MediaWeek (Vo 14, No 3) Clarivate to buy Proquest in $5.3B deal, Remember Reading, RB Media Acquires, Controversial Book Deals

Clarivate (ex Thomson Reuters company) announced their intention to acquire Proquest.  From the press release:

Clarivate plc (NYSE: CLVT), a global leader in providing trusted information and insights to accelerate the pace of innovation, today announced a definitive agreement to acquire ProQuest,  a leading global software, data and analytics provider to academic, research and national institutions, from Cambridge Information Group, a family-owned investment firm, and other partners including Atairos, for $5.3 billion, including refinancing of ProQuest debt. The consideration for the acquisition is approximately $4.0 billion in cash and $1.3 billion of equity. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close during the third quarter of 2021.

With a mission to accelerate and improve education, research and innovation, ProQuest delivers content and technology solutions to over 25,000 academic, corporate and research organizations in more than 150 countries. The acquisition will establish Clarivate as a premier provider of end-to-end research intelligence solutions and significantly expand its content and data offerings as the addition of ProQuest will materially complement the Clarivate Research Intelligence Cloud™. 

Why We Remember More By Reading (The Conversation)

The benefits of print particularly shine through when experimenters move from posing simple tasks – like identifying the main idea in a reading passage – to ones that require mental abstraction – such as drawing inferences from a text. Print reading also improves the likelihood of recalling details – like “What was the color of the actor’s hair?” – and remembering where in a story events occurred – “Did the accident happen before or after the political coup?”

Studies show that both grade school students and college students assume they’ll get higher scores on a comprehension test if they have done the reading digitally. And yet, they actually score higher when they have read the material in print before being tested.

Educators need to be aware that the method used for standardized testing can affect results. Studies of Norwegian tenth graders and U.S. third through eighth graders report higher scores when standardized tests were administered using paper. In the U.S. study, the negative effects of digital testing were strongest among students with low reading achievement scores, English language learners and special education students.

 New Order: Audio First (WSJ - Paid)

“The Bomber Mafia” is part of an effort by Pushkin Industries Inc., an audio company that Mr. Gladwell co-founded, to become a major provider of highly produced “original” audiobooks. Such projects sound more like podcasts than traditional audiobooks, since they often feature original scores, as well as archival and interview tape.

Industry giants including Bertelsmann SE’s Penguin Random House and Amazon.com Inc.’s Audible also produce high-production original audiobooks with sound effects and a cast of multiple actors, representing significant competition for Pushkin.

RBmedia Acquires McGraw Hill Professional Audiobook Publishing Business

RBmedia, the largest audiobook producer in the world, today announced the acquisition of McGraw Hill Professional’s audiobook publishing business, which includes its catalog of previously published titles, as well as a multi-year agreement to become the exclusive audio publisher for all of McGraw Hill Professional’s new titles.

“We are excited to participate more fully in the rapidly expanding audiobook category by partnering with RBmedia,” said Scott Grillo, President of McGraw Hill Professional. “Leveraging RBmedia’s unique abilities in spoken audio will help us reach business and trade professionals and all those striving to advance their education or careers. RBmedia creates exceptional audio productions that serve our authors well and will help them monetize audio rights at a high level. Our publishing program will be stronger because of this unique collaboration.”

Note: Overdrive purchased RB Digital the company's library platform in 2020 (Press Release) 

Who Deserves a Book Deal - Just about Anyone? (Vox)

Is the industry’s purpose to make the widest array of viewpoints available to the largest audience possible? Is it to curate only the most truthful, accurate, and high-quality books to the public? Or is it to sell as many books as possible, and to try to stay out of the spotlight while doing so? Should a publisher ever care about any part of an author’s life besides their ability to write a book?

These questions are becoming more and more urgent within the private realms of publishing, amid debates over which authors deserve the enormous platform and resources that publishers can offer — and when it’s acceptable for publishers to decide to take those resources away.

Within the media watering hole of Twitter, it can look as though these concerns are being imposed from the outside: by progressive authors calling on their publishers to abstain from signing right-wing writers; by angry YA fans and Goodreads readers; by petitions and boycotts and special interest groups. But the conversation about who deserves a publishing deal is also happening within the glass-and-steel walls of the industry itself.

Employed but Pissed at Simon & Schuster (The New Republic)

Inside Merger Mania: (The Wrap - Register)

On the tail of massive acquisitions in the entertainment and media space, such as AT&T’s $85 billion purchase of Time Warner in 2018, thew 2019 re-merger of ViacomCBS and Disney’s $71 billion acquisition of 21st Century Fox in 2019, major book publishers are embarking on their own consolidations in an effort to cement their place in an increasingly competitive environment. But are any of these major acquisitions anti-competitive, as critics have argued?

*******

Are you considering an investment in new technology?  Check out my report on software and services providers.  (PubTech Report)

PND: Digital Transformation: A Seminar for Management

PND: Blockchain for Publishers

PND: Technology News

PND: The Price is Right for Cengage  

PND: The Opportunity in 200MM Students

PND: Mediaweek Reports 

Michael Cairns is a business strategy consultant and executive.  He can be reached at michael.cairns@infomediapartners.com or (908) 938 4889 for project work or executive roles.

 

Clarivate Report Proquest Financials: Raise $1Billion in Equity

On May 17, Clarivate announce a proposed deal to acquire Ann Arbor based Proquest.  (See here).  In the last few days, Clarivate has reported more details including 2020 full year financials for Proquest.

Here is a summary:

• Assets of $1.3B with $629mm in goodwill
• $1B in long term debt
  
• Revenues of $862mm
• Operating Income of $84mm
• Net Income of $3.4mm (Includes unrealized loss of $31mm)
• Cash provided by operations $199mm
• Net cash expended on acquisitions of $225mm
• During 2020, the Company distributed $168.3mm to ProQuest Holdings, primarily related to distributions to shareholders
  

Management fees of $7mm were fairly modest.

More to be found here.

In addition, Clarivate also reported details on a $1B equity raise which some portion of which will go to fund the acquisition of Proquest.

Weekly Update

Never has the phrase You can't make this stuff up been more appropriate. As we arrived in the UK last week there was heavy news reporting about the last days on Litvinenco. (At this point barely a ripple on the US networks). Unless the authorities were keeping it quiet, the whole radiation thing only started to come out after the poor bloke was dead. My thoughts firstly were how did the stuff get here? Well, now BA are finding the stuff in multiple planes and this is weird not because it may have been transported via plane but why as many as three planes? I can see two planes - outbound and in-bound but what's with the third? Perhaps more than one carrier just to double the chances that some would reach the intended target? If so, where's the extra? My second subsequent thought was that this guy lay in hospital for three weeks before he died and we then found out he had radiation poisoning. What does this say about London's readiness to identify a more serious outbreak of anything? On this kind of schedule we will all be dead.

Back to publishing...

Deals:
The Houghton Mifflin deal was agreed this week with executive positions announced. As the news reports pointed out the equity firms which purchased the company a few years have made a very nice return on thier investment. More from The Australian on the riches brought forth.

Proquest have completed the divesture of their electronic parts catalog business to Snap-On tools. I suspect Snap On sees a huge opportunity in building a e-commerce business based on this data. Coupled with the large community represented by the Proquest sales channel of over 33,000 dealers. Proquest recieves mostly cash for the deal. Earlier this year Proquest announced some accounting irregularities but stressed they did not impede the business.

