Uncovering the Business Models of Scientific Journals

A scientific journal (also known as an academic journal, a scholarly journal, or a peer-reviewed journal) publishes research articles written by scholars and researchers. These articles include peer-reviewed original research, review articles, and other academic content. Nonetheless, some users are dissatisfied with the high subscription fee, and article processing charge (APC), charged by most journals. Although authors must pay to publish their research, most peer-reviewers work for free or as volunteers.

Inside journal publishing

Most people know that reputable journals have high APCs, or subscription fees. However, they have no idea how journal publishing works or the related costs. Here, we will reveal a brief about them.

High operating costs

A reputable scientific journal usually has high operating costs, which include (but not limited to) ​[1]​:

However, we cannot generalize the journal cost. In a small journal with a high acceptance rate, the average operating cost of each published article could be less than $100. Whereas reputable journals may cost more than $2,000. Therefore, the lower the acceptance rate, the higher the operating cost ​[1], [2]​.

This is why, depending on the journal’s reputation, the article processing charge (APC) can range from $100 to $11,000. Highly reputable publishers, such as Springer Nature, may charge authors up to $11,690 to publish their articles.

Assume the true cost of processing a journal article is $100. Whereas, the reputable publisher may publish one out of every ten articles (10% acceptance rate). That is, the published article’s price should cover the entire cost of production. As a result, the APC for each published article would be roughly $1,000, ten times the processing cost.

Moreover, the costs listed above can vary greatly. It depends on the journal’s size and scope, as well as the number of potential readers. There’s also prestige pricing, which involves authors paying a higher price to show their status. This means journal quality and competitiveness affect journal pricing.

Revenue generation

What options do they have for generating revenue and financially supporting the journal?

Most journal publishers have at least three business models to choose from. The subscription-based and open-access models are used by many reputable journals, while some small and medium-sized journals may also be subsidized by academic institutions.

Subscription-based model

Subscription-based publishers will charge readers for access to their content. This is the traditional scientific journal publishing model.

There are various access offers available, such as per-article and individual or institutional subscriptions. However, the price of these subscriptions varies depending on the publisher and the number of journals included in a subscription package.

Open-access (OA) model

Open-access (OA) publishers offer free access to and reuse of scientific information. However, they usually charge authors an article processing charge (APC) to cover the production costs. These fees can vary depending on several factors, including the publisher’s reputation and the average number of articles submitted to the journal.

Moreover, the lower the acceptance rate, the higher the APC per article. However, not all open-access journals charge publication fees; some are supported by institutional support or grants. 

Hybrid of the subscription and OA models

Some publishers offer authors two options: open access or a subscription model. It means that authors can pay the APC and ensure that their articles are freely accessible. Authors who choose the subscription model, on the other hand, will not be charged, but the reader must pay to access the article.

With this hybrid model, it is possible for a publisher to “double dip” their article ​[3]​. It means, they charge the authors the APC, but the reader is also charged to access the same article. Many publishers, however, have policies in place to prevent double-dipping. Moreover, some publishers may offer discounts on subscription fees or APCs to offset any potential double-dipping revenue.

Other fundings

In addition to subscriptions and article processing charge (APC) fees, there are other funding or revenue-generation models for scientific journals. 

• Institutional funding/subsidize.
  Institutions usually host or publish their own journal. Generally, laborers and editors are taken from their own employees. Therefore, the institution may indirectly subsidize the journal’s operating costs.
• Crowdfunding.
  Crowdfunding is an alternative collective funding model with many funders. Individuals or organizations can contribute funds to the journal’s operating costs under this model. Some computational biology-related campaigns, for example, have raised more than $100,000 in donations ​[4]​.

Predatory Journals

Science publishing seems to be a very profitable business. They have a high profit margin despite their narrow audience. For example, RELX, the parent company of Elsevier, has earned about $3 billion profit in 2022.

This promising profit has led to a rise in predatory journals. It has become a source of concern among academics. Mostly because they are only interested in money. Consequently, these journals have questionable publishing practices.

They often charge the author without providing adequate quality control (e.g., credible peer review) for published articles. These journals often engage in deceptive practices, such as falsely claiming to be indexed in reputable databases or using false impact factors. 

Predatory journals can harm the reputation and credibility of researchers. They can also harm the scientific community by disseminating low-quality research that has not been properly assessed. 

Researchers should avoid being taken advantage of by predatory journals. Before submitting their work, they should carefully consider potential publication venues. 

References

Cover image by Ross Taylor in pexels