1. NetLibrary is a division of OCLC Online Computer Library Center International Coalition of Library Consortia Poznan, Poland September 30, 2005 Marge Gammon Division Vice President, Library & Publisher Services NetLibrary, A Division of OCLC Online Computer Library Center, Inc.

2. NetLibrary is a division of OCLC Online Computer Library Center International Coalition of Library Consortia Poznan, Poland September 30, 2005 Marge Gammon Division Vice President, Library & Publisher Services NetLibrary, A Division of OCLC Online Computer Library Center, Inc. Traveling at the Speed of “e”

3. NetLibrary is a division of OCLC Online Computer Library Center eDatabases eJournals eBooks ePeriodicals, Newspapers eMusic eAudiobooks eVideo eSpecial Collections

4. NetLibrary is a division of OCLC Online Computer Library Center eDatabases eJournals eBooks eNewspapers eMusic eAudiobooks eVideo eSpecial Collections eCONTENT

5. NetLibrary is a division of OCLC Online Computer Library Center “Media are Converging...... Text, images, audio, and content – and are increasingly interactive in the consumer world... Which will drive the next wave of development for eBooks.” Source: Outsell, Inc., Trend Alert: Books are Back Big Time in the Enterprise, Volume 8, June 10, 2005.

6. NetLibrary is a division of OCLC Online Computer Library Center We’re a long way from where the journey started...

7. NetLibrary is a division of OCLC Online Computer Library Center Charting a Course Growth in NetLibrary Catalog and Libraries Served (In Thousands) 200020012002200320042005 eBook Titles24.540.048.963.681.5100.0 Libraries 2.0 3.0 6.8 7.2 8.6 14.0 Now Also: 5500 eJournals, 1000 eAudiobooks, 23,500 titles from non-U.S. publishers, foreign language materials, 2.1 million articles, databases

8. NetLibrary is a division of OCLC Online Computer Library Center Points of Departure... Preferred Publisher Route Comfort with Known Models Per Title Economics “e” Stands for More Options and Flexibility

9. NetLibrary is a division of OCLC Online Computer Library Center Points of Departure... Preferred Library Route Comfort with Known Models Per Title Economics “e Should Provide: More accesses Purchase Options

10. NetLibrary is a division of OCLC Online Computer Library Center The Case for Shared Collections  Create awareness  Reach more libraries via a trusted source  Provide high value to libraries  Facilitate new product adoption & usage  Supplement print purchases  Actual exposure vs. potential exposure  Managed via one book/one user model  Result in additive sales of titles that otherwise might not be purchased

11. NetLibrary is a division of OCLC Online Computer Library Center The Case Against Shared Collections  Significant departure from traditional sales approaches  Potential for print cannibalization  Authors are as sensitive – or more so – than  publishers  Growing adoption leads to corporate scrutiny within publishing houses  Risk-takers must respond to management Economically not sustainable Lost Revenues Content devaluation

12. NetLibrary is a division of OCLC Online Computer Library Center The data suggests...  Decreasing participation in shared collections as adoption grows  Typical Shared Purchase: 42 Libraries  One Book/One User Model moderates exposure  Average 8 minutes in a book

13. NetLibrary is a division of OCLC Online Computer Library Center 5-8 institutions in a “typical” consortial shared purchase would likely have purchased copies of the same title in print. Source: OCLC NetLibrary Research comparing WorldCat print holdings to eBook purchase activity among consortia librariers The data further suggests...

14. NetLibrary is a division of OCLC Online Computer Library Center The Current Model... Consortia of 42 members Consortia of 42 members Approximately 500,000 fte’s Approximately 500,000 fte’s Purchases 10,000 eBook titles Purchases 10,000 eBook titles For $500,000 ($50 per title average) For $500,000 ($50 per title average) Cost per fte: $1.00 Cost per fte: $1.00 Cost per institution: $11,905 Cost per institution: $11,905 Cost per book per institution: $1.19 Cost per book per institution: $1.19

15. NetLibrary is a division of OCLC Online Computer Library Center Current vs. Print Behavior Shared “e” Print Shared “e” Print # Institutions 42 42 Number w/Access to Titles 42 5 Estimated FTE’s 500,000 60,000 Copies Purchased 1 5 Total Rev ($50/title) $500,000 $2,500,000 Cost Per Inst/Title $1.19 $50.00 Cost Per FTE $1.00 $ 5.00-$41.67 Publisher/Author Revenues Per Title per Institution Based On: $1.19 $ 50.00

16. NetLibrary is a division of OCLC Online Computer Library Center NetLibrary’s Goals:  Retain what is known and effective  Transition to a “new place”  Move toward what the market is asking for  Ground the transition process in fact  Provide “stepping stones”  Include innovation  Create stability in the decision-making process Changes are coming...

