Part 1 of this study is an exploratory look at the use of on-line services in academic libraries. For this study Lockheed and System Development Corporation (SDC) were contacted and each listed a number of libraries which used their services. Academic libraries using MEDLINE were contacted, under the assumption that they also used other systems. A survey was sent to 176 institutions of which 106 responded. Results of the survey showed that: (1) the Library Director is seen as the primary motivating force in the establishment of search services; (2) in some cases, the choice of a vendor was dictated by the fact that the vendor had a unique data base in an area appropriate to the interests of library users; (3) there are mixed views as to whether the user or an intermediary should access the IR systems; (4) the training programs offered by SDC and Lockheed were often not adequate; (5) the institutions readily accepted the concept of charging for on-line services, and (6) different operations of the library, such as document delivery and the increase of copying fiche materials, were affected by the use of on-line services. Recommendations were made that more attention be given to cost/ benefit analysis for this service. (Author/AP)