Risk Area: Financial

Financial constraints and monetisation risks

Financial challenges heavily influence institutions' decisions to adopt open access policies and practices. Concerns about potential revenue loss, particularly for those relying on licensing and sales, are frequently cited. Additionally, the costs associated with implementing and sustaining open access collections further restrict the capacity of some institutions to make their materials publicly and freely accessible.

“We prefer to maintain copyright on the images of our collections as use of images is one of our few income streams.”

Museum, United Kingdom

  • Financial burden of digitisation, licensing, and maintaining open access infrastructure: Open access activities and services may require significant upfront and ongoing investment in digitisation, rights management, technical infrastructure, and staff expertise, placing pressure on organisational budgets, especially where funding is time-limited or uncertain.

  • Costs of transitioning to open access: The pathway to openness can have unanticipated short-term costs related to legacy systems and materials, policy realignment, and staff training, reflecting organisational inertia and the resources required to adopt new practices.

  • Hidden operational and integration costs of free open inputs: Even when works are openly licensed and free of direct licensing fees, organisations may incur significant costs related to storage, management, transformation, and integration of materials into existing systems and workflows.

  • Unplanned financial liabilities due to legal uncertainty: Unclear licence conditions or incorrect public domain assessments may trigger legal challenges, resulting in unexpected compliance costs and resource diversion.

  • Shift in revenue models and value-capture mechanisms: Open access and open licensing may require organisations to move beyond traditional revenue models, relying more on indirect, partnership-based, or reputational forms of value that can be harder to measure, forecast, and integrate into existing financial planning frameworks.

Use cases

Publishers don’t make all their publications open access, because this would lead to a significant loss of revenue from hard copy sales. This loss impacts the financial sustainability of the journals, especially since they do not charge author processing fees to offset costs.

Repository managers don’t make high-resolution image collections fully open access, because unrestricted use could lead to commercial exploitation without compensation. This undermines potential revenue from licensing agreements with partner picture agencies, affecting the institution’s funding and financial viability.

Institution administrators don’t make all digital assets open access, because without control over usage, there’s a risk of images being used in commercial products. This affects revenue streams from licensing, which may be crucial for funding preservation and digitisation projects.

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