1. Globalization Strategies
Bill Fox, Director, Circulation Sales & Marketing
SSP 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 reach
l 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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2. Marketplace Challenges
l Publishers compete for reader time, money
l Reader preferences for review journals
pressuring viability of original content
l Institutional consolidations hurting circulation
as pharma merges, universities contract
l Open access movement and WHO’s HINARI
initiative increase free content
Marketplace Challenges
l Print sales sliding globally
l 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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3. Squeeze on Institutional Libraries
l Industry price increases have outpaced
acquisition budgets
l Library content shifting to online
l Rush for global online access for all
patrons
l Print collections being retired
l 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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4. Global Subscription Revenues
Top Nations in
Non-domestic 1. Japan
Sales Volume 2. United Kingdom
3. Canada
4. Italy
5. France
6. Germany
7. Spain
8. Netherlands
9. Australia
10. Switzerland
Global Author Submissions
l No consideration of national origin
l 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 purchases
l Varied Internet usage
l Postal systems affect delivery decisions
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5. 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-world
l Switch to create real-time accountability,
faster subscription fulfillment
l Introducing non-domestic online self-
registration and instant access
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6. 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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7. 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 underperforming
international 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
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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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8. Quality Control: International Editions
l Local editorial content cannot exceed
15% of page count
l Content must clearly be identified as
local and not previously published in
original JAMA edition
l All editions must be multi-sponsored
l No advertorials
Evolution in Local Content Models
l Translated Reprints gaining momentum
as international editions decline
l CME endorsed by health ministries 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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9. New-Product Initiatives
l Localized, Original Print Editions
being 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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