Cost Allocation:

1
Cost Allocation

• Intra-Consortial Models
• Diane Costello

2
Cost-Sharing - Publisher Model

• Fixed price per institution
• Subscription history (current spend)
• Percentage discount by volume
• Institutions
• Databases
• Total consortium spend
• EFTSU / FTE - all or discipline-specific
• Base price additional institution price
• some or all of the above
• - Passed on directly to institutions

3
Cost-Sharing - Internal

• Possible parameters
• Equal share
• FTE-based - tiers or per-FTE
• Usage-based
• Resources/Library/Institution budget, or
• a combination of the above eg 50 equal share
  (entry level) 50 FTE-based
• or what it is worth to the institution eg NAAL
  (Alabama)

4
Cost-Sharing - Local Variations

• Gaining consensus
• Current Contents - 50 fixed 4 tiers based on
  FTE ( choice of interface)
• MathSciNet - Costs of current subscribers
  reducing with added subscribers
• ProQuest5000 - Minimum entry cost per institution
  Minimum total cost

5
International Variations

• NESLI - standard tiers based on institution size
• CNSLP - research-based formula, institutions
  aggregated within provinces
• research students
• research income
• faculty members
• Carnegie Classification

6
Issues for Publishers

• Continuous product enhancement
• Maintenance of dual/multiple formats
• Variations in the global market
• Packaging reduces overheads
• Return to shareholders

7
Issues for Institutions

• Variation in size / wealth / research emphasis /
  discipline base
• Cost-allocation parameters
• Competition
• Subsidy of less well-resourced institutions
• Relative gain versus the NAAL ideal
• Selection is expensive

8
Issues for Consortia

• Balancing interests of the large small members
• must be some advantage over going solo
• content and/or price
• A member drops out
• Competing consortia

9
Contentious Issues

• The Big Deal
• Access to purchased data
• Archiving
• Product differentiation consumer choice
• Impact of publisher mergers
• Bundling print with online
• Site definition (16 Oz single-campus univ)

10
Pause ....

• National Site Licence - an ideal which requires
  either
• top-sliced or additional funding
• or
• prior internal agreement about content and cost
  allocation

11
Progress

• Discounts on list prices
• Access to more content
• E-only plus DDP option
• Simpler licenses providing better access

12
CAUL Agreements 1996-

• 46 agreements, 29 full-text, 4 factual databases,
  the rest bibliographic
• Half commenced in 2000 or later
• burgeoning of available electronic products
• increasing willingness of publishers to deal with
  consortia
• Billing handled centrally (15)
• local office or agent
• Average number of participants 20
• Highest number 40 (ProQuest5000)

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Where to from here?

• Virtual distribution -gt flexible distribution
• Adding smaller institutions increases market
  reach, market share, total revenue
• Entry-level pricing
• Better-targeted packages (content)
• One size does not fit all markets
• Cost-shifting - from document delivery, from
  storage maintenance
• Monograph/reference price models

15

• Discuss!