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21 Jul 2020
Feedback from Expert Event with Research Solutions
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Feedback from Expert Event with Research Solutions
RELX PLC (REL:LON) | 3,304 -891.9 (-0.8%) | Mkt Cap: 62,014m
- Published:
21 Jul 2020 -
Author:
Sami Kassab -
Pages:
7
We hosted P. Derycz, CEO of Nasdaq-listed Research Solutions, at an Expert Event on STM
When we recently double-downgraded Relx (MEDIA - PROFESSIONAL INFORMATION: The Science Behind the Show), we argued that alternative ways of accessing research articles would lead to an erosion of the must-have nature of academic journals. We pointed to rapid document delivery tools as one of several alternative ways. Yesterday, we hosted Peter Derycz, CEO of Research Solutions, a provider of rapid document delivery tools.
Rapid changes seen in US academic library landscape
Research Solutions argued that the pace of changes within academic libraries had accelerated with Covid 19 putting the hammer down on budgets. Historically, academic libraries lagged corporate libraries in actively balancing document delivery vs. journal subscriptions. Research Solutions expects this to change with more academic libraries using document delivery instead of journal subscriptions, like the University of California does. To tap into this trend Research Solutions is about to launch Article Galaxy Scholar, a 24x7 platform to gain near immediate access to research papers in a legal way. The company currently has 250 academic libraries (+10% yoy) mostly from the US, Europe and Japan.
Relx earns money through rapid document delivery
While a move away from subscriptions to low-usage journals towards article delivery could put pressure on Relx STM revenues, we also point that Elsevier earns money from licensing its content to Research Solutions and the likes. Licensing price increases of 5 to 7% have been ahead of journal subscription price inflation in recent years. Relx could increase prices more to make this alternative route less attractive to academic libraries.
Underperform maintained
We expect Relx to report a 10% orgrev decline in H1 20 (July 23), driven by Exhibitions (-65%). STM, Risk and Legal seen at +2% each. We continue to believe that Relx STM growth could turn...