Patron-Driven Acquisition of Monographs: Results and ImplicationsCharleston Conference

November 4, 2010

Becky Clark – Johns Hopkins University PressMichael Levine-Clark – University of Denver

Matt Nauman – YBP Library ServicesDavid Swords – EBL - Ebook Library

RENT DON’T BUY: A STORY OF BOATS, BOOKS, AND

BARSDavid Swords, EBL

The Charleston ConferenceNovember 2010

We Don’t Rent Pigs

We Don’t rent Pigs

Libraries

Students and Faculty

Publishers

University of Denver – EBL Data

• May-October, 2010– 42,000-48,000 titles available– 66 titles purchased– 1,423 STLs (short-term loans)

• 113 titles with 3 STLs (339 loans)• 137 titles with 2 STLs (274 loans)• 810 titles with 1 STL (810 loans)

– 3,267 browses (under 5 min = free)• 2,125 titles

University of Denver – EBL Costs

Actual List• 66 titles purchased $5,076 $5,076• 994 titles with STL* $13,475 $76,438**• 2,125 titles with browse $0 $163,413**• Total (3,185 titles) $18,551 $244,927• Savings $226,376

*Doesn’t include purchased titles with STL**Average of $76.90/title based on 66 titles purchased (average

across EBL closer to $100)

Redefining the Collection

• Broader pool of titles for potential purchase– The collection is not just what you own or lease– More books per user – Purchase based on need

• Collection management = risk management– Maintain largest pool possible– Removing/adding titles

• Multiple rules

Challenges

• Budgeting– Unknowns

• How many sales?• How many leases?• Uneven year-to-year?

• Long-term stewardship– Core collection (of unpurchased material)

maintained longer? Differently?– Uneven collections?

Rethinking ILL

• ILL/Acquisitions blur– Borrow or buy– STL for ebooks– Purchase some ILL requests

• STL replaces ILL– Logical for libraries– Income for publishers

Alternate Pricing/Alternate Strategies

• PDA difficult for:– Community colleges, others with high FTE, small

budgets– Intense users of narrowly-focused collections

• Differential pricing?

Uh-oh!: UPs on PDA

Becky Brasington Clark

Johns Hopkins University

November 4, 2010

Survey of University Presses

To gauge perceptions of impact of patron-driven acquisition

Online survey to member presses of AAUP AAUP: 130 members, of which about 100 are

affiliated with U.S. research institutions Requested one response per institution Gathered 42 responses

Five Areas of Concern

PDA and Host Institution's Library Perceived Impact of PDA Scholarly Monograph Publication Strategy Perceived Impact on Scholarly Monograph's

Use In Tenure And Promotion Ebook Publication Strategy

Great degree of familiarity

93% of respondents already familiar with PDA

64% from conferences/seminars 47% from colleagues 39% from e-book vendors 14% from wholesalers

How often have you spoken to your host institution’s library about PDA?

50%: Never 50%: Occasionally 0%: Frequently

Is your library participating in PDA?

46%: Don’t know 33%: Yes 21%: No

Potential Impact of PDA on Sales

54%: Negative 19.5%: Positive 19.5%: No idea 7%: No impact

What Percentage of Your Sales Come from Scholarly Monographs?

Scholarly monographs generate more than 40% of revenue for 60% of respondents

How would PDA impact your output of scholarly monographs?

56%: We would publish the same number 31%: We would publish fewer 13%: No opinion/no idea

How would PDA impact your ability to forecast sales?

68%: It will be more difficult to forecast 12%: No impact 10%: It will be easier to forecast 10%: No opinion/no idea

Percentage of monographs that are associated with tenure/promotion

For 39% of respondents, more than 40% of monographs they publish are associated with tenure/promotion

PDA’s impact on the role of monograph in tenure and promotion Do you think the widespread adoption of

patron-driven acquisition could have a negative impact on the role of the scholarly monograph in supporting tenure or promotion?

58%: Yes 24%: No 18%: No idea/no opinion

E-book strategy

How does your press publish its e-books in relation to its print books?

62.5%: Simultaneously 19%: 60-180 days after print 15.5%: 30-60 days after print 3%: Prior to print

E-book strategy

If you don’t publish simultaneously, what is your rationale?

63%: Strategic decision to embargo 56%: Would like to publish simultaneously

but haven’t perfected workflow

E-book strategy

Has your press opted into patron-driven acquisition options offered by various e-book vendors?

57%: No 43%: Yes

E-book strategy

If no, why not?

77%: Taking wait-and-see attitude 18%: Intend to, but haven’t yet 5%: Don’t intend to

The Impact of PDA on Traditional Book Vendors

•Three Challenges for a Successful Patron Driven Acquisitions Program

•Develop a new value and service proposition•Provide the infrastructure for PDA•Replace lost revenue

YBP’s Experience with Patron Driven Acquisitions

• Successful print experiments with several customers• Working with aggregator partners to facilitate their ebook PDA

offers• Working with aggregators to develop an integrated E & P offer• Experiments and development have demonstrated how this new

approach will work• Now we turn to the serious business of meeting the PDA

challenges

Developing a New Value & Service Proposition

• PDA is a different business• Currently we deliver new titles upon publication• With PDA we will present a large universe of content that is discoverable and attainable by

patrons – in different ways

• Vendor provides the service background that makes this new model possible• Creation and maintenance of the database – the “consideration pool”• Business rules to support PDA• Developing tools that will make it easier for customers to manage PDA

• Currently we are adapting existing systems• The Approval Plan and profiling methodology provide a basis for PDA

• But as the system develops we will bring out PDA-specific tools

Providing the Infrastructure for Patron Driven Acquisitions

• Development of the integrated E & P “Consideration Pool” of content• Moving from delivery of books to content discovery and support for new workflows• Support for new business functions including:

• Browse and Short Term Loan• POD options• No dead ends – a direct to consumer option• But we still require speed of delivery for print purchases

• We are developing a base product – these are the early stages of PDA• There are many different ideas about PDA• E-books are not a fully developed product yet• We have to remain flexible while offering a sophisticated solution

• This is a continuing project – probably a transition to new business models

Replacing Lost – or Deferred - Revenue

• We are all seeing the decline in print book sales• It is doubtful that current margins can be maintained as print declines• Electronic content carries lower margins

• In a best-case scenario the sale of content will be deferred in this model• Sales of E & P will take longer• Early experiments show use through browse & short term loan but lower sales

• It is time to consider a new business model to go with Patron Driven Acquisitions

• Annual subscriptions fees for development and maintenance of the database• Perhaps transaction fees• In this scenario the vendor is paid for its actual value to customers• Something to think about as development continues