Online platforms and the connectivity of smartphones and tablets have changed the way consumers read magazine content and search directory listings.
Melbourne, Australia (PRWEB) August 08, 2014
Magazine and Directory Publishing in Australia has undergone a complete technological revolution over the past five years. Growth in online platforms and the everyday connectivity of smartphones and tablets have changed the way consumers read magazine content and search directory listings. According to IBISWorld industry analyst Spencer Little, “telephone directories have undergone a significant structural decline as consumers have increasingly used search engines and online directories to find information.” Magazine publishing has been affected less substantially, but has been forced to compete on a global basis with online-only publications. As a result, industry revenue is expected to fall at a compound annual rate of 1.4% over the five years through 2014-15.
This decline has been most evident in plummeting Yellow Pages revenue. Search engines such as Google have proven more effective for advertisers and consumers alike. Consumers are able to find aggregated results from search engines when looking for businesses, while advertisers can list their business at no cost. Social media platforms such as Facebook provide greater exposure than print directories, and also provide a space for businesses to publish additional information. However, “magazine readership has only fallen slightly, as many magazines target niche markets and publish content that is unavailable elsewhere,” says Little. Nevertheless, growth in lower margin online content has driven down magazine advertising revenue. Revenue is forecast to drop by 3.3% in 2014-15, to reach $2.9 billion.
The Magazine and Directory Publishing industry's decline is projected to slow over the next five years. With consumers continuing to migrate to digital products, new tablet and smartphone applications such as Netpage are expected to play a strong role in retaining industry revenue streams. Netpage enables the transfer of print magazines to high-resolution content on digital devices, provides advertising links to websites, and allows print magazines to be shared on social media. Online developments will also increase exposure for media buyers and advertisers. However, despite industry operators' best efforts to innovate and tackle the problems caused by technological developments, the industry is still expected to decline over the next five years. The Magazine and Directory Publishing industry displays a high level of market share concentration, with major players Sensis, Bauer Media, and Seven West Media accounting for a large share of industry revenue. While market share concentration remains high, it has decreased over the past five years. This decline is largely due to the significant revenue falls of Sensis, as competition from online platforms has blighted its Yellow Pages directory. With the highly concentrated directories segment declining in size, the more competitive magazine segment is taking up a larger percentage of industry revenue.
For more information, visit IBISWorld’s Magazine and Directory Publishing industry in Australia report page.
The industry includes companies that are primarily engaged in publishing magazines, directories, mailing lists, and periodicals. Magazine and periodical publishers are included in the industry if their main source of income is the sale of printed copies and advertising space within printed publications. The industry excludes publishers that operate exclusively online, but includes online revenue from publishers that print physical publications.
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IBISWorld industry Report Key Topics
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
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