Broaden your borders Updated market trends and opportunities for publishers in China, India, and Brazil Society for Scholarly Publishing 1 June 2012

Why and how can China, India, and Brazil best shape your journal’s future and expand your opportunities? China Readers Libraries India R&D funding Researchers Brazil Education Labor pool 1 June 2012 Kaufman Wills Fusting & Co 2

Introduction TopicsPanelistOrganization China: Market updateAdrian Stanley The Charlesworth Group (USA) India: Market overviewCara Kaufman Kaufman Wills Fusting & Company Brazil: Market overviewDavid MyersDMedia Associates, Inc. Q&A: Selling to consortiaKaren King American Society for Nutrition Open Access in IndiaJayne MarksWolters Kluwer Health Q&A: OutsourcingScott Dineen The Optical Society of America 1 June 2012 Kaufman Wills Fusting & Co 3

Science and engineering articles 1 June 2012 Kaufman Wills Fusting & Co 4 Science and Engineering Indicators: 2012 Digest l Arlington, VA (NSB ) l January 2012,

Engineering articles 1 June 2012 Kaufman Wills Fusting & Co 5 Science and Engineering Indicators: 2012 Digest l Arlington, VA (NSB 12-02) l January 2012,

Science and engineering articles Region Change World564,644788,34740% United States193,337208,6018% European Union195,897248,65627% Japan47,06849,6275% China9,06174,019717% India9,37019,917113% Brazil3,43612,306258% 1 June 2012 Kaufman Wills Fusting & Co 6 National Science Foundation, National Center for Science and Engineering Statistics, and The Patent Board TM, special tabulations (2011) from Thomson Reuters, SCI and SSCI,

China Market update 1 June 2012 Kaufman Wills Fusting & Co 7

SSP Broaden your borders Updated market trends and opportunities Adrian Stanley, CEO, The Charlesworth Group (USA)

The Charlesworth Group Family firm, founded in Global and Professional Publishing Services – Journal & book typesetting (XML), program and abstracts – Publishing services, translation editing/language polishing (authors, China) – Marketing, rights, licensing, research, education (China ) Offices in United Kingdom United States Mainland China

Why China 1.35 billion people Rapid change and development, WTO 2001, economic reform 1978, continuous culture for 4000 years Key global influencer Gross Domestic Product (GDP), China ranked second in the world behind the United States with an estimated 2010 GDP of trillion US dollars Fastest GDP growth rate of 10.3% China will invest $154 billion in R&D in 2011, increase from almost 0.5% in 1997 to 1.8% in Nature Index/ISI

11 Approx data Population % World Pop Sq Miles Land % water China1,347,350, %3, 694, US313,558, %3,537,

STM Publishing Market by Revenue Source: Outsell’s Information Industry Database 2011 Revenue (P) 2011 Year on Year Growth (P)

Local Market Domestic Publishers $420 million Source: Outsell’s Information Industry Database STM in China $1.12 billion 2011 Revenue (P)

Market Size Chinese Ministry of Education: 8,791 Higher Education Institutes in 2009 Ringgold Database: as of October 2011, 4,840 unique records for content on mainland China, 2,205 of which are parent-level. National Science Foundation of China: 2,464 academic education and research institutions in China are registered and qualified to apply for central government research funding. Project 211, 113 leading universities with around 70% of key government funding

Chinese Consortia/Consortia Models NSTL, National Science & Technology Library – Central purchase  Centrally funded to purchase content, MoST  650+ members, 1 license for all to access  Virtual organization, 9 members, CAS, CAMS, CAAS, ISTIC  Have local hosting archive requirements  Recent focus local hosted legacy content, engineering CALIS/DRAA, China Academic Library & Information Systems, Digital Resource Acquisition Alliance of Chinese Academic Libraries – Opt in  Centrally administered, but not centrally funded, MoE  member institutions, each has to fund purchase themselves  Deeper discount requests on site license price, tiered discount lengthy central negotiation of contract  Prefer to do deals with larger publishers  Recent change in structure  Restrictions if content already sold in secondary aggregations

Local Import Agents and Aggregators CNPIEC - China National Publications Import & Export Corporation CEPIEC - China Educational Publications Import & Export Corporation Ltd Zhongke, 4-5 main import agents 200,000+ publications from around the world Wangfang Data/CNKI

