Substantive Research, the research and market data analytics provider, has partnered with Expand Research, a BCG Company, to release a white paper titled “Market Data Pricing – 2024 in Review.” The report combines Expand’s insights into firms’ spending with Substantive Research’s analysis of vendor pricing inconsistencies and discounting trends, providing a detailed assessment of market dynamics at both provider and product levels.
Coming in the wake of a recent study by Market Structure Partners on the same topic, the research highlights the significant pricing power of major vendors, who operate in a market lacking public pricing transparency. With firms negotiating contracts in isolation, many struggle to assess whether their costs are fair. While the FCA reviewed pricing concerns, it opted against major intervention in early 2024 due to potential unintended consequences. The white paper’s key finding is that pricing inflation is unsustainable, with vendor cost increases far exceeding firms’ budget growth. Additionally, wide pricing disparities persist, with some firms paying significantly more than peers for identical products.
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