Developing a Newspaper Database to Support Licensing
Michael Pocock0207 332 9367
Andrew Hughes0207 332 9359
Newspaper Licensing Agency Ltd
Newspaper licensing must recognise media monitoring
Most newspaper use is from media monitoring organisations and their clients Newspapers are unit value / time sensitive publications Extensive systematic copying happens daily in many large companies Different use and applications from journals and books
Newspaper use is primarily corporate + PR Journals use is primarily scientific + education
Significant greater corporate penetration if newspaper use can be licensed effectively
Effective MMO Licensing has potential to develop significant revenue CFC and NLA suggest revenue range potential €10m - €20m pa from 55m population Increasing respect for copyright is valuable Licensing press clippings creates a platform for wider licence rights in corporate sector Press clippings is a voluntary opt in service, with less state / judicial risk
Where strong corporate or press clipping licensing exists, database services can complement, support and enhance that
Most European countries are moving to licence + database solutions
Newspaper Licensing Agency Ltd
Press cuttings licensing and database solutions are developing fast
Country Licensing Database Model Organisations
Planned Live Planned Live
Austria Y Y Y Y VOEZ licence, APA direct service VOEZ / APA
Belgium Y Y Y Y Licence + DB (PCA + end user) CopiePresse/ Reprocopy/ MediaArgus / Pressbanking
Denmark ? ? Y Y Infomedia direct data service Infomedia / Copydan
France Y Y Y Pilot CFC licensing. eClips France 2012 CFC
Germany Y Y Y Y VG Wort statutory, PMG service PMG + VG Wort
Ireland Y Y Y Licensing established, db planning NLI
Italy Y Licensing started 2012 FIEG
Netherlands Y Y Y DB in discussion CLIP / NUV
Norway Y Y Web only licensing MBL
Poland Y New Y Y Licensing stalled with PCAs Repropol
Portugal Y New Licensing stalled with PCAs Visapress
Spain Y New Licensing started in 2011 CEDRO
Sweden Y Y TT licensing web newswire TT / Bonus PressKopia
Switzerland Y Y Statutory licence, PCA issues SMD, ProLiteris
UK Y Y Y Y Licence + DB (PCA model) NLA
USA Y Y CCC v NLG models CCC, NLG (AP)
Newspaper Licensing Agency Ltd
How NLA eClips Works
Publishers
1. Send production PDFs
NLA, London
1. Forward compressed PDFs to Ninestars
2. Host finished PDFs
3. Control user accounts
Ninestars, Chennai
1. Lift XML from page PDFs
2. Cut article PDFs from page PDFs
Hi-Res Page PDFs
Low-Res Page PDFs
XML & Article PDFs
Link
s to
arti
cles
and
pa
ges
Search AccessXML or P
DF Feeds
Newspaper Licensing Agency Ltd
Why would an RRO want a newspaper database?
Commercial opportunity – data service MMOs increasingly need structured news data feeds (source FIBEP discussion with PDLN, 2011)
Collecting and delivering news to MMOS can be an attractive business All MMOs scan or process PDFs Better that one organisation acts to reduce duplicated cost
• There is a simple industrial synergy in creating a central supply
Negotiating leverage with MMOs Managing a central supply can create licensing sales power
PCAs need data and will need a MMO licence to get it Potential for RRO / publishers to sell in competition to MMOs
Transparency on user access Online access more traceable and measurable Licence pricing can be based on usage Access is tending to replace copying in the long term
Publisher services options Creating a central common data store can save publishers cost Central data store can improve the licensing body / publisher connection
Newspaper Licensing Agency Ltd
The commercial opportunity – selling to MMOs
Collecting and delivering news content is a business opportunity All MMOs need to scan and search newspapers, daily Direct feeds from newspapers are better than scanning and increase appetite for a central database A database solution for newspaper PDFs is a proven model with known costs
Retail model (selling direct to users) has been attractive in Germany, Denmark, Belgium Higher revenues but lower % profits, given sales costs, and competition risk
Wholesale model (selling to PCAs only) used in UK, France NLA model shows 20% margin on e3m turnover
Options to increase operating margin by sharing platform costs Why build a system if one exists? NLA and others offering platform options NLA – CFC agreement shows the shared model working
Newspaper Licensing Agency Ltd
A database services helps MMO negotiations
MMOs need a central data source MMO market moving from clippings to media analysis Structured data in XML is increasingly important Scanning does not produce quality XML, and also limits cuttings quality FIBEP (MMO trade body) have confirmed this trend
Where MMOs have moved to fill this need, licensing can suffer Acceso (Spain), Profactys / KIS (Netherlands), Media Markets / Sentia (Australia), EDD (France)
A publisher or RRO data service for MMOs can counter this effect Content is king Better content makes accepting a licence the best route for MMOs UK model shows how this can create a win-win for MMOs, publishers and licensing
