Where to Find Growth in a Crowded Market

Where to Find Growth in a Crowded Market?37th Annual Meeting of the Society for Scholarly Publishing Arlington, Virginia 28 May 2015

Three Engines of Growth in STM & Scholarly Publishing, 2000 – 2015

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1. THE SITE LICENSE c

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2. THE BIG DEAL

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3. GLOBAL EXPANSION

END OF THE LINE?

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Engines of Growth, 2015 – ?

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THREE PATHS TO GROWTH

1. Increase your prices

2. Sell your products to more (and different) people

3. Sell new products and services

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WHAT ARE THE ENGINES OF GROWTH FOR STM & SCHOLARLY PUBLISHING LOOKING FORWARD?

1. RE-ESTABLISHMENT OF AN INDIVIDUAL (“END USER”) MARKET

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The percentage of article readings obtained through personal subscriptions has been decreasing since 1977. Articles obtained from personal subscriptions decreased from 60% in 1977 to 53% in 1984, down to 35.5% by the early 1990s.This decline has continued – only 18% of article readings in 2012 are from personal subscriptions.

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What will your end users:

• Spend time with?

• Exchange information for?

• Pay for?

• Gold OA• The funder Big Deal• Freemium• À la carte• Traffic referral/recommendations• Targeted advertising• Analytics

2. DEVELOPMENT OF NEW BUSINESS MODELS

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• Data and analytics• Digital workflow• Author services• Point of care/point of practice• Decision support• Continuing education• Certification and test prep• Reference• Discovery• Peer review

3. NEW PRODUCT DEVELOPMENT

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Common strategies:

• Increase scale• Purchase product or “feature” to

diversify and drive growth• Purchase smaller company to

expand faster or diversify• Divest assets to refocus organization

and raise cash for other activities

4. MERGERS & ACQUISITIONS

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WHAT ARE THE ENGINES OF GROWTH FOR STM & SCHOLARLY PUBLISHING LOOKING FORWARD?1. Re-establishment of an individual

(“end user”) market

2. Development of new business models

3. New product development

4. Mergers & acquisitions

Michael ClarkePresident, Clarke & [email protected]@mtclarke

Business

Where to Find Growth in a Crowded Market