OA business models
When the term Business Model is used in connection with Open Access publishing, it is generally the financing of OA journals that is in focus.
Here, we will also focus on the financing of OA journals. There will also be more general discussions, for those with a general interest in thinking Open Access publishing business models.
Open Access journals may not, by definition, finance their activities by setting a price on access to content. The necessary funding has to come through other sources of revenue.
Most journals can be defined as having one major source or kind of income, but this may be supplemented by other sources.
In the following we will try to define some of the major basic income or financing models.
In a commercial business model, the journal will sell some service to someone, at a price.
Article Processing Charge (APC)
This is a model where the journal sells an audience and a quality certification to the author. The author, if the article is accepted, has to find a sum of money to pay to the journal to get his article published. Authors from poorer countries may be excempt from making this payment, the authors from richer countries may pay more to finance these excemptions. See e.g. BioMed Central's waiver fund.
Typical APCs vary between USD 1000 and USD 3000. Typically, the higher the rejection rate, the higher the APC. The APC for accepted articles has to cover all costs associated with all submitted articles, not only the accepted ones.
There is some reason to believe that APC is the only major long-term sustainable business model for commercial OA publishers, as it is the only model where there is a close connection between operating costs and income. Other sources of income are more independent of the actual costs incurred, and cannot be the basic financing of a journal.
A variaton on the APC is the OA option (by this or other names) offered by some TA journals. That is a model that makes it possible to make a single article OA in an otherwise TA journal. The theory is that over time the journal will lower its subscription price to reflect the percentage of OA articles. Very little practice has been seen when it comes to lowering of subscription prices, though some less aggressive increases in subscription prices may have been observed.
Sale of hard-copies
An OA journal may offer paper editions of the journal, either as a subscription service or as individual sales of copies. As long as the sales or subscription price covers all costs in producing and distributing the paper copies, this may generate a profit that can help finance the online version.