Key Market Points for Publishers

Credit: Worlock. K, June (2011), Education & Training: 2010 Final Market Size and Share Report, Outsell –Advancing the Business of Information

Key Market Indicators

Global Education & Training industry generated revenue of $48.7 billion in 2010, an increase of 4.5% from $46.6 billion in 2009

Top 10 companies revenue accounts for 43.4% of industry revenue – these companies were the most internationally diverse, with resources allowing them to invest in overseas developments

Key Market IndicatorsMarket Drivers in 2010:

• Strong US K:12 adoption market• Pressure on Educational budgets• Impact of new business models and routes to market –particularly in HE

market. E.g. Chegg, the leading textbook rental company, led to a multitude of clones. New business models indicated the potential beginnings of a period of change

• Experimentation from Publishers and Information providers – e.g. Nature formed a new division focusing on the creating of customisable interactive online textbooks that integrate with course management systems.

• Extension along value change – publishers looked into extending to adjacent markets such as delivery of testing and assessment products and the provision of technology and software solutions.

• Slowdown in growth of Higher Education enrolments• Digital services became increasingly important to major publishers

revenues – the proportion of revenue from digital content rose from 28% in 2009 to 36.2% in 2010

• Continued strong growth of international markets, particularly in Asia-Pacific regions• Outsell Estimates 40% of revenue came from the EMEA and Asia-

Pacific regions

Figure 1 shows the growth, using a variety of indicators, for the period 2006-2010 of the Education and Training industry.

Table 2 shows the breakdown of the industry into tiers, then comparing various different indications, allowing a comparison in performance levels.

• Education and Training industry one of the only segments of global information market to experience continued growth despite the economic downturn, however it did not reach the pre-downturn levels of 2007/8

• European competitors performed less well, however some of this can be attributed to negative currency effects.

• K12 Education content sub-segment relatively well consolidated – top 10 companies account for 66.9% of total market

• The industry is one which has very few key players, and a large number of smaller players – the only company with more than 10% market share is Pearson.

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Credit: Worlock. K, June (2011), Education & Training: 2010 Final Market Size and Share Report, Outsell –Advancing the Business of Information