John Wiley & Sons: It's Time To Pound The Table - John Wiley & Sons, Inc. (NYSE:JW.A) | Seeking Alpha
peter.suber's bookmarks 2020-03-31
How Wiley and Sons is Positioned Against Open Access
John Wiley & Sons is a mainly digital business. According to their 2019 annual report (Pages 25-27) the plurality of their earnings come from their research division where online academic journal subscriptions are their bread and butter. In fact, their reliance on online journal subscriptions is shown by the observation that it contributes more than half of their profits for their research segment. This sector also has continuously seen a decrease over the past 2 years. This decline is likely related to the growth of the open access publishing movement going on in academia. John Wiley and Sons understands this movement as well and has taken steps to accommodate. Between 2018 and 2019, they've increased their open access journal revenue by 30%. Where does this money come from though? It just so happens that authors have to pay a fee to publish their papers in Wiley and Sons online journals. These fees range anywhere between $500-$2000 fee per publication. Another avenue of revenue from their open access journals is that they contain advertisements.
Regarding Open Access, Wiley currently offers two models of Open Access that is at the author's choice. A fully open access journal or a subscription journal offering called OnlineOpen is called Gold. The other option, Green, is free to the author, but allows for a 12 to 24-month embargo period. Wiley cites in its 2019 10-K that the hybrid open access is only available to authors that are publishing in the majority of the company's academic journals are able to make their articles available through Wiley's OnlineOpen. This is a network effect in play, if you want to publish in a particularly respected journal, you must access it via the Wiley tollroad. Not only that, the as stated below by Wiley and Sons, the open access journals cover a wide array of disciplines as per their 2019 10-K ...."