Wolters Kluwer announced better than expected results this week and this article from Forbes on publishing deals notes that the WK educational unit may be put up for sale. Apparently they have had some expressions of interest. I have heard this unit has been a little problematic for them; generally legal, tax, regulatory, medical and nursing titles.

Other News:
Indigo books announced a program with iUniverse which is similar to the program iUniverse has with Barnes & Noble. The program enables iUniverse authors to have a presence on front of store displays. The titles have to meet certain commercial criteria.

For the aging generation - thankfully not me yet - Harpercollins has launched a 'luxe' large print program. Named HarperLuxe, they aim to raise the standard of typical large print titles. Look for others to follow-on. I always liked the large print publisher market which used to be 'dominated' by GK Hall and Thorndyke. When Macmillan was collapsing I had a thought of acquiring G.K. Hall. A little issue of money reduced this to little more than a thought.

I had a hand in this implementation at Bowker - made the go ahead decision and signed the contract. On occaision I demo the interface; however, it sits behind a subscription wall so it is not easy to get to. To get an idea what this interface looks like go here and type 'suspense' in the search box. By the way, Queens Public is one of the more innovative library systems in the nation and also has one of the most diverse population served.

If you were doubting your sartorial sensibility then this article from The Age (my one-time home newspaper) on a flood of new titles for those needing a refresher on 'manners' and 'dress code'. That would be me. I am closer to the loin cloth type - see the article.

There were a few best of lists this week but here is a different take from Forbes magazine which asked a list of reputable media types what books mean to them and the title of the last significant book they read. I liked the gorgeous Suzanne Somers the best.

New York Times best of 2006. and the Kirkus' reviews of said titles.
Publisher's Weekly (Glad to see George Pelecanos and Cormac McCarthy on their list)
Amazon.co.uk (Interesting selection - click on fiction for more)
Amazon.com (I just started The Emperors Children which is on this list)
The Observer - The Great and the Good note their best 2006 picks.

Proquest: In Case You Care

Proquest, hereafter referred to as Voyager Learning Company is for sale. The company announced they had retained Allan & Co. to determine strategic options for the company. So far has Voyager fallen, that this news barely caused a ripple of notice from industry outlets. No doubt the bank will already have done the rounds with all educational publishers to gin up some interest. As some will recall, the company has sold all saleable assets of the company over the past four years but it has also been embroiled in accounting irregularities, had its stock delisted and is also the target of copyright and shareholder lawsuits. This is pretty grim news for a company with such a long and illustrious history which included brands such as Bell & Howell, UMI and even R.R. Bowker. (If you are not paying attention they join CQ Press and Haights Cross as recently 'in-play' educational publishers).

The company finally produced their 2005 10K on August 31 last year and announced a few weeks ago that they would produce audited 2006 accounts by the end of first quarter 2008. The only good news about this appalling schedule is that they “anticipate much of the 2007 work will be done in parallel with the 2006 work” and thus may be almost caught up by April.

There have been a number of management changes as a result of the divestitures and the irregularities. The company is now run by Richard Surratt, Voyager Learning Company's President and CEO. The remaining business operations of the company are now in Dallas and Voyager has reduced to 11 the number of employees still in Ann Arbor. (Imagine the morale there). As the accounting becomes clearer so will the current net value of the business; further asset write downs are possible and whether these result in significant income statement charges which in turn result in transferable tax credits remains to be seen. The company did revalue goodwill as a result of their restatement resulting in a $180mm charge to the 2004 income statement.

The company appears to be performing satisfactorily and while they have completed a reinvestment of their core product line they operate in a very competitive marketplace in a down market. The company expects to have $75million to $85million in cash by year end which is lower than planned due to the loss of a copyright lawsuit ($7mm) and lower full year revenue expectations ($3mm).

The company faces a consolidated shareholder suit and the company expects discovery to start sometime in early 2008 and eventually go to trial in 12-24mths. They have lost one attempt to have the suit dismissed. The law issue complicates matters significantly not least because in reading some of the employee agreements (bolstered by stay bonuses) they expect a sale of the company within the next 12mths. Who will be around to defend the lawsuit and who will pay for that? The company also have a derivative law suit that "asserts claims for breaches of fiduciary duty, abuse of control, gross mismanagement, constructive fraud, and unjust enrichment." and "breaches of fiduciary duty, abuse of control, gross mismanagement, constructive fraud, and unjust enrichment" (10k). (Sounds like someone checked every box on the form).

The company combines Voyager Expanded Learning, ExploreLearning and Learning A to Z into the category “Voyager Operating”. The following is from their earnings conference call:

For the three quarters ending September 30, 2007, the Voyager Operating business had estimated and preliminary revenue of $87 million, Earnings from Continuing Operations before Interest and Income Tax, which is referred to here are as EBIT, of $10 million and EBITDA of $26 million. This compares to preliminary revenue of $94 million, EBIT of $13 million and EBITDA of $30 million for the same nine month period of 2006. Due to Q3 results coming in less than expected, we are adjusting our previously issued full year guidance to a range of $106 to $112 million in revenue versus previous guidance of $116 to $124 million. We project a resulting EBIT range of $7 to $10 million versus the original guidance of $10 to $13 million. And lastly we are updating our EBITDA guidance to a range of $29 to $32 million versus original guidance of $32 to $35 million.

Reviewing their 2005 10K shows how significantly the company has been transformed.

• Net sales of $545.9million versus $439.6mm in 2004
• EBITDA of $28.9mm versus $(149.1)mm in 2004 which included a goodwill impairment charge of $180mm
• Full year revenues for Proquest Education (Voyager Operations) were $91mm in 2005
• Proquest Information & Learning revenues were $271.4mm. This is the business unit sold to Cambridge Information Group for the bargain basement price of $218mm in February 2007. Operating income may be a loss of around $10mm - hard to say given the presentation.
• 2005 revenues for the automotive group were $183mm and this unit was sold for approximately $490mm. Go figure.

Documents:

Allan & Co. Press Release

10K

MediaWeek (Vol 3, No 48): World Book Night, Obit Purushottama Lal, M/A: Reed & WoltersKluwer, Cengage Declines

World Book Night in the UK: One million books to be given away (Telegraph):

The idea was dreamed up by Canongate MD Jamie Byng, who has a knack for discovering talent (the young unknowns Barack Obama and Philip Pullman have long been part of his stable), and whose entire life appears to be an attempt to prove that nothing is as infectious as enthusiasm. World Book Night is a wildly ambitious extension of that theory.

Here’s how it works: Between now and January 4, members of the public are being asked to choose one book they love from a list of 25 pre-selected titles (see the full list below). They – you! – fill in a form saying, in 100 words, why they would like to give this book to others. The recommendation must be personal, and passionate. Each of 20,000 “givers” will then be sent 48 copies of that book to hand out on the night of March 5 at the venue they have chosen, resulting in what promises to be a national, simultaneous frenzy of book-loving.

Monsoon Systems has signed a contract with REDGroup Australia:

"This strategic alliance with Monsoon Commerce Solutions enables Borders.com.au to integrate with the leading marketplace and offer our Australian customers a massive selection of products. In doing this, we become Australia's largest online bookstore, and possibly even Australia's largest online store. Providing the broadest range of media and entertainment products is at the core of our strategy, together with offering unbeatable value to our customers, which this marketplace offer enables us to do. This is key to helping us grow in this competitive and rapidly growing market," said James Webber, managing director of REDgroup Online Pty Ltd. "This offer allows our customers to re-sell their used books on our web site, as well as purchase used and rare books not readily available elsewhere."