17. NetLibrary is a division of OCLC Online Computer Library Center Changes are coming... Be mindful of what will be needed 1-3 years from now Balance the familiar and stable, with the new and uncertain... Take some risk! Incorporate all constituents in solution development Monitor and adjust

18. NetLibrary is a division of OCLC Online Computer Library Center Merging along the Same Path... Publishers:  Grow unique collections  Redefine consortia roles & pricing  Add revenue streams  Innovate and grow via new business  models products, and services Libraries  Increase value of unique collections  Continue shared collections  Create new products with  varied content formats  Create purchase options

19. NetLibrary is a division of OCLC Online Computer Library Center Just “over the next hill”... NetLibrary’s Proposal to Publishers: All unique collections – new and future – be provided with two simultaneous accesses for no additional charge All unique collections – new and future – be provided with two simultaneous accesses for no additional charge Shared collections will require the purchase of multiple accesses Shared collections will require the purchase of multiple accesses Publishers “opt in” or “opt out” for a period of 18 months Publishers “opt in” or “opt out” for a period of 18 months Engage and incent consortia to participate in other selling programs Engage and incent consortia to participate in other selling programs D R A F T

20. NetLibrary is a division of OCLC Online Computer Library Center D R A F T Just “over the next hill”... NetLibrary’s Proposal to Publishers: All unique collections – new and future – be provided with two simultaneous accesses for no additional charge All unique collections – new and future – be provided with two simultaneous accesses for no additional charge Shared collections will require the purchase of multiple accesses Shared collections will require the purchase of multiple accesses Publishers “opt in” or “opt out” for a minimum of 18 months Publishers “opt in” or “opt out” for a minimum of 18 months Engage with and incent consortia to participate in other selling programs Engage with and incent consortia to participate in other selling programs

21. NetLibrary is a division of OCLC Online Computer Library Center Proposal for Shared Collections The level of multiple accesses required is predicated on number of libraries participating in any shared collection. Now through July 1, 2006 thru Now through July 1, 2006 thru June 2006: June 30, 2009 # Members Required Required Participating Accesses Accesses 2-15 2 2 16-30 3 4 31-50 4 6 50+ Special Quote Special Quote

22. NetLibrary is a division of OCLC Online Computer Library Center Current vs. New Model Current Shared Proposed Current Shared Proposed # Institutions Participating 42 42 Number w/Access to Titles 42 42 Estimated FTE’s 500,000 500,000 Titles Purchased 10,000 10,000 Copies Purchased 1 4 # Accesses 1 4 Total Cost ($50/title) $500,000 $2,000,000 Cost Per Inst/Title $1.19 $4.76 Cost Per FTE/Title $1.00 $4.00 Publisher/Author Revenues Per Title per Institution Based On: $1.19 $4.76

23. NetLibrary is a division of OCLC Online Computer Library Center Implications “Sticker Shock” “Sticker Shock” Value of shared collections remains high Value of shared collections remains high Libraries will re-think selections Libraries will re-think selections More focused, smaller shared collections targeting specific interests and needs More focused, smaller shared collections targeting specific interests and needs More options for consortia participation in the movement to electronic More options for consortia participation in the movement to electronic

24. NetLibrary is a division of OCLC Online Computer Library Center Beyond Shared Collections... New Products and Services New Products and Services –eBooks integrated with other content formats –Custom content creation (e.g., eLearning) –Disaggregated content options –Individual chapter, article purchase options –Short term, high use access business models –Increased functionality, e.g., linking between and among content types –More audio (launched 2/05), more journals and databases –Advancement into video and music –More foreign language (Spanish, French, Chinese, Japanese, German)

25. NetLibrary is a division of OCLC Online Computer Library Center Beyond Shared Collections... Promotion and Preview Promotion and Preview –Growing preselling program –Content preview options –Content summaries, abstracts, reviews

26. NetLibrary is a division of OCLC Online Computer Library Center Beyond Shared Collections... Purchase Options Purchase Options –Annual or permanent ownership of monographs –Annual access plans with substitution options –Simultaneous ‘e’ and ‘p’ purchasing for monographs –FTE pricing for products with combined formats and/or annual pricing based on library size and circulation characteristics

27. NetLibrary is a division of OCLC Online Computer Library Center Beyond Shared Collections... New Programs Purchase incentives managed by consortia for unique collections Purchase incentives managed by consortia for unique collections Specialized subject collections targeting specific library types for shared collections Specialized subject collections targeting specific library types for shared collections Volume discounts on multiple copies for highly focused library requirements (e.g., medical) Volume discounts on multiple copies for highly focused library requirements (e.g., medical) Change is as inevitable as the opportunities...

28. NetLibrary is a division of OCLC Online Computer Library Center Our travels continue... “We are still in the early stages of a long transition period where a hybrid model will reign.” Source: ARL

29. NetLibrary is a division of OCLC Online Computer Library Center Dziękują