FW: Morgan Stanley on the STM Publishing market

["Hamaker, Chuck" <cahamake@email.uncc.edu>]

For those who have access to Gale's Investext the full report is available
under the title: Scientific Publishing: Knowledge is Power.

Chris Beckett's article in UKSG newsletter On Morgan Stanley's Sept. 2002
report:  Scientific Publishing: Knowledge is Power.

Re:  Morgan Stanley on the STM Publishing market   
see:  http://www.biblio-tech.com/uksg/SI_PD.cfm?PID=10&ArticleID=469

the niche nature of the market, and the rapid growth in the budgets of
academic libraries have combined to make scientific publishing the fastest
growing sub-sector of the media industry over the past 15 years, according
to the report.

specific points in the report of interest to librarians;

Scientific journals have been the fastest growing media sub-sector of the
past 15 years, and the level of organic revenue growth is such that it
prompted the Office of Fair Trading to conclude that the journals market
may not be working too well.

That journal publishers are likely to moderate price increases while
improving the value proposition through electronic delivery.

That pressure on library budgets will result in industry growth slowing
from 8% in 2001 to 3% in 2002.

That the market leader Reed Elsevier will outperform the market as
libraries trim peripheral suppliers who cannot bundle their journals as
effectively.

That margins will expand for journal publishers as users move to online
access. Libraries will benefit from accessing journals solely on-line, as
operating costs are currently $1.50 for every $1.00 of content spend.
Publishers will benefit, as the profitability of on-line only customers
will translate to a 16% improvement in profitability of those customers.

That Reed Elsevier will be a key beneficiary of that trend.