Trends in NPSS Finances II:

Free Personal Subscriptions and Publications Income

NPSS Reserves

-1000.0

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

8000.0

1991

1993

1995

1997

1999

2001

2003

2005

2007

$K Annual Net

Total Reserves

Conference PublicationsDistribution

Journals Net(TNS+TPS+TMI)

Conference Net

NPS Fees Net

Conference PublicationsDistribution

Journals Net(TNS+TPS+TMI)

Conference Net

NPS Fees Net

20072006

Sources of NPSS Operating Income

Reason for this Report

• AdCom voted to give our members free access to our journals and conference pubs beginning in 2007

• NPSS journal income is ~40% of our total income— ~$720K in 2007 budget

• 55% of journal income is based on institutional usage of electronic access to our pubs

• Any substitution of personal for institutional usage will reduce our future journal income

Periodicals Package On-Line (ASPP/IEL) Algorithm

• ASPP income plus half of IEL income [the journal share] is distributed to the Societies based on:

- Usage (55%): Article views of online content by institutional subscribers

- Content (35%): Content (# of articles) by calendar year for each title (value scaled in some way)- Base (10%): Societies/Councils providing content to IEEE Xplore receive a base distribution.

• The other 1/2 of IEL income uses a page-based conference pubs algorithm, but may change.• Any decreased usage in 2007, based on our new membership benefit, will show up in our 2008 income.

Effect of Free Personal Access to NPSS Pubs

• NPSS $25 annual dues brings in ~$40K/yr. • This is 10% of our recent usage-based journal income

of ~$400K per year. • A 10% reduction in institutional access to TPS and

TNS could cancel out our entire dues income. • For 2006, institutional access fraction was 94.4% for

TNS and 97.0% for TPS.• But how much is this likely to change? Hard to

predict, but it can be tracked using IEEE statistics

NPSS Net Operating Income by Source

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007

$K

Conference NetJournals NetConference PubsNPS Fees NetNet Expenses

NPSS Net Operating Income by Source(subtract 10% of journals for 2005-2007)

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007

$K

Conference NetJournals NetConference PubsNPS Fees NetNet Expenses

Conference Publications Algorithm

• 1/2 of IEL income is distributed based on number of conference pubs pages published per year

• This algorithm uniquely favors NPSS but will likely change to a usage-based algorithm in the future.

• A proposed new algorithm, based 65% on institutional usage, was recently tested—it reduced our 2005 income from $657.9K to $249.2K, a reduction of $408.7K or 62%.

• Reduced institutional usage could magnify this effect.

2005 Conference Publication Income per Member

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

AES-1

0A

P-03

BT-0

2C

-16

CA

S-0

4C

E-0

8C

IS-1

1C

OM

-19

CPM

T-21

CS-2

3D

EI-3

2E-2

5ED

-15

EM

-14

EM

B-1

8EM

C-2

7G

RS-2

9IA

-34

IE-1

3IM

-09

IT-12

ITS-3

8LE

O-3

6M

AG

-33

MTT-1

7N

PS-0

5O

E-2

2PC

-26

PE-3

1PEL-3

5PSES-4

3R-0

7RA

-24

SIT-3

0SM

C-2

8SP-0

1SSC

-37

UFFC

-20

VT-0

6

$K

pe

r H

igh

er

Gra

de

Me

mb

er

NPSS Net Operating Income by Source(subtract 10% of journals for 2005-2007)

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007

$K

Conference NetJournals NetConference PubsNPS Fees NetNet Expenses

NPSS Net Operating Income by Source

(subtract $400K from conf. pubs

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007

$K

Conference NetJournals NetConference PubsNPS Fees NetNet Expenses

Conclusions

• The personal usage effect on our overall financial balance is likely to be relatively small, but could cancel out our net dues revenue

• We should track this by watching the ratio of institutional to personal access to our journal articles.

