Interview with Christopher Warnock, CEO, CTO and co-founder
of ebrary
From where did the idea for ebrary come? What is ebrary's "creation
myth"?
In 1988/9, when I was in school at the University of Utah, I wanted to
build a recumbent bicycle so I went to the Marriott Library. At the time,
half of the titles were in the card catalog and half were in the OPAC
system. The engineering books were down in the basement, books about bikes
in general were on the 3rd floor and periodicals were on the 4th floor
in microfiche. So trying to do research was not only a great physical
exercise program but was also not very efficient in terms of getting the
information that I needed, especially since I had to check back and forth
between the OPAC and the card catalog. Finally, I found a 700-page engineering
book on gears that the library had in stock. I remember thinking that
the information I needed was somewhere in this book, but in order to be
able to understand it I would have to read the entire document and probably
have to change my major from philosophy to engineering. I thought at some
point all of this information is going to be accessible on the computer
and that was literally the seed that has taken 13 years to grow into ebrary.
It presented a problem to me that just never left me.
Ever since I was a little kid, I wanted to be in publishing. After college,
I went to work for a San Francisco publisher, Arion Press. I helped them
essentially print the Bible from hot metal type, which was driven from
a Macintosh computer. I really loved the job and the people there, but
it was not what I wanted to do with my life. I thought that if I was ever
to do anything with this idea of making information accessible online,
I needed to start working on it now. I then started working with Stanford
University on a Mellon grant to make university press titles accessible
to the university through the library electronically. Stanford wanted
me to incorporate in order to get paid. So, what I ended up doing was
talking to a friend of mine from high school, Kevin Sayar, and we both
came to the conclusion that there was a potential business here and that
we'd like to go into business together. So literally over the roof of
his car he said "Why don't we go into business together?" and
I said "Sure" and that was the motivation to get ebrary started.
That was in October/November 1998.
What has been the biggest barrier in getting ebrary up and running?
We have hit every barrier that you can conceive of. From a technology
standpoint, we have had to clear hurdle after hurdle after hurdle for
the technology to be robust and to do with it what we wanted to do. And,
although the publishers have been very supportive, this is not a core
aspect of their business. We have a huge potential for titles, but the
titles haven't come in at a pace as quickly as we would like.
We have built our system to feed from the publisher's existing production
system, so there is no need to pay for file conversion, saving both the
publisher and ebrary money.
Both the publisher and ebrary are hindered by rights and are by job turnover
rate at the publishers. These barriers for ebrary are the things that
are barriers in any new business.
I know that ebrary has recently changed its business model for libraries.
What is your current library business model and what led to the change?
When we originally started out, the idea was that we were going to be
providing a portion of our collection to libraries for free, and that
we would pay them approximately 5% of every print/copy transaction. It
later became clear that libraries were not interested in getting money
through a commercial enterprise. People laugh at that, but that was literally
our first business model. To be honest, it is probably better that it
didn't work. Our current business model is, I believe, a more equitable
and fairer agreement for libraries, publishers and ourselves.
What we have done is customized our platform with a set of features specifically
targeted for library patrons' use, by coalescing libraries' electronic
resources into a more coherent environment. So, in other words, we can
take other electronic resources that the library subscribes to and integrate
them in with our software, enabling the libraries to provide their patrons
with a more coherent research experience. We license the software to libraries
and with that comes between six and ten thousand titles to date.
The library has a choice to either subsidize the patrons' copying and
printing costs or pass those costs on to the patrons. With the "all
you can eat model," a library licenses the software and pays for
access to the content for an unlimited number of printing/copy transactions
at a fee determined by the FTE. Patrons can copy and print as much as
they like from the collection and neither the patron nor library pays
any additional fees. With the original model, libraries license the software
and patrons set up their own accounts and pay for their own copy and print
transactions. (more details on ebrary's library subscription models
available as a PDF download)
Will the collection be expanding or does the collection remain static
from the time the library purchases access?
Our collection is always expanding, and libraries receive periodic updates
at no additional cost. We are also offering price protection for libraries
that sign up prior to June 30, 2002 that will guarantee the current pricing
through June 30, 2003.
Are MARC records included?
Yes and as new content is added to the collection, the new MARC records
will be provided.
How is authentication controlled?
By proxy server or by IP address. Patrons have the option of setting up
accounts, but that account is only for their personal bookshelves, the
highlighting of texts and annotations of pages. But those are two separate
things.
What do you now consider to be ebrary's primary market?
If we define "primary" as the market that we are going after
first, then it is libraries. Academic and special libraries are our first
priorities, but we currently have pricing for public, K-12 and community
college libraries as well.
What methods have you found to be the most effective in marketing
ebrary?
We are primarily going word of mouth, which is slower than more traditional
means but does not eat up a huge portion of our budget. It has been absolutely
amazing to see how some of the press impacts things, whereas other press,
which you would think would have more of an influence, has had no effect
at all. I don't want to name any names, but one of the primary drivers
of traffic to our site was something we wouldn't have expected. And one
of the things that we had huge expectations for -- exposure in one of
the largest circulating magazines - had no influence at all that we could
find.
Other marketing includes email campaigns to libraries to let them know
about the products, trial programs, a newsletter and over 45,000 websites
linking to us from various avenues.
What criteria are you using for selecting titles for the ebrary collection?
Who is making the selection?
We do a little bit in terms of the publishers that we go after and the
content that we request from them. However, this is always compounded
by rights issues.
So it is more of a publisher-driven collection?
With the exception that we approach the publishers with whom we'd like
to work, and we do have collections of content that we would like to see
grow based on usage.
What do you predict to be the growth rate of ebrary's collection?