Continued Webber, "This is an important addition to the Borders.com.au web site and strengthens its position as one of this region's strongest e-tailers. With an unparalleled range of books and eBooks available, a price guarantee that ensures we are more than competitive with Amazon.com, and the recent extension of our offer into CDs, DVDs, and general gifts, Borders.com.au is uniquely positioned to capitalize on the massive growth in online spending by Australian consumers."

"Monsoon Commerce Solutions is committed to helping sellers and retailers grow their businesses online. Adding marketplace functionality with REDgroup's Australian and New Zealand retail operations dramatically extends their selection and increases customer loyalty. Broadening our reach in this way is another step forward in our commitment to helping sellers grow their business," stated Brian Elliott, CEO of Monsoon Commerce Solutions.

Obit of Purushottama Lal, poet and publisher of Calcutta in the Economist:

Professor Lal’s business was publishing Indian writers in English. Of the great old works he made masterly translations; new writers he encouraged. When he began, ten years after independence, the practice was controversial. Although English was one of India’s official languages, writers in it were often mocked as colonial remnants, “caged chaffinches and polyglot parrots”. He passionately disagreed. His love of English had begun in boyhood and was crowned with his long tenure at St Xavier’s College in Calcutta, to which his landowning family had come from the Punjab. Mention an English poet—Donne, Swinburne, Keats—and “Profsky”, as all his friends called him, would launch into reciting. Give him a word, and he would burrow joyously into its etymology. He was determined to keep the best English writing alive and well in India. And that meant making space for new creative writers, too. Each of the 3,500 titles he published contained, at the back, his “credo”. English book publishing in India, he complained, was governed by a “nexus” of “high-profile PR-conscious book publishers, semi-literate booksellers, moribund public and state libraries, poorly informed and nepotistic underlings in charge of book review pages…and biased bulk purchases of near worthless books by bureaucratic institutions”. He, on the other hand, survived “without plush foundations”, publishing then-unknown authors purely for the love of it. Letters were always answered promptly, in the beautiful hand and with the Sheaffer pen. Manuscripts were accepted, as often as not, just to try their luck in the “loving clutches” of the free market. He made no money at it, and the authors might not either, because they were required to buy 100 copies of their work in advance. Some grumbled, but Writers Workshop was a beacon, not a charity.

Reed Elsevier continues to carve off pieces of its business. This time the Congressional Information Service and University Publications (PR):

Among the acquired product lines' best known works is the Congressional Collection, a one-of-a-kind resource that enables simple access to the full text of the breadth of governmental output -- congressional publications, bills, laws and other research materials – and award-winning Statistical Insight, which captures data produced by U.S. Federal agencies, States, private organizations, and major intergovernmental organizations. The microfilm vault of government documents encompasses text of congressional hearings dating from 1789, providing rich content for ProQuest’s continuously expanding digital archives.

“As LexisNexis continues to transform its portfolio of products and services, we are very pleased to place this business unit with ProQuest as it is an excellent fit for them and their customers,” said Mike Simmons, senior vice president of Specialty Businesses at LexisNexis. “We look forward to working with ProQuest – including licensing back certain legislative content sets from ProQuest for our legal professional customers.”

On the other hand, LexisNexis acquired State Net to add to their collection of government database products and applications (Marketwatch):

LexisNexis, a leading global provider of content-enabled workflow solutions, today announced that it has acquired State Net(R) -- the premier provider of legislative and regulatory content and tools in the United States. Financial terms of the acquisition were not disclosed. "Through the acquisition of State Net, LexisNexis has secured critical content and tools needed by legal and business professionals to rapidly monitor and analyze the policy decisions being made by Federal and State governments and regulatory agencies across the US on a daily basis," said Bob Romeo, senior vice president of Research and Litigation Solutions at LexisNexis. "Access to this critical information means our customers are at an advantage when assisting their clients in finding, analyzing and planning for those decisions." State Net collects, normalizes and editorially enhances all bills introduced in the 50 U.S. state legislatures, the District of Columbia and the U.S. Congress, as well as all agency regulations from every state. The service also provides timely delivery of data, legislative intelligence and in-depth content and tools reporting on the actions of government institutions.

SkyRiver (competitor to OCLC) was granted the right to deliver subject headings for adoption and approval to the Library of Congress (LJ)

Wolters Kluwer Health has entered into an agreement to acquire Pharmacy OneSource (CMIO)

Pharmacy OneSource is a healthcare software-as-a-service (SaaS) provider that helps hospitals manage patient safety, compliance and efficiency. Pharmacy OneSource, of Bellevue, Wash., currently works with more than 1,200 hospitals globally, and assists with medication tracking, pediatric dosing, drug interaction checking, managing formularies, documenting and monitoring clinical interventions, and avoiding medication errors and adverse drug reactions via the web or handheld computer, as well as managing checklists to facilitate accurate and consistent compliance reporting.

Cengage Learning reported their first quarter a few weeks ago which saw a $52mm (7%) decline versus 2009. Here is their management summary for the three months ended September 30 (Cengage):

• Revenues decreased by $52.0, or 7.5%, to $641.8 for the three months ended September 30, 2010, including a $3.0 favorable impact from acquisitions and a $0.6 unfavorable impact from foreign currency translation. The revenue decline was driven by gross sales decreases in the higher education and career channels due to changes in customer ordering patterns that accelerated certain orders into the fourth quarter of fiscal 2010 from the first quarter of fiscal 2011, as well as our Research business within our Domestic segment, partially offset by higher sales in our International segment.
• Operating income from continuing operations decreased by $33.3, or 13.1%, for the three months ended September 30, 2010, due to lower revenues and restructuring charges, partially offset by lower variable costs, amortization of pre-publication costs and employee and consulting services cost.
• Adjusted EBITDA decreased by $37.2, or 10.4%, for the three months ended September 30, 2010, due to lower revenues partially offset by lower direct product and other variable costs, as well as lower employee and consulting services cost.

From the twitter this week (@personanondata): Why the Library of Congress Is Blocking Wikileaks « Library of Congress Blog JoongAng Daily: U.S. publisher @MarcusLeaver views Korea as trendsetter in e-book growth Google Editions: Faster Forward - Google readies Google Editions e-book store WAPO Onnesha Roychoudhuri: Books After Amazon Boston Review

Proquest Suspended

In a press release this afternoon, Proquest advised investors that trading in their shares had been suspended by the NYSE due to their failure to submit various regulatory filings.

The NYSE is suspending trading because the Company now anticipates it will not file its Annual Report on Form 10-K for fiscal year2005 (2005 10-K) with the Securities and Exchange Commission (SEC) by April2, 2007 and is therefore not in compliance with NYSE Rule 802.01E. The NYSE stated that an application to the SEC to delist the Company's shares from the NYSE is pending the completion of applicable procedures.

The company is obscure about when it will be in compliance indicating it will be sometime in the second quarter.