17 The job market in the U.S. is TOUGH

18 The job market in China is tougher

19 The job of being a doctor in an urban hospital in China is insane…..imagine try seeing patients a day, while getting a Ph.D. in an institution with limited library resources

20 Print Import Agents & Aggregators Source Elsevier Scopus

12th Five-Year Plan – “Culture” which includes media & publishing designated a “pillar” industry 12th Five-Year Plan, March 2011 – 7 Emerging Industries Alternative energy – nuclear, wind, solar Biotechnology – drugs and medical devices Two Five-Year Plans announced in January 2012 Medical devices – Form device companies, 10 new national technology R&D centers and labs, new products Pharmaceuticals – By 2015, more than 30 original medicines. Establish translational medical research centers New-generation IT – broadband, internet security, networks High-end equipment manufacturing – aerospace and telecom Advanced materials – rare earths and high-end semiconductors Clean energy vehicles Energy conservation and environmental protection

Sales analysis Online/trial usage Local Ed board members Author data Member information Submission and Acceptance data Translated editions Meeting attendees Marketing & social media Copyright Adrian Stanley

© 2012 ALPSP/Copyright Clearance Center 23 Questions ? Adrian Stanley Chief Executive Officer The Charlesworth Group (USA)

India Market overview 1 June 2012 Kaufman Wills Fusting & Co 24

India at-a-glance 7th largest country 2nd in population Hindi/English Diverse religious culture 10/31/2011 Kaufman-Wills Group, LLC British rule mid-1800s Gandhi-led independence 1947 Federal constitutional republic/parliament

Higher education Government to increase spending 30% 1,000 institutions 5 dozen new planned 17 million students 16% studying science 10/31/2011 Kaufman-Wills Group, LLC 34% of instructor positions vacant New program to eliminate shortage: US universities 8% of population has masters or doctorate Higher than Japan, France, Germany, Brazil Little incentive for students to earn PhD

Research expenditures India’s average annual R&D growth rate outpaced US, Europe, and Japan from From , India’s investment in R&D grew 11% (v 16% China) In 2011, India pledged to double scientific R&D expenditures from 1% to 2% of GDP 10/31/2011 Kaufman-Wills Group, LLC

Government agencies responsible for funding research Aeronautical Research Development Board (ARDB) Council for Scientific & Industrial Research (CSIR) Department of Atomic Energy (DAE) Department of Science & Technology (DST) Department of Biotechnology (DBT) Defense Research and Development Organization (DRDO) Ministry of Human Resources Development (MHRD) Ministry of Information Technology (MIT) Ministry of Non-Conventional Energy Sources (MNES) Aeronautical Development Agency (ADA) Indian Space Research Organization (ISRO) 10/31/2011 Kaufman-Wills Group, LLC

Subscriber universe Historically little access to international journals Institutions collectively held print-only subscriptions to only 2,500 scholarly journals in total Typical university subscribed to < 200 journals Many smaller institutions subscribed to < 100 journals Today, academic journals market is $175M $70M (40%) for electronic journals $105M (60%) for print+online/print-only subscriptions Factors improving access to international journals New institutions Growth of consortia $35M spend OA journals Factors in consortia formation To enlarge knowledge resource base, comparable to other leading institutions around the globe To hold down escalating cost of journals To enable system-wide integrated resource sharing 10/31/2011 Kaufman-Wills Group, LLC

Higher education Type of institutionNo. Central Universities 25 State Universities 231 Institutes established through state legislation 5 Deemed to be Universities 130 Institutes of National Importance 8 Indian Institutes of Technology (IIT) 15 Medical Colleges 523 Council of Scientific and Industrial Research—Research Institutes (CSIR) 40 Indian Council of Medical Research—Research Institutes (ICMR) 31 Indian Council of Agricultural Research—Research Institutes (ICAR) 45 Department of Biotechnology—Research Institutes (DBT) 23 Department of Atomic Energy—Research Institutes (DAE) 15 1 June 2012 Kaufman Wills Fusting & Co 30

