Avoiding the tragedy of the commonsCreating new business models for

digital textbook delivery

Stephen R. Acker, Research DirectorThe Ohio Digital Bookshelf Project

Presented to: “The Future of E-textbooks: A Symposium on the Influence of E-textbooks on Academic Life” March 18, 2011

Ohio’s enrollment growth goal - an additional 210,000 students by 2017

Mainly through use of low-cost pathways

Affordability, engagement, and preparedness- “big 3” correlation

Average= $3,474

Current business model

Results in- “The Tragedy of the Commons”

Peter Murray

Current business model- Compound price increase >10%

Strategic Goals for new models

• Increase student learning• Reduce Cost increases of 8-13% per

year• Generate improved ROI

ROI=Learning Outcomes/Cost• Escape the Tragedy of the Commons

Strategy #1- The Buyer’s Co-op

• Introduction to Psychology Course (2010 Pilot Launch)– 23 Colleges and Universities

– Representing 50,000 of 70,000 annual enrollments– 100 attendees at Digital Pioneers Workshop– Wide range of results

• U. Cincinnati 500/term $62,000 savings• OSU 45/term $2,250 savings (off print list)• OU-Eastern 0/term 0 (digital) savings• Everything in-between• Shift to learning platform from text

Strategy #2- Build ODP Community

Universities

The University of Akron

Bowling Green State University

Central State University

University of Cincinnati

Cleveland State University

Kent State University

Miami University

Northeastern Ohio Universities Collegesof Medicine and Pharmacy (NEOUCOM)

The Ohio State University

Ohio University

Shawnee State University

The University of Toledo

Wright State University

Youngstown State University

University Regional Campuses

The University of Akron – Wayne

Bowling Green State University – Firelands

University of Cincinnati – Clermont

University of Cincinnati - Raymond Walters

Kent State University – Ashtabula

Kent State University - East Liverpool

Kent State University – Geauga

Kent State University – Salem

Kent State University – Stark

Kent State University – Trumbull

Kent State University – Tuscarawas

Miami University – Hamilton

Miami University – Middletown

The Ohio State University – Lima

The Ohio State University - Mansfield

The Ohio State University – Marion

The Ohio State University – Newark

Ohio University – Chillicothe

Ohio University – Eastern

Ohio University – Lancaster

Ohio University – Southern

Ohio University - Zanesville

Wright State University - Lake

Community Colleges

Belmont Technical College

Central Ohio Technical College

Cincinnati State Technical & Community College

Clark State Community College

Columbus State Community College

Cuyahoga Community College

Eastern Gateway Community College

Edison Community College

Hocking College

James A. Rhodes State College

Lakeland Community College

Lorain County Community College

Marion Technical College

North Central State College

Northwest State Community College

Owens Community College

Rio Grande Community College

Sinclair Community College

Southern State Community College

Stark State College of Technology

Terra Community College

Washington State Community College

Zane State College

Ohio Digital Bookshelf Participants 2010-2011

NEW USED

Belmont Technical College

MAT 131 College AlgebraALGEBRA+TRIG.W/MATH XL CD $166.90 $125.20

Catalyst for Strategy #3

NEW USED

Columbus State Community College

MATH 148 College AlgebraALGEBRA AND TRIGONOMETRY PKG $100.90 n/a

NEW USED

Eastern Gateway Community College

MTH 120 College AlgebraAlgebra & Trigonometry Study Pack $160.75 $120.75

NEW USED

Hocking College

Math 112 Advanced AlgebraPRECALULUS BOOK PACKAGE $170.88 $136.70

NEW USED

James A. Rhodes State College

MTH 137 College AlgebraAlgebra & Trigonometry $214.75 $161.25

NEW USED

Rio Grande Community College

MTH 14505 Pre-CalculusPRECALCULUS $200.50 $150.40

NEW USED

Sinclair Community College

MAT 102 Intermediate AlgebraBeginning & Intermediate Algebra $162.67 $122.00

NEW USED

Zane State College

Math 115 College AlgebraAlgebra And Trigonometry PlusMymathlab Student

$173.50 n/a

NEW USED

Bowling Green State University

Math 1200 College AlgebraCOLLEGE ALGEBRA BGSU PKG W/ ACCESS

$100.70 $77.55

NEW USED

Central State University

MTH 1750 College AlgebraPRE-CALCULUS $118.75 $89.25

NEW USED

The Ohio State University

Math 148 Algebra & TrigCOLLEGE ALGEBRA+TRIG W/MY MATH LAB(F10)

$108.65 n/a

NEW USED

The University of Toledo

Math 1320 College AlgebraCollege Algebra $181.35 $136.00

NEW USED

Youngstown State University

Math 1501 Elementary Algebraic ModelsKit: Custom Ed YSU Intro & Interim Algebra W/Mymath

