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Some Emerging eBook Business Models: netLibrary, Questia and ebraryAfter much anticipation and some apprehension, Questia and ebrary are scheduled
to launch their products in early 2001. Together with netLibrary,
these three companies will provide on-line access to hundreds of thousands
of digital books, periodicals, maps and archival works, all available
24x7. Access to the digital content is enhanced through the use
of full-text search engines and on-line research tools. Although
each company is creating its own set of research tools, they will all
include the functionality for mark-up and annotations, automatic generation
of citations and bibliographies and easy access to dictionary definitions.
Although Questia, netLibrary and ebrary share the basic concept of providing
continuous access to digital information, this is where the similarities
stop. On a fundamental level, the business models of each differ
radically, particularly in the areas of target markets, pricing schemes
and the location or absence of the library within the distribution model. netLibrary- Launched in March 1999, the Boulder-based company started with only 2,000 titles (about half of which were public domain titles). Today, the netLibrary collection contains over 26,000 titles with another 6,000 in production. The range of subjects includes the humanities, social sciences, computer science and business. In netLibrary's business model, libraries (academic, public and school) are
the target market. Libraries purchase access to the titles on behalf
of their patrons. Each library can tailor their netLibrary collection
by selecting a subset of titles from the larger netLibrary collection.
The ebooks reside on netLibrary's servers. Access is granted to
the appropriate collection based on the user's IP address or login.
Pricing schemes vary, but in general, a year's worth of access to a title
is equal to the title's list price, plus a yearly adminsitrative subscription
cost. Access to the titles within netLibary mirrors the traditional library circulation
model. Only one person at a time can be viewing a copyrighted
title within the collection. A patron is allowed to browse a title
for up to 15 minutes. Afterwhich, the patron can either "check-out"
the book or allow it to go back into the collection. "Check-out"
requires that the patron have created a personalized netLibrary account,
which is a relatively simple process. Once checked-out, only that
patron has access to the book for whatever circulation period the library
initially determines and can access that title from anywhere, even outside
of the library's IP address. When the circulation period expires,
the patron loses access to the title and it is "returned" to the collection.
Usage statistics are provided to each member library through netLibrary's
intranet. Questia- The Questia collection is scheduled for launch in January 2001. The initial collection will include approximately 50,000 of "the most frequently cited and consulted books, journals and periodicals in key liberal arts subjects such as anthropology, economics, English/literature, history, philosophy, political science, psychology and sociology." (from Questia Media Kit) Questia's plan is to grow its collection to include over 250,000 books and journals within the next three years. Unlike netLibrary, Questia is marketing its service directly to academic students, bypassing the library. Students pay a subscription (price and duration not yet determined) which provides access to the entire Questia collection. Questia in turn tracks the use of each title within the collection and pays royalities to publishers based on actual usage. Subscribers cannot download or save the texts, but they can print one page at a time, as well as copy and paste portions of the documents (complete with citation) into a text editor. Differing from the netLibrary model, a text can be used by more than one user at a time. Moreover, the subscription provides access to the entire Questia collection which changes with each newly added text. Although the netLibrary collection is increasing daily, any individual library's collection remains static unless the library pays for access to additional netLibrary titles. Questia's FAQ for librarians ( http://www.questia.com/librarian_faq.html ) states that the company has no immediate plans to offer libraries the option of purchasing site licenses. Questia's target market is individual subscribers, and they feel confident that students will be willing to pay the subscription fee out of their own pocket-money. ebrary-
ebrary's collection, which is slated for launch in early 2001, will
extend beyond books and periodicals to include annuals, maps and manuals
in a full range of disciplines, including arts and humanities, sciences,
engineering, technology, medicine and law. No indications
have been made about the size of the collection.
Summary Table:
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