MMOs also fear a retail model Danish and German publisher retail services precedents are feared by MMOs Use of this retail option, or threat, can be a useful tactic NLA view is a retail service has competition law risk and is not a credible market solution
Newspaper Licensing Agency Ltd
A database solutions help with licensing end users
Knowing who copied what is the dream solution for licensing agencies Online access to an RRO database means every user has to have a password Online access allows every view of every article by every user to be tracked Transparency drives;-
More effective licensing (no access allowed without a licence) Near perfect revenue distribution (sharing revenue become easy. No more surveys)
NLA experience with database showed significant licence revenue impacts MMOs typically under report users by up to 20% Users under report content recipients Database also increased content volumes through greater technical efficiency
Alternative access models are also used CFC allow end user offline access (local copy of PDF)
Less intrusive but lower transparency for licensing MMOs prefer these less transparent options;- for good and bad reasons
more user functionality less information for RRO
Providing services also helps licensing bodies justify licence fees Easier to charge when you offer service and rights
Newspaper Licensing Agency Ltd
Check Usage Against Licensed Numbers
Check that the number of articles viewed matches licensee claims
Check that the actual active users is within licence terms
Newspaper Licensing Agency Ltd
Monitor Database Users With No Digital Licence
Identify organisations that are likely to be copying digitally
Use that information at the time of renewal
Newspaper Licensing Agency Ltd
Monitor organisations claiming not to need a licence
Track orgs that decline a licence on the basis they only have one user
Identify and flag to licensing teams when those organisations have multiple active users on eClips
Newspaper Licensing Agency Ltd
Monitor IP details for evidence of login sharing
Track orgs that only have one user
Identify and flag to licensing teams when that same login is used from multiple locations over a short time period
This has previously proven that organisations are sharing articles on their public websites
Newspaper Licensing Agency Ltd
A central database can also help publishers
Newspaper publishers spend heavily on library and archive services Research to support journalists Content distribution to commercial partners eReader and mobile devices (Kindle, iPad, smartphones)
A central database can be a cost saving option for newspapers Common archive platform lowers cost Common data formats extend distribution options Newspapers looking to cut costs and increase secondary (syndication) use
UK experience is extremely positive 6,000 newspaper users of NLA archive (ClipShare) Data feeds to Factiva, Lexis-Nexis and others managed centrally Annual cost savings of over £2m pa (mostly library staff) New services for schools, libraries and visually impaired
Database services to publishers reinforces the newspaper – licensing body relationship But there will be challenges establishing how this is managed and controlled Publishers would need a close connection with managing the database
Licensing model (CFC)Publisher model (NLA, NUV (Netherlands))Hybrid models
Newspaper Licensing Agency Ltd
NLA database supports many publisher applications
eClips
eClips international
ClipShare
ClipSearch
Newspapers for Schools
Kindle, ePapers, eReader
Library services
New applications??
Newspaper Licensing Agency Ltd
Adding web content helps both licensing and data services
Newspaper websites are a natural extension of both licensing and database services
Licensing web content use in paid for services Adds revenue Protects press cuttings revenue Follows precedents in Norway, Belgium, and UK
Web content adds value to a database solution Scraping websites is as inefficient as scanning newspapers Direct supply through a central database improves quality
More volume More timely Richer meta-data
NLA experience Web content added to eClips April 2011 Potential to add web content to all other services (ClipShare etc) NLA v Meltwater case is proving the licensing model Also Google v CopiePresse, MBL v Meltwater
Newspaper Licensing Agency Ltd
NLA experience of running a database is positive
Revenues are higher than costs PCA access fees – subscription model – over £2.5m pa Number, size and spend of MMOs is important
Costs significant (£2m pa plus with 150 newspapers loaded) Processing c 40% (external).
New technology is lowering these costs NLA staff c 40% Systems and IT 20% Costs are reduced if infrastructure is shared
Significant licensing benefits Higher licence rate – RRO can see client usage and make sure they are all licensed Higher clippings volumes – MMOs find more stories for clients
Publisher cost savings Collective cost savings exceed £2m Publishers have replaced own archive systems and library functions Publishers using eClips to feed Kindle, Factiva, etc