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The Evolution of Licensing and What It Means to Our Business Strategies Society for Scholarly Publishing May 28, 2003 Alma J. Wills, Partner Kaufman-Wills.

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Presentation on theme: "The Evolution of Licensing and What It Means to Our Business Strategies Society for Scholarly Publishing May 28, 2003 Alma J. Wills, Partner Kaufman-Wills."— Presentation transcript:

1 The Evolution of Licensing and What It Means to Our Business Strategies Society for Scholarly Publishing May 28, 2003 Alma J. Wills, Partner Kaufman-Wills Group, LLC

2 Kaufman-Wills Group, LLC2 “A channel of distribution shall be considered to comprise a set of institutions which performs all of the activities (functions) utilized to move a product and its title from production to consumption.” Kotler, page 412

3 Kaufman-Wills Group, LLC3 “…the channels chosen for the company’s products intimately affect every other marketing decision.” Kotler, page 412

4 4 Traditional Channels Publisher Subscriber Publisher Subscription Agent Institution

5 Kaufman-Wills Group, LLC5 “Channel institutions, like products, are subject to life cycles. A particular channel institution may emerge suddenly, enjoy rapid growth, reach a point of relative maturity, and eventually move into a period of slow decline. A major force behind the channel life cycle is changing economics, which makes new combinations of marketing functions suddenly more efficient than previous ones.” Kotler, page 421

6 6 Licensing Opportunities Content Print Edition Author Reprints Comm’l Reprints Online Edition E-Prints Pay Per View AggregatorsPortalsTranslations Specialty Collection Permissions Site Licenses Databases

7 7 Today’s Channels Subscription Agents Author & Commercial Reprint Services Hosting Service(s) Document Delivery Services Aggregators Portals International Publishers Other Associations/Publishers Publisher

8 Kaufman-Wills Group, LLC8 “When new institutions first appear, the typical pattern is one of institutional conflict, followed by accommodation.” “Another important channel development is the movement of companies toward developing multichannel systems that reach the same or different markets, where some of these channel systems are in competition with each other.” Kotler, pp 422 & 427

9 Kaufman-Wills Group, LLC9 Revenue Sources Mid-1990’s vs Mid- 90’s

10 Kaufman-Wills Group, LLC10 “Content vendors are struggling to come to grips with new forms of aggregation, and new methods for integrating content into software and workflows. At the root of all these problems is the collision between what users want to do, and what content vendors allow them to do.” Outlook 2003: Issues on the Information Marketplace. ©Outsell, Inc. December 18, 2002

11 Kaufman-Wills Group, LLC11 Observations Small, single title publishers “Over the transom/order takers” Going it alone Price too low Fear cannibalizing existing channels Using others’ platforms (i.e., HighWire) Few economies of scale Large, multi-title publishers Dedicated staff & business units Partnering (sometimes) What the market will bear & more Fear cannibalizing existing channels Proprietary platforms Able to spread resources over many titles.

12 Kaufman-Wills Group, LLC12 How Many Channels Do You Need? It depends on your publication and the breadth of distribution you are seeking:  Exclusive Distribution  Intensive Distribution  Selective Distribution

13 Kaufman-Wills Group, LLC13 What Does Licensing Mean To Your Business?  Licensing is the fastest growing line item on your financial statement.  Margins are high because you have already paid to develop the content.  It deserves as much focus as the other aspects of your business.  It’s labor intensive and requires dedicated staff or subcontracting.

14 Kaufman-Wills Group, LLC14 What to do?

15 15 Develop a plan. Think cost/benefit. Identify potential licensors  What services do they offer? Features?  Who are their customers?  What is their reputation?  Are there costs?  Will you need additional staff to work with them?  Revenues?

16 16 Organize for opportunity --- not ink on paper --- set goals Publisher Marketing Content Licensing Promotion Site Licensing Advertising Reprint sales Production Online Print

17 17 Be where your potential users can easily find you --- or they will use other content 1. Do a Google Search & see what comes up 2. Get listed in databases, indices & bibliographic services 3. Link with related websites 4. Document delivery services 5. Press releases

18 18 Cast a wide net --- but be selective  Know your service provider  Scrutinize agreements  Talk to others and check references  Ask for modifications

19 19 Seek out revenue generators and awareness creators  Make sure that each alliance brings value to your publication.  Keep in contact with vendors. Let them know you expect value.

20 20 Look for strategic alliances  Partner with other organizations to build critical mass of content.  If you can’t or don’t want to do it yourself, find a service provider.


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