Information providers Cutting the cherry cake: how the Internet is changing relationships between publishers and hosts

Abstract

Considers the rapidly changing relationship between information providers (IPs) and online hosts with particular reference to the ability of IPs to make their databases available directly via the Internet and the Web. Although the host/IP relationship has been relatively satisfactory, allowing each to concentrate on their mainstream business, nevertheless, consolidation of the industry into a few major hosts, the advent of the Internet and novel approaches to pricing and product presentation have forced changes in the relationship. Evaluates some of the strengths and weaknesses that both sides currently bring to the online industry, concentrating on: publisher strategies in entering the online market in relation to hosts and other online services the commercial relationships between IP and host; and the potential impact of the industry trend towards bulk deals and lower pricing. Sets out the reasons why IPs express disappointment with the results of their early forays into the online market. Concludes with notes on the concepts of wholesale pricing and retail pricing as applied to online products. Predicts that, in future, most IPs will deliver their own electronic products, via the Internet and often priced competitively with online hosts. However, hosts are in a unique position to create for themselves a specialized alternative role as facilitators, creating links and directing customers to publisher owned Web sites.