State of Publications

16 January 2014SciTech 2014National Harbor, MD

State of Publications

• 2013 Year in Review Journal and Book Statistics

Financial Report

• 2014 Glimpse Ahead FY14 Budget

Current Sales Activities

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FY13 Financial Review for AIAA Journals

• Key Indicators• Financials

Revenues Expenses Net Margin

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Key Indicators: Institutional Subscribers

• Institutional subscribers increased 4.7% from September 2012

* Data based on September 2013 Actuals

FY09 FY10 FY11 FY12 FY130

500

1000

1500

2000

2500

3000

3500

728 767 780 724 741

466 483 492 470 492

504 503 536494 513

408 415 435401 423

414 424436

403447

332 343353

334363

121131

146

143131

JAISJTHTJSRJPPJGCDJAAIAAJ

Institutional Subscribers

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Key Indicators: Member Subscriptions

FY09 FY10 FY11 FY12 FY130

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

985752 755 589 678

776

547 516500

529

826

633 596578

577

618

492 489

387406

853

721 681

549589

250

222196

155175

181

144148

103106

JAISJTHTJSRJPPJGCDJAAIAAJ

Member Subscribers

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Key Indicators: Geographic Breakdown

• In FY13, domestic subscribers accounted for 58% of total subscriptions, a continued decrease from previous years.

* Data includes Member and Institutional Subscribers

FY09 FY10 FY11 FY12 FY130%

20%

40%

60%

80%

100%

120%

67% 63% 63% 61% 58%

33% 37% 37% 39% 42%Non U.S. Domestic

Geographic Subscriber Breakdown

Subscription Mix by Format Type – Revenue in $M

7• The trend toward “Online Only” products continued into FY13.

FY09 FY10 FY11 FY12 FY13 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$1,339 $1,168 $1,196 $1,059 $1,073

$955 $869 $851

$721 $624

$1,212 $1,482

$1,821 $1,906 $2,127

OnlineBoth

Print

Subscriptions by Type - Revenue $M Institutions + Members

Subscription Mix by Format Type

8• The trend toward “Online Only” products continued into FY13.

FY09 FY10 FY11 FY12 FY130%

20%

40%

60%

80%

100%

120%

38% 33% 31% 29% 28%

27%25%

22%20% 16%

35%42% 47% 52% 56%

OnlineBothPrint

Subscription Revenue Mix %Institutions + Members

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Subscription Rates: Institutions

• Since FY07, subscription rates have increased 5-6% each year. • FY14 Online Rates:

AIAAJ: $2,050 JA: $1,125 JGCD: $1,145

JPP: $1,235 JSR: $1,065 JTHT: $900

JAIS: $470

• Rates for Members have not changed since FY07. They are currently price at almost a 95% discount from list price (on average)

FY09 FY10 FY11 FY12 FY13 FY140

500

1000

1500

2000

2500

AIAAJJAJGCDJPPJSRJTHTJAIS

Institution Subscription Rates

Revenue Trends by Source

10• Institutions continue to generate 82% of all Journals revenue in FY13.• Members generated 4% of revenue

FY09 FY10 FY11 FY12 FY13

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Other

Transactional

Archives

Page Charges

Institutions

Members

Journals Revenue Breakdown by Source

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Revenue Trends by Journal by $

FY09 FY10 FY11 FY12 FY13

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

PSJ

Archives

JAIS

JTHT

JSR

JPP

JGCD

JA

AIAAJ

Revenue Breakdown by Journal

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Revenue Trends by Journal by %

FY09 FY10 FY11 FY12 FY13

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

35.1% 36.5% 33.5% 35.1% 36.7%

13.4% 13.3%12.5% 14.2% 13.2%

14.4% 13.6%14.6% 12.6% 14.1%

12.1% 12.2% 12.7% 11.0% 12.1%

11.4% 11.7%10.3% 11.8%

11.4%

6.8% 6.3%7.5% 6.9%

7.2%1.4% 1.5% 1.4% 1.5%

1.5%5.1% 4.7% 7.2% 6.2% 3.9%

PSJArchivesJAISJTHTJSRJPPJGCDJAAIAAJ

Revenue Breakdown by Journal as a Percentage

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Direct Expenses

Category IncludesFirst Copy Outside production costs

Peer Review Honoraria, EIC expenses, software (e.g. S1)

