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Magazine & Periodical Publishing in Canada Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Oct 11, 2013, 02:00 ET

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Declining consumer demand for industry products caused advertising revenue to fall

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Los Angeles, CA (PRWEB) October 10, 2013 -- Falling demand from consumers and advertisers has damaged the Magazine and Periodical Publishing in Canada industry. Consequently, revenue has declined at an average annual rate of 3.1% in the five years to 2013. This is because consumers have increasingly opted for digital products rather than printed magazines and periodicals. Digital products have increased in popularity as mounting internet speeds, and the widespread adoption of smart phone and table devices, has amplified the accessibility and convenience of retrieving online content. The number of fixed broadband connections has increased 3.8% annually, while the amount of mobile telephone subscriptions has grown 6.2% in the five years to 2013. Industry operators have only slowly recaptured some lost revenue with digital offerings of magazines and periodicals. Moreover, declining consumer demand for periodicals and magazines has caused revenue from advertising to decline as well, given that the value of advertisements is dependent on the audience reached. According to IBISWorld Industry Analyst Jesse Chiang, “Advertising revenue accounts for nearly 60.0% of industry revenue, therefore declines in advertising revenue have hurt the industry significantly.” In 2013, revenue is expected to continue decreasing at 2.4% to $2.2 billion.

Deteriorating demand, coupled with changing industry assistance has forced many operators to close or reduce total operations. Changes in government subsidies has harmed small firms, in particular, as new requirements mandate that magazines or periodicals have 5,000 annual paid circulation to qualify for subsidies. This has drastically increased costs for operators, especially those that could not meet the new requirements, as the loss of government subsidies forced some operators to absorb a larger portion of costs. The number of enterprises in the industry has declined 4.8% annually, while the number of establishments has declined 4.1% annually in the five years to 2013.

Nonetheless, in the five years to 2018, industry revenue is expected to rebound somewhat, driven by rising consumer disposable income and increased digital diversification. “Consumer disposable income is expected to grow with a recovering economy, driving spending on discretionary items such as magazines and periodicals,” says Chiang. Furthermore, operators are expected to continue expanding digital offerings, capturing more consumer revenue and revenue from digital advertising.

For more information, visit IBISWorld’s Magazine & Periodical Publishing in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Magazine & Periodical Publishing in Canada industry produces and distributes magazines and periodicals in print and online. This industry does not include firms that exclusively sell online magazines or periodicals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US and Canadian 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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