Major consortia in India AcronymConsortia Area/s of content concentration ERMEDElectronic Resources in MedicineMedicine/health sciences BFUHS - HSLIBNET Baba Farid University of Heath Sciences - Health Sciences Library Network Health sciences MUHSMaharashtra University of Health ScienceHealth sciences DMERDirectorate of Medical Education & ResearchHealth sciences NTRMEDNETNTRMEDNET ConsortiumMedical RGUHS- HELINET Rajiv Gandhi University of Health Sciences - Health Science Library and Information Network Medical/health sciences GMCGujarat Medical ConsortiaMedical/health sciences INFLIBNETInformation and Library Network CentreBroad scholarly coverage CERAConsortium For e-Resource In AgricultureAgriculture NLIST National Library And Information Services Infrastructure For Scholarly Content Multidiscipline INDEST-AICTE Indian National Digital Library In Engineering Science & Technology - All India Council For Technical Education Engineering sciences and technology DELCONDBT-Electronic Library ConsortiumLife sciences 1 June 2012 Kaufman Wills Fusting & Co 31

INFLIBNET (2003) Content areasMembersUsersContent  Pure sciences  Social sciences  Humanities ,000  > 7,000 peer- reviewed journals  10 bibliographic databases  26 publishers and aggregators 1 June 2012 Kaufman Wills Fusting & Co 32  Started by India’s president  Open to all universities and colleges in India  National Negotiating Committee identifies potential resources and recommends for subscription  Journals and databases are added based on faculty need  Expects discounts of 80% to 90%

INDEST-AICTE (2003) Content areasMembersUsersContent  Applied science  Basic sciences  Engineering  Management  Technology  48 core  60 AICTE- supported  1,090 self- supported 100,000  25 full text e- resources (eg, Elsevier Science Direct, Springer Link, Nature)  9 bibliographic databases (eg, SCOPUS, Web of Science, Project Muse)  Open access resources 1 June 2012 Kaufman Wills Fusting & Co 33  Discounts range from 12% to 95% (average 80%).

DELCON (2009) Content areasMembersUsersContent  Life sciences332,000  917 journals  SCOPUS Established by Department of Biotechnology (DBT) To promote use of databases and journals by research and academic community in India Collection development factors Minimum 3-5 recommendations from DBT institutions Recommendation of DELCON Expert Committee Suitable terms and conditions from publishers Availability of funds Expect > 80-85% discount 1 June 2012 Kaufman Wills Fusting & Co 34

Market discounts Deeper discounts required in India than in North America and Europe Agent 1: Expect 20% to 80% discounts in India Agent 2: Expect 30% to 50% discounts in India Large publishers often provide deepest discounts due to economies of scale Indian consortia understand that smaller, subject focused societies and publishers unable to offer such high discounts 10/31/2011 Kaufman-Wills Group, LLC

Sales agents 10/31/2011 Kaufman-Wills Group, LLC Allied Publishers Subscription Agency Globe Publication PVT. LTD. iGroup: Book Promotion & Services Co. Ltd. Informatics PVT. LTD. Publishers Communications Group (PCG)

Trends summary Greater purchasing via consortia Psychology of direct ownership declining Market strength of big publishers Society publishers “victims” Acquisition of Indian journals/local offices Large and small scale marketing/publicity events National and international appeal Indian authors publishing more in foreign journals Librarians interested in having more Indian material in their holdings Shift to value-based pricing models Value determined by usage Librarian demands Competitive Fair Transparent Contract issues Pricing structure Archival issues Fair use Transparency Governing laws 1 June 2012 Kaufman Wills Fusting & Co 37

Brazil (Slides retained by David Myers) Market update 1 June 2012 Kaufman Wills Fusting & Co 38

Q&A: Selling to consortia ASN’s publishing program Journals Sales agent network Experience selling to consortia Year started Types of consortia Geographic regions Direct and/or agents Lessons learned What stands out as esp positive or negative? Regional differences Pricing model/discounts New business Renewals Policies Communication Q&A 1 June 2012 Kaufman Wills Fusting & Co 39

KAREN KING, AMERICAN SOCIETY FOR NUTRITION SOCIETY FOR SCHOLARLY PUBLISHING CONFERENCE MAY 30, 2012 Selling to Consortia in China, India and Brazil 40

ASN’s Publishing Program  Scientific Journals  The Journal of Nutrition: Publishing original research studies on all aspects of experimental nutrition since Monthly  The American Journal of Clinical Nutrition: Publishing original research studies relevant to human and clinical nutrition since Monthly  Advances in Nutrition: Review journal, launched Includes reviews on all facets of nutrition science. Published six times a year; online-only  Journals are highly ranked within Thomson Reuters category: AJCN is 1 st among peer-reviewed research journals; JN is 4 th ; Advances in Nutrition is not yet ranked.  Titles are sold to consortia individually and in a package, The Nutrition Science Collection. 41

