79 mc hugh

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79 mc hugh

  1. 1. Society of Scholarly Publishing June 2, 2004 San Francisco Pricing ElectronicContent: Project MUSE® Aileen M. McHugh Director of Project MUSE http://muse.press.jhu.edu The Johns Hopkins University Press amm@mail.press.jhu.edu
  2. 2. What is Project MUSE®?• A collection of more than 250 journals in the arts, humanities, and social sciences from more than 40 publishers.• Launched in cooperation with the Milton S. Eisenhower Library, and later the 11 founding publishers, by The Johns Hopkins University Press? America’s oldest university press, dating to 1878.
  3. 3. Project MUSE® Funding• Launch was funded by $720,000 in grants from the Andrew W. Mellon Foundation and the National Endowment for the Humanities.• Original mission was to publish electronically the journals of The Johns Hopkins University Press
  4. 4. Important Milestones• 1998? PM operating at breakeven• 1999? 11 other publishers joined PM and the number of journals jumps from 42 to more than 100• 2004? more than 40 publishers and 257 journals
  5. 5. Project MUSE® 2004• 95% renewal rate• 82% domestic, 18% foreign• Relationships with 40 consortia worldwide• 9 million worldwide have access
  6. 6. Case history in e-pricing• Muse and the consortia “grew up” together• Relationship was mutually beneficial• Consortia and e-distribution opened up new markets domestically and internationally• Consortia discounts worked initially because e-content was incremental revenue
  7. 7. How is e-pricing different?• Need a lot of customer data to determine a price• New functionality, eg, usage statistics, perpetual access to purchased content, CrossRef, tools• Sales more important than marketing• Licenses needed• User services and sales work together• Customer service much more technical
  8. 8. Model Became Unsustainable • Consortia mergers led to high volume discounts • Print cancellations escalated • Full Collection grew too large, and scope of journals became uneven • Libraries began canceling “Big Deals”
  9. 9. What Next?• Worked with October Ivins and Judy Luther to develop new e-pricing models that meet the needs of librarians and publishers• Pricing, though, not enough!• Need to also re-engineer publisher royalties, collection development standards, fulfillment, and customer and publisher relationship management
  10. 10. Methodology• Interviews with publishers• Interviews with 19 major influencers in library purchasing• Open hearing at ALA Midwinter• Focus groups with librarians• Web survey of >200 customers
  11. 11. What did we consider?•• Who are the primary and secondary domestic and Who are the primary and secondary domestic and international markets in order of priority? international markets in order of priority?•• How does each customer group want to buy the content? How does each customer group want to buy the content?•• How do the publishers, societies, and authors want to sell the How do the publishers, societies, and authors want to sell the content? content?•• What fulfillment capabilities are needed to implement the What fulfillment capabilities are needed to implement the pricing? What capability is available and affordable in the pricing? What capability is available and affordable in the short term and in the long term? short term and in the long term?•• What are the distribution channels for each customer group? What are the distribution channels for each customer group?
  12. 12. The Results• Primary customers are libraries at doctoral and bacculaureate liberal arts institutions• Doctoral institutions want individualized packages, whereas bacculaureate liberal arts institutions prefer collections• Publishers want to sell their content in collections• Fulfillment system supports collections and flex plans for groups, not individual libraries• Distribution channels are consortia
  13. 13. Preliminary Solutions to Pricing • • Replace consortia volume discounts with a more customized Replace consortia volume discounts with a more customized pricing grid: pricing grid: – – Use tiers based on the Carnegie classification of Use tiers based on the Carnegie classification of institutions of higher education institutions of higher education (www.carnegiefoundation.org) (www.carnegiefoundation.org) – – Use COUNTER-compliant usage quartiles to address Use COUNTER-compliant usage quartiles to address different levels of usage among similarly classed different levels of usage among similarly classed institutions institutions • • Limit package price increases Limit package price increases • • Move to more customizable packages and smaller collections Move to more customizable packages and smaller collections • • Communicate changes individually to subscribers and review Communicate changes individually to subscribers and review options with them options with them
  14. 14. Solution to Uneven Content • • In the short term, develop multidisciplinary collections with In the short term, develop multidisciplinary collections with appropriate price points for the research, four-year college, appropriate price points for the research, four-year college, and community college markets. Use criteria for collections. and community college markets. Use criteria for collections. • • Instead of continuing to expand existing packages, offer new Instead of continuing to expand existing packages, offer new packages packages • • Consider subject-specific packages? but don’t make Consider subject-specific packages? but don’t make customers of different packages pay twice for same content customers of different packages pay twice for same content • • Long-term goal is customizable packages for each library. Long-term goal is customizable packages for each library. Considerable costs for fulfillment software, accounting, and Considerable costs for fulfillment software, accounting, and training. training.
  15. 15. Current Flex Plan• A group of five or more libraries can order a custom package• Custom packages have higher price because of customer service set-up and maintenance
  16. 16. The Future of E-pricing?•• Will depend on the content and the discipline Will depend on the content and the discipline•• Flexible and customized pricing will increase for all e-content, Flexible and customized pricing will increase for all e-content, which will in turn require nimble fulfillment systems which will in turn require nimble fulfillment systems•• For some content, customization will justify higher prices For some content, customization will justify higher prices•• Sales through discovery tools such as Google will increase Sales through discovery tools such as Google will increase•• Publishers will seek new markets outside the domestic Publishers will seek new markets outside the domestic academic library community academic library community

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