Presentation on theme: "Journals Performance Review Publications Committee Meeting 6 January 2010."— Presentation transcript:
Journals Performance Review Publications Committee Meeting 6 January 2010
2 Points of Review Revenue Key Indicator Update Financials Expense Key Indicator Update Direct and Indirect Expenses Net Margin Looking Forward
3 Key Indicators: Institutional Subscribers Institutional subscribers experienced a 5% decrease in FY09. * Data based on September results.
4 Subscription Rates: Institutions Since FY07, subscription rates have increased 5-6% each year. FY10 Rates: AIAAJ: $1,640JA: $900JGCD: $915JPP: $990 JSR: $850JTHT: $720JACIC: $380
Institutional Subscriber Mix by Revenue Source 5 Since FY08, the majority of Institutional subscriber revenue has been generated from customers that prefer some or all content delivered in an online format.
6 Key Indicators: Member Subscriptions After declining the last two years, the number of member subscriptions increased slightly in FY09.
7 Subscription Rates: Members Subscription rates for members remained at the same levels in FY10.
8 Key Indicators: Geographic Breakdown In FY09, domestic subscribers accounted for 65% of total subscriptions. The percentage of non U.S. subscribers has gradually increased over the past five years. * Data includes Member and Institutional Subscribers
9 Revenue Trends Although Journal revenue declined 3% in FY09, Journals revenue has grown 11% since FY05. All products experienced a slight decrease in revenue, with the exception of the Journal of Propulsion and Power, which remained flat.
Revenue by Source 10 Institutions generated 82% of all Journals revenue. Other sales include online transactional sales of Journal articles and reprint sales.
11 Key Indicators: Manuscripts Accepted The overall number of manuscripts accepted declined 4% in FY09. While domestic manuscripts accepted remained flat in FY09, the number of non U.S. manuscripts accepted declined by 7% in FY09.
12 Key Indicators: Pages Published In FY09, the total pages published for Journals increased 2%. All Journals remained flat or experienced an increase, with the exception of the AIAA Journal, which experienced a 7% decline in number of pages published..
13 Direct Expenses Direct expenses include costs for paper, printing, outside production, postage, honoraria, and color printing offset. After experiencing two years of shrinking expenses due to lower production costs and higher collections for color printing, direct costs increased 6%, or $54K, in FY09. Increases in expenses in FY09 were due primarily to an increase in Honoraria ($27K), paper ($14K) and print production ($13K).
Direct Expense Breakdown 14 Although printing costs run about 18% of total costs, they are offset by color printing collections. Other costs include committee expenses, consulting fees, office supplies, software, travel, and temporary staff support (designers).
Direct Operating Margin 15 Direct Operating Margin = Revenue less Direct Expenses Journals direct margin declined 6% in FY09 due to slight revenue decrease and an increase in direct expenses.
16 Indirect Expenses Breakdown Indirect expenses include salaries, benefits, general and administrative costs and shared services allocations. The comparison of indirect expenses is not consistent year to year due to modifications in financial reporting practices to allocate all indirect costs to all projects. Publications Process is an expense account that falls under VP Publications and is then allocated to Books and Journals. In FY09, Publications Process consisted of $31K in direct costs that covered staff travel ($13K), committee expenses ($15K) and miscellaneous expenses like postage, society dues, and professional subscriptions. The remaining expenses included Labor & Benefits ($358K), and allocations ($462K).
17 Putting It All Together…Net Margin Journals net margin has declined primarily due to a change in allocation methodology and an increase in indirect costs such as medical and fringe benefits, although direct margin did decline in FY09.
18 Looking Forward Continue to incentivize institutional customers to subscribe to the complete collection without requiring a bundled purchase. Explore flexible subscription options for non-traditional or developing markets Concerted focus on international library consortia Continue emphasize archives Monitor the print-online tipping point and timing Appropriate expense discipline Proactively plan for public/open access models for federally funded research content