ASN’s Publishing Program  Staffing:  Society: 18 FTE plus 2-3 interns  Publications: 7 FTE in publications department; additional staff support peer review system and editorial offices  Marketing Activities:  All marketing activities directed toward institutional and consortia subscription sales managed within publications department by Subscriptions Manager and VP, Publications with some technical assistance provided by ASN Marketing and Communications Departments. 42

Consortia Goals 43  Maintain and protect current holdings  Expand access and usage  Increase revenue

Experience Selling to Consortia 2005: ASN signed representation agreement with eLicensing/David Charles to sell to consortia and multi-site subscriptions in Europe; first consortium agreement with the Finnish National Electronic Library (FinELib). 2006: ASN was approached by and began selling directly to Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) in Brazil. This is now handled by DotLib. 2008: ASN signed agreement with the Charlesworth Group for representation in China; in 2008 negotiated 3- year agreement with National Technical Science Library (NSTL) in China. Agreement renewed in

Experience Selling to Consortia : ASN joined ISPG*; group signed agreement with Dragonfly Sales and Marketing to represent publishers and establish a network of agents to promote consortia subscription sales in selected markets globally. ISPG signed with EMpact to sell to Council of Australian University Librarians (CAUL) 2011: Dragonfly negotiated agreements with CAUL (Australia) and KESLI (Korea) consortia. 2012: For ASN, the focus is on new consortia sales in India and the Middle East and increasing participation of institutions in curent CAUL and KESLI consortia deals * The Independent Scholarly Publishers Group (ISPG) is a group of 20+ academic publishers, all hosted online by HighWire Press.

Development of ASN Consortia Sales Program  Europe: since 2005  Brazil: since 2006  China: since 2008  Australia/New Zealand: since 2010  India, Middle East and North Africa, Korea: since 2011  Southeast Asia (Taiwan, Hong Kong, Singapore, Malaysia, Indonesia, Thailand): since 2011  North America: since 2012  Types of consortia: academic, pharmaceutical and corporate  Revenue growth: consortia revenue now represents 12% of total subscription revenue 46

Characteristics of Selected Consortia Consortium TypeSizeStructure/Funding Geographic RegionDirect or Agent FinElib, The Finnish National Electronic Library Academic: universities, public libraries, research institutes 44 (17 universities and 24 polytechnics); 342 Public; 38 research institutes FinELib negotiates license agreements centrally on behalf of its member organisations5/28/2012 centralized funding from the Ministry of Education.FinlandAgent/eLicensing NSTL, National Science and Technology Library Academic: major national level libraries and research institutes ~ 600 institutions Centralized funding provided by governmentChinaAgent/Charlesworth CAPES, Brazilian national electronic library consortium for science and technology Academic: universities> 150 institutions Centralized funding, provided by foundation; CAPES is public foundation attached to Ministry of EducationBrazilAgent/DotLib In the pipeline: Saudi Digital Library Academic, universities>65Ministry of Higher EducationSaudi ArabiaAgent/Swets EULC, Egyptian Universities' Library Consortium Academic, universities25Government and university supportedEgyptAgent/Swets HSLIBNET (India) Academic, universities and colleges 143 colleges, affiliated with Baba Farid Univ of Health SciencesGovernment of PunjabPunjab, IndiaAgent/Swets 47

Brazil DotLib Australia/New ZealandEMpact/Dragonfly Swets/Dragonfly Charlesworth eLicensing Europe Canada US Mexico Middle East/India Korea/Japan China Russia and Confederation of Independent States ASN’s Consortia Sales Agent Network 48 Southeast Asia

Lessons Learned  Challenges:  Consortia prefer to purchase multi-title collections that give them more content for their holdings with fewer negotiations  Will purchase “core”, high-impact journals from small publishers  Small publishers can align with other publishers to form multi- title collections (ISPG/ALPSP LJC)  Consortia require local, face-to-face negotiations  Regional differences affect nature, timing, length of negotiations 49

Lessons Learned  Challenges (continued):  Pricing model differences: models and expectations differ from consortium to consortium  New business, renewals, discounts  Communication with agents and market intelligence: can be difficult to maintain strong lines of communication with agents in the field; difficult to obtain critical information on consortia (decision timeline; funding levels, consortium leadership/selection committee)  Limited staff time and financial resources 50