Proquest Guidance

Proquest Guidance

Clearly as a result of the garage style sell off, Proquest are undergoing a significant restructuring and this morning they released an update. The story so far:

The company had a lot of debt, began selling off assets, were hit with accounting irregularities, became embroiled in a subsequent SEC investigation, before they closed the sale to CIG the company announced that the Chairman (Aldworth) was leaving and some pundits said they sold the wrong business. This is were we pick up the story.

• The company is moving all operations to Dallas where the Education division is located which should be completed by the end of 2007. Most staff functions will be eliminated in Ann Arbor with the exception of staff for transition and (presumably) accounting staff needed to deal with legacy issues (like SEC reporting and the investigation)
• Corporate functions transferred to the education unit are expected to be $4-5mm per year.
• They have two buildings with long term leases in Ann Arbor which will soon be surplus to their needs. It is assumed that they will attempt to buy-out the remain lease term but that will be discussed in a subsequent update.
• The company had a significant capital gain on the sale of the business solutions segment to Snap-On tools resulting in capital gain taxes of $60-65mm.
• The company had a significant capital loss on the sale of the information and learning segment to CIG and they will carry-back this loss against the gain in 2005 and they think that $40-45mm will come back as a refund in 2008.
• There is some class action suit stuff going on related to the accounting issues.
• Proquest Education includes Voyager Expanded Learning (acquired 1/31/05), Explore Learning (acquired 2/25/05) and LearningPage (acquired in 2004). Partial year 2005 revenues for the segment are expected to be $91million, EBIT of $7.4mm and EBITDA of $27.7mm.
• Education segment results for 2006 are projected to be Revenues of $117.3mm, EBIT of $12.0mm and EBITDA of $34.5mm.
• Guidance for 2007: Education segment revenues of $116-124mm, EBIT of $10-13mm and EBITDA of $32-35mm.
• 2007 Corporate expenses are expected to be between $30-32mm excluding taxes and interest. They note interest income of $4-5mm but don't project taxes and interest expense.
• There is no note about any subsequent debt repayments, write-downs, or other mitigating factors (like rent buy-outs) that could influence the 2007 results.
• The company still has a lot of financial reporting to do and risks being delisted if they miss an April 2, 2007 due date.

That's the update so far. Stay tuned for more.

OCLC's WorldCat Local Building Content Resources

OCLC recently announced how much their efforts to include access to publishers content has developed. Here from their press release:

An expanding collection of authoritative content from leading academic publishers is now accessible through WorldCat Local, the OCLC discovery service that offers users integrated access to electronic, digital and physical library materials.

WorldCat Local provides access to more than 750 million items, including books, journals and databases from international publishers; the digital collections of groups like HathiTrust, OAIster and Google Books; open access materials; as well as the collective resources of libraries worldwide through WorldCat.

OCLC continues to negotiate access to critical library content on behalf of the cooperative to ensure access to libraries’ most popular resources. To view a full list of the nearly 1,200 databases and collections available through WorldCat Local, visit the website.

Databases recently added to the WorldCat Local central index include:

• American Psychological Association: PsycARTICLES, PsycBOOKS, PsycCRITIQUES
• Alternative Press Center: Alternative Press Index, Alternative Press Index Archive

Content providers that will soon add databases to the WorldCat Local central index include:

• Accessible Archives
• Oxford University Press
• Taylor & Francis
• CABI
• OECD
• Sabinet
• Association for Computing Machinery (ACM)

Databases now available in WorldCat Local through remote access:

• Gale: Contemporary Authors, ¡Informe!, Making of Modern Law, Opposing Viewpoints Resource Center
• EBSCO: ATLA Religion Database ™ with ATLASerials ™ , PsycEXTRA, PsycINFO
• H. W. Wilson: Book Review Digest Retrospective: 1905-1982, Essay & General Literature Index Retrospective

WorldCat Local now offers vendor record sets from:

• ProQuest: ProQuest U. S. Executive Branch Documents, 1910-1932
• ProQuest: Gerritsen Collection of Women’s History, 1543-1945 (six collections in varying formats)
• Cassidy Cataloguing: Lexis I – E-treatises

The WorldCat Local search experience also grows richer with the ongoing addition of article-level metadata to WorldCat.org. When this metadata is added to WorldCat.org, it is automatically made part of WorldCat Local. Article-level metadata for the following resources have been added recently to WorldCat.org:

• ISIS Current Bibliography of the History of Science
• Wellcome Library for the History and Understanding of Medicine

For more information, visit the WorldCat Local website.

MediaWeek Report (Vol 10, No 2): PND Media news update - Subscriptions, Copyright and Acquisition News.

Solving the crossword puzzle: Rebuilding a print habit on digital devices

Sometimes, I’ve learned, you have to take opportunity where you least expect it. And in the end that’s what happened to us. Nieman Labs

Lack of copyright support in India may require radical publisher rethink:

Mr Bisht runs Delhi University’s photocopy shop, a crowded room crammed with photocopiers and computers where students queue to get their entire course material copied for a fraction of what it would cost to buy the books.   Following the decision in March of three international publishing companies — Oxford University Press, Cambridge University Press and Taylor & Francis — to drop their legal case against Mr Bisht, his business is functioning with impunity.  The trio claimed his photocopying business undermined their intellectual property, but the Delhi high court ruled that it was not in students’ interests to shut him down. The companies appealed but later dropped the case, citing “longer-term interests”. Executives say they had given up hope of winning, but believed they could still make money in the country long term.

FT

Global library cooperative OCLC has signed agreements with distinguished publishers from around the world to add metadata for high quality books, e-books, journals, databases and other materials that will make their content discoverable through WorldCat Discovery.

OCLC has agreements in place with 315 publishers and information providers to supply metadata to facilitate discovery and access to key resources relevant to researchers, faculty and students.

WorldCat Discovery provides over 2.8 billion records of electronic, digital and physical resources, including articles, books, dissertations and audiovisual materials in support of libraries and information seekers.   Metadata from many of these publishers will also be made available to users through other OCLC services based on individual agreements. Details about how this metadata may be used in library management workflows will be communicated to OCLC users as the data is available.  By providing metadata and other descriptive content, these partnerships help libraries represent their electronic and physical collections more completely and efficiently. More about WorldCat Discovery and OCLC partnerships is on the OCLC website.

Link to More

The New York Times Sees Record Newsletter Subscriptions and Open Rates.

Times free newsletters have always been popular with readers. However, growth remained fairly flat for a number of years. A team of newsroom editors, product managers, designers and engineers began taking a more systematic approach, including making better use of analytics, new tools and promotional strategies. The Times’s newsletter subscriptions have more than doubled to over 13 million in April 2017, from 6 million newsletter subscriptions in April 2014.

The Morning Briefing newsletter has more than 1.3 million newsletter subscriptions with a 60%+ open rate (an additional number of readers access the Briefing on Times apps and on the web). Other Times newsletters, including Today’s Headlines and Cooking, also boast more than a million newsletter subscriptions and many have especially high open rates: NYT Australia, Booming, Nicholas Kristof, California Today, Vietnam ‘67 and the Interpreter all have open rates of 80% or higher.

 New York Times

Academic publisher Taylor & Francis Group has acquired colwiz, an innovative, early stage digital research services firm, as part of its ongoing investment in technology and digital capabilities that support the use and discoverability of content. colwiz launched in 2013 from the University of Oxford's Isis Software Incubator.

colwiz launched in 2013 from the University of Oxford’s Isis Software Incubator. It provides interactive digital collaboration and reference management services for researchers in academia, industry and government around the world.
colwiz’s current suite of tools allows researchers to read and annotate PDF-based academic content wherever they are, manage and store research drafts, share citations and data and connect and collaborate within research groups around specialist content in an efficient and user-friendly way.

