Janice Kuta, Senior Vice PresidentGlobal Sales & MarketingClassical International, Inc.

It’s Not Just an STM World

Bach to the FutureServing Libraries in a Musical Digital Age

Society of Scholarly Publishers June 2 - 4 2004, San Francisco

Humanities, Social Science, STM & Digital Music

• Grove Art Online• Grove Music Online

• Nature Weekly• Nature Research &

Review Journals• Nature Reference

• Scientific American Archives

• Statesman’s Yearbook

• Classical Music Library

• What is Classical Music Library?

• www.classical.com

• Strategic Reasoning

• How is CML Doing After 18 Months?

• Lessons Learned - The Good, The Bad, and

The Not So Bad

We Will Talk About

What is Classical Music Library?

• 1st classical music listening service for library or remote computers

• 30,000 and growing individual classical music recordings for listening on demand

• Searches: Simple and Advanced

• Browsing– Composer, Artist, Instrument, Genre, Period, Music Label,

Orchestral, Chamber, Instrumental, Vocal & Choral, Opera & Operetta

• 200+ themed 1 hour play lists

• Make your own play lists

• Key composer & artist bios - links to related composers and images

• 1,850 program notes on key works and movements

• Links to other databases, e.g. Wilson Web and Grove Music Online

• Digital Music–Digital music overtaking CDs

• Consumer Service–Launched in 1999

• Investors–2 Founders of Silver Platter

• Global Library Market–U. S. Libraries initial adopters

Strategic ReasonsWhy Launch This Service?

Digital MusicTechnology has always enabled the development of music formats

1880s - Cylinder recorders

1900s - Disc (78 rpm)

1920s - First wire recorders

1930s - First experiments with stereo recording, first 'tape' recorders (Germany)

1948 - First 33 rpm LP, First (mono) open reel tape recorders appear in USA

1950s - 45 rpm 7" record appears, Multi-channel tape recorders (up to 5 channels)

1950s - First Stereo LPs

1960s - First eight-channel recorders appear

1964 - Cassette is licensed by Philips

1960s - 16 and 24 channel tape recorders appear, Open reel video recorders (b/w)

1970s - First digital recorders appear, Home video formats (VHS/Beta)

1980s - Multi-channel digital recording CDs, DAT, Computer based sound (Apple)

1990s - Computer-based digital recording, Minidisc

2000s - Personal Digital Music Players e.g. iPod

Digital Music causes music companies many headaches!

§ Digital formats can be seen as a new type of copyright- The music company may not own the digital rights, and the original

composers/artists may not be easy to trace, so lawyers get involved.

- Digital files are now being seen as “physical sound carriers”

§ A key part of copyright (control of reproduction) is undermined- Digital access requires copying, unlike the analog world

§ Ease of distribution makes piracy simpleM- One download can create millions of copies that replace legitimate

sales

- The original source is near impossible to trace

Digital music How does it impact libraries?

• Remote Usage

• Supplement Existing Collections

• Education and Lifelong Learning

• Ease of Use Encourages Use

• Patron Expectations will change

• Music resources will become increasingly interlinked

The Global Library Market

United States = 93% Academic = 85%

Public = 15%

ROW = 7%Academic = 50%

Public = 50%

Jan 03 - May 03 @ 5 customers

June 03 - May 04 @ 150 customers

Manhattanville, Kent State, East Carolina State, Denver Public, University of Miami, Berry College, Oxford University, University of New South Wales, McGill, Dartmouth, King County Library System. . .

Academic

4 yr private universities & colleges = 39%

4 yr public universities = 61%

The Global Library MarketSales & Support Tactics

• Direct Sales Team– Sales & Technical Training (Bandwidth, KBPs)

• Networks & Consortia:– SOLINET, PALINET, NELINET, OHIONET, AMIGOS, WiLs, OCLC

Western Service Center, CAPCON, (SEIR, SCELC, CCLC), MINITEX

• Trials, Trials, Trials

• Library Conferences– Exhibits, Presentations, Panels & Demos

• Library Marketing Support: Online & Print– Posters, User Guides. . .

• Great Customer Service

• Online Usage Statistics & Customer Administration

• Library Advisory Board

• Promote to Influencers if you can afford it

How is CML doing after 18 months?

The Market WantsLots of Content

More Learning Tools

More linking

Simultaneous & FTE pricing

MARC Records

Digital Audio Reserves

The Service is Working toSign More Major Record Labels

Develop More Learning Tools

Partner with publishers, sheet music

Provide MARC or appropriate cataloging

Digital Audio Reserves

The Good, The Bad, and the Not So Bad

• Very Good to Excellent Reviews:

– The Charleston Advisor, Library Journal, Choice

• Signed up Library Networks

• Reasonably Priced

• Average $Sales Increasing

• Simple License

• Library Advisory Board Works

• Good Development Team

• Need More Major Label Content

• More Independent (Niche) Labels

• No Strong Branding

• Very Tight Budgets

• Not “Need to Have”

• No Archive in Perpetuity

• New Competitor

• Slow International Sales, Market, & Distributors

• Keep Developers in Hand

• Difficult Signing Major Labels

And finally …

Be Relentless

Be Patient