productsrequestarticlesaboutevents and newspresscall for contentfree resourcescontact
NFAIS Newsletter, Volume 42, Issue 6, June 2000


  "With Portals, licensing increasingly makes sense..."
By Stephen Rhind-Tutt

It is the nature of the Web to disaggregate. It allows the linking and distribution of billions of separate words, pages and sites, but to do this the content has to be distilled into individual bits. At the same time there is a strong force to aggregate materials on the Web - users want all their information in one place, instantly accessible, and with a minimum number of steps to reach it. These two forces are inexorably driving scholarly publishing towards discipline specific Websites. These sites can provide users with one-stop, high quality, materials in an organized, well indexed way.

Chadwyck-Healey’s Literature Online product was an early example of such a site. Launched in 1996, it collected over 220,000 primary texts in English and American Literature, together with dictionaries, biographical material and secondary resources, so providing students and researchers with a unique, highly integrated reference tool. Other examples include The Gale Group’s Resource Center series, and CIS’ Universe series. The number of these products is growing.

It should come as no surprise to NFAIS members that such products are successful. The key to these sites – comprehensive coverage of a specific subject – is something that bibliographic indexes have been doing for many years. Adding the full-text of these and other relevant content is a logical next step.

In the past there were a number of strategies that did not require materials to be licensed. In the print and CD-ROM worlds, for example, products are naturally separate. Many organizations were – and are - able to create, sell and market their own products.

In the Web world linking and interconnecting information is an increasingly large part of the value added. Not the content itself. Companies like Yahoo, Google and AltaVista are good examples of this. Despite the fact that much of the content they point to is of low value, the value of their linking makes up for it.

As more and more discipline specific Websites are created, the demand for different packages of information is going to grow. A file on agriculture will have records of relevance for business. A file on business will have relevance for psychology.

The response from publishers to this must be to license their information more broadly. If they don’t they risk isolating their content. It will no longer be part of the information infrastructure, and other publishers will begin to create competitive products.

There are other dangers in not licensing information. Many users are not going to wade through multiple screens from separate publishers to get to the information they need. Convenience often beats out quality. How often do researchers skip microform research and use online resources only ?

In the past licensing data was viewed askance by publishers who had their own Websites. The risks of cannibalization were too high to offset the potential benefits. In the Web world this need not be the case. One of the virtues of electronic data is that it can be reshaped in hundreds of different ways. A reference work can be mined for facts, a bibliographic record often has all the elements within it to serve as a Directory.

Yet another aspect of the need to license is that in the electronic world it is that there is unlikely to be the profusion of different reference titles that exist in the print world. For example, there are over 100 encyclopedias of music in print form. Many of them duplicate, summarize or reformat the same material. These titles survive because they use less paper, or are more portable, or have more images, so offering the user lower prices or better functionality.

This is unlikely to happen on the Web. The variable cost of distributing a larger work with many images (and even video and audio) is often close to the variable cost of distributing a smaller work, so those who own the major work have the option to sell at at almost the same cost as the minor one. Even where the market wants smaller package, the cost to extract a subset of an electronic work is relatively low. And when a user conducts a search across multiple works they typically don’t want multiple entries that provide similar overviews of the same topics: users will naturally go for comprehensive resources that do not duplicate materials. The way to crack this market is to license data widely across multiple sites. The most used electronic Music encyclopedia is probably the MUZE database, which was developed from the Guinness Encyclopedia of Music. Parts of it are to be found in online music catalogs, Websites that review music, promote record companies as well as a host of news sites and sites dedicated to specific artists.

Unlike print, electronic content will not be driven by size, printing quality or distribution. Instead cost to reach market, relevance to community, and level of integration in core, high value processes will carry the day. For most licensing gives you the best chance of maximizing your revenues with the lowest risk

As always there are exceptions. If you are lucky enough to own a very high profile product that dominates its area you might well be in a position to go it alone, and force others to license to you. Should Encyclopedia Britannica have licensed some of its material to create Encarta ? You be the judge…

 


© Copyright 2008 Alexander Street Press. All rights reserved.                 Last Updated: 05-Mar-2008