publishing cooperatives
DESCRIPTION
Publishing Cooperatives. THE SCHOLARLY PUBLISHING & ACADEMIC RESOURCES COALITION 21 Dupont Circle NW, Suite 800 Washington, DC 20036 (202) 296-2296 www.arl.org/sparc. First International Public Knowledge Project Scholarly Publishing Conference Vancouver, BC. - PowerPoint PPT PresentationTRANSCRIPT
Publishing Cooperatives
Raym CrowSenior Consultant, SPARC Consulting
Group
THE SCHOLARLY PUBLISHING & ACADEMIC RESOURCES COALITION21 Dupont Circle NW, Suite 800Washington, DC 20036(202) 296-2296www.arl.org/sparc
First International Public Knowledge Project Scholarly
Publishing ConferenceVancouver, BC
What We’ll Cover
1. Society publishers are economically important
What We’ll Cover
1. Society publishers are economically important
2. Society publishers face market & structural constraints
What We’ll Cover
1. Society publishers are economically important
2. Society publishers face market & structural constraints
3. Cooperatives offer a model to support society self-publishing
First Point:Society publishers are economically important
The Mixed Market for Journals
~23,000 scholarly & scientific journals
Increasing at~3. 5% per year
For-profit journalsincreasing at 2X the rate of society journals
Per Ulrich’s analysis, 2005.
Doubling every 22 years
Commercial publishersrepresent slightly larger slices of much larger pie
68%
32%
Per Ulrich’s analysis, 2005.
The Mixed Market, 2025
Average prices differ by publisher type
Per Bergstrom & Dhuey, 2003.
The Mixed Market for Journals
Journals per Society
Almost 90% of publishing societies publish one journal
Over 97% publisher three or fewer journals
Per Ulrich’s analysis, 2005.
Journals by Medium
Substantial portion of peer reviewed journals remain print only
Per Ulrich’s analysis, 2005.
Why Society Publishers Important
• Scholarly & scientific publishing doubling every 20 years
• For-profit journals growing faster than non-profits
• For-profit journals cost 3X to 5X more than self-published society journals
Second Point:Society publishers face market & structural constraints
Market Pressures
• Pressure on subscription model– For-profit prices & bundles capturing
budget dollars
– Tight library budgets
– Many small non-profits competing against a few large for-profits
– Lack of market share & market power
Market Pressures
• Pressure on subscription model
• Increased demand for online access & functionality– Requires ongoing technology
investment
– Online transition can raise member retention issues
Market Pressures
• Pressure on subscription model
• Increased demand for online access & functionality
•Market reaction to high commercial prices
Market Pressures
• Pressure on subscription model
• Increased demand for online access & functionality
• Market reaction to high commercial prices
• Exodus from self-publishing
Internal Constraints
• Insufficient staff resources– Core competence in content &
certification
– Scarce in-house business management resources
– Passive approach to subscription model
Internal Constraints
• Insufficient staff resources•Lack of investment capital
– Hinders response to market demand
– Impedes technological innovation
Internal Constraints
• Insufficient staff resources• Lack of investment capital• Innate conservatism
– Affects perception of risk– Desire for control
Shared Issues of Society Publishers• Very small• Marginal market power—as
buyers• Marginal market power—as
sellers • Insufficient staff resources• Lack access to key services• Undercapitalized• Conservative & risk averse
Third Point:Cooperatives offer a response to the issues society publishers face
Cooperatives Are Everywhere
Consumer Cooperatives
Producer Cooperatives
Shared Service Cooperatives
Cooperative Basics
•Owned by members– Member equity based on use of
services
Cooperative Basics
• Owned by members•Controlled by members
– Members exercise democratic control
Cooperative Basics
• Owned by members• Controlled by members•For the benefit of members
– Members determine services– Provides services at cost
Co-op Financial Overview
Co-op Financial Overview
Co-op Financial Overview
Co-op Financial Overview
Potential Cooperative Structures
Cooperative Benefits
Collective action to—
Cooperative Benefits
Collective action to—• Increase market power &
visibility
Cooperative Benefits
Collective action to—• Increase market power &
visibility•Reduce costs via scale
economies & increased bargaining power
Cooperative Benefits
Collective action to—• Increase market power &
visibility• Reduce costs•Supply missing services
Cooperative Benefits
Collective action to—• Increase market power &
visibility• Reduce costs• Supply missing services •Pool capital & share risk
Cooperative Benefits
Collective action to—• Increase market power &
visibility• Reduce costs• Supply missing services • Pool capital & share risk•Retain control
Benefits for Libraries
•Lower content costs– Maintain moderate prices– Increase society role in creating
new publishing channels
Benefits for Libraries
• Lower content costs•Provide framework for
alternative funding models– Allow publishers to explore new
income models– Provide way for libraries to
share risk
In Sum, Publishing Cooperatives• Address society publisher
issues—on publishers’ own terms
• Increase society publishing role• Lower publisher & library costs• Provide basis for new funding
models• Complement existing initiatives• Scalable & replicable
Next Steps: Prerequisites
• Adequately defined scope
• Sufficient scale to warrant group action
• Able to provide a solution solely on economic terms
• Culturally, politically & economically appropriate for the group
Next Steps: Co-op Launch Process
• Exploratory meeting: identify unserved needs
• Float concept proposal that conveys vision
• Survey potential member universe
• Analyze feasibility
• Develop business plan
• Implement & launch