We should hit 10,000 titles relatively soon. We started out with 300 in
July of last year, and currently offer approximately 6,000. We could double
our collection within the next couple of months because we are now expanding
our content collection beyond books. Since we can work with any document
that is printed, there is a lot more content out there in formats other
than books. One example would be maps. Another example would be journals.
We will be introducing later this year what we call "premium collections."
These are branded collections from journal, magazine and other kinds of
publishers that currently sell directly to libraries-these collections
will now also be available through ebrary's platform. From the library's
perspective, if they have our system in place, they will be able to get
the MARC records and the electronic content for other branded types of
information-but I can't give you an example of that right now. Libraries
will be able to seamlessly incorporate that collection into their ebrary
collection, as well as have the ability to take information that the library
has digitized and also put that within ebrary. Hopefully we will have
created a mechanism that will enable library patrons to interact with
the information seamless from multiple databases.
In terms of MARC records, would the MARC records be at the journal
level, or are you proposing MARC records at the article level?
As with everything that we do for libraries, we will have to talk with
the libraries first and then make a decision afterwards.
Based on usage statistics collected thus far, how are library patrons
using ebrary?
Patrons come to a book, they look around and then copy or print. We don't
see many people reading cover-to-cover; rather they are jumping around
in the book. Patrons appear to be looking at the material long enough
to determine whether it is pertinent or not and then printing or copying
a range of pages.
Although we can tell what a patron is doing, we don't know who that individual
is. We know whether the individual comes from a particular library or
partner, but end-users' privacy is absolutely protected.
Is the usage data shared with your library customers?
Yes, we will be providing the usage data we are collecting back to the
libraries and partners, as well as publishers.
Are there certain subject areas in ebrary's collection that are used
more heavily?
At the library level, there have not been any patterns that have emerged.
Use has been very general and across the board.
What lessons have you and ebrary taken away from the success and failures
of competitors such as netLibrary and Questia?
Don't grow too fast. We have learned a lot from both of them. For a while
we were thinking that it might be better for us to beat Questia to going
live. Then we decided that this business is brand new, and we didn't want
to anything too hastily that we wouldn't be able to correct. So we literally
decided that it is better to go slow and grow according to the plan that
we had set up. We wanted to see if we are right about our plan and most
importantly to make sure that we provide a valuable service to libraries
and publishers. We spent a lot of time talking to libraries and are still
in the process in terms of setting the system up so that this can be successful
for publishers. The one thing that we need to be able to show is that
we can generate enough revenue for this to continue to be interesting
for publishers. We've been working with libraries and publishers all along
to find out how we can develop a platform for their mutual benefit. We
think we have got it nailed down. This summer and fall should really be
a time of tremendous growth for us.
How do you go about getting input from libraries?
We have focus groups. We have libraries that are customers, and we talk
with our customers a lot. We have feedback mechanisms on the site. Recently
we learned from librarian feedback, and this wasn't a surprise to us,
that they needed to be able to browse our titles, and so this week we
are releasing the ability for them to see our content and be able to browse
through it by subject category. Our 2.0 and 2.1 versions were our first
offerings for libraries, and we view our relationship with libraries as
a long-term relationship. We want to get the feedback from the libraries
in order to build the product that libraries would ultimately like to
have. So when we get libraries to sign up with us, we very much pay attention
to their wishes and needs.
Do you have any librarians on staff?
No, but we have several librarians working as consultants for us. We are
a software company, and it is a lot better for us to hire contractors
or consultants that are librarians, that absolutely specialize in their
field and know everyone in their field that we need to talk to. Using
consultants in this capacity makes more sense than trying to hire librarians
for a software company that is developing is an electronic publishing
platform.
When do you expect that ebrary will be profitable?
We are projecting a profit for early next year, but we can see it happening
sooner than that.
The ebook marketplace includes dedicated ebook devices, ebook software
for Palms, desktops and laptops, as well as browser-based online ebook
systems, such as ebrary. Where do you think all of this is heading? What
is your vision of the future of ebooks?
I have never been a big proponent of ebooks. I have never viewed ebrary
as being an ebook company. I don't think ebooks make a lot of sense for
publishers, because I don't think that the market really wants them. There
are other problems that publishers face that have much more impact on
their business than potentially offering a new file format, such as inventory
management-the pulping of books and documents at the end of the every
year.
The thing that the computer is really good at is finding information,
and it can find information faster than anything else out there. Books
are really good at providing a snapshot of an idea at a particular place
in time that can't be modified. What we see is that there are over 500
million people on the planet that access the Internet. They do 100 million
searches per day. What we want to do is essentially enable the user to
get access to the information online -to have the Internet fulfill its
destiny as being the greatest library that the world has ever seen. If
the Internet is able to do that, potentially everyone globally benefits.
We feel that publishers and libraries are absolutely critical to the
success of this potential. Libraries can go through and quickly separate
the chafe from the nuggets and help people find the most authoritative
information more quickly. Libraries provide a filtering mechanism, essentially,
for the information that is out on the Internet, and they do that through
the communities that they service. Publishers provide the means for authoritative,
authentic information to be created. Those are two roles that our society
cannot do without. The Internet has the fundamental potential for the
democratization of information. We recognize that the publishers need
to be paid and that the libraries play the most critical role in terms
of ensuring that the information stay accessible to their patrons.
By working both with publishers and libraries, we think we can be a minor
player in the transition of the information on the Internet from being
predominately marketing-based information from corporations and media-based
in terms of news, to really the information that helped shape our civilization
and society.
So, if ebrary is not an ebook company, how would you describe ebrary
in a sentence?
We are an electronic platform for the secure distribution, delivery and
retrieval of authoritative and valuable information online.
April 23, 2002 phone interview conducted by Susan Gibbons
|