Developing a Newspaper Database to Support Licensing

Michael Pocock0207 332 9367

mpocock@nla.co.uk

Andrew Hughes0207 332 9359

ahughes@nla.co.uk

Newspaper Licensing Agency Ltd

Newspaper licensing must recognise media monitoring

Most newspaper use is from media monitoring organisations and their clients Newspapers are unit value / time sensitive publications Extensive systematic copying happens daily in many large companies Different use and applications from journals and books

Newspaper use is primarily corporate + PR Journals use is primarily scientific + education

Significant greater corporate penetration if newspaper use can be licensed effectively

Effective MMO Licensing has potential to develop significant revenue CFC and NLA suggest revenue range potential €10m - €20m pa from 55m population Increasing respect for copyright is valuable Licensing press clippings creates a platform for wider licence rights in corporate sector Press clippings is a voluntary opt in service, with less state / judicial risk

Where strong corporate or press clipping licensing exists, database services can complement, support and enhance that

Most European countries are moving to licence + database solutions

Newspaper Licensing Agency Ltd

Press cuttings licensing and database solutions are developing fast

Country Licensing Database Model Organisations

Planned Live Planned Live

Austria Y Y Y Y VOEZ licence, APA direct service VOEZ / APA

Belgium Y Y Y Y Licence + DB (PCA + end user) CopiePresse/ Reprocopy/ MediaArgus / Pressbanking

Denmark ? ? Y Y Infomedia direct data service Infomedia / Copydan

France Y Y Y Pilot CFC licensing. eClips France 2012 CFC

Germany Y Y Y Y VG Wort statutory, PMG service PMG + VG Wort

Ireland Y Y Y Licensing established, db planning NLI

Italy Y Licensing started 2012 FIEG

Netherlands Y Y Y DB in discussion CLIP / NUV

Norway Y Y Web only licensing MBL

Poland Y New Y Y Licensing stalled with PCAs Repropol

Portugal Y New Licensing stalled with PCAs Visapress

Spain Y New Licensing started in 2011 CEDRO

Sweden Y Y TT licensing web newswire TT / Bonus PressKopia

Switzerland Y Y Statutory licence, PCA issues SMD, ProLiteris

UK Y Y Y Y Licence + DB (PCA model) NLA

USA Y Y CCC v NLG models CCC, NLG (AP)

Newspaper Licensing Agency Ltd

How NLA eClips Works

Publishers

1. Send production PDFs

NLA, London

1. Forward compressed PDFs to Ninestars

2. Host finished PDFs

3. Control user accounts

Ninestars, Chennai

1. Lift XML from page PDFs

2. Cut article PDFs from page PDFs

Hi-Res Page PDFs

Low-Res Page PDFs

XML & Article PDFs

Link

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arti

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Search AccessXML or P

DF Feeds

Newspaper Licensing Agency Ltd

Why would an RRO want a newspaper database?

Commercial opportunity – data service MMOs increasingly need structured news data feeds (source FIBEP discussion with PDLN, 2011)

Collecting and delivering news to MMOS can be an attractive business All MMOs scan or process PDFs Better that one organisation acts to reduce duplicated cost

• There is a simple industrial synergy in creating a central supply

Negotiating leverage with MMOs Managing a central supply can create licensing sales power

PCAs need data and will need a MMO licence to get it Potential for RRO / publishers to sell in competition to MMOs

Transparency on user access Online access more traceable and measurable Licence pricing can be based on usage Access is tending to replace copying in the long term

Publisher services options Creating a central common data store can save publishers cost Central data store can improve the licensing body / publisher connection

Newspaper Licensing Agency Ltd

The commercial opportunity – selling to MMOs

Collecting and delivering news content is a business opportunity All MMOs need to scan and search newspapers, daily Direct feeds from newspapers are better than scanning and increase appetite for a central database A database solution for newspaper PDFs is a proven model with known costs

Retail model (selling direct to users) has been attractive in Germany, Denmark, Belgium Higher revenues but lower % profits, given sales costs, and competition risk

Wholesale model (selling to PCAs only) used in UK, France NLA model shows 20% margin on e3m turnover

Options to increase operating margin by sharing platform costs Why build a system if one exists? NLA and others offering platform options NLA – CFC agreement shows the shared model working

Newspaper Licensing Agency Ltd

A database services helps MMO negotiations

MMOs need a central data source MMO market moving from clippings to media analysis Structured data in XML is increasingly important Scanning does not produce quality XML, and also limits cuttings quality FIBEP (MMO trade body) have confirmed this trend