$138.25 $103.75

NEW USED

free free

$20 for a printed version

Strategy #3- Promote Open Educational Resources

$3,474Average tuition and fees at public

two-year institutions

$153Average savings on

new Algebra textbook*

4.4%Percent of tuition

*Net use savings for full OER adoption is $66.75 w/60% printing @ $2066.75=(78.75-12)=[(153 x .1)+($76.50 x .1) + ($124 x .2) + $62 x .5) + (0 x .1)]-[(0 x .4) +(20 x .6)

Open Educational Resources• Stitz and Zeager Pre-Calculus and Trigonometry Book

– Creative Commons 3.0 (BY-NC-SA)• NGLC Program

– “All NGLC content will be available under a Creative Commons Attribution (CC-BY) license.”

– Ohio’s Scaffold to the Stars• Department of Labor TAACCCT Grant Program

– “The Grantee will license to the public . . . all work . . . under a Creative Commons Attribution 3.0 License.”

• University System of Ohio-Flat World Knowledge Pilot

Strategy #4 Student Research

University of Cincinnati Psi Chi Research (02/01/11)

Accuracy Thoroughness Clarity Engaging Learning Tools Total0

1

2

3

4

5

6

WileyFlatworldGoogle

Strategy #5- Flat World Knowledge Mixed Model

Strategy #6- Comparative Pricing

Strategy #7- Blanket licensing

Strategy #8- “Skin in the game”

Bailey, Wathington & Brock, 2010

Strategy #9- Stair-step pricing

• OSU 2010 3rd term data (n=1,500; New=$100; Used=$80; Digital=$50; Buyback=$50)

– Publisher Revenue under current pricing:• (1,500 x .02= 30 x $100) + (1,500 x .03= 45 x $50) = $5,250

– Publisher Revenue break even with under Digital Bookshelf pricing (1,500 x .02= 30 x $100) + (1,500 x .05= 75 x $30) = $5,250

– Break even= 30 unit increase in digital sales

• Stair-step pricing refinement– 60% off-list of new edition– 65% off-list second academic term– 75% off-list second year and beyond

Strategy #10- State procurement

Strategy #11- Leverage Accessibility

• Evaluate and promote “born digital” content for accessibility– Annual A-DRM Conference– AMAC membership for USO– Digital formats (ePub, .mobi, Daisy,

VitalSource 5.4) and eReaders for accessibility

– Leverage UDL for learning

Strategy #12- Expand the library role

• Modular content mapped to learning objectives– OhioLINK as modular digital bookshelf– OhioLINK as information curator– Individualize based on learning styles– Pathfinders (FindingDulcinea)– Patron acquisition or carte blanche?– Pricing simultaneous use licenses?

Strategy #13- Policy Symposium

Player Provocation Keep Change

Publisher Skin in the game Hi-quality content Business models

Bookstore Print-on-demand Student service orientation

Focus on market share not margin

Library Dynamic time-based licensing

Search and discovery strategies

Mission- balance use and collection

Faculty SEIs on tech use and affordability

Focus on learning Awareness of affordability

State Shared Bookshelf Synergies of scale and community

Bureaucratic processes

Student Success contract Aspirations Preparedness

Strategy Summary

The Buyer’s Co-op- Faculty autonomy and student choice

Build ODP Community- Workshops and forums on using digital materials

Open Educational Resources – Reuse, Revise, Remix, Redistribute

Student Research- Accuracy, thoroughness, coverage, engagement, learning tools

Flat World Knowledge mixed model- “free” digital and pay-for-print

Comparative Pricing- evaluate student indifference curve for price vs. convenience

Blanket licensing- mandatory student license at low contractual price

Skin in the game- Premium payment to publisher for student success

Stair-step pricing- sequential price reduction as edition ages

State procurement- State buys and distributes textbooks and learning materials

Leverage Accessibility Initiatives- Demonstrate UDL benefits of eReader devices

Expand Library Role- Patron acquisition, modular course pack, dynamic licensing

Strategic Planning Symposium- Engage all players to revise learning materials market Take the survey- Tell us what you think of these strategies!

Ohio Digital Bookshelf Goals Revisited

• React to, and shape, disrupted marketplace

• Escape the “tragedy of the commons”• Cultivate the “new digital commons”

Contact• Stephen R. Acker (acker.1 at osu.edu)

– Research Director, The Ohio Digital Bookshelf

Darlene McCoy John Magill Steve Acker (acker.1 at osu.edu)Associate Vice-Chancellor Executive Director Research Director Ohio Digital BookshelfThe Ohio Board of Regents OhioLINK OhioLINK/The Ohio Board of Regents

End of Presentation