Changing consumer preference will cause Spanish-language magazines to tumble.
Los Angeles, CA (PRWEB) October 24, 2013
The rapidly shifting change in consumer preference from print to digital products has severely damaged the Spanish-Language Publishing industry, causing revenue to decline at an average annual rate of 2.9%, in the five years to 2013. According to IBISWorld Industry Analyst Jeffrey Cohen, “Despite a recovering economy, demand for printed magazines has only marginally recovered since the peak of the recession in 2009, due to competing digital substitutes, which are cheaper and easier to access.” The widespread use of higher internet speeds and smartphones has spurred this shift in consumer preference. Moreover, Hispanic consumers have a particularly high rate of smartphone adoption; over 70.0% of Hispanics own at least one smartphone, according to AdWeek, a marketing and media publication.
Advertisers have similarly flocked from magazines to digital products, choosing to spend less advertising dollars on a medium with a shrinking audience. In the five years to 2013, print advertising revenue is expected to decline at an annualized 4.5%, cutting into industry revenue, given that nearly half of total industry revenue is generated from advertisements. Dwindling revenue has forced many operators to close or scale down operations. Consequently, the number of establishments in the industry has declined at an average annual rate of 1.6% in the five years to 2013, to 512 total publishers. “While industry revenue is expected to grow 5.7% to $729.0 million in 2013, this growth is largely artificial, given that this increase follows a severe 12.1% decline in revenue in 2012,” says Cohen.
In the five years to 2018, this industry is expected to continue declining, despite favorable demographic changes. The number of Hispanics in the US is expected to grow faster than any other group, and the spending power of this population is expected to consequently increase. However, the industry is not expected to benefit from this increasing spending power. Digital substitutes will continue to siphon demand away from Spanish-language publishers, while young Hispanics, a large portion of the demographic growth, are expected to continue the cultural shift towards English-based publications.
For more information, visit IBISWorld’s Spanish-Language Magazine Publishing in the US industry report page.
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IBISWorld industry Report Key Topics
Spanish-language magazine publishers engage in design, editing and marketing activities, which are necessary for producing and distributing magazines and other periodicals. This industry excludes online-only publications.
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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