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BREAKING NEWS & VIEWS

A Rough 2010 Ahead for b2b Paid Content


Tuesday, December 29, 2009

In the coming year, enterprise content buyers will be faced with some tough calls about which data and content services to maintain in their portfolios, and this points to bad news for b2b content providers. According to content consultancy Outsell, 46% of enterprises said in a survey that they anticipate increasing prices on their paid content services in the coming year. Scientific, medical and technical information publishers will be the most likely to up their fees. The expected content price increase is about 6% overall. Meanwhile, the information managers say their own budgets for buying content will decrease 3%. Outsell says that this big disconnect between content pricing and buyer budgets will result in subscription cancellations and downsized licenses.

Publishers will need to work harder just to stand still with their enterprise clients. It will come down to more than just the quality of the content as companies make the hard decisions about which services to retain, cancel or reduce. “Information managers say that with less money to spend, they’ll choose the content providers who make it easiest to do business,” says Joanne Lustig, VP and lead analyst, Outsell. “Vendors differentiate themselves through better service, more transparency and flexibility with pricing and contracts.”

Outsell surveyed 263 enterprise information managers about their budgets in September 2009 for the survey and consulted with b2b publishers that included LexisNexis, Bloomberg, Safari Books Online, Factiva, and Forrester Research.

Data and licensed content services have been among the most resilient content categories for b2b publishers in 2009 even as their print ad pages took massive damage. Most publishers tell us that their data group either stayed flat, grew or, at worst, suffered only incremental losses during the year. For most companies, their existing paid content services include mission-critical lead generation or market intelligence data that cannot be cut easily. Publishers in hard-hit industries like construction and finance report that cutbacks tend to occur when the number of companies in the sector shrinks or when companies contract.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

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