Changes to the Magazine Industry and the Future

The consumer magazine industry has changed a lot in the past 10 years and publishers need to change in order to stay in business.

1960 – 2000 -The magazine industry golden years
Advertising was strong, circulation levels were high, an ad-centric publishing philosophy prevailed and many magazine companies were very profitable.

2006 - The threat of social media
The rise in technology, especially the internet began to threaten sales of printed magazines.
Whilst the expansion of Google and then Facebook (2006) would provide new opportunities for publishers to reach and attract new readers, these websites became serious advertising competitors and strong rivals in the battle for consumer attention.

2007 – iPhones…
…then iPads in 2010 could deliver magazine, newspaper and book content. These alternative media platforms and their new apps, proved attractive for audiences. They became both a threat and an opportunity for publishers.

2008 - the financial crash
Ad revenue and circulation declined further. Circulation in the US declined 20% from 2000 to 2010.

The big get bigger
The biggest companies have bought up more of the smaller companies. In the US, the four largest magazine publishers are: Time Inc., Meredith, Hearst and Conde-Nast. Together they own nearly 50% of the US consumer magazine market. For small and middle market magazines, it is much more difficult to survive.

Shift toward female-oriented publications and away from male ones.
Newsstand sales are down but weekly titles sold at supermarket check-outs have risen and this is linked to the rise in female-oriented magazines. Men are more likely than women to use online media for their news, information and entertainment.

2009 – shift to consumer orientation
There has been a move from ad-centric publishing to consumer-centric publishing. Now magazines must deliver their content over multiple platforms and compete with internet companies for advertising and consumer attention. This involves reinventing the industry.

The magazines with the highest circulation are free (no cover price). They rely for their income on selling advertising. E.g. The Fly is the most successful music magazine with a circulation of 104,000.

The consumer magazine industry is smaller than it used to be and it’s getting more and more difficult to survive, especially for the smaller publishers.

How can magazines survive?
• Invest in digital initiatives.
• Keep the company as lean and as efficient as possible.
• Recruit staff with new media and database skills.
• Analyse the audience to understand exactly what they want.
• Develop Apps to deliver digital content and services.

Source: 2001-2010: The events that shaped the magazine industry - By Baird Davis 01.05.2011
http://www.audiencedevelopment.com/2011/2001+2010+events+shaped+magazine+industry