Tony McSeán, Director of Library Relations, Elsevier

Jane Smith, British Medical Association Library

UKSG, Serials Resource Management for the 21st Century: an introduction. 8 June, 2005

The management, economics and The management, economics and electronic hosting of scholarly journalselectronic hosting of scholarly journals

The management, economics and The management, economics and electronic hosting of scholarly journalselectronic hosting of scholarly journals

THE BUSINESS OF THE BUSINESS OF JOURNAL PUBLISHINGJOURNAL PUBLISHING

THE BUSINESS OF THE BUSINESS OF JOURNAL PUBLISHINGJOURNAL PUBLISHING

Publishing and PublishersPublishing and PublishersPublishing and PublishersPublishing and Publishers

A. J. Ayer:

"If I had been someone not very clever, I would have done an easier job like publishing. That's the easiest job I can think of.”

Publishing and PublishersPublishing and PublishersPublishing and PublishersPublishing and Publishers

A. J. Ayer:

"If I had been someone not very clever, I would have done an easier job like publishing. That's the easiest job I can think of.”

Cyril Connolly:

“As repressed sadists are supposed to become policemen or butchers, so those with an irrational fear of life become publishers.”

Publishing and PublishersPublishing and PublishersPublishing and PublishersPublishing and Publishers

A. J. Ayer:

"If I had been someone not very clever, I would have done an easier job like publishing. That's the easiest job I can think of.”

Cyril Connolly:

“As repressed sadists are supposed to become policemen or butchers, so those with an irrational fear of life become publishers.”

Peter Lewis:

“As a university library director my life was full of senior academics telling me how much better they could do my job if only they could be bothered to find the time.”

Henry OldenburgHenry Oldenburg

First Journals: 1665First Journals: 1665First Journals: 1665First Journals: 1665

Journal Growth 1665-2001Journal Growth 1665-2001Journal Growth 1665-2001Journal Growth 1665-2001

cagr 3.46%

1

100

10000

1665 1765 1865 1965

No

of

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es

la

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ch

ed

a

nd

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xta

nt

20

01

R&D Workers, Journals and Articles

0.8

1.2

1.6

1980 1985 1990 1995Year

Inde

x (19

81=1

.00)

US r&dworkers

journals

articles

Main Cause of Journal GrowthMain Cause of Journal GrowthMain Cause of Journal GrowthMain Cause of Journal Growth

Starting New JournalsStarting New JournalsStarting New JournalsStarting New Journals

Proposals come from scholarsOnly 1 in 20 lead to a new title

Starting New JournalsStarting New JournalsStarting New JournalsStarting New Journals

Proposals come from scholarsOnly 1 in 20 lead to a new title

Key questions a publisher asks is there an identifiable critical mass of authors? is there an adequate journal already?are the authors concentrated in a new area or

scattered among several old ones?who will be the readership?credibility of the proposer?

Publishing and PublishersPublishing and PublishersPublishing and PublishersPublishing and Publishers

A. J. Ayer:

"If I had been someone not very clever, I would have done an easier job like publishing. That's the easiest job I can think of.”

Cyril Connolly:

“As repressed sadists are supposed to become policemen or butchers, so those with an irrational fear of life become publishers.”

Peter Lewis:

“As a university library director my life was full of senior academics telling me how much better they could do my job if only they could be bothered to find the time.”

Starting New JournalsStarting New JournalsStarting New JournalsStarting New Journals

Proposals come from scholarsOnly 1 in 20 lead to a new title

Key questions a publisher asks is there an identifiable critical mass of authors? is there an adequate journal already?are the authors concentrated in a new area or

scattered among several old ones?who will be the readership?credibility of the proposer?

Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”

Too few papers will be submitted Area is not a real sociological grouping of researchers Area is too young or too diffuse Existing titles already satisfy authors’ needs

Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”

Too few papers will be submitted Area is not a real sociological grouping of researchers Area is too young or too diffuse Existing titles already satisfy authors’ needs

Readership is too interdisciplinary to influence institutional buying decisions

Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”

Too few papers will be submitted Area is not a real sociological grouping of researchers Area is too young or too diffuse Existing titles already satisfy authors’ needs

Readership is too interdisciplinary to influence institutional buying decisions

Growth of new area too slow to be viable

Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”

Too few papers will be submitted Area is not a real sociological grouping of researchers Area is too young or too diffuse Existing titles already satisfy authors’ needs

Readership is too interdisciplinary to influence institutional buying decisions

Growth of new area too slow to be viable

Financial benefits low compared to risks

Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”Reasons for Saying “No”

Too few papers will be submitted Area is not a real sociological grouping of researchers Area is too young or too diffuse Existing titles already satisfy authors’ needs

Readership is too interdisciplinary to influence institutional buying decisions

Growth of new area too slow to be viable

Financial benefits low compared to risks

Surer developments already under way

New Journal Breakeven TimeNew Journal Breakeven TimeNew Journal Breakeven TimeNew Journal Breakeven Time

surplus

loss

0

7 years

time

Getting The New Journal RunningGetting The New Journal RunningGetting The New Journal RunningGetting The New Journal Running

Editor & Editorial Office

Editorial Board

Launch

Verdict

Getting The New Journal RunningGetting The New Journal RunningGetting The New Journal RunningGetting The New Journal Running

Editor & Editorial Office

Editorial Board

Launch

Verdict

Setting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial Office

First, … find your Editor!Researcher working in the fieldRecognised authority with administrative flair

Setting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial Office

First, … find your Editor!Researcher working in the fieldRecognised authority with administrative flair

Setting up an editorial officeagree scope of journal and nature of support find location and negotiate leasesupply equipment, material and staffhelp create referee database

Setting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial OfficeSetting Up An Editorial Office

First, … find your Editor!Researcher working in the fieldRecognised authority with administrative flair

Setting up an editorial officeagree scope of journal and nature of support find location and negotiate leasesupply equipment, material and staffhelp create referee database

Support costs: typically 10-15% of income paid directly by the publisher

Getting The New Journal RunningGetting The New Journal RunningGetting The New Journal RunningGetting The New Journal Running

Editor & Editorial Office

Editorial Board

Launch

Verdict

Establish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial Board

With Editor(s), identify key members of research community served by the journal

the academic “Great and the Good”

Establish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial Board

With Editor(s), identify key members of research community served by the journal

the academic “Great and the Good”

Persuade them of the virtue of the title

Establish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial BoardEstablish The Editorial Board

With Editor(s), identify key members of research community served by the journal

the academic “Great and the Good”

Persuade them of the virtue of the title

Get them to submit some papers for the inaugural issue, or encourage other good authors to submit and/or review

Getting The New Journal RunningGetting The New Journal RunningGetting The New Journal RunningGetting The New Journal Running

Editor & Editorial Office

Editorial Board

Launch

Verdict

Actions to LaunchActions to LaunchActions to LaunchActions to Launch

Send out a call for papers

Actions to LaunchActions to LaunchActions to LaunchActions to Launch

Send out a call for papers

Decide on cover design etc. with Editor(s)

Actions to LaunchActions to LaunchActions to LaunchActions to Launch

Send out a call for papers

Decide on cover design etc. with Editor(s)

When enough papers received, assemble inaugural issue

Actions to LaunchActions to LaunchActions to LaunchActions to Launch

Send out a call for papers

Decide on cover design etc. with Editor(s)

When enough papers received, assemble inaugural issue

Promote existence to libraries and potential readersdirect mail campaigns free sample issues at conferences

Actions to LaunchActions to LaunchActions to LaunchActions to Launch

Send out a call for papers

Decide on cover design etc. with Editor(s)

When enough papers received, assemble inaugural issue

Promote existence to libraries and potential readersdirect mail campaigns free sample issues at conferences

Launch and monitor paper flow and subscriptions

Getting The New Journal RunningGetting The New Journal RunningGetting The New Journal RunningGetting The New Journal Running

Editor & Editorial Office

Editorial Board

Launch

Verdict

New Journal Breakeven TimeNew Journal Breakeven TimeNew Journal Breakeven TimeNew Journal Breakeven Time

surplus

loss

0

7 years

time

Publishing Cycle LitePublishing Cycle LitePublishing Cycle LitePublishing Cycle Lite

Publisher

Authors

Journal

LibraryReferees

ReadersEditors

Publishing Cycle ClassicPublishing Cycle ClassicPublishing Cycle ClassicPublishing Cycle Classic

Accepted, refereed MSS of papers

ResearchCommunity

Printed journal issues

"The Literature" of a discipline

Review process

Proofs

Submit papers

PublisherProduction& distribution

Sales &management

Agents

LibraryAuthors

JournalEditors

Referees

Readers

What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?

