icolc / new orleans

ICOLC / NEW ORLEANS

MARCH 2004

Thomas McIlrath, PublisherThe American Physical Societymcilrath@aps.org

• WHAT ARE THE “DRIVERS” FOR SOCIETY JOURNALS?

• WHAT CAN YOU EXPECT (DEMAND) FROM SOCIETY JOURNALS?

THE AMERICAN PHYSICAL SOCIETY

• FOUNDED IN 1899• MISSION:

TO ADVANCE AND DIFFUSE THE KNOWLEDGE OF PHYSICS

Phys Rev Ltrs,86,1207(2001)

THE AMERICAN PHYSICAL SOCIETY

• 43,000 MEMBERS

• 9,100 MEMBERS OUTSIDE U.S.

• 32% OF FOREIGN MEMBERS IN ASIA OR AUSTRALASIA

GOVERNANCE

• ELECTED PRESIDENTIAL LINE

• ELECTED GOVERNING COUNCIL

• EXEC. BOARD & COMMITTEES

• THREE OPERATING OFFICERS

PHYSICALREVIEW B

PHYSICALREVIEW C

PHYSICALREVIEW D

PHYSICALREVIEW E

PHYSICALREVIEW LETTERS

REVIEWS OFMODERN PHYSICS

PHYSICALREVIEW A

PRINT PACKAGES WITH ONLINE ACCESS

(PRST-AB)

A FULLY PEER-REVIEWED ELECTRONIC JOURNAL,

DISTRIBUTED WITHOUT CHARGE.

Http://prst-ab.aps.org

HTTP://PROLA.APS.ORG

(PROLA)

COVERING ALL OF PHYSICAL REVIEWFROM 1893-2000

PHYSICAL REVIEW & PHYSICAL REVIEW LETTERS RECEIPTS 1983-

2002

CY03 OPERATIONS SUMMARY

EXPENSES $ 39,967(000)

RESEARCH PUBLICATIONSPUBLIC AFF & PROG

SCIENTIFIC MEETINGS MEMBERSHIPOPERATIONS

GENL & ADMIN

$ 28,04370.2%

$ 3,3938.5%

$ 3,3678.4%

$ 1,2683.2%

$ 3,8959.7%

CY03 OPERATIONS SUMMARY

REVENUE $ 40,412 (000)

