Publishers are relying more on web-based publishing.
London, United Kingdom (PRWEB) October 20, 2012
Unfortunately for magazine publishers, their two main sources of revenue, advertising and circulation, tumbled during the economic downturn and have struggled during the slow recovery. As the economy weakened in 2008 and 2009, advertising spending fell as companies tried to protect profits. Meanwhile, demand for publications contracted as many Britons cut back discretionary spending because of contracting disposable income. In 2012-13, industry revenue is forecast to decline by 4.6% to £6.7 billion. Over the five years through 2012-13, revenue is expected to fall by 4.7% per annum. According to IBISWorld industry analyst Nigel Fitzpatrick, “the industry has always been somewhat volatile, though the cuts to advertising budgets really hit magazine publishers in 2008-09 and 2009-10, dragging down the long-term trend”. During the past five years, operators have attempted to protect profit margins amid falling circulations, by cutting costs through discontinuing unprofitable magazines, improving productivity and cutting wage costs.
Fitzpatrick adds, “the industry is slowly shifting away from print to digital in order to retain an increasingly digitised readership and enable more focused advertising services”. Companies that can successfully navigate this transition will come out ahead as they will be able to complement their print products and expand their audiences. The UK economy and consumer spending are expected to grow slowly over the coming five years. Advertising spending is expected to increase, albeit at a slow rate. Although industry revenue is expected to marginally decline over the coming five years, this will be in stark contrast with the misfortune awaiting the rest of the publishing sector, which will fare far worse.
The top four firms in the Magazine Publishers industry account for approximately 15.4% of industry revenue, giving the industry a low level of market share concentration, although slightly higher than the mix seen five years ago. Consolidation is expected to increase as the UK economy recovers and companies merge to take advantage of economies of scale that exist for larger firms. Major companies include IPC Media, The National Magazine Company and Bauer Media.
For more information on the Magazine Publishers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry produces and distributes magazines and periodicals. Companies that exclusively sell online magazines or periodicals are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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