RE: Does anyone have the data?

["D Anderson" <dh-anderson@corhealth.com>]

>From my discussions with other publishers and our own experience in
medical publishing, I'd guess that for some journals, particularly those
in the biotech and medical fields, 25% to 40% of *non-advertising* revenue
comes from commercial organizations.

It is a common misunderstanding to think of non-advertising revenue as
coming solely from subscription fees. In fact, significant sources of
revenue include database content licenses, site licenses, bulk reprints,
specialized formats (such as content for PDAs and other mobile
technologies), online access, and subscriber list rentals to direct-mail
advertisers. In fact, these "ancillary" sources rival traditional
subscription fees as a source of revenue for many publishers.

In addition to these non-advertising revenue sources, display advertising
brings in about 50% of total revenue for biotech and medical journals, and
nearly all advertising revenue comes from commercial organizations. Adding
in advertising revenue, upwards of 70% of total publishing revenue for
some journals may be derived from commercial sources.

Proponents of OA should look to commercial organizations for support,
considering that the commercial sector is the only clear winner in such a
system. In fact, our own small organization would save several thousands
of dollars a year.

On the other hand, why would large academic institutions desire such a
system? Will the relatively small number of academic and research
institutions that could sponsor the publication of academic research be
willing or able to pay for all of the free riders? Why should they
subsidize the commercial sector? Doesn't it make more sense to spread the
burden around rather than to increase the burden on large academic
institutions?

Dean H. Anderson

-----Original Message-----
[mailto:owner-liblicense-l@lists.yale.edu]On Behalf Of Joseph J.
Esposito
Sent: Thursday, April 29, 2004 9:26 AM
Subject: Does anyone have the data?

Jan Velerop noted:

"I estimate the industrial revenues in respect of primary journals to be
less than 5%."

JE:  I think this is a responsible, educated estimate, but I wonder (and
have been wondering for years) if anyone has the data. In publishers'
parlance, this is called a "sales-by-channel" analysis.  Every individual
publisher tracks this in great detail for his or her own publications, but
channel proportions vary by journal, by discipline, and by geography
(e.g., for hardcover books, bookstores in France have greater market share
than bookstores in the U.S.).  One of the reasons that the information is
hard to come by is that publishers guard it zealously, as I always did and
do. Another reason is that publishers use different typologies; one man's
government account is another man's institutional account.  This is also
expensive market research to do, if done well (probably a $50k job in the
U.S. alone, maybe a bit more).

I would love to see this data.  Ideas, anyone?

Joe Esposito