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National Lexis-Nexis Deal



A first -- thanks to Jane Holmquist for sending this along from 
the Chronicle of Higher Education. The Moderators
______________

Date: 	Mon, 29 Jun 1998 11:34:04 -0400
From: Jane Holmquist <jane@phoenix.Princeton.EDU>
Organization: Princeton University


[ ]                                                      Friday, June 26, 1998
[Search the Site]
[ ]
[Browse the Site]           600 University Libraries to Get Lexis-Nexis
                            Data-Base Access, Along With Ads
[Today's news]
[Information technology]    By JEFFREY R. YOUNG
[This Week's Chronicle]
[Publishing]                Lexis-Nexis plans to announce a deal today with
[Money]                     more than 600 university libraries that will
[Government & Politics]     bring a limited version of the company's data
[New grant competitions]    base to millions of students and professors.
[Opinion & Arts]
[International]             The company's popular data base allows easy
[Information Bank]          access to thousands of newspapers, magazines,
[Issues In Depth]           journals, and other documents.
[Jobs]
[Front Page]                The one-year deal, for which the libraries are
                            paying more than $4-million, is said to involve a
-----------------           record number of college and university libraries
About The Chronicle         in a single contract. Twenty-three library
---------------             consortia and three individual libraries worked
How to register             together to negotiate the agreement.
---------------
How to subscribe            Both the company and some library officials say
---------------             the deal is an experiment. Some librarians worry
Help                        about a stipulation that lets Lexis-Nexis sell
---------------             advertisements on the service. Other librarians
Feedback                    say the version of Lexis-Nexis being offered to
-----------------           universities isn't useful enough, because only
                            the first page of a document can be searched.
                            (The complete document can then be retrieved.)

                            And the company says it isn't sure the price is
                            high enough to make a profit.

                            The deal was to be formally announced today at
                            the annual conference of the American Library
                            Association, which concludes on July 1.

                            Participating colleges will have on-campus access
                            to Lexis-Nexis's service for universities, called
                            Academic Universe. It is offered by a subsidiary
                            of Lexis-Nexis called Congressional Information
                            Service Inc., and contains fewer sources than the
                            parent company's popular data base.

                            The main benefit of the service, however, is that
                            it can be used through the World-Wide Web and
                            requires no special training. The traditional
                            service uses a text-based interface that is more
                            difficult to operate. Some colleges subscribe to
                            the Web-based service for most users and pay
                            extra for some researchers to use the
                            more-expensive traditional service.

                            The Academic Universe service has been available
                            since last August, but some librarians told the
                            company that the price was too high. At small
                            colleges, the service costs $5 or $6 per eligible
                            user. So the president of Congressional
                            Information Service, Mark L. Capaldini, offered a
                            group of library officials a deal: The company
                            would allow multiple library consortia to join in
                            a single contract, and the price would be based
                            on how many users were involved. The more users,
                            the lower the price per person.

                            In just three months, library leaders gathered a
                            broad coalition. In the end, the contract
                            included more than 3.7 million users, and the
                            cost was down to $1.52 per person.

                            "There's never been a deal like this before,"
                            says Tom Sanville, a spokesman for the
                            International Coalition of Library Consortia.
                            There have been a few instances in which two or
                            three consortia worked together on a contract, he
                            says, but the scale of the Lexis-Nexis agreement
                            is "unprecedented."

                            Although not every library in the participating
                            consortia opted to join, many were interested in
                            offering the data base on their campuses, says
                            Mr. Sanville, who is also executive director of
                            the OhioLINK library consortium. He says 50 of
                            its 56 colleges signed the contract.

                            The deal does have a catch, however. To help
                            offset its cost, the company plans to sell
                            advertising on the service.

                           ["The A-word got the understandable types of
                            reactions," says Ann Okerson, associate
                            university librarian at Yale University, who
                            attended the meeting where the company made its
                            first pitch.

                            Would students be bombarded with ads from
                            cigarette or beer companies? Would users waste
                            time on library computers touring Nike's Web
                            site? "Appropriate use is a topic that has been a
                            concern," she says.

                            The company agreed to form an advisory council of
                            librarians and company officials to set
                            guidelines for advertising. The company's Mr.
                            Capaldini says draft guidelines restrict ads to a
                            single square in the upper-right-hand corner of
                            the screen. "We've specifically excluded alcohol
                            and tobacco," he adds.

                            "I think that it will be much less noticeable
                            than the ads you see on the Web today," he says.

                            Ms. Okerson says librarians were persuaded to
                            accept the ads, because the alternative would
                            have been an increase of 40 per cent to 70 per
                            cent in the service's cost. "If this really
                            significantly controls costs, and if we can be
                            involved with shaping this advertising, it's
                            certainly worth exploring," she says.

                            Some librarians have complained that the Academic
                            Universe service is not comprehensive enough to
                            serve the needs of researchers. "The basic
                            problem, from our point of view, is you can no
                            longer, in Academic Universe, search the full
                            text of the articles," says Robert Walther, a
                            reference librarian at the University of
                            Pennsylvania. The service allows users to search
                            headlines and the text of the first page of most
                            articles, he says.

                            Mr. Capaldini says scaling back the service was
                            the only way to offer it at a lower price. "We
                            set up the menus so that you can't do an
                            incredibly resource-intensive search," he says.
                            The company's former college plan, which did
                            allow full searching, was "grossly unprofitable,"
                            he notes, because researchers often did
                            more-complicated searches than traditional
                            customers, but paid less.

				[SNIP]

                            To further trim costs, some publications are not
                            Library officials who brokered the deal say it
                            may set a precedent for group purchasing. "It's a
                            win-win for both corporate entities and
                            libraries," says Angee Baker, director of
                            electronic information services for the
                            Southeastern Library Network, known as SOLINET.
                            It is coordinating the billing for the deal with
                            Lexis-Nexis.

                            "I would hope that other corporate entities will
                            take a look at this new model and evaluate it in
                            terms of a way to cooperate and work with
                            libraries to provide an affordable cost to
                            libraries while at the same time growing their
                            market or growing their business," she says.

                                 Background story from The Chronicle:

                                    * "Lexis-Nexis Announces New Service
                                      for Colleges," 8/28/97

                           ----------------------------------------------------
                           Copyright � 1998 by The Chronicle of Higher
                           Education

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