Print Paper, printing, postage, color offset

Miscellaneous Promotion, staff travel, committee expenses, training, supplies

Vendors Sales, Turpin, Atypon, SalientContent, OTI, AgencyQ

FY09 FY10 FY11 FY12 FY130

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Direct Expense Breakdown

Vendors

Misc

Print

Peer Review

First Copy

Direct Operating Margin

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• Direct Operating Margin = Revenue less Direct Expenses• FY13 saw an 5% decrease in DOM from FY12 due to higher

expenses

FY09 FY10 FY11 FY12 FY130

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Journals Direct Margin$

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Putting It All Together…Net Margin

• FY13 saw a 5% decrease in net margin over FY12

FY09 FY10 FY11 FY12 FY13$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000Journals Net Margin

FY13 Financial Review for Books

• Key Indicators• Financials

Revenues Expenses Margin

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Book Sales

• In FY13, Net Books Sold increased 6% over prior year but have declined 24% since FY10

FY10 FY11 FY12 FY130

5000

10000

15000

20000

25000

Net Books Sold

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Sales Mix

• Since FY10, the average mix of net Books sold by series is:

Education: 58% Progress: 14% Library of Flight: 28%

FY10 FY11 FY12 FY130%

10%20%30%40%50%60%70%80%90%

100%

Unit Sales Mix

Library of FlightProgressEducation

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New Books Published

• In FY13, 14 new books were published: Education: 8 Progress: 1 Library of Flight: 6

FY10 FY11 FY12 FY130

2

4

6

8

10

12

14

16

New Books by Series

Library of FlightProgressEducation

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Reprints Published

• Of the 7,305 units reprinted in FY13, the breakdown by series is: Education: 68% Progress: 8% Library of Flight: 24%

FY10 FY11 FY12 FY130

10

20

30

40

50

60

Reprinted Titles

# of

Titl

es

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Revenue Trends

• Overall revenue increased by 7% in FY13 over prior year, with Progress experiencing a 6% increase in sales, Education increasing 6%, and LOF increasing 16%

FY10 FY11 FY12 FY130

200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000 1,800,000

Books Revenue by Series

Library of Flight

Progress

Education

$

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Direct Expenses

• Direct expenses include costs for printing, reprinting, freelance editors, outside production, shipping, promotion and royalties

• Overall, books direct expenses declined 10% in FY13 from prior year

FY10 FY11 FY12 FY130

100000200000300000400000500000600000700000800000900000

1000000

Books Direct Expenses

PSC

eBookExp

Library of Flight

Progress

Education

$

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Direct Margin

• Direct Operating Margin = Revenue less Direct Expenses (excludes labor and allocations)

• Overall in FY13, Books generated a positive direct margin of $561K, which is 42% higher than in FY12

• The Publications and Service Center (PSC), eBooks, and Books Process are expense accounts supporting sales and maintenance activities for the Books

FY10

FY11

FY12

FY13

(200,000)

0

200,000

400,000

600,000

800,000

1,000,000

Direct Margin by Series

Books Process

eBookExp

PSC

Library of Flight

Progress

Education

VP Publications FY14 Budget

• Budgeted FY14 Revenue: $5,852,496 Journals: $4,456,595 Books: $1,338,901 Licensed Content: $50,000 Int’l Publications: $7,000

• Budgeted FY14 Expenses:$2,509,022 Journals: $1,575,801 Books: $933,221

• Budgeted Direct Operating Margin: $3,343,474

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Current Sales Activities

• In Summer of 2013, AIAA partnered with Publishers Communications Group (PCG) and Accucoms to be AIAA’s sales force for subscriptions, archive sales in Journals and Meeting Papers and ebooks Native languages Cultural nuances Updates/understanding Government purchasing practices and policies Awareness of AIAA as an organization

• PCG represents AIAA in the North, Central and South America• Accucoms represents AIAA in Europe, India, and the Middle East/North

Africa• AIAA continues to see sales growth in Asia from our non-exclusive

agents, iGroup

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