The Academic Book Business - Informa Relations/Investor Day 2012... · The Academic Book Business...
Transcript of The Academic Book Business - Informa Relations/Investor Day 2012... · The Academic Book Business...
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The Academic Book Business
Emerging markets, technology opportunities, and trends in delivering content
21st May 2012
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Roger HortonCEO
Taylor & Francis
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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
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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 nichesOP
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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
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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
Academic Information
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The Global AI Business
10%9%
13%8% 4%
18%
20%
29% 3%5%
13%
14%
20%5%
4.5%
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2006 2007 2008 2009 2010 2011
Turnover £m
Turnover £m and growth
BooksJournalsTotal
% Growth
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Senior Management Team
Roger Horton
CEO
Emmett Dages
President US
Books
Jeremy North
Managing Director
HSS Books
Ian Bannerman
Managing Director UK
Journals
Kevin Bradley
President US
Journals
Stuart Dawson
COO
Christoph Chesher
Group Sales
Director
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Competing Publishers
AI - wide reach across fragmented market
AI - balanced, specialist, content levels
AI - quality books and journal content by subject, format and delivery
Publisher Student Learning
Research & Ref
Professional Crossover
HSS STM Books Journals
Taylor & Francis (AI) Wiley/Blackwell Springer OUP Sage Elsevier McGraw-Hill Pearson Cengage
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The Books Business
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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
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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
Books – Core Strengths
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Books Revenue by Geography
24%
8%
17%
51%UK
Europe
Rest of World
North America
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Book Revenue Growth by Key ROW Territory
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Japan India Singapore Middle East China
14.0%
32.0%
10.0%8.0%
15.0%
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Gro
wth
Rat
e
Market territory
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Acquisition Strategy
Bolt-on
Effective way of commissioning new
publishing
For example:
• Kogan Page Education (2003)
• David Fulton (2006)
• Productivity Press (2007)
• Architecture Press (2011)
• Earthscan (2011)
Value created by full integration, creation of scale and close management
Strategic
Strengthening of position in key subjects
or levels
Including:
• Routledge (1998)
• CRC Press (2003)
• Garland Science (1997)
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Jeremy NorthMD Books, HSS
Profile of the Books Business
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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
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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
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Marketing in a New World
Marketing Communications
Author Communities
Academic Gatekeepers
Mailing Databases
Print versus e-promotion
AI BOOKS
PUBLISHING
RE-
SELLER
END
CUSTOMER
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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
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Christoph Chesher Group Sales Director and President Asia Operations
Profile of Market and Sales Reach
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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
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Profile of e-Book Business
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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
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History of e-Book Sales
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e-Book Revenue
£ (m’s) 2006 2011 Growth Growth%
Print 94,7 134,4 39,7 42%
Electronic 6,9 18,8 11,9 173%
£m
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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
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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
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Book Strategy and Outlook
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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
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Selling books that don’t come back, to customers that do
QUESTIONS