Magazine Publishing

US magazine publishing

The US consumer and business magazine publishing market was valued at USD31.86 billion in 2003, according to media statistics. Consumer spending on magazines accounted for USD22.85 billion. Magazine advertising rate card revenue totaled USD18.3 billion. Paid subscriptions accounted for 70 percent of total circulation revenue, while single copy sales accounted for the remaining 30 percent. There are only three magazines in the US with circulation figures of 10,000,000 and over while the majority of them have circulation figures of below 100,000.

Between 1993 and 2003, magazine subscriptions grew 2 percent while newsstand sales declined, although they continue to be an important source of circulation. This shift marks a change in consumer buying behavior. Over two-thirds of newsstand sales come from supermarkets, mass merchandisers and drugstores. About two-thirds of magazines have a circulation of less than 500,000.

Changing distribution patterns and new regulations such as the implementation of the “National Do Not Call Registry” in 2003 are expected to reduce consumer magazine circulation in the short run. The growth of the Internet will increase online paid customers.

Europe magazine publishing

In 2003, magazine publishing increased by 1.65 percent, reaching a figure of EUR25.19 billion against EUR24.78 billion in 2002. Western Europe accounts for the majority of advertising revenues in this sector of the media market.

Improvement in the European economy, the launch of new magazine titles and Eastern Europe are expected to drive the industry. Advertising in Western Europe is projected to grow at a CAGR of 3 percent from 2004 to 2008.

UK magazine publishing

Magazine publishing is one of the most creative sectors in the UK media industry. With more than 8,000 titles, the sector’s value was GBP6.4 billion in 2003.

Consumer magazines: General interest magazines form 45.6 percent of the market. Over half of the top 50 general interest magazines are owned by four major publishing groups.

Business magazines: B2B magazines rarely appear on the newsstands. However, some like Travel Trade Gazette, Marketing Week and Screen International do cross over. This is the largest segment of magazine publishing and is dominated by Haymarket Publishing in the UK.

Customer magazines: Customer magazines and in-house publications are growing areas. In the UK, around 8,337 magazines are published, a number that has decreased by 6 percent over the past five years. There are a number of foreign-owned companies, such as IPC Media, Conde Nast, National Magazine Company, Reader’s Digest Association and VNU.

The number of B2B magazines has been declining but, after declining in 2001, consumer magazines have bounced back over the past two years and are expected to increase in 2004. Consumer magazines grew because of the increase in niche magazines such as leisure and entertainment magazines and women’s magazines. The magazine sector is overcrowded with new title launches limited to niche areas, where there is scope for growth.

Technology has impacted on the magazine publishing business as more and more people access information through the Internet. During 2004–2008, the sector is expected to grow at a rate of 17.3 percent owing to improved economic conditions, increased consumer spending and advertising.

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