Online service pricing and expenditure

Abstract

The financial aspects of online services are becoming increasingly important; with pricing debates occurring at two levels: that of the intermediary and that of the online host. Information on spending patterns can provide a useful contribution at either level; this is illustrated by recently‐obtained data concerning the expenditure of selected groups of UK online‐using institutions. Figures for the amounts spent by public and academic libraries reflect their role as intermediaries, conducting client‐specific searches. These are generally priced in relation to expenditure, as libraries attempt to recover at least some of their costs. As regards the hosts, there is a need for more detailed research into the possible effects of price variations upon demand. This is an area in which figures for spending could prove extremely valuable, if used, on a long‐term basis, to investigate the interaction between price changes and expenditure trends.