As part of the Taylor & Francis Group, the team from colwiz will in the first instance work on the launch of wizdom.ai, a cutting-edge and comprehensive proprietary research knowledge graph. wizdom.ai uses artificial intelligence and big data to generate continuously-updated analytics on scientific developments, delivering new insights into academic knowledge to inform how researchers advance their work.

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Sheridan, a provider of print, publishing services and technology solutions to publishers, has acquired PubFactory, the industry-lauded online publishing platform for journals, books, and reference works, from O'Reilly Media. PubFactory will continue to be based out of Boston, MA, and will blend seamlessly into the Sheridan stable of publisher technology products and services.

The PubFactory team has been developing and delivering scholarly publishing technologies since 1999. In 2010, the PubFactory platform officially launched with the deployment of several major Oxford University Press products. This was quickly followed by the International Monetary Fund’s eLibrary and De Gruyter’s journals, books, and database products launching in 2011. Notable publishers including Bloomsbury Publishing, Brill, Edward Elgar Publishing, Harvard University Press, Peter Lang, and others have since joined the growing list of PubFactory customers.

PubFactory’s configurable suite of front-end and back-end capabilities allows for optimal support across content types, making it a truly content agnostic platform that is host to 1400+ journals, 400,000+ books, and numerous database and reference work products.

“We are delighted to offer our journal and book publishers this proven and comprehensive hosting and publishing platform,” said Gary Kittredge, Managing Director of Sheridan Journal Services. “PubFactory will propel Sheridan into a new level of engagement with our customers as we extend our range of services from high-touch editorial production and print solutions to hosting our customers’ content – a complete package.”

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Leading Companies, Trade Associations Launch Corporate Committee for Library Investment to Save Federal Library Funding (PR)

Many of America's leading information, software, publishing and other businesses as well as multiple national trade associations today unveiled the Corporate Committee for Library Investment to advocate for federal library funding.

As Congress turns to funding the government beyond next September, CCLI launches against the backdrop of Administration proposals to eliminate most federal library funding and the agency that distributes those funds to every state. Members of CCLI are united by the common belief that America's libraries are business-building, job-creating, workforce-preparing engines of the U.S. economy in every corner of the country. The group formed to tell that story to Congress and other federal policy makers who control library funding and to encourage every American business to do the same.

CCLI today delivered a letter, which remains open to signature by any business of any size, to all members of the United States Senate. (Eight companies made a similar delivery in their own names on May 11.) The letter expressly asks senators to sign two letters to their colleagues on the Appropriations Committee calling for $186.6 million in FY 2018 funding for programs under the Library Services and Technology Act (LSTA) and $27 million for the Innovative Approaches to Literacy program (IAL). LSTA funding goes primarily to a population-based matching grant program that puts states in charge of how federal funds are spent. IAL allows school libraries and non-profit groups to buy books and educational materials for the nation's neediest children.

CCLI also will work to: rapidly reauthorize the Museum and Library Services Act, which created LSTA; and assure that any infrastructure investments authorized by Congress both include library facilities and leverage the nation's 120,000 libraries to make high-speed broadband service available in every corner of America, especially in rural and other underserved communities.

CCLI was co-conceived by Gale, a Cengage company, and the American Library Association, which will provide logistical support for the group. Founding members include Baker & Taylor, bibliotheca, Candlewick Press, Corporate Graphics International, EBSCO Information Services, Encyclopedia Britannica, Findaway, Follett, Gale/Cengage, Information Today, Jamex, Mackin, Macmillan, ­­OverDrive, Peachtree Publishers, Pearson, Penguin Random House, Prendismo, ProQuest, Public Information Kiosk, The RoadRunner Press, Rosen Publishing, SirsiDynix, the American Booksellers Association and the Software and Information Industry Association.

Clarivate Analytics has announced the acquisition of Publons and its leading global platform for researchers to share, discuss and receive recognition for peer review and editing of academic research. The acquisition brings together the world's preeminent citation database and the world's largest researcher-facing peer-review data and recognition platform.

Clarivate is developing and delivering innovative analytics and workflow solutions that increase efficiencies across the entire research lifecycle; from idea to experiment, to peer review, to publication, dissemination and assessment. The acquisition of Publons, its platform and data, increase the value of multiple Clarivate Analytics products, while supporting researchers as they manage their careers and work across the ecosystem of funders, publishers and institutions.

"The Clarivate Analytics citation network and researcher tools, including flagship products like Web of Science, EndNote and ScholarOne, are some of the most widely used tools in research," said Andrew Preston, co-founder of Publons. "Daniel and I founded Publons with the core belief that peer review is at the heart of research. As the pressures on scientific publishing continue to grow, we see an opportunity for Publons to have an even greater positive impact on peer review. The global scale and impartial position of Clarivate Analytics, combined with Publons, will allow us to further develop the platform, creating the tools and services that the research community needs."

The combined strengths of Clarivate and Publons will address critical research challenges in the $1.7 trillion global research market, including fraudulent scientific research, inefficiencies in peer review that slow down research and identifying and understanding top research as funders increasingly demand demonstrable impact and proof of contributions to the research environment. Peer review is at the heart of solutions to these challenges and will drive future improvements across the research ecosystem.

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Questioning My Education: Five Strategic Trends Changing Higher Ed

Perhaps the only surprise in the fact that major changes and dislocations are taking place in educational publishing is that they took so long to exhibit themselves.  The more recent change is the aggressive growth of all-access textbook deals sold to students – frequently via the institution – which provide students access to the entire content catalog published by a textbook publisher.   Cengage put the wind up most educational publishers two years ago when they launched their program, which they now claim has been sold to more than one million students.

Other publishers (including Wiley, Pearson and others) have followed Cengage and that company’s very public proselytizing about the model is a strong validation of the strategic importance that digital delivery and subscription models have to the future of this market.   While the Cengage business model represents a fundamental market change it is only one of several strategic interrelated changes now affecting the market for education content.  The infrastructure supporting the way textbook and educational content is sourced, delivered and developed is heading for significant disruption which will displace some current market incumbents and fortify others.

Here are five trends I see driving the market:

First all-access products developed by publishers are unlikely to be widely adopted on an exclusive basis by institutions.  Just as there has never been a requirement for academics to source print textbooks from specific publishers, faculty independence will continue.  However, this is likely to necessitate interoperability across textbook database products.  Publishers with a poor user interface and experience, unable to support single sign on, remote access will be at a disadvantage especially compared to more experienced database vendors.   This suggests there will be a bias towards aggregation as dealing with multiple, non-compatible products can be complex for administrators, faculty and students.

Second, aggregators are already a significant presence on campus via the library.  EBSCO, Proquest and Gale, for example, already support student development and include textbook content as database products.  Textbook content is a natural product extension for these companies and they operate a business model very familiar to campus librarians and provosts.  Aggregators act as wholesalers of textbook content which can be a valuable market channel for many textbook publishers.  Notably, there is no reason to believe that textbook sales will eventually not be subject to the same type of consortia price negotiation which governs other academic content sold to universities.