Public face of the journal

What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?

Public face of the journal

Decides on what gets published type and standard of paper

What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?

Public face of the journal

Decides on what gets published type and standard of paper

Sets editorial policieswith editorial board & publishers’ editor

What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?What Does The Journal Editor Do?

Public face of the journal

Decides on what gets published type and standard of paper

Sets editorial policieswith editorial board & publishers’ editor

Runs the peer review process supported by an editorial office funded by the

publisher

Peer ReviewPeer ReviewPeer ReviewPeer Review

A methodological check soundness of argument supporting data and cited references

Done by two anonymous academics (“the reviewers”)

Reviewers peer review without payment costs of administering the selection of reviewers,

postage and document costs are borne by the journal

On average 30% more papers are reviewed than published

Publishing Cycle ClassicPublishing Cycle ClassicPublishing Cycle ClassicPublishing Cycle Classic

Accepted, refereed MSS of papers

ResearchCommunity

Printed journal issues

"The Literature" of a discipline

Review process

Proofs

Submit papers

PublisherProduction& distribution

Sales &management

Agents

LibraryAuthors

JournalEditors

Referees

Readers

What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?

Editorial managementmonitor editorial office efficiency and efficacy

• time for reviews, responsiveness to authors

What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?

Editorial managementmonitor editorial office efficiency and efficacy

• time for reviews, responsiveness to authors

monitor key success indicators• copyflow, subscription levels, quality

indicators, author satisfaction

What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?

Editorial managementmonitor editorial office efficiency and efficacy

• time for reviews, responsiveness to authors

monitor key success indicators• copyflow, subscription levels, quality

indicators, author satisfactionmonitor research trends

• include where relevant:special issues, invited papers, conference issues

What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?

Editorial managementmonitor editorial office efficiency and efficacy

• time for reviews, responsiveness to authors

monitor key success indicators• copyflow, subscription levels, quality

indicators, author satisfactionmonitor research trends

• include where relevant:special issues, invited papers, conference issues

take action• does journal need to expand?• does editor need replacing?

What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?What Does The Publisher Do?

Business managementcontrol costs and set financial goals review subscription development review production costs and set page budgetsset guide priceclose a failing journal

Manufacturing The JournalManufacturing The JournalManufacturing The JournalManufacturing The Journal

Productionwork flow management file conversion, typesetting and editingsupplier management

Manufacturing The JournalManufacturing The JournalManufacturing The JournalManufacturing The Journal

Productionwork flow management file conversion, typesetting and editingsupplier management

Electronic hostingsecure online host, 24/7/365scalableaccess and entitlementsdisaster recoveryassured perpetual archiving

Promotion, Distribution and SalesPromotion, Distribution and SalesPromotion, Distribution and SalesPromotion, Distribution and Sales

Promotion and marketingDirect mail and web brochures and leafletsExhibitions and advertising Information on products and prices in general

Publishing Cycle 2005 ProPublishing Cycle 2005 ProPublishing Cycle 2005 ProPublishing Cycle 2005 Pro

Service Bureau

Accepted, refereed MSS of papers

ResearchCommunity

Review process

Proofs

PublisherProduction& distribution

Sales &management

LibraryAuthors

JournalEditors

Referees

Submit papers

"The Literature" of a discipline

GovernmentConsortia

Integrators

Agents

Negotiators

Library systems

Printed & online journal issues

Readers

Online hosts

Promotion, Distribution and Sales Promotion, Distribution and Sales Promotion, Distribution and Sales Promotion, Distribution and Sales

Sales

Account managers seek prospectsLicence deals agreed with individual libraries

and consortiaAfter sales service and customer support

Promotion, Distribution and Sales Promotion, Distribution and Sales Promotion, Distribution and Sales Promotion, Distribution and Sales

Sales

Account managers seek prospectsLicence deals agreed with individual libraries

and consortiaAfter sales service and customer support

Distribution and fulfilmentAccess and entitlements

• Electronic and paper Invoicing and cash collectionMonitoring of claims

Economics of Journal PublishingEconomics of Journal PublishingEconomics of Journal PublishingEconomics of Journal Publishing

