RELX PLC weak as UBS reiterates ‘sell’, cites news European research funders seeking to introduce Open Access system
peter.suber's bookmarks 2018-09-13
"RELX PLC (LON:RELX) was a FTSE 100 faller on Thursday as UBS reiterated a ‘sell’ rating on the Anglo-Dutch professional publishing group citing news that European research funders are seeking to introduce an Open Access system.
In a note to clients, the Swiss bank’s analysts pointed out that, on 4 September, with the support of the European Commission and European Research Council, 11 national research funders, announced a plan to try and make immediate Open Access to research a reality....
They pointed out the coalition’s plan is negative for RELX’s Elsevier business as it would divert research from hybrid and closed journals into full open access journals.
The analysts pointed out that if fewer articles are published in subscription journals they believe this will reduce the pricing power of Elsevier when it negotiates renewals.
They also think that it will reduce the pool of open access revenues available to publishers as author processing fees are typically lower for full open access journals than hybrid journals.
Thirdly, the analysts added, given Elsevier is underweight full open access publishing, a shift of articles into this medium will lead to lower Elsevier market share.