Where MMOs have moved to fill this need, licensing can suffer Acceso (Spain), Profactys / KIS (Netherlands), Media Markets / Sentia (Australia), EDD (France)

A publisher or RRO data service for MMOs can counter this effect Content is king Better content makes accepting a licence the best route for MMOs UK model shows how this can create a win-win for MMOs, publishers and licensing

MMOs also fear a retail model Danish and German publisher retail services precedents are feared by MMOs Use of this retail option, or threat, can be a useful tactic NLA view is a retail service has competition law risk and is not a credible market solution

Newspaper Licensing Agency Ltd

A database solutions help with licensing end users

Knowing who copied what is the dream solution for licensing agencies Online access to an RRO database means every user has to have a password Online access allows every view of every article by every user to be tracked Transparency drives;-

More effective licensing (no access allowed without a licence) Near perfect revenue distribution (sharing revenue become easy. No more surveys)

NLA experience with database showed significant licence revenue impacts MMOs typically under report users by up to 20% Users under report content recipients Database also increased content volumes through greater technical efficiency

Alternative access models are also used CFC allow end user offline access (local copy of PDF)

Less intrusive but lower transparency for licensing MMOs prefer these less transparent options;- for good and bad reasons

more user functionality less information for RRO

Providing services also helps licensing bodies justify licence fees Easier to charge when you offer service and rights

Newspaper Licensing Agency Ltd

Check Usage Against Licensed Numbers

Check that the number of articles viewed matches licensee claims

Check that the actual active users is within licence terms

Newspaper Licensing Agency Ltd

Monitor Database Users With No Digital Licence

Identify organisations that are likely to be copying digitally

Use that information at the time of renewal

Newspaper Licensing Agency Ltd

Monitor organisations claiming not to need a licence

Track orgs that decline a licence on the basis they only have one user

Identify and flag to licensing teams when those organisations have multiple active users on eClips

Newspaper Licensing Agency Ltd

Monitor IP details for evidence of login sharing

Track orgs that only have one user

Identify and flag to licensing teams when that same login is used from multiple locations over a short time period

This has previously proven that organisations are sharing articles on their public websites

Newspaper Licensing Agency Ltd

A central database can also help publishers

Newspaper publishers spend heavily on library and archive services Research to support journalists Content distribution to commercial partners eReader and mobile devices (Kindle, iPad, smartphones)

A central database can be a cost saving option for newspapers Common archive platform lowers cost Common data formats extend distribution options Newspapers looking to cut costs and increase secondary (syndication) use

UK experience is extremely positive 6,000 newspaper users of NLA archive (ClipShare) Data feeds to Factiva, Lexis-Nexis and others managed centrally Annual cost savings of over £2m pa (mostly library staff) New services for schools, libraries and visually impaired

Database services to publishers reinforces the newspaper – licensing body relationship But there will be challenges establishing how this is managed and controlled Publishers would need a close connection with managing the database

Licensing model (CFC)Publisher model (NLA, NUV (Netherlands))Hybrid models

Newspaper Licensing Agency Ltd

NLA database supports many publisher applications

eClips

eClips international

ClipShare

ClipSearch

Newspapers for Schools

Kindle, ePapers, eReader

Library services

New applications??

Newspaper Licensing Agency Ltd

Adding web content helps both licensing and data services

Newspaper websites are a natural extension of both licensing and database services

Licensing web content use in paid for services Adds revenue Protects press cuttings revenue Follows precedents in Norway, Belgium, and UK

Web content adds value to a database solution Scraping websites is as inefficient as scanning newspapers Direct supply through a central database improves quality

More volume More timely Richer meta-data

NLA experience Web content added to eClips April 2011 Potential to add web content to all other services (ClipShare etc) NLA v Meltwater case is proving the licensing model Also Google v CopiePresse, MBL v Meltwater

Newspaper Licensing Agency Ltd

NLA experience of running a database is positive

Revenues are higher than costs PCA access fees – subscription model – over £2.5m pa Number, size and spend of MMOs is important

Costs significant (£2m pa plus with 150 newspapers loaded) Processing c 40% (external).

New technology is lowering these costs NLA staff c 40% Systems and IT 20% Costs are reduced if infrastructure is shared

Significant licensing benefits Higher licence rate – RRO can see client usage and make sure they are all licensed Higher clippings volumes – MMOs find more stories for clients

Publisher cost savings Collective cost savings exceed £2m Publishers have replaced own archive systems and library functions Publishers using eClips to feed Kindle, Factiva, etc