Magazines Hybrid

Magazine/ Journals

Research Journals

Sold to Individuals Individuals and institutions

Institutions

Circulation 100,000s 10,000s 100s-1,000s

Advertising Income Very high High Non existent

Price Low Low High

Fixed costs

Variable costs

Low

High

Medium

Low

High

Small

Economics of Journal PublishingEconomics of Journal PublishingEconomics of Journal PublishingEconomics of Journal Publishing

Each research area has its “institutional market”

limited number of institutions that support it

Institutional sales rarely exceed the institutional market

high prices put buyers off, but very low ones will not attract customers to buy more

More general subject = larger institutional market and hence the potential sales

High circulations mean lower price, lower circulations higher price

Specialized titles will always be more highly priced than general ones: the market is smaller

Web = Publishing for Free?Web = Publishing for Free?Web = Publishing for Free?Web = Publishing for Free?

Web is a distribution medium

Production costs are made up of two components:cost to create the first copy (85-90%)cost to duplicate and distribute (10-15%)

Copying and distribution become virtually zero, but authentication, licensing and management become more complex

First Copy CostsFirst Copy CostsFirst Copy CostsFirst Copy Costs

Estimated by Odlyzko and Tenopir & King at an average of $4000 per article

Survey by John Cox Associates: $3500OSI Guide to OA journals: $3750

Has several componentspeer review costs for ALL submissions technology and developmentbrand identity managementorganization costs

Users want the functions: first copy cost have to come from somewhere

Alternative Business ModelsAlternative Business ModelsAlternative Business ModelsAlternative Business Models

Any alternative must raise $4000 per paper to be self-sustaining

Publication must fulfil all purposes, not just the library-oriented ones

Payment options1. Authors pay (page charges)2. Authors’ institutions pay3. Authors’ granting bodies pay4. Readers pay5. Readers’ agents (library) pay6. National authorities pay (eg, NESLI)

Tolls and tariffs1. Advertising2. Telecommunication access charges

Electronic PublishingElectronic PublishingElectronic PublishingElectronic Publishing

Requires 24-7-365 reliability and customer service

ScienceDirectOver 1,800 journals (1,947 if archive of

discontinued merged etc. titles included)6 m full text article, 60 m abstracts180 m full article downloads by users in 2003,

rising from 86m in 2002Estimated 5.5 m users at more than 4,000

institutions worldwide

Not something you do in your garage

Thank YouThank YouThank YouThank You

Magazines versus JournalsMagazines versus JournalsMagazines versus JournalsMagazines versus Journals

Book

reviews

New

s,view

s,com

men

tary

Sh

ort pap

ers

Review

pap

ers

Arch

ival pap

ers

classifieds

Ed

itorial

Letters

advertisin

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Journalistic/unrefereed Submitted/refereedads ads

Content types and business modelsContent types and business models

Magazines versus JournalsMagazines versus JournalsMagazines versus JournalsMagazines versus Journals

Book

reviews

New

s,view

s,com

men

tary

classifieds

Ed

itorial

Letters

advertisin

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Journalistic/unrefereedads ads

New Scientist, Scientific AmericanNew Scientist, Scientific AmericanMagazine model: personal sale to individuals, very

high circulation, very high advertising revenue

Magazines versus JournalsMagazines versus JournalsMagazines versus JournalsMagazines versus Journals

Book

reviews

New

s,view

s,com

men

tary

Sh

ort pap

ers

Review

pap

ers

Arch

ival pap

ers

classifieds

Ed

itorial

Letters

advertisin

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Journalistic/unrefereed Submitted/refereedads ads

Nature, Science, BMJ, Lancet etc.Nature, Science, BMJ, Lancet etc.Hybrid magazine/research journal model: personal sales predominate, high circulation, high advertising income

Magazines versus JournalsMagazines versus JournalsMagazines versus JournalsMagazines versus Journals

Sh

ort pap

ers

Review

pap

ers

Arch

ival pap

ers

Submitted/refereed

Archival Research JournalsArchival Research JournalsResearch journal model: institutional sales,

low circulation, no advertising