• This discussion may become moot, if IEEE policy on free membership access eliminates our new benefit

• In the longer term, the biggest effect on our income is likely to result from a change to the conference pubs algorithm

2000 2001 2002 2003 2004 2005 2006 2007ACTUALS ACTUALS ACTUALS ACTUALS ACTUALS ACTUALS BUDGET BUDGET

Conference Publications Distribution 41.9 325.7 33.6 516.0 159.9 657.9 626.3 756.6Conference Income 1,469.6 1,414.1 610.1 2,034.5 3,160.0 4,063.2 1,482.8 1,453.1Conference Expense 1,134.1 1,353.2 397.7 1,847.9 2,660.4 3,158.3 1,240.2 1,250.8Net Conference Income 335.5 60.9 212.4 186.6 499.6 904.9 242.6 202.3Net Conference Income % 29.6% 4.5% 53.4% 10.1% 18.8% 28.7% 19.6% 16.2%

TNS income 308.8 612.4 686.0 501.3 678.2 679.5 749.4 783.2TPS income 158.5 357.8 480.0 615.1 614.7 576.7 578.7 603.3TNS expense 74.7 364.9 498.2 374.9 468.3 402.1 444.0 468.1TPS expense 148.9 183.3 329.1 250.3 313.8 229.4 360.4 260.2TNS net 234.1 247.5 187.8 126.4 209.9 277.4 305.4 315.1TPS net 9.6 174.5 150.9 364.8 300.9 347.3 218.4 343.2TMI net (+ single copy sales) (8.8) (10.6) (11.3) 92.7 81.8 87.9 32.8 61.1

NPS Fees net 0.0 1.2 16.4 21.7 30.8 34.4 40.0 32.0

Interest income 80.1 (97.0) 0.5 0.0 328.4 300.1Grants 30.0 35.0 (65.0)

Newsletters expense 18.7 27.5 22.5 24.9 30.3 33.7 30.6 44.2Non Periodical expense 3.4 4.9 1.2 15.3 14.5 9.5 8.8 9.6

Administration expense 416.5 1,086.5 912.4 (108.5) 437.2 469.5 622.2 741.2Society Overhead 112.4 159.7 84.2 98.5 130.2 137.1 168.0 214.5

My total net 171.4 (541.4) (495.0) 1,278.0 999.1 1,960.1 635.8 700.7Spreadsheet total net 171.4 (541.4) (495.0) 1,278.0 999.1 1,960.1 635.8 700.7difference 0.0 0.0 0.0 0.0 0.0 0.0 (0.0) (0.0)

2000 2001 2002 2003 2004 2005 2006 2007ACTUALS ACTUALS ACTUALS ACTUALS ACTUALS ACTUALS BUDGET BUDGET

Conference Publications Distribution 41.9 325.7 33.6 516.0 159.9 657.9 626.3 756.6Journals Net (TNS+TPS+TMI) 234.9 411.4 327.4 583.9 592.6 712.6 556.6 719.4Conference Net 335.5 60.9 212.4 186.6 499.6 904.9 242.6 202.3NPS Fees Net 0.0 1.2 16.4 21.7 30.8 34.4 40.0 32.0

Net Income Streams 612.3 799.2 589.8 1,308.2 1,282.9 2,309.8 1,465.5 1,710.3

+ Interest Income 80.1 (97.0) 0.5 0.0 328.4 300.1+Grants 30.0 35.0 (65.0)Total Income Streams 722.4 737.2 525.3 1,308.2 1,611.3 2,609.9 1,465.5 1,710.3

Newsletters expense 18.7 27.5 22.5 24.9 30.3 33.7 30.6 44.2Non Periodical expense 3.4 4.9 1.2 15.3 14.5 9.5 8.8 9.6Depreciation 0.0 0.0 31.7TAB support and IEEE overhead 416.5 1,086.5 912.4 (108.5) 437.2 469.5 622.2 709.5Society Overhead 112.4 159.7 84.2 98.5 130.2 137.1 168.0 214.5

Net Expense Streams 551.0 1,278.6 1,020.3 30.2 612.2 649.8 829.7 1,009.6

Total Net 171.4 (541.4) (495.0) 1,278.0 999.1 1,960.1 635.8 700.7