THE BUSINESS OF JOURNAL PUBLISHING The management economics

THE BUSINESS OF JOURNAL PUBLISHING The management, economics and electronic hosting of scholarly journals Tony Mc. Seán, Director of Library Relations, Elsevier Jane Smith, British Medical Association Library UKSG, Serials Resource Management for the 21 st Century: an introduction. 8 June, 2005

Publishing 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 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 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. ”

First Journals: 1665 Henry Oldenburg

Journal Growth 1665 -2001

Main Cause of Journal Growth

Starting New Journals =Proposals come from scholars l Only 1 in 20 lead to a new title

Starting New Journals =Proposals come from scholars l Only 1 in 20 lead to a new title =Key questions a publisher asks l is there an identifiable critical mass of authors? l is there an adequate journal already? l are the authors concentrated in a new area or scattered among several old ones? l who will be the readership? l credibility of the proposer?

Publishing 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 Journals =Proposals come from scholars l Only 1 in 20 lead to a new title =Key questions a publisher asks l is there an identifiable critical mass of authors? l is there an adequate journal already? l are the authors concentrated in a new area or scattered among several old ones? l who will be the readership? l credibility of the proposer?

Reasons for Saying “No” = Too few papers will be submitted l Area is not a real sociological grouping of researchers l Area is too young or too diffuse l Existing titles already satisfy authors’ needs

Reasons for Saying “No” = Too few papers will be submitted l Area is not a real sociological grouping of researchers l Area is too young or too diffuse l Existing titles already satisfy authors’ needs = Readership is too interdisciplinary to influence institutional buying decisions

Reasons for Saying “No” = Too few papers will be submitted l Area is not a real sociological grouping of researchers l Area is too young or too diffuse l 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” = Too few papers will be submitted l Area is not a real sociological grouping of researchers l Area is too young or too diffuse l 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” = Too few papers will be submitted l Area is not a real sociological grouping of researchers l Area is too young or too diffuse l 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 Time surplus 7 years 0 loss time

Getting The New Journal Running =Editor & Editorial Office =Editorial Board =Launch =Verdict

Setting Up An Editorial Office =First, … find your Editor! l Researcher working in the field l Recognised authority with administrative flair

Setting Up An Editorial Office =First, … find your Editor! l Researcher working in the field l Recognised authority with administrative flair =Setting up an editorial office l agree scope of journal and nature of support l find location and negotiate lease l supply equipment, material and staff l help create referee database

Setting Up An Editorial Office =First, … find your Editor! l Researcher working in the field l Recognised authority with administrative flair =Setting up an editorial office l agree scope of journal and nature of support l find location and negotiate lease l supply equipment, material and staff l help create referee database =Support costs: typically 10 -15% of income paid directly by the publisher

Getting The New Journal Running =Editor & Editorial Office =Editorial Board =Launch =Verdict

Establish The Editorial Board =With Editor(s), identify key members of research community served by the journal l the academic “Great and the Good”

Establish The Editorial Board =With Editor(s), identify key members of research community served by the journal l the academic “Great and the Good” =Persuade them of the virtue of the title

Establish The Editorial Board =With Editor(s), identify key members of research community served by the journal l 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 Running =Editor & Editorial Office =Editorial Board =Launch =Verdict

Actions to Launch =Send out a call for papers

Actions to Launch =Send out a call for papers =Decide on cover design etc. with Editor(s)

Actions 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 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 readers l direct mail campaigns l free sample issues at conferences

Actions 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 readers l direct mail campaigns l free sample issues at conferences =Launch and monitor paper flow and subscriptions

Getting The New Journal Running =Editor & Editorial Office =Editorial Board =Launch =Verdict

New Journal Breakeven Time surplus 7 years 0 loss time

Publishing Cycle Lite

Publishing Cycle Classic

What Does The Journal Editor Do? =Public face of the journal

What Does The Journal Editor Do? =Public face of the journal =Decides on what gets published l type and standard of paper

What Does The Journal Editor Do? =Public face of the journal =Decides on what gets published l type and standard of paper =Sets editorial policies l with editorial board & publishers’ editor

What Does The Journal Editor Do? =Public face of the journal =Decides on what gets published l type and standard of paper =Sets editorial policies l with editorial board & publishers’ editor =Runs the peer review process l supported by an editorial office funded by the publisher

Peer Review =A methodological check l soundness of argument l supporting data and cited references =Done by two anonymous academics l (“the reviewers”) =Reviewers peer review without payment l 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 Classic

