54 fox

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Globalization Strategies

Bill Fox, Director, Circulation Sales & MarketingSSP 27th Annual Meeting, Boston, 2 June 2005

Global Strategies Overview

l Identify specific markets where growth is attainable

l Develop business models that are scalable and customizable

l Ease of online is revolutionizing reachl Assess risks in all markets

Shifting Priorities for Content Sales

International strategy mainstays:1. Paid Subscriptions 2. Electronic Licensing 3. International Licensing

New-content spins: localized Web sites, back-file sales, consortia sales, CME, bulk subscriptions, and more . . .

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Marketplace Challenges

l Publishers compete for reader time, moneyl Reader preferences for review journals

pressuring viability of original contentl Institutional consolidations hurting circulation

as pharma merges, universities contractl Open access movement and WHO’s HINARI

initiative increase free content

Marketplace Challenges

l Print sales sliding globallyl Organizations often cautious in business

across great distances, time zones, language, ethical disparities, political turmoil

l Self-cannibalization:l Site licensing vs. institutional paid subs.

l Country editions vs. direct paid subs.

Evolving Mission of Libraries

l From being single-location information repositories to providing decentralized access to all relevant users

l From being print warehouses to strictly virtual environments that have liquidated their print holdings

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Squeeze on Institutional Libraries

l Industry price increases have outpaced acquisition budgets

l Library content shifting to onlinel Rush for global online access for all

patronsl Print collections being retiredl Cut backs on “least important”

European STM Market 2001-03 . . .

l Library spending for online content increased 42.8%*

l Library budgets increased only 10.9%l Online sales increased by almost 35%l Print sales decreased by 65%

*IRN Research

JAMA & Archives Sales Trends

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Global Subscription Revenues

Top Nations inNon-domestic Sales Volume

1. Japan2. United Kingdom3. Canada4. Italy5. France6. Germany7. Spain8. Netherlands9. Australia10. Switzerland

Global Author Submissions

l No consideration of national originl JAMA non-domestic submissions at 34%l International acceptance rate at 5.4%l Canada at 25%l The Netherlands at 11.5%l Italy at 8.3%l Australia, United Kingdom at 7.3%l Switzerland at 6.3%

1. PAID CIRCULATION

Distinctions between international & domestic markets:l Economies and infrastructures vary l Health systems affect purchasesl Varied Internet usagel Postal systems affect delivery decisions

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Institutional Sales Outlook

l 4/5 of international subscriptions are institutional @ higher yield than individual

l Online sales supplant print revenues but greatly expand customer base

l Greater reliance using our 300+ non-domestic subscription agents & other third-party sales teams to expand electronic product sales

Individual Sales Outlook

l Individual physicians a hard sell because so much content is free to them

l Institutional site licenses satisfying needs of more individuals

l Direct physician marketing hard as data protection laws get stricter, hampering mail-list access

l Younger doctors globally read medical content in English more than ever

International Fulfillment

l Critical aspect of global customer service l AMA changing fulfillment companies to

consolidate in-house and rest-of-worldl Switch to create real-time accountability,

faster subscription fulfillmentl Introducing non-domestic online self-

registration and instant access

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Subscription Agencies

l Agents devoting more effort to site licensing, electronic consortia deals

l Agency business often handled electronically, so office visits enhance understanding of functionality and tailor information

Trade Shows

l Physician conferences important domestically, but international librarian conferences best to reach institutional customers abroad

l Library conferences provide good feedback about competitors, evolving product lines, technology use

2. ELECTRONIC LICENSING

l Institutional site licensing—corporate, hospital, academic, government—is growth leader for paid circulation, outpacing decline in print revenue

l Exclusive aggregator provides parity-priced alternative to direct site license

l Countrywide and consortia sales coming together

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3. INTERNATIONAL LICENSING

l JAMA in 2003 went to 400,000+ subscribers in 18 local editions, now scaled back

l 2005 a big shake-out year for underperforminginternational editions

l International licensing is time consuming for limited revenue gain, exposing publishers to translation risks and compromised standards

l These editions blunt direct subscriptions, create some confusion in local markets

Local-Language Print Declines

18 editions, 15 languages 12 11

Publication Pub Since Language Circulation Freq JAMA Brazil Jul 1991 Portuguese 25,000 10 JAMA China Feb 1982 Chinese 15,000 6 JAMA Croatia Jan 2001 Croatian 8,500 4 JAMA Czech/Slovak Jan 1993 Czech/Slovak 12,000 11 JAMA France Jan 2003 French 40,000 11 JAMA Greece Jun 2004 Greek 10,000 10 JAMA Hungary Oct 1999 Hungarian 25,000 11 JAMA India Jan 2001 English 20,000 12 JAMA Japan Jan 1980 Japanese 55,000 12

Local-Language Print Declines

Publication Pub Since Language Circulation Freq JAMA Mexico Jan 1993 Spanish 16,000 12 JAMA Middle East Apr 1991 English 25,000 12

JAMA Poland Jan 1999 Polish 34,000 12 JAMA Portugal Jan 2003 Portuguese 10,000 11

JAMA Romania Apr 2003 Romanian 2,000 4 JAMA Serbia-Mont. Oct 2004 Serb 2,000 6 JAMA Slovenia Jun 1993 Slovene 2,000 6

JAMA Spain Oct 1992 Spanish 12,000 10 JAMA Turkey Jan 1988 Turkish 11,000 12

Total JAMA Intl. Licensed Subscript ions 324,500

150,250

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Quality Control: International Editions

l Local editorial content cannot exceed 15% of page countlContent must clearly be identified as

local and not previously published in original JAMA editionl All editions must be multi-sponsoredlNo advertorials

Evolution in Local Content Models

l Translated Reprints gaining momentum as international editions decline

l CME endorsed by healthministries to permit licensed JAMA content on third-party Web sites

l Imported JAMA & Archives Journals in China to replace English photocopies

l Customized Local Web Sites to feature translated tables of contents, e-alerts

NEW-PRODUCT INITIATIVES

l Back Files of all JAMA & Archives to be digitized and sold to libraries globally

l Localized “E-TOCs” / “T-TOCs” Web Sites to recapture market share where international editions once were players, using limited translation of JAMA & Archives editions, local advertising, e-commerce, differential pricing

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New-Product Initiatives

l Localized, Original Print Editionsbeing developed for JAMA & Archives Journals; import until quantities support local printing and customized content including local ads

l Differential Pricing allows discount in high-volume countries where economies struggle and AMA content has lower penetration

New-Product Initiatives

l Gift Subscriptions are provided by pharma companies* for customers in non-domestic markets, akin to domestic controlled circulation

*Suggestion: Exercisecaution to ensure that gift restrictions are not breached

New-Product Initiatives

l Consortia Sales—offering group discounts for multi-institution contracts—gaining momentum

l CME from enduring materials delivers versatile self-study quizzes, taken from growing pool of CME content that increasingly is eligible for cross-border accreditation

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Globalization Strategies

Reaching the World of Medicine