Post on 30-Mar-2015
Key Market Points for Publishers
Credit: Worlock. K, June (2011), Education & Training: 2010 Final Market Size and Share Report, Outsell –Advancing the Business of Information
Key Market Indicators
Global Education & Training industry generated revenue of $48.7 billion in 2010, an increase of 4.5% from $46.6 billion in 2009
Top 10 companies revenue accounts for 43.4% of industry revenue – these companies were the most internationally diverse, with resources allowing them to invest in overseas developments
Key Market IndicatorsMarket Drivers in 2010:
• Strong US K:12 adoption market• Pressure on Educational budgets• Impact of new business models and routes to market –particularly in HE
market. E.g. Chegg, the leading textbook rental company, led to a multitude of clones. New business models indicated the potential beginnings of a period of change
• Experimentation from Publishers and Information providers – e.g. Nature formed a new division focusing on the creating of customisable interactive online textbooks that integrate with course management systems.
• Extension along value change – publishers looked into extending to adjacent markets such as delivery of testing and assessment products and the provision of technology and software solutions.
• Slowdown in growth of Higher Education enrolments• Digital services became increasingly important to major publishers
revenues – the proportion of revenue from digital content rose from 28% in 2009 to 36.2% in 2010
• Continued strong growth of international markets, particularly in Asia-Pacific regions• Outsell Estimates 40% of revenue came from the EMEA and Asia-
Pacific regions
Figure 1 shows the growth, using a variety of indicators, for the period 2006-2010 of the Education and Training industry.
Table 2 shows the breakdown of the industry into tiers, then comparing various different indications, allowing a comparison in performance levels.
• Education and Training industry one of the only segments of global information market to experience continued growth despite the economic downturn, however it did not reach the pre-downturn levels of 2007/8
• European competitors performed less well, however some of this can be attributed to negative currency effects.
• K12 Education content sub-segment relatively well consolidated – top 10 companies account for 66.9% of total market
• The industry is one which has very few key players, and a large number of smaller players – the only company with more than 10% market share is Pearson.
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Credit: Worlock. K, June (2011), Education & Training: 2010 Final Market Size and Share Report, Outsell –Advancing the Business of Information