Print Publishing for the School Market 2007-2008

• Industry Size and Structure
• Growth Figures and Projections Through 2009, by Media and Market
Segment
• Enrollment & Demographics
• Funding
• PreK & High School Trends & Initiatives
• Textbooks & Adoptions
• Supplementary Instructional Materials
• Testing
• Data Management
• Forecasts and Conclusions

Methodology

Executive Summary

Chapter 1: Industry Size and Structure

Introduction

Market Forces at Work

Market Dips in 2006

Textbooks Remain the Largest Segment

Technology Media Outpaces Print Media

Textbooks Command 55% of All Print Media

Pearson Education Reigns as Largest PreK-12 Publisher

M&A Activity in High Gear in 2006

Table 1.1: Sales of Print and Electronic Media to the U.S. PreK-12 School Market, 2004-2006P

Table 1.2: Market Share of Media Sold Into U.S. Classrooms, 2006P

Table 1.3: Print Media Used for Instruction in U.S. Schools, 2004-2006P

Table 1.4: Share of Print Media Used for Instruction in U.S. Schools, 2006P

Table 1.5: Simba’s U.S. Print-Based PreK-12 Publisher Index, 2004-2006P

Table 1.6: Simba Information’s Merger & Acquisition Index, 2006

Chapter 2: Market Trends

Introduction

Federal Policy Initiatives

English-Language Learner Population, Programs Grow

1.3 Million Students in Individualized Education Programs

Rising Interest in Professional Development

Federal Government Key Provider of P.D. Funding

Tutoring Market Has Not Yet Reached Full Potential

Reforming High School and Connecting to College

PreK Momentum Continues

McGraw-Hill, Pearson Most Widely Used Programs in ERF Programs

Continued Population Growth Among 3- to 5-Year-Olds

Table 2.1: 10 U.S. Public School Districts with Highest Percentage of Students in ELL Programs, 2003-2004

Table 2.2: English-Language Program Growth, 1990 vs. 2000

Table 2.3: Special Education Enrollment, 20 Largest U.S. Public School Districts, 2003-2004

Table 2.4: Areas of Greatest Need to Improve Student Performance

Table 2.5: Supplemental Education Services (SES) Providers by Type, 2005

Table 2.6: Dropout Rates of 15- to 24-Year-Olds Who Dropped Out of Grades 10-12, 1993-2003

Table 2.7: Curriculum Leaders, 2006 Early Reading First Grants

Table 2.8: Actual and Projected Preprimary School-Age Populations, 2004-2015

Chapter 3: Enrollment and Demographics

Introduction

Public Enrollment vs. Private Enrollment

South, West Continue to Grow; Northeast Declines

Recent Growth Areas

Nevada, Arizona Are Fastest-Growing K-12 States from 2003-2015

School Construction Plans Forged Ahead in 2005, Slow in 2006

Schools Become More Diverse

Homeschool Enrollment Grows 28.9% Between 1999 and 2003

Instructional Content Sources for Homeschooling

Table 3.1: Total Public/Private Projected K-12 Enrollment, 2004-2015

Table 3.2: Enrollment in Public and Private Schools, 2004-2015

Table 3.3: U.S. K-12 Public School Enrollment by Region, 2006-2015

Table 3.4: Public School Enrollment by State, 2005-2006 vs. 2004-2005

Table 3.5: Top 10 Fastest-Growing States by U.S. Public School Enrollment, 2003-2015

Table 3.6: Enrollment by County, 25 Districts with Largest Increases, 2005-2006

Table 3.7: School Construction, Where the Money Goes, by Building Type, 2006

Table 3.8: Percentage of K-12 Students by Race/Ethnicity by State, Fall 1992 & Fall 2002

Table 3.9: Distribution of K-12 Homeschooled Students by School Enrollment, 1999 and 2003