Three publishers in particular – Wiley, Taylor & Francis and WoltersKluwer – may have advantages because they publish academic (journal) products sold directly to campus libraries.  Their advantage over aggregators and other publishers would be to integrate this content effectively to enable the delivery of comprehensive educational products.  WoltersKluwer has long hosted their textbook content on OVID (their online product) for example.

Third, the global textbook market is dominated by large publishers and represents an aggregation of sorts, although many publishers retain distinct ‘franchise’ products supporting specific content disciplines.  While publishers are selling all access to all their products, smart publishers will also attempt to ‘carve out’ branding opportunities around these franchises and create online ‘centers of excellence’ which extends the branding of these franchise products.  This trend is important because creating an all-inclusive all-access product may level set all author brands to the detriment of the publisher’s strong legacy author franchises.

Four, it is hard to see where the traditional on-campus bookstore fits in to this paradigm.  College stores are a profit center for the institution and most bookstores are operated by Barnes & Noble, Follett or independent operators under contract from the institution.  The relationship these retailers have with the publishing industry diminishes in importance as more content is delivered online and, as these stores are disintermediated, bookstore contracts become a diminishing asset for bookstore managers.  As these store contracts come up for review, more institutions will be rethinking their entire retail strategy and will invite more general-purpose retailers to compete for these contracts.  Importantly, most college bookstores already sell far more general merchandise than textbooks.

Fifth and last is perhaps the most contentious issue: Who will ‘control’ the valuable data “exhaust” which is produced by students and researchers interacting with online content.  This data about students, faculty, research activity and other collectable information represent a significant competitive asset.  Institutions are slowly awakening to the inherent value in this information and are being chased by innovative start-ups to gain access to the data.   While individual institution data has value, more value may be gained by aggregated data from multiple intuitions and these “cohorts” may become data sharing collectives.  In turn, these institutions may sell data to publishers and other parties for their use.  Naturally, there are concerns about how this data is collected and leveraged and industry groups are calling for governance in this area.

Strategists have long anticipated the death of the print textbook but we are now finally in the midst of a massive transformation of this market.  Some textbook publishers have positioned themselves to take advantage of these changes; however, no publisher is guaranteed a successful outcome given the comprehensive challenges they face.  Some big-name publishers will exit the textbook market rather than gamble that they can make these transitions successfully.

 Read more articles on my Flipboard magazine:

*******

Are you considering an investment in new technology?  Check out my report on software and services providers.  (PubTech Report)

PND: The Price is Right for Cengage  

PND: The Opportunity in 200MM Students

PND: The New McGraw-Hill.  Where is Education Textbook Publishing Headed?

PND: Pearson's Future of Education (2012)

PND: Pearson's Blue Sky Project (2012) 

PND: Open Education Resources Gain (2018)

Michael Cairns is a business strategy consultant and executive.  He can be reached at michael.cairns@infomediapartners.com or (908) 938 4889 for project work or executive roles.

News Update: Week 7/9

Deals, M/A:
Apparently News of Murdoch's Dow Jones Purchase was Premature: MSNBC
Not so Smooth: Pearson are Selling Les Echos: WSJ
Soon to be everything except moot court, LN buys services provider: Dayton Bus Jrnal
Visant (educational pulisher) for sale: Reuters
In case you were wondering, Proquest are now Voyager: PRNews

Publishing:
Publishers create web travel aids: Galleycat

Retailing:
Looking for Divine Intervention for Christian Retailing: Washington Post

Search:
Topic Specific Search Engines are the Next Best Thing: Economist

Library:
Book Industry Council (UK) looks to improve Library Supply Chain: PN

Sport:
Beckham arrives (and Posh): LA Times (It is all a bit silly)
Belmar Five: 34:10

MediaWeek (Vol 6, No 11): Phoenix Flames Out, Pompeii Exhibit, Springer, MOOCs + More

The Boston Phoenix closed down last week. (CJR):

But nobody was expecting the guillotine. I certainly wasn’t. As a longtime Phoenix reader and part-time Boston resident, I’m shocked and disconsolate. The Phoenix is and was one of the best alt-weeklies in the country. From its smart reporting on state and local politics to its tough, nuanced coverage of social justice issues, the Phoenix consistently exemplified the best of the alternative press. Staff writer Chris Faraone’s you-are-there coverage of the Occupy movement was honest, unsentimental, and indispensable; during last year’s presidential campaign, political writer David S. Bernstein offered valuable insight into the Romney cotillion. The paper’s departments were memorable, too—David Thorpe’s loopy The Big Hurt music column; Robert Nadeau’s authoritative restaurant reviews; Barry Thompson’s “Meet the Mayor” series of interviews with various local Foursquare “mayors;” the tenacious local arts coverage. All were lively and occasionally brilliant; all will be missed. 

That’s not to say that the paper was flawless. No publication is. But, from my perspective, the Phoenix’s successes far outnumbered its failures. More to the point, the Phoenix was a legitimately independent weekly in a space largely dominated by conglomerate corporate media. While other alt-weeklies across the country were acquired by national chains, the Phoenix remained resolutely rooted in New England. (The Boston Phoenix had two sister papers in Providence, RI, and Portland, ME, both of which will continue to publish.) Now, the only true alt-weekly in Boston is the wisecracking Weekly Dig, which has a huge opportunity if it plays its cards right. (Many current Phoenix staffers began their careers at the Dig.)

Looks like a fascinating show at the British Museum (where the world comes to see their stuff) about domestic life in Pompeii and Herculaneum (FT):

Paul Roberts, the exhibition’s curator, talks me through the lessons of the double portrait, found at the site of a bakery. “We assume he is the bakery owner. He wears a white toga, which may mean he is a candidatus for political office. But his wife is the amazing one. She is the one with the reckoning tablet. They are equal, and they are shown equal, standing together, members of a confident, mercantile class.  

“And this was the reality of life for a lot of Roman women. They wouldn’t have been little old ladies sitting at home. They were highly visible in society.” Roberts plays down their disenfranchisement. “Think of Edwardian England: no vote, no ability to stand for office but tons of money and tons of influence.”  This is the most complete show, Roberts believes, to illustrate the domestic life of the two cities. It is designed to show the riches that would have adorned the typical prosperous Roman household: its gardens, its dining rooms; its private jokes and its grandiloquent statements of self-importance. The Italian addiction to bella figura, he says, can be traced to the flamboyance of ancient Rome.

Also in the FT, the Springer sale is off earlier than expected since the offers from some selected potential buyers were less than expected. This can mean only one thing. (FT)

But earlier this year, EQT hinted that it may wait until later in the year to start a formal process, after price indications from potential buyers including German media group Bertelsmann fell short of expectations, people with knowledge of the matter said then.
The fact that it is now accelerating the sale process highlights a dramatic shift in sentiment among the largest private equity firms in Europe over the past two months, as debt funding for acquisitions increases amid an investors rush into high yield bonds.
However this time, Bertelsmann says it won’t bid for Springer Science. After signalling for months that it would have a look at the publisher if it went on sale, the German media group said it was no longer interested.

Slightly biased research (which they admit to) on how faculty feel about the MOOCs they have taught (Chronicle):

The findings are not scientific, and perhaps the most enthusiastic of the MOOC professors were the likeliest complete the survey. These early adopters of MOOCs have overwhelmingly volunteered to try them—only 15 percent of respondents said they taught a MOOC at the behest of a superior—so the deck was somewhat stacked with true believers. A few professors whose MOOCs have gone publicly awry did not respond to the survey.