What Does The Publisher Do? =Editorial management l monitor editorial office efficiency and efficacy • time for reviews, responsiveness to authors

What Does The Publisher Do? =Editorial management l monitor editorial office efficiency and efficacy • time for reviews, responsiveness to authors l monitor key success indicators • copyflow, subscription levels, quality indicators, author satisfaction

What Does The Publisher Do? =Editorial management l monitor editorial office efficiency and efficacy • time for reviews, responsiveness to authors l monitor key success indicators • copyflow, subscription levels, quality indicators, author satisfaction l monitor research trends • include where relevant: special issues, invited papers, conference issues

What Does The Publisher Do? =Editorial management l monitor editorial office efficiency and efficacy • time for reviews, responsiveness to authors l monitor key success indicators • copyflow, subscription levels, quality indicators, author satisfaction l monitor research trends • include where relevant: special issues, invited papers, conference issues l take action • does journal need to expand? • does editor need replacing?

What Does The Publisher Do? =Business management l control costs and set financial goals l review subscription development l review production costs and set page budgets l set guide price l close a failing journal

Manufacturing The Journal =Production l work flow management l file conversion, typesetting and editing l supplier management

Manufacturing The Journal =Production l work flow management l file conversion, typesetting and editing l supplier management =Electronic hosting l secure online host, 24/7/365 l scalable l access and entitlements l disaster recovery l assured perpetual archiving

Promotion, Distribution and Sales =Promotion and marketing l Direct mail and web brochures and leaflets l Exhibitions and advertising l Information on products and prices in general

Publishing Cycle 2005 Pro

Promotion, Distribution and Sales =Sales Account managers seek prospects l Licence deals agreed with individual libraries and consortia l After sales service and customer support l

Promotion, Distribution and Sales =Sales Account managers seek prospects l Licence deals agreed with individual libraries and consortia l After sales service and customer support l =Distribution and fulfilment l Access and entitlements • Electronic and paper l Invoicing and cash collection l Monitoring of claims

Economics of Journal Publishing Magazines Hybrid Magazine/ Journals Research Journals Sold to Individuals and institutions Institutions Circulation 100, 000 s 100 s-1, 000 s Advertising Income Very high High Non existent Price Low High Fixed costs Variable costs Low High Medium Low High Small

Economics of Journal Publishing =Each research area has its “institutional market” l limited number of institutions that support it =Institutional sales rarely exceed the institutional market l 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 is a distribution medium =Production costs are made up of two components: l cost to create the first copy (85 -90%) l cost to duplicate and distribute (10 -15%) =Copying and distribution become virtually zero, but authentication, licensing and management become more complex

First Copy Costs =Estimated by Odlyzko and Tenopir & King at an average of $4000 per article l Survey by John Cox Associates: $3500 l OSI Guide to OA journals: $3750 =Has several components l peer review costs for ALL submissions l technology and development l brand identity management l organization costs =Users want the functions: first copy cost have to come from somewhere

Alternative 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 options 1. Authors pay (page charges) 2. Authors’ institutions pay 3. Authors’ granting bodies pay 4. Readers pay 5. Readers’ agents (library) pay 6. National authorities pay (eg, NESLI) = = Tolls and tariffs 1. Advertising 2. Telecommunication access charges

Electronic Publishing =Requires 24 -7 -365 reliability and customer service =Science. Direct l Over 1, 800 journals (1, 947 if archive of discontinued merged etc. titles included) l 6 m full text article, 60 m abstracts l 180 m full article downloads by users in 2003, rising from 86 m in 2002 l Estimated 5. 5 m users at more than 4, 000 institutions worldwide =Not something you do in your garage

Thank You

Magazines versus Journals Content types and business models classifieds Archival papers Short papers Review papers Editorial Letters News, views, commentary advertising Book reviews ads Journalistic/unrefereed Submitted/refereed ads

Magazines versus Journals New Scientist, Scientific American Magazine model: personal sale to individuals, very high circulation, very high advertising revenue Book reviews classifieds ads News, views, commentary Editorial Journalistic/unrefereed Letters advertising ads

Magazines versus Journals Nature, Science, BMJ, Lancet etc. Hybrid magazine/research journal model: personal sales predominate, high circulation, high advertising income Submitted/refereed classifieds Archival papers Short papers Review papers Book reviews News, views, commentary Editorial Journalistic/unrefereed Letters advertising ads

Magazines versus Journals Archival Research Journals Research journal model: institutional sales, low circulation, no advertising Archival papers Short papers Review papers Submitted/refereed