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The aim of this paper is to summarize the developments taking place in the scholarly communication system by reviewing the published literature on journal subscriptions, electronic publishing, electronic journals, Internet and changing information needs of researchers. It examines the role of different players in the scholarly communication process such as authors, commercial publishers, libraries, universities, and learned societies, their problems and efforts in meeting the new challenges brought in by the Internet. The study also explores the need for adopting electronic media for scholarly communication in place of printed journals considering the advantages such as accessibility, speed, cost and acceptance by the academic and research community. At the end it provides general guidance to authors, publishers and libraries to develop mechanisms for mutual benefit and foster the scholarly communication process in the new environment.