Lessons Learned  Conclusions: 1. Establish representation agreements with agents; rely on agents for sales and market intelligence 2. Support the work of agents by establishing relationships with members and organizations in region; implement programs to increase usage and awareness of journals 3. Allocate staff time and financial resources (over and above commissions/retainers paid to agents) to support consortia sales program.  Include activities to increase awareness and usage of journals 51

Lessons Learned  Conclusions, continued: 4. Be flexible: consider policy modifications to accommodate needs of consortium. Ex: dark archives 5. Meet with consortia leadership, librarians, academicians, researchers in region when/if possible  Tours arranged by agents, others: Charlesworth, KWF, Swets, iGroup  Publisher-arranged visits: coordinate with sister societies, agents, members, and vendors to develop itinerary to support your objectives 6. Be realistic and patient: focus on regions/consortia with the most potential, recognize consortium budget constraints; give negotiations time to develop 52

Questions? Karen King Vice President, Publications American Society for Nutrition 53

Open Access Emerging markets 1 June 2012 Kaufman Wills Fusting & Co 54

Evolving the OA model for emerging markets Jayne Marks SSP 2012

56 Medknow history Company formed in India in 1999 Published 100 journals in 2010 Acquired by WKH in 2011 Now publishes 200 journals – all with free access to content online Most available in print for local distribution Innovative new business model

57

58 Traditional publishing services JournalOnWeb Mobile text / SMS alerts Reference checking Plagiarism check CME questions AMA PRA Category 1 Credit TM for performing the review CTR number Single blind / double blind options Multimedia files Author side fee processing Complete Manuscript life cycle tracking Issue preparation procedure / ToC approval Websites Mobile / hand-held device optimization Linking from PubMed, DOAJ, CrossRef, etc. Citation tracking and citation alerts Linking for bacterial species names and eponyms Revenue from AdSense, sales through secondary aggregating agencies, ALJC, etc. Translation into multiple languages Providing electronic data to bibliographic agencies such as PubMed, ISI, CABI, SCOPUS, DOAJ, etc. Post-Publication Services Reference corrections, copy-editing, uniform style International norms in journal publishing Good quality of printing Good reproduction of photographs and illustrations Print on demand sales Hassle-free distribution network: keeping track of returns, alerts on dispatch, online tracking of dispatch Single online database to maintain association's members list Providing bibliographic records in electronic format to indexing agencies and secondary aggregating agencies, thus making the issues available instantly with these agencies Data to all indexing agencies are provided ahead of print electronically -> better visibility -> higher citations

59 Global publishing program

60 Medical and allied health focus CATEGORY# OF JOURNALS Biomedicine25 Pharmaceutical Sciences15 Dentistry14 General medical and surgical8 Dermatology7 Healthcare7 Pharmacology7 Radiology6 Surgery6

61 Number of submissions Original articles Case reports Review articles

62 Medknow – a new publishing model Western publishing model Content submitted and published without charge to authors Subscribers pay to gain access to the content Typically still available in print Advertising provides additional revenue Sponsoring societies paid royalties for their titles Western OA model Authors pay article processing fees to publish accepted papers Content is free to access online Print generally not available Societies paid a royalty on revenue Advertising generally not a major revenue stream Medknow publishing model Content submitted and published without charge to authors Societies pay basic publishing costs for delivering content in print to members HTML version free online PDFs available for a fee Advertising/reprints sold in print issues Societies share in any revenue generated

63 Why does this work? Newly emerging economies want to get their research out to the global research community Local and regional governments and institutions in India, China and Middle East willing to pay to facilitate publication Indian cost base gives good service at low cost Medknow journals are all peer reviewed with editors and editorial boards focused on quality

64 Questions?

Q&A: BPO in emerging markets Overview of OSA’s publishing program Experience with BPO Year started Areas outsourced to emerging markets Countries Decision to outsource Factors Process Lessons learned What’s worked well? What hasn’t worked as well? Q&A 1 June 2012 Kaufman Wills Fusting & Co 65

1 June 2012 Kaufman Wills Fusting & Co 66 scholarly publisher of 8 core journals

1 June 2012 Kaufman Wills Fusting & Co 67 Optics and Photonics: The Science of Light

1 June 2012 Kaufman Wills Fusting & Co 68 Outsourced Production Services 1.Conversion 2.Tagging 3.Copyediting 4.Composition 5.Author Alterations

Thank you 1 June 2012 Kaufman Wills Fusting & Co 69