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    4.6 Results

    In this section we report some descriptive results from both the experiment and the production service. See Gazzale and MacKie-Mason (this volume) for a more detailed study of the economic experiment results.

    Revenues and costs

    In Table 4.1 we summarize PEAK revenues. The actual total was over $580,000 (the sum of total revenue in the first two rows).[8] The first and third rows report annual revenues, with 1999 adjusted to reflect an estimate of what revenues would have been if the service were to run for the full year (it ended in August 1999, but only six months of content were included, and prices were adjusted accordingly). On an annualized basis, two-year revenues were about $712,000.

    Between the first and second year of the service, the number of traditional subscriptions substantially decreased: this occurred because two schools cancelled all of their (electronic) subscriptions. By reducing the number of journal titles under traditional subscription, the users of these libraries needed to rely more heavily on the availability of unused generalized subscription tokens, or they had to pay the per-article fee. We see from the table that the annualized revenues for per-article purchasing are seventeen times higher in 1999 than in 1998, and that the 1999 generalized subscription revenues (annualized) are 8% lower than in 1997-1998.

    A full calculation of the costs of supporting the PEAK service is difficult, given the mix and dynamic nature of costs (e.g., hardware). We estimate that total expenditures by the University of Michigan were nearly $400,000 during the 18 month life of the project. Of this cost, roughly 35% was expended on technical infrastructure and 55% on staff support (i.e., system development and maintenance, data loading, user support, authentication/authorization/security, project management). Participant institution (IPL) fees covered approximately 45% of the project costs, with vendor and campus in-kind contributions covering another 20-25%.[9] The UM Digital Library Production Service contributed resources to this effort, reflecting the University of Michigan's desire to provide this service to its community, and also its support for the research.

    Table 4.1: PEAK Revenues
    Traditional Subscriptions Generalized Subscriptions Individual Articles Total Access IPL**** Total
    Year Quantity Revenue Quantity Revenue Quantity Revenue Revenue Revenue Revenue
    1997-1998 1939 $216,018 151 $82,748 275 $1,929 $300,691 $140,000 $440,691
    1999* 1277 $33,608 92 $50,416 3186 $22,302 $106,326 $42,000 $148,326
    Annualized 1999** 1277 $78,996 138 $75,624 4779 $33,453 $188,073 $84,000 $272,073
    Total 1997-1999*** 3216 $295,014 289 $158,372 5054 $35,378 $488,764 $224,000 $712,764
    *Partial year results, January to August 1999; new articles available only if published before June.
    **Annualization done by scaling the quantity of generalized subsciptions and per article purchases. Traditional subscriptions prices at the full year rate.
    ****The "IPL" is the Institutional Participation License, an annual fee charged to each participating institution.