Some of the pressures in the industry that Harmer sees include multiple vendors offering the same information, which creates price competition and can lower the value of information. NewsBank does not redistribute data for this reason. Another challenge is the concept of dial-in access, which provides unlimited access to library users. In the last four years, UMI secured rights to more than 2,000 files. He says that, as the Web expands distribution possibilities by reaching new markets, publishers are taking a more active role in reaching these broader markets.
Competition is fierce, profitability is becoming more difficult, and mergers are commonplace.
For their part, vendors must continue to invest in technology and in finding new markets. In the audience participation segment of the panel discussion, there was an undertone of resentment from information providers directed at vendors. A newspaper publisher representative comments that vendors seem to be more interested in boasting about the number of files they license, versus the quality or name brand strength of the files. We can always offer our news through another distributor. The vendors dispute these impressions, and again reiterate their interest in entering into equitable and profitable partnerships with information providers.