STM BOOK PUBLISHING: a sector in crisis?

Introduction

Is the STM book publishing sector in crisis? This report aims to summarise the current state of the market and clarify contrasting views of this publishing sector.

What kind of crisis?

A June 2003 research study entitled ?New technologies and global change in the book publishing industry? by J.B. Thompson (University of Cambridge) summarised the state of the academic book publishing industry as follows: ?Over the last few decades, academic publishers have experienced growing financial difficulties that stem from the decline in the sales of scholarly monographs. The reasons for this decline are to be found primarily in the changing purchasing practices of university libraries. Faced with the escalating costs of scientific and scholarly journals and by the extra costs associated with IT provision, research libraries in both Britain and the United States have reduced the numbers of monographs purchased. In 1998-99, the number of monographs purchased by research libraries in the United States - by far the largest market for scholarly monographs in English - had fallen by 25% compared with 1986. The number of new books and pamphlets purchased by university libraries in Britain in 1999-2000 had fallen by 17% compared with 1991-92?.

Some statistics

The market for STM books remains large. According to the American Association of Publishers (AAP), US sales of higher education books (primarily undergraduate textbooks) by the US publishing industry totalled $3.39bn in 2003, up 3.6% on 2002, and revenues from English-language university books totalled $800m-US$1bn in foreign territories. The AAP also found that US sales of scholarly and professional books were up 3.6% in 2003, to $3.98bn. Though the AAP does not break its figures down further, EPS research suggests that the greater part of this last figure is likely to be attributable to professional books.

According to the October 2003 EPS Market Monitor report on Scientific, Technical and Medical (STM) Information, the global market for STM books (excluding undergraduate textbooks which are classed within the Education and Training Market Monitor) was estimated to be $1.1bn in 2002 (or approximately 15% of the total STM publishing market). In the medical sector, the proportion of revenues derived from books (40%) was found to be much higher than in science and technology (14%). Unlike journals, medical book distribution remains principally in printed format, maintaining the printed page as the generator of the majority of medical information market revenues.

Some definitions

The terminology used in STM book publishing is confusing and there are many terms which need to be defined before we can hope to understand the field:

Undergraduate textbooks are intended for use by students during their first (Bachelor?s) degree course. They are characterised by high sales volumes (tens of thousands of copies) and low prices (typically $100 or less).

?The combination of technology and traditional book content is changing the value proposition of a new book. In turn, publishers are in a position to charge more for a book. For instance, Thomson Corp. [Thomson Learning] has reported that, thanks to the addition of CD-ROMs or password-protected companion websites, the average price of its upper segment books has risen to US$120, from US$80 five years ago.?

BNP Paribas Client Report on STM Publishing, October 2003

Undergraduate textbooks are outside the scope of this report.

Graduate textbooks are intended for use by students during their second (Master?s or Doctor?s) degree course. They are characterised by medium sales volumes (thousands of copies) and low prices (typically $100 or less).

Research monographs are narrowly focused books which are intended for use by PhD research students and postdoctoral research scientists. They are characterised by small sales volumes (hundreds o