Firms will be forced to innovate to keep up with changing technology
Melbourne, Australia (PRWEB) November 22, 2012
Magazines and periodicals entertain and inform consumers on particular areas of interest and provide academics and professionals with up-to-date information relating to their work and specific markets. According to IBISWorld industry analyst Nigel Fitzpatrick, “these publications target specific areas of interest or particular demographic groups”. Magazines can also provide a medium for readers' aspirations, which can also make them an attractive medium for advertisers. The Magazine Publishing industry in Australia is expected to generate revenue of $1.91 billion in 2012-13, down 0.7% on 2011-12. Industry revenue is expected to decrease by an annualised 4.9% over the five years through 2012-13.
Revenue will contract due to weak consumer spending and retail sales (which affects both copy sales and advertising). It will also be negatively affected by increasing competition for readers and advertisers from other media streams (such as websites and TV). Industry profit margins have come under pressure due to decreases in circulation and cover prices, and a slump in advertising revenue. Circulation will be affected by a change in interests among households, and new media content (including content on websites and subscription TV). “The industry has responded by introducing websites that complement existing publications and deepening their involvement in specific markets,” Fitzpatrick adds. The industry is expected to return to growth in 2013-14, however, revenue is forecast to decrease over the next five years. A slight improvement in economic conditions and advertising markets in Australia over much of the next five years are expected to promote industry growth. Yet, forecast weak economic conditions in 2017-18 will negatively affect the industry in that year.
The performance of the Magazine Publishing industry in Australia will continue to be hampered by intense competition from other media. Nevertheless, the internet and digital devices offer magazine and periodical publishers opportunities to retain and grow their print and online readership, provide value-added content (e.g. complementary content, podcasts, blogs and analysis tools) and further stratify their markets, all of which could improve selling propositions to both readers and advertisers. The top four corporate groups in the Magazine Publishing industry are Nine Entertainment, Seven West, Fairfax Media and News Australia. Acquisition activity has resulted in an increase in industry market share concentration. Concentration is higher in specific markets, including in the broad consumer magazine market.
For more information, visit IBISWorld’s Magazine Publishing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes companies engaged in publishing magazines, bound periodicals or periodicals issued less frequently than weekly. Companies are included if their main source of income is the sale of advertising space in their own publications.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.