But the participants were primarily longtime professors with no prior experience with online instruction. More than two-thirds were tenured, and most had taught college for well over a decade. The respondents were overwhelmingly white and male. In other words, these were not fringe-dwelling technophiles with a stake in upending the status quo.

Therefore the positive response may come as a surprise to some observers. Every year the Babson Survey Research Group asks chief academic administrators to estimate what percentage of their faculty members "accept the value and legitimacy of online education"; the average estimate in recent years has stalled at 30 percent, even as online programs have become mainstream.

Professors at top-ranked colleges are seen as having especially entrenched views. For years, "elite" institutions appeared to view online courses as higher education's redheaded stepchild—good enough for for-profit institutions and state universities, maybe, but hardly equivalent to the classes held on their own campuses. Now these high-profile professors, who make up most of the survey participants, are signaling a change of heart that could indicate a bigger shake-up in the higher-education landscape.

Also from Wired: Where are MOOCs really going? (Wired):

The initial MOOCs came from a “process business model” where companies bring inputs together at one end and transform them into a higher-value output for customers at the other end — as with the retail and manufacturing industries.

But over time, an approach where users exchange information from each other similar to Facebook or telecommunications (a “facilitated network model”) will come to dominate online learning. This evolution is especially likely to happen if the traditional degree becomes irrelevant and, as many predict, learning becomes a continuous, on-the-job learning process. Then the need for customization will drive us toward just-in-time mini-courses.

And from the twitter feed this week:
How International Pricing Strategy Affects Publisher Profitability EPubDirect
OCLC launches WorldShare Interlibrary Loan service in the US KnowledgeSpeak
Historical audio: Unforgotten songs Economist
Ray Cusick Economist The genius who invented the Daleks. They got him.
ProQuest to Distribute NewspaperARCHIVE to Libraries Worldwide Link

Is GoodReads A Good or Bad Thing For Books?

It's been a very long tome since Amazon bought up all the viable book recommendation sites - GoodReads included - but over in The New Statesman Sara Manavis suggests that Goodreads is not all good for books. Bad actually.

Apparently the one thing which unifies Goodreads users is that they all agree that the user experience sucks. I always believed Amazon buying these book recommendation and social networking sites was  cynical in the first place: Nothing should stop the Amazon juggernaut from dominating your book discovery and reading experience. Amazon were never really interested in the functionality or site 'experience' of these sites, they just wanted the enthusiasts and they were not going to let a potential competitor grow nor allow a real competitor buy up these companies.  In 2008, Amazon purchased Shelfari and in 2013 completed the Goodreads deal.  There was shock demonstrated at the time and commentators and users felt the sellers had sold out to the bad actor. Many felt betrayed.  But, according to the Manavis article there are still more than 90million users which is considerably more than the 16mm members back in 2008.

Since 2008, web design has changed considerably. No surprise there. However, to confirm the thesis that Amazon wasn't really interested in this product per se, the Goodreads website is virtually unchanged since 2008.  Manavis notes the frustration of users,

Goodreads today looks and works much as it did when it was launched. The design is like a teenager’s 2005 Myspace page: cluttered, random and unintuitive. Books fail to appear when searched for, messages fail to send, and users are flooded with updates in their timelines that have nothing to do with the books they want to read or have read. Many now use it purely to track their reading, rather than get recommendations or build a community. “It should be my favourite platform,” one user told me, “but it’s completely useless.”

Minavis suggests that the negative feedback has reached some type of breaking point, and I believe there is room in the market for other online booksellers of scale.

When I became CEO of Ingenta, the company was planning a commercial B2C book retail store. We had conversations with publishers, built some wire frames and developed a product concept. We planned to use existing technology (subsequently proven unstable). I had to squelch this initiative to concentrate on saving the company and delivering to current customers. It was actually a very crazy idea given our circumstances stoked by the high (and bizarre) interest of our board. Ingenta had a closet full of ill-conceived poorly executed projects and this would have been a spectacular example.

Looking around for other book recommendation sites, I still use LibraryThing but even they have some corporate overlords. LibraryThing is majority owned by the founder Tim Spalding but he counts both Amazon and Proquest as partial owners. LibraryThing hasn't changed much over the years either but I don't have anything like the frustration some of the Goodreaders seem to have.  Maybe they should come over.

New York Times Online Education Initiative

As noted in Inside Higher Ed, the New York Times has launched an online initiative that will merge NYTimes content with course management software to enable faculty and scholars to build course content. From the press release:

Educators will now have the opportunity to select Times articles, archival content, graphics and multimedia content, including videos and Webcasts, gathered around specific subjects, and make them available to students online, along with other course materials. Students will benefit from access to thematic content that is drawn from the vast array of Times reporting on a countless number of issues.

This is an interesting initiative for NYTimes which has no doubt realized the extent to which their content is used in existing course management solutions such as Blackboard and via online sources from the likes of Proquest. The education market has always been an important one for NYT and the thrust to become a direct provider to this market is significant. (No word whether they will add content from other news sources but this would be an interesting natural extension of their platform).

The expansion will be implemented with Epsilen which is marketing a newly developed web based tool that supports a variety of scholar services such as:

ePortfolios, Global Learning System (courseware), group collaboration, object sharing, blogs, messaging, and social and professional networking. Users receive a lifelong identity on the Epsilen(TM) system, enabling them to maintain their academic and professional ePortfolios throughout their careers, regardless of their affiliation with individual institutions.

That last bit is especially interesting (assuming the platform is open) because it will enable a scholar to create an online library of material they have sourced, read, annotated, referenced and written about together with their own intellectual work. The utility that results from this could be fundamental for the development of the 'continuing education' of students as they graduate from universities and are [today] lost to both the universities and the publishers of educational material. (I have written a little about this before here and here).

From the press release:

"The Epsilen(TM) Environment is a new concept and technology framework allowing faculty and students continued access to their work after switching schools, entering the job market or retiring," said Dr. Jafari. "It is a prototype of the Web 2.0 concept built on the ePortfolio foundation and the power of social networking. The Epsilen(TM) concept suggests that every student and professional should own a lifelong ePortfolio enabling them to collaborate and exchange intellect in a global community."

The New York Times operates a business unit named The Knowledge Network where this initiative resides. They hope the collaboration between The Knowledge Network and Epsilen will bring about the development of a large social network of students, facility and administrators.

Knowledge Network will serve as a global networking and professional and academic development resource for faculty, students and alumnae. Users will be able to share work with colleagues, create their own academic or professional ePortfolios (digital repositories of a person's work), invite peer review and establish professional contact with people around the globe based on common academic pursuits and research.

If this develops as a real platform, as NYT hopes they could become a gatekeeper to students and faculty. Interestingly, the HighEd article notes that this tool could also take some of the burden away from faculty in the development of their course material. This is a vital point because course development can be a time consuming task and inertia sets in because of that difficulty. If tools free this process then it is conceivable that instructors will vary their content more frequently, provide better more resonant content and as a direct result rely heavily on the tool. As a data or information provider inserting yourself into the work flow is the nirvana because it makes it that much harder to cancel.

There are a lot of themes here and it will be interesting to keep a watch on the Knowledge Network.

(It is curious that there is no mention of this on the NY Times. com site).

