The American Institute of Physics (AIP) publishes 87% of the primary research journals in the discipline of physics in the United States. These journals have provided an indispensable communication mechanism for research results and education in physics and astronomy. A redesign of the present journal system is required because of expansions in size, increased interdependences of science disciplines, higher expectations of physicists and reasonable availabilities of new technologies. Designing and phasing into a new system must be based on an understanding of the basic economics of the present system. Thus, the focus of this report is on the financial aspects of today's AIP publishing program with some preliminary thoughts on new, more user-oriented journals. (NH)