalf of its users?
45%
55% Yes
No
No
Yes

47. Open Access
Librarians’ strategies
% of librarians indicating they employed the following
strategies this year
86% 46%
74%
67%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Moved to E-only
(dropped P)
Did not renew
e-packages
Renegotiated
multi-year
e-package deals
Sought alternative
Open Access
content

48. What about Open Access?
Publishers’ plans
Publishers likely to add OA titles
this year
Yes
No 28%
72%

49. Open Access Statistics
Large publishers with OA initiatives
1 Directory of Open Access Journals
Over 10,000 OA titles1
New titles added at the rate of 4 per day in 20131

50. eBooks expected to grow
Where librarians envision spending a greater % of their budgets next
year
60%
50%
40%
30%
20%
10%
0%
Individual
eBooks
Individual e-journal
subscriptions
eBook
packages
E-journal
packages
Full-text
databases
Discovery
solutions
Print books
(including
approval plans)
56% 44% 31%
27% 25%
17% 6%
% of librarians indicating they
are likely to increase
expenditures in the following
areas

51. 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ownership
(1 book/
unlimited users)
Ownership
(1 book/3 users)
Ownership
(1 book/1 user)
Subscription Short-term lease
100%
90%
69%
74% 57%
eBooks
Librarians’ view – preferred eBook models
Which of the following purchasing
methods would you be willing to use?

52. 70%
60%
50%
40%
30%
20%
10%
0%
Ownership
(Unlimited users)
Ownership
(1 book/1 user)
Ownership
(1 book/1 user)
Short term
lease/rental
69%
66%
69%
24%
10% 6% 7%
55%
21% 27% 24% 21%
Likely
Unlikely
Not sure
eBooks
Models publishers would consider
Likelihood of eBook publishers participating in
the following pricing models
Ownership
(1 book/3 users)

53. Focus on the
Long Term
5

54. Financial stability with
intermediaries
Publishers rate as important
Allows prompt payment for orders to be
sent to publishers according to terms
100%

55. How is EBSCO navigating the
landscape?
• Focus on the long term
– A benefit of being a private family-owned company
• We believe we must provide value in the
information supply chain in three areas:
– Search, discovery and access
– Content
– Acquisition, management and evaluation
– Analytics

56. How is EBSCO navigating the
landscape?
Acquisition, management and evaluation:
• Intermediary services
• EBSCONET
– E-package Renewals
– ERM Essentials
– Usage Consolidation
– Usage Analytics (summer 2012)
• AccessNow – institutional PPV product

57. How is EBSCO navigating the
landscape?
Content:
EBSCOhost – full-text databases
eBooks on EBSCOhost

58. How is EBSCO navigating the
landscape?
• Search, discovery and access:
• EBSCOhost – abstract/indexing databases
(ex: CINAHL, America: History and Life, SocINDEX)
• EBSCOhost – full-text databases
(ex: Academic Search, Business Source)
• EBSCO Discovery Service
• Smartlinks technology

59. Thank You
khenderson@ebsco.com
Charleston | 2014