MediaWeek (Vol 2, No 11): Voyager Learning, ReedElsevier, CBS Radio, Libraries

Near Norwich, Bertrams were sold for £8.6mm and all 600 staff were kept on. A remarkable event given the state of UK bookselling. Smiths News is the purchaser. Reed is paying Pat Tierney a £2.4m bonus and The Times suggests shareholders will be pissed. Tierney ran the educational unit (Harcourt) which Reed sold for a large premium over what they purchased it for. In addition, Tierney deferred retirement to take care of the sale process. A good backgrounder on how legal publishing works from a taxonomy and text mining perspective. (Legal Technology). ReedElsevier's earning call transcript (SeekingAlpha).

As far as the 2008 financial performance, 15% earnings growth and that is our highest for many years, and I think in this market, it is an excellent performance. Good above-market revenue growth we’ve seen for Elsevier, LexisNexis, and Reed Exhibitions, our core businesses. All three of those businesses, I think, did very well in terms of organic revenue growth.

Our focus in the last two or three years on accelerating margin improvement is paying off with 110% basis point margin improvement. We had a record year in terms of cash conversion, 102% of operating profit into free cash flow, that’s just £1 billion, which is an extraordinary number of free cash flow. Return on capital employed rose for the fifth year in a row. It is now about 12% and obviously significantly ahead of our cost for capital, and I think after the 1.5 billion corporate bond issue in January and the renegotiation of the revolving credit facility, we are now financially in a good position and with well-spaced debt maturities going forward. - Sir Crispin Davis

A shareholder suit against the remaining parts of what was Proquest and is now Voyager Learning is going ahead. (Law360). Voyager also announced their full year 2008 results (Press Release):

• Net sales for 2008 were $98.5 million, a decrease of 10 percent from net sales for 2007 of $109.6 million.
• Gross profit decreased $10.8 million in fiscal 2008 to $62.6 million compared to $73.4 million in fiscal 2007. The gross profit margin also decreased to 63.5 percent in 2008 compared to 67.0 percent in fiscal 2007.
• Loss from continuing operations before interest, other income (expense) and income taxes was $83.3 million in fiscal 2008 compared to $104.4 million in fiscal 2007. The Company had adjusted EBITDA, reflecting ongoing business operations, of $15.8 million in 2008 compared to $28.7 million in 2007, where adjusted EBITDA excludes depreciation and amortization expense, goodwill impairment charges, costs to terminate leases in Ann Arbor, Michigan, and corporate overhead costs which were predominantly for restatement related activities in 2007 and 2008.

The good news is the company is 'all caught up' in their long running financial reporting saga. (PND) The company is still looking to be acquired. The Chronicle reports on belt tightening in the library world (this year and next will be tough for vendors).

Greg Doyle, electronic resources program manager of the Orbis Cascade Alliance, in Portland, Ore., describes his group as "a buying club" that represents 36 academic libraries at public and private institutions in Oregon and Washington. I buttonholed him after he made lengthy stops at the Oxford and Ebsco exhibits.

Mr. Doyle is not afraid to use the word "dire" to describe the economic situation that faces his alliance's members. "Right now everybody's budget is terrible," he said. Many don't yet know just how bad the cuts will be. To prepare for the worst, though, they "are actively identifying databases to cut."

HyperLinked data from Tim Berners-Lee (TED Video). There is also a related video from 2006 meeting about using data sets in new ways which is very interesting. (TED Video) The library of the future being built in Palo Alto? Not really but this is an interesting article on how (public) libraries will evolve from an unusual source. I liked this bit:

Loertscher teaches his library-science students to use the "learning common" tool, in which an information professional sits in on an online conversation, helping teachers and students who have created assignments and projects on iGoogle pages. The librarian in coming decades "will burrow right into the center of where the clients are now," commenting on assignments and offering reference and research materials that support projects, Loertscher predicted. In his model of the future, the librarian goes into the student's space, rather than the student coming to the building, he said. "It's very proactive and moving into the space where kids (are comfortable). You have to take their social-networking skills and bend them over into their learning skills," he said.

Some lessons to be learned in the way CBS is managing their radio stations and the seemingly misguided understanding of their key market. (CrunchGear).

We now turn to Mr. Bouloukos’ comment, that young people—most of you guys are young people, I would guess!—are “using the radio to discover today’s most popular music.” First off, that wording is just wrong. If a song is already popular—remember, 92.3 Now will only only play “hit music”—then the odds are that people have already heard it before; in other words, hit music is already popular! A song becomes popular when a lot of people know it, and enjoy it. If a song is popular, then people aren’t, by definition, “discovering” it! (Amateur Hour at CBS Radio, apparently.) Even giving Mr. Bouloukos the benefit of the doubt, that what he meant to say is that people are using radio to discover new music… well, good luck bro. I’d like to find the last 17-year-old in America who is using commercial radio as his primary source of new music. I mean, it’s not like these kids are using THE INTERNET to find new music, right? MySpace Music, music blogs like Hype Machine, sites like Imeem and YouTube, etc. (Then these kids turn around and buy said music either directly from the band’s Web site, or use iTunes or, yes, download it “from BitTorrent.” (BitTorrent is an Internet protocol; you don’t download things “from it.”)

Voyager to Take $45mm Charge

Voyager Learning will take a $35-45mm non-cash charge against its 2006 operating results as a result of the sale of Proquest Information and Learning. PQIL was sold in 2007 to Cambridge Information Group for $222mm. The write down represents 20% of the value of the business unit and in retrospect it is hard to understand how that purchase price could have been effectively negotiated given the current accounting disclosures. On the earnings call last week, Mr. Richard Surratt, Voyager Company's President and CEO noted that they will also take a non-cash charge against goodwill for the purchase of Voyager. In November, Mr. Surrat noted that they expected to have their 2006 10-Qs and 10-K competed by the end of the first quarter 2008; however, they are six weeks behind and do not expect to have that work completed until mid-May. They do expect to have their financial reports for 2007 completed by July.

Mr. Surratt went on to note the status of several lawsuit against the company but there is little change here since the last update in November. He was joined on the call by Ron Klausner, President, and Brad Almond, CFO, of Voyager Expanded Learning.

On an operating basis the company appears to be performing consistently and is stable given a challenging operating environment. Mr. Almond commented on the full year results:

For the fiscal year ending December 29, 2007, the Voyager operating business had preliminary revenue of $110 million, earnings before interest and taxes, or EBIT, of $8 million and earnings before interest, taxes, depreciation and amortization, or EBITDA, of $30 million. These three results each fall within the guidance we gave in November. This compares to 2006 preliminary revenue of $ 115 million, EBIT of $ 6 million and EBITDA of $ 30 million.

In his comments, Mr Klausner concluded the call with a number of comments about the operating environment faced by the company.

We have a terrific track record in developing capabilities that address very difficult problems. While some of our competitors are creating uncertainty and doubt about us as a result of the board's decision to consider strategic alternatives, we are encouraged by how well these new capabilities have been received in the market. Based on the explosive growth in usage of Ticket to Read and the early feedback on the redesign of Passport, we continue to be optimistic that our focus on researched based curriculum, high levels of implementation support, embedded professional development, and web based practice will be rewarded.

The company expects to continue their gradual operating improvement with anticipated 2008 revenue in the range of $111 to $119 million, EBIT between $6 and $10 million, and EBITDA between $28 and $32 million.

Call Transcript