Los Angeles, CA (PRWEB) September 08, 2012
Low disposable income and high uncertainty due to the Great Recession diminished advertising revenue and circulation for the Global Magazine Publishing industry during the past five years. According to IBISWorld industry analyst Agata Kaczanowska, alternative media, including quickly expanding online content, is increasingly competing for readers' time (diminishing magazine circulation) and for advertising spending. As a result, industry revenue is expected to decline at an 8.4% annualized rate to $100.5 billion over the five years to 2012, including a 2.8% expected decline in 2012.
Consolidation is anticipated to continue as magazine publishers make significant investments in online and mobile application infrastructure, says Kaczanowska. Companies will streamline operations by syndicating some content, and centralizing sales and marketing bureaus. This will help to expand industry profit, as measured by earnings before interest and taxes. New technologies have not only resulted in escalating competition from new media but also represent opportunities for expansion for magazine publishers. Online distribution models and e-zines make it easier for companies to sell their products to new markets. This will be propelled by rising living standards and disposable income in newly industrialized countries like China, India and Brazil, which house a significant share of the world's population. Company expansion into those markets is expected to result in establishment growth during the next five years. During the past five years, market share concentration in the Global Magazine Publishing industry has gradually increased due to some consolidation. In addition, technological changes and low disposable income caused many smaller publications to fold. Several recent examples of consolidation include Meredith Corporation's 2012 acquisition of publishing assets from Disney and Reader's Digest, as well as Hearst Corporation's 2011 acquisition of nearly 100 publications from Lagardere.
Over the next five years, smaller entities may find it difficult to finance the development of a strong online presence or mobile applications that will sustain readership as consumers increasingly revert to digital magazines. An increase in circulation numbers, especially in newly industrialized countries, is expected to sustain slow industry growth. Circulation is forecast to expand thanks to the large populations in countries that are experiencing strong growth in disposable income and living standards. Furthermore, revenue from periodical websites and from digital periodicals will increase, especially in developed countries. This growth will partially offset the decline in revenue from printed publications as businesses continue to transition toward digital advertising platforms. Online platforms will also provide firms with a way of reaching niche populations across the globe, which historically had limited access to magazines. As a result, industry revenue is projected to rise during the next five years. For more information, visit IBISWorld’s Global Magazine Publishing industry report page.
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IBISWorld industry Report Key Topics
The Global Magazine Publishing industry comprises enterprises that publish magazines or periodicals. These businesses carry out the operations necessary for producing and distributing magazines and other periodicals, such as gathering, writing and editing articles, and selling and preparing advertisements. These enterprises may publish magazines and other periodicals in print or electronic form.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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