Chapter 4: Funding

Introduction

Federal Role in Education Funding

Changes Proposed for 2007 Federal Spending

Title I Funding Up in 25 States

Title I District Funding Picture More Mixed

Reading First Funding Down in 2006

Early Reading First Is Smaller Funding Stream

Tapping Special Education Funding

Improving State Revenue Landscape

Large Districts Offer Big Opportunities

Table 4.1: Federal Education Appropriations, 2005-2007P

Table 4.2: U.S. Department of Education Title I State Grant Allocations, 2004-2006P

Table 4.3: 50 Largest Title I Allocations to LEAs, 2006

Table 4.4: Recipients of Reading First State Grants, 2004-2006P

Table 4.5: Curriculum Leaders, 2006 Early Reading First Grants

Table 4.6: IDEA Funding

Table 4.7: Instructional Materials Expenditure by State, 2004-2005

Table 4.8: Top 50 Districts Per-Pupil Expenditures

Chapter 5: Textbooks and Adoptions

Introduction

Changing Shape of Textbook Programs

Increased Customization

Textbook Market: Adoption States and Open Territories

Adoption Cycle Dips in 2006

Largest Public School Districts Are in Adoption States

Largest States for Textbook Sales

Reading Is the Largest PreK-6 Discipline

2006 Was a More Difficult Adoption Year

Harcourt Leads Simba’s 2006 K-8 Adoption Scorecard

Harcourt Leads Simba’s 2006 9-12 Adoption Scorecard

Outlook 2007

Table 5.1: Textbook Share of Print Media Used for Instruction in U.S. Classrooms, 2006P vs. 2005

Table 5.2: Selected K-12 State Adoption Schedules for Bid Years 2006-2009

Table 5.3: 20 Largest Public School Districts in the U.S., 2003-2004

Table 5.4: Elementary and Secondary Textbook Sales, Top 10 States, 2005

Table 5.5: Top 10 Disciplines for Textbooks in the U.S., 2005

Table 5.6: Simba Information’s K-8 Adoption Scorecard, 2006

Table 5.7: Simba Information’s 9-12 Adoption Scorecard, 2005

Chapter 6: Supplementary Instructional Materials

Introduction

School Improvement and Intervention

Growing Need for Intervention

2006 Supplemental Market Up 4.1%

Shift Toward Electronic Supplementals

Test Preparation and Remediation

Fairs, Clubs and Magazines

School Specialty Leads Simba Print Supplemental Rankings

Table 6.1: Areas of Greatest Need to Improve Student Performance

Table 6.2: Supplements Used for Instruction in U.S. Schools

Table 6.3: Simba’s Largest U.S. Print Supplemental Publisher Rankings, 2006P

Chapter 7: Testing

Introduction

What NCLB Requires

Future Testing Opportunities

High School Students Face More Assessment

Companies React to Opportunities

Table 7.1: State-Level Tests and Classroom Assessment, 2004-2006P

Table 7.2: No Child Left Behind Testing Requirements

Table 7.3: Anticipated State Contracts Going to Bid, 2007-2008

Table 7.4: States with High School Exit Exams

Table 7.5: Contractors in States with Mandatory High School Exit Exams, 2006-2007

Table 7.6: State Support Policies for Helping Students Pass Exit Exams

Chapter 8: Data Management

Introduction

Fragmented Growing Market

Content vs. Technology

Case Study: Philadelphia

Effect on Content Providers

Funding

Long-Term Goals for Educators

Forecast

Data Management Providers

Pearson Education

TetraData

SchoolNet, Inc.

eScholar

Software Technology, Inc.

EDmin.com

Table 8.1: Comparing Costs of Data Management Systems

Table 8.2: 2006-2009 Funding for Statewide Data Management Systems

Chapter 9: Forecast and Conclusions

Table 9.1: Sales Forecast of Key Instructional Materials Used in U.S. Classrooms, 2005-2009

Profiles of Leading Educational Publishers

Cambium Learning

Carnegie Learning

Cookie Jar Education

Curriculum Associates

Educate

EMC Corp.

Educational Testing Service

Haights Cross Communications

Harcourt Education

Houghton Mifflin

Kaplan

McGraw-Hill

Pearson Education

Peoples Education

The Princeton Review

ProQuest

William H. Sadlier

Scholastic

School Specialty

TASA

WRC Media