1. Periodicals Program Update Laura Creighton 17 May 2011 TAB Finance Committee

2. All-Society Periodicals Package Product Definition for 2011 ONLINE $47,495 145 titles (no Engineering Management Review) Backfile: –Grandfathered to 1998* –New customers to 2005 5 simultaneous users Calendar year sales, except new sales can choose to be annual PRINT $56,995 146 titles Currently there are no exceptions to inclusion online-only pubs must provide either a single year-end printed issue or a CD-ROM (preferably quarterly) Electronic & Print $61,990 * Subs before 2010

3. Periodicals Package Program 14-Feb-163 IEL: ½ TAB’s net share ASPP pkg net Enterprise: ½ TAB’s net share MDL: ½ TAB’s net share Document Delivery: Periodicals’net share Various new packages: Periodicals’ net share

4. Periodicals’ Program Financial Trends 2006 Actuals – 2011 Forecast ($M) 2008-2011 nets shown have reduction in IEL distribution by IEEE infrastructure Now Reduce Net by IEEE Infra. % of ASPP package* 2008$2.1 million16.9% 2009$2.0 million18.9% 2010$2.0 million19.5% 2011 Budget$1.8 million20.0% 2011 Forecast$1.9 million20.0%

5. Periodicals’ Program Business Revenue 2008-2011 nets shown have reduction in IEL distribution by IEEE infrastructure Now Reduce Net by IEEE Infra. % of ASPP package* 2008$2.1 million16.9% 2009$2.0 million18.9% 2010$2.0 million19.5% 2011 Budget$1.8 million20.0% 2011 Forecast$1.9 million20.0%

6. NONMEMBER SUBS

7. Nonmember Revenue 2006 Actual – 2011 Forecast Year% change prices % change revenue 20088%No change 20098%-6% 20109%-1% 2011 F7%-14% New for 2011 -- sales push is made to increase the # subs per existing customers. Comparing 2011F with 2009: 15% reduction in revenue. Overstated by $1 million

8. Product Portfolio Changes 15% revenue loss in a two-year span NM subs our highest net product line Reminder: We have been introducing several products aimed at starting small to mid-sized purchasers, and we need to assess if we lost customers in our 15% drop or if we transferred them (which is not an easy analysis): 14-Feb-168 Not in the NM Revenue $ Comm Library = +7 units Enterprise/Power = +122 Journals Library Plus = +8 Included in NM Revenue $ Several Computer Society NM packages (Computer Soc. Magazine Pkg, Computer Soc. Pick 5 Pkg, Computer Soc Periodical Pkg) = +22 units Net distributed via Per. Pkg Program

9. 2011 Rollout of Electronic Access for Nonmembers Nonmembers are now able to purchase electronic subscriptions to established periodicals – all titles but IEEE Engineering Management Review are participating 2011 NM Print prices = online + 5% Over three more years we will increase to a 20% price differential by 2014, in an effort to motivate customers to migrate online Print-plus-online = print + 25% over print price 14-Feb-169

10. OPERATIONAL RECOMMENDATION

11. Problem: New and existing periodicals commit to publish a certain number of issues each year, and that information is published to members/nonmembers via marketing collateral and IEEE’s shop. That commitment is sometimes broken by under- delivering issues In the past five years, this has come up twice, with others avoided when I’ve raised concern the pub would need to possibly pay partial refunds for ASPP/IEL customers if they complain. The current rule to pay periodicals based on their budgeted algorithm percentage provides no disincentive. 11

12. Recommendation: Develop a “penalty” for not meeting the committed number of issues (either online or in physical format). The penalty would be on a sliding scale (Example 1: if half the issues are published, half the print/online package distribution is withheld and used to reduce TAB support. Example 2: if half the online issues are missing but the print issues were fine, then withhold half of the online package distribution only and use it to reduce TAB support.) Applicable to existing or launching periodicals. Extenuating circumstances will be discussed with the TAB Finance Committee Chair. 14-Feb-1612

13. THANK YOU! LAURA CREIGHTON L.CREIGHTON@IEEE.ORG