RESEARCH PUBLICATIONSCIENTIFIC MEETINGS

MEMBERSHIP OPERATION PUBLIC AFF & PROG

$ 31,88178.9%

$ 3,7909.4%

$ 3,1097.7%

$ 1,6324.0%

CY 03 PERFORMANCE SUMMARY

40.41

39.97

31.88

28.04

8.53

11.92

05

1015202530354045

Millions

TOTAL PUBLICATIONS OTHER

REVENUE EXPENSE

SUBMITTED MANUSCRIPTSPRA-E, PRL

10

12

14

16

18

20

22

24

26

28

30

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Thousands

INSTITUTIONAL SUBSCRIPTIONS1969-2003

5,000

10,000

15,000

20,000

25,000

30,000

19691971

19731975

19771979

19811983

19851987

19891991

19931995

19971999

20012003

ACTIVATED ONLINE SUBSCRIPTIONS

Number of Activated Online Subscriptions as of November 2003

No. of Paid Subscriptions

Nov-00 Nov-01 Nov-02 Nov-03 Dec-03Total 7,384 10,121 11,936 14,263 9,871

2003 Paid Subscriptions includes Graced RoweCom subscriptions

NonMember SubscriptionsReprint Sales

Consortia & License FeesPage Charges

Member Subscriptions Other

$26,46983.0%

$9322.9%

$1,5504.9%

$1,5014.7%

$10763.4%

$3521.1%

CY03 PUBLICATIONS REVENUE SUMMARY

Thousands

Comp & ProdCentral Pub Mgmt

Editorial CostsJrnl Info Svcs

Other AllocatedPrinting and Binding

OtherMailing

Paper

$4,01014.3%

$8,45230.1%

$2,1137.5%

$6542.3%

$9783.5%

$8653.1%

$4,96717.7%

$3,31111.8%

$2,6929.6%

CY03 PUBLICATIONS EXPENSE SUMMARY

Thousands

USA35.8%

EUROPE28.7%

JAPAN14.1% OTHER ASIA

16.1%

Other West Hem4.3% AFRICA

1.0%

USAEUROPE

JAPANOTHER ASIA

Other West Hem AFRICA

Total Asia and Australasia30.2%

Includes graced Rowe Com subscriptions

CY 03 SUBSCRIPTIONS BY CONTINENT

* Includes Australasia

2004 PRICING MODEL(TIERS 1 - 3)

• TIER 1: ACADEMIC INSTITUTIONS BELOW PHD GRANTING LEVEL $13,580 - $17,425

• TIER 2: CARNEGIE RESEARCH INTENSIVE INSTITUTIONS $15,675 – 20,155 TIER 3: CARNEGIE RESEARCH EXTENSIVE INSTITUTIONS $18,820 – 22,145

2004 PRICING MODELTIERS 4 & 5

• TIER 4: TOP INSTITUTIONS BASED ON READER USAGE (DOWNLOADS) AND AUTHOR USAGE (PAPERS)~TOP 5.5% $20,530 – 24,165

• TIER 5: TOP INSTITUTIONS BASED ON READER USAGE (DOWNLOADS) AND AUTHOR USAGE (PAPERS)~TOP 0.5% $21,400 – 25,175

ASSUMPTIONS – 2005 EXPENSES

• Growth in Journal Size: +5% from 2004

• Staff Growth: +1.5% from 2004• Salary & Benefits +3.5% from 2004• Per page composition: -20% from

2003

ASSUMPTIONS – 2005 REVENUE

• MEMBER PRINT SUBS: -20% from 2003• MEMBER ONLINE SUBS: = 2003• PAGE CHARGES & ABSTRACT FEES: -20%

FROM 2003• REPRINT SALES: -9% FROM 2003• OTHER INCOME: +5% FROM 2003

Required institutional subscriptions + consortia revenue = $28,085,000

ASSUMPTIONS - SUBSCRIPTIONS

• Annual Subscription Loss: -3%• Conversion to Online Only: 4%• RoweCom Customers return

with normal attrition

• Projected Revenue (Subs & Consortia) = $28,070,000

PROPOSED 2005 PRICE CHANGES

Prices shown at the meeting have been removed at APS’ request pending final approval by the APS board. They were very favorable and we hope

approval will be granted.

PRELIMINARY PRICES SUBJECT TO COUNCIL CHANGE/APPROVAL

• “PHILOSOPHY DRIVEN” PRICING

• TAKE RISKS FOR COMMUNITY

• SOCIETIES SHOULD INNOVATE TECHNOLOGICALLY

• SOCIETIES SHOULD PASS BENEFITS OF TECHNOLOGY ON TO COMMUNITY

ICOLC / NEW ORLEANS

MARCH 2004

AVERAGE INCREASE 96 TO 03 PRINT/ONLINE

• PRICE– TIER 1 6.7%– TIER 2 8.6%– TIER 3 9.8%

• PRICE PER PAGE– TIER 1 4.0%– TIER 2 5.9%– TIER 3 7.1%

PRINT/ONLINE PRICES

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

1996 1997 1998 1999 2000 2001 2002 2003

TIER 1 TIER 2 TIER 3

PRINT/ONLINE PRICE/PAGE

$0.10

$0.11

$0.12

$0.13

$0.14

$0.15

$0.16

$0.17

$0.18

$0.19

$0.20

1996 1997 1998 1999 2000 2001 2002 2003

TIER 1 TIER 2 TIER 3

AVERAGE INCREASE 96 TO 03 ONLINE ONLY

• PRICE– TIER 1 3.5%– TIER 2 5.6%– TIER 3 7.5%

• PRICE PER PAGE– TIER 1 0.9%– TIER 2 2.9%– TIER 3 4.8%

ONLINE ONLY PRICES

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

1996 1997 1998 1999 2000 2001 2002 2003

TIER 1 TIER 2 TIER 3

ONLINE ONLY PRICE/PAGE

$0.10

$0.11

$0.12

$0.13

$0.14

$0.15

$0.16

$0.17

$0.18

$0.19

$0.20

1996 1997 1998 1999 2000 2001 2002 2003

TIER 1 TIER 2 TIER 3

APS & AIP ONLINE

APS ONLINE