The Academic Book Business
Total Page:16
File Type:pdf, Size:1020Kb
The Academic Book Business Emerging markets, technology opportunities, and trends in delivering content 21st May 2012 1 Roger Horton CEO Taylor & Francis 2 Academic Information Division Overview of the AI division – books and journals Characteristics of the AI Book Business Profile of the Book Business Digital and e-Books Summary Questions 3 Academic Information Division Revenues of £324m in 2011 (£153m books), Adj OP margin of 36% Formed in 1798, floated 1998, merged with Informa in 2004 Employ over 1,400 people Centres in UK, USA, Singapore, India, China, Australia and Europe Built through organic growth and fully integrated acquisitions Focused on resilient and growing niches OP 4 Specialist Academic Information Target markets - university libraries, under/post graduate students, researchers and professionals Shift from print to electronic delivery 100% journals online, e-book revenues 12% from zero in 10 years Digital excellence, geographic expansion and high value/margin specialism Quality specialist content provider Books and journal businesses thrive on co-existence Top Humanities and Social Science Academic publisher with STM strengths Global focus, global reach 5 Academic Information 1,600+ subscription based journals 3,500+ new book titles p.a. 60,000+ titles in books back list Revenues by Type Revenues by Sector Revenues by Geography 6 The Global AI Business Turnover £m and growth Turnover £m 350 4.5% Books 5% 20% 300 Journals Total 14% 250 13% % Growth 200 5% 29% 8% 3% 4% 150 13% 9% 10% 20% 18% 100 50 0 2006 2007 2008 2009 2010 2011 7 Senior Management Team Roger Horton CEO Emmett Jeremy Ian Kevin Dages North Bannerman Bradley President Managing Managing President US Director Director UK US Books HSS Books Journals Journals Christoph Stuart Chesher Dawson Group COO Sales Director 8 Competing Publishers Publisher Student Research Professional HSS STM Books Journals Learning & Ref Crossover Taylor & Francis (AI) Wiley/Blackwell Springer OUP Sage Elsevier McGraw-Hill Pearson Cengage AI - wide reach across fragmented market AI - balanced, specialist, content levels AI - quality books and journal content by subject, format and delivery 9 The Books Business 10 AI Books - Resilient Publish through the knowledge chain Content quality is king – print, e-books, online are merely the delivery tools Depth, scale and price setting Education resilient through the cycle - seasonal not cyclical Renewable and repeatable revenue streams Global not local 11 Books – Core Strengths Market leading brands in humanities, social science, science and technology Global reach and infrastructure Digital strategy and production innovation Deep back catalogue consistently providing 70% of annual book revenue Strong control of copyright, margins and pricing Long standing, strong management team 12 Books Revenue by Geography 24% UK 51% 8% Europe Rest of World 17% North America 13 Book Revenue Growth by Key ROW Territory 35.0% 32.0% 30.0% 25.0% 20.0% 15.0% 14.0% 15.0% 10.0% 8.0% 2011 Growth Rate Growth 2011 10.0% 5.0% 0.0% Japan India Singapore Middle East China Market territory 14 Acquisition Strategy Bolt-on Strategic Effective way of commissioning new Strengthening of position in key subjects publishing or levels For example: Including: • Kogan Page Education (2003) • Routledge (1998) • David Fulton (2006) • CRC Press (2003) • Productivity Press (2007) • Garland Science (1997) • Architecture Press (2011) • Earthscan (2011) Value created by full integration, creation of scale and close management 15 Profile of the Books Business Jeremy North MD Books, HSS 16 Criteria for Success Quality, global, specialist authorship Streamlined efficient production and inventory Global and local distribution Longevity of content and re-editioning Clearly defined audience Global rights and control Pricing 17 Profile of the Book Business Teaching & learning Research & reference Professional cross-over & self-learning Repeatable, sustainable, scalable Maximise content up and down the curriculum Author kudos, broad customer base, regional opportunities 18 Marketing in a New World AI RE- BOOKS END SELLER PUBLISHING CUSTOMER Marketing Communications Author Communities Academic Gatekeepers Mailing Databases Print versus e-promotion 19 Marketing in a New World Evolving rapidly to encompass: social media and digital marketing traditional printed and mailed materials advertising and conference attendance Email marketing versus traditional mailings now 70% of mix Metadata and content feeds to aggregators and re-sellers Greater geographic coverage Greater subject coverage Deeper penetration to the back catalogue 20 Profile of Market and Sales Reach Christoph Chesher Group Sales Director and President Asia Operations 21 Sales Reach Decline of high street and campus bookshops Online suppliers growth and digital momentum increasing Restructured sales teams to get closer to our customers Characteristics of selling have changed as buying habits change The buying decision process – libraries, consortia, booktrade But the real shift in sales model has been in e-Books Increasing overlap with the Journal sales teams 22 Profile of e-Book Business 23 23 What is an e-Book ‘Traditionally’ a straight digital facsimile of the printed book In 2000 several formats available 2012 - Kindle format, Adobe & ePub - trade formats of choice Why a book is digitised when in the back catalogue. All new are done PDF still widely used in academic and library markets Evolution to enhanced interactive eBooks 24 History of e-Book Sales £m 20 18 e-Book 16 Revenue 14 12 £ (m’s) 2006 2011 Growth Growth% 10 Print 94,7 134,4 39,7 42% 8 Electronic 6,9 18,8 11,9 173% 6 4 2 0 2006 2007 2008 2009 2010 2011 25 Profile of e-Book Business +38,000 e-Books -> over 45,000 by end of 2012 New T&F e-Books platform to be launched July 2012 Hardback print price to libraries, Paperback print price to public Royalties same as print Sell directly and through third party library aggregators and eBook retailers. Firm sale and rental. 2011 Sales profile 80% of all sales to the librarian 20% of all sales the retail market e-Book revenue now over 12% of total book sales e-Book piracy not material 26 26 Digitisation and Online Content is king but format and delivery is important Today the key issue is not technology it is pricing Production efficiencies have been dramatic in the last few years Books are growing especially since Kindle and iPad Delivery platforms – build or buy, purchase or partner? POD, print local Innovate and experiment – Filmskills.com 27 Book Strategy and Outlook 28 2012 and Beyond Focus on digital excellence, geographic expansion, and high margin/value business To blend organic growth with strategic value enhancing bolt-on acquisitions Continued growth blend across the global markets Resilience - a non cyclical, robust foundation stone for Informa, delivering consistently for the long-term 29 Selling books that don’t come back, to customers that do QUESTIONS 30.