Re: Elsevier profit

["Joseph J. Esposito" <espositoj@worldnet.att.net>]

Naive, yes and forever, but not about this.  My point was specific:  the
GROWTH rate for Reed Elsevier provided insufficient information to make a
judgment.  The historical OPERATING RESULTS, which Mr. Williams cites, are
a different matter.

My own view is that the face of publishing is indeed changing forever.
These changes will result in stupendous new entrepreneurial opportunities.
More money than ever will be made, and institutions will pay for it.  The
incumbent publishers by and large will not participate in these changes.

Joe Esposito

----- Original Message -----
From: "Tom Williams" <twilliam@bbl.usouthal.edu>
To: <liblicense-l@lists.yale.edu>
Sent: Monday, March 31, 2003 8:04 PM
Subject: Re: Elsevier profit

> In reply to Mr. Esposito, his view is a bit on the naive side.
> Elsevier's profit margin last year was well in excess of 30%.  It's not
> just new and fresh business which take off that have such high margins of
> profit. Those which have been around for a very long time, who regularly
> buy up their competition, and who steadily increase their prices in spite
> of huge profit margins, are commonly referred to as price gougers where I
> come from.  This company's reputation in this regard is well-deserved.
>
> However, there are initiatives underway which may very well change the
> face of publishing as we know it.  Publishers may not always have the
> ability for such outrageous prices.  In fact, sometimes I get the
> impression that Elsevier and others of similar ilk are raking in all they
> can now in expectation of the gravy train hitting a huge snowbank down the
> road.
>
> --
> Thomas L. Williams, AHIP
> Director, Biomedical Libraries
> University of South Alabama
> College of Medicine
> Mobile, Al 36688-0002
> tel. (251)460-6885
> fax. (251)460-7638
> twilliam@bbl.usouthal.edu