2010 a Lose-Lose-Lose Year for Buying, Selling Content, Says Outsell

Burlingame, CA and London, UK—December 15, 2009—A widening gap between the price of information and buyers’ ability to pay will make 2010 a lose-lose-lose year for content buyers, sellers, and users, according to new research from Outsell, Inc. Information managers expect an aggregate six percent increase in the cost of their information portfolios, while their content budgets will decrease a net three percent. The inevitable results will include decisions to cancel subscriptions, and to downsize licenses for paid content.

“Information managers say that with less money to spend, they’ll choose the content providers who make it easiest to do business. Vendors will differentiate themselves through better service, more transparency, and flexibility with pricing and contracts,” said Joanne Lustig, Vice President and Lead Analyst, Outsell.

In September 2009, Outsell surveyed 263 enterprise information managers about their budgets and their projections for vendor price increases. Analysts also talked with dozens of vendors about their pricing plans. A sample of content providers Outsell interviewed includes LexisNexis, Bloomberg, Elsevier, EBSCO Information Services, Safari Books Online, Forrester Research, and Factiva.

Outsell has published an analysis of their responses in two reports—one for vendors, and another for information managers. Each includes:

• Anticipated vendor pricing changes by information sector. Scientific, medical and technical vendors were the likeliest to increase prices (46 percent projected them);
• Expected content budget changes by information management sector (aggregate and net);
• A table of responses on 2010 vendor pricing changes by provider category and product—qualitative guidance only;
• Analysis of key trends and themes relating to content buyers' expectations;
• Analysis of vendors' point of view;
• Essential actions in response to these findings.

Links to obtain reports:

"CEO Topics: 2010 Information Pricing Survey: In Search of Pricing and Licensing Models That Work”: http://www.outsellinc.com/store/products/893?refid=pr893

“Information Managers Report”: http://www.outsellinc.com/store/products/892?refid=pr892

Journalists should contact Dawn Ringel, Warner Communications, dawn@warnerpr.com.

Outsell is the only research and advisory firm focused on advancing the publishing and information industries. Our international team provides independent, fact-based analysis and actionable advice about competitors, markets, operational benchmarks, and best practices, so our clients thrive and grow in today's fast-changing digital and global environment. Outsell’s headquarters are in Burlingame, CA, US and London, UK. Visit us at www.outsellinc.com.

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