Towards a new pricing structure for online databases

Abstract

The majority of database producers in the science and technology market charge for the use of their databases on the basis of time. Their users are billed according to the time they actually spend searching and printing the database online which has no reflection on the true cost of the information. The real-time charging mechanism was established, when 300 baud terminals were the standard. Today microcomputers and 1200 baud modems are becoming increasingly more important, significantly reducing the time required online and thus the sales price of the search. The current system of pricing databases will be difficult to maintain in the future, as the trend towards improved hardware and sharer connect time increases. Changing the system, however, will be difficult. A typical database producer receives about 80 percent of online revenue from the sale of connect hours. To switch from time charges to an alternative such as unit charges will not be easy. The author analyses the problem and offers a number of possible scenarios.