205 crow ssp publishing cooperatives v2
DESCRIPTION
TRANSCRIPT
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
Society for Scholarly PublishingInnovative Partnerships for Small
Publishers
www.arl.org/sparc
What We’ll Cover
• Recap HFES profile
• Compare HFES against other small publishers
• Review the shared needs of small publishers
• Describe how a publishing cooperative might work
• Suggest cooperatives as an innovative publisher partnership
www.arl.org/sparc
HFES Profile
• 3 peer reviewed journals (two print & online, one magazine format)
• Monthly Bulletin• Annual Proceedings• Annual topical review book series• Annual member directory• Occasional books
www.arl.org/sparc
HFES Profile
• 4,700 members
• $1.6 million budget
• 3 full-time publishing staff
www.arl.org/sparc
Context
Source: 2005 Association Publishing Benchmarking Study
Median Publishing Staff 3Paid Circulation <5,000 96%
Publish books 45%Publish e-newsletter 73%
Outsource Some/ All Functions 83%
Median Revenue (quarterlies) 239,000$ Median Costs 324,000$
Generate Any Net Income 7%
Society Publishers <$500,000 in revenue
www.arl.org/sparc
Context: Journals per Society
2-3 Journals(8 %)
1 Journal
Average Journals per Society
4+ (<3%)
Almost 90% of publishing societies publish one journal
Over 97% publisher three or fewer journals
Per Ulrich’s analysis, 2005.
www.arl.org/sparc
Context: Journals by Medium
Substantial portion of peer reviewed journals remain print only.
Per Ulrich’s analysis, 2005.
Print-only(40 %)
Digital Formats(60 %)
www.arl.org/sparc
Context: Mixed Market for Journals
~20,000 peer reviewedscholarly & scientific journals
Self-published Society Journals(23 %)
University-sponsored(15 %)
Commercially-publishedSociety Journals
(17 %)
Commercially-owned Journals(45 %)
Per Ulrich’s analysis, 2005.
www.arl.org/sparc
Context: Shared Issues
• Marginal market power—as buyers
• Marginal market power—as sellers • Insufficient staff resources• Lack of investment capital• Innate conservatism
www.arl.org/sparc
Shared Services Cooperative• Group of publishers that forms to
provide one or more services to improve their competitiveness & sustainability
• Purchases or provides services at a cost below what members could achieve individually
• Services depend on member needs—can evolve over time
www.arl.org/sparc
Potential Cooperative Services• Editorial services• Print purchasing• Online distribution • Marketing & sales programs• Licensing & rights management• Subscription & membership management• Publication business management
Through shared services. . .Through collective purchasing
www.arl.org/sparc
Cooperative Basics
• Owned by members– Members exercise democratic control– Member equity based on use of
services
www.arl.org/sparc
Cooperative Basics
• Owned by members• Provides services at cost
– Income from fees– Surplus returned as patronage
refunds– Allocated equity redeemed over time
www.arl.org/sparc
Cooperative Basics
• Owned by members• Provides services at cost• Retained equity provides
operating capital– Meet market demand for new content– Fund investments in services
Business Management Services
Digital Hosting & Publishing Services
Other Publishing Support Services
Marketing Services
Scale-economy Bargaining
Equity Pool & Policy
Content Offering(s)
Pu
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op
erat
ive
Library
Library Consortia . . .
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Publishing Cooperative Model
Society
Discipline-specific Co-op
NonprofitSociety
Society
Nonprofit
Business Management Services
Digital Hosting & Publishing Services
Other Publishing Support Services
Marketing Services
Scale-economy Bargaining
Risk Pooling & MitigationRisk Pooling & MitigationRisk Pooling & Mitigation
Content Offering(s)
Pu
blis
her
Co
op
erat
ive
Society
Discipline One
Library
Library Consortia . . .
SocietySociety
Society
Society
U Press 1
University Presses
U Press 4U Press 3
U Press 2
Society
Discipline Two
Society
Society
Society
Society Society
Society Federation
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Content Offering(s)Content Offering(s)
Scalable Publishing Cooperative Model
Content Offering Content Offering Content Offering
Equity Pools &Policies
Equity Pools &Policies
Equity Pools &Policies
Discipline-specific
Cooperative
Discipline-specific
Cooperative
Discipline-specific
Cooperative
Content Offering Content Offering Content Offering
Equity Pools &Policies
Equity Pools &Policies
Equity Pools &Policies
Discipline-specific
Cooperative
Discipline-specific
Cooperative
Discipline-specific
Cooperative
. . .
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Libraries & Consortia
Scalable Publishing Cooperative Model
Digital PublishingTechnology Platform
Business Management Services
Hosting & Dissemination
Marketing & Other Publishing Support Services
Scale-economy Bargaining
Business Management Services
Hosting & Dissemination
Marketing & Other Publishing Support Services
Scale-economy Bargaining
Discipline-specific Open Archives
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power &
visibility
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power &
visibility• Scale economies
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power &
visibility• Scale economies• Access to management & planning
services
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power &
visibility• Scale economies• Access to management & planning
services• Capital & risk pooling
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power & visibility• Scale economies• Access to management & planning
services• Capital & risk pooling• Control & mission alignment
www.arl.org/sparc
Cooperative Benefits
Collective action to provide—• Increased market power & visibility• Scale economies• Access to management & planning services• Capital & risk pooling• Control & mission alignment
Can complement other nonprofit publishing
services.
www.arl.org/sparc
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
www.arl.org/sparc
Cooperative Launch Process• Exploratory meeting: identify unserved
needs
• Float concept proposal that conveys vision
• Survey potential member universe
• Analyze feasibility
• Develop business plan
• Implement & launch
www.arl.org/sparc
For More Information
Raym CrowSenior Consultant
SPARC Consulting [email protected]
1.703.536.7447