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Magazine & Periodical Publishing in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 28, 2014, 00:00 ET

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Weak subscription rates and declining ad spending has translated into lower profit

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New York, NY (PRWEB) September 28, 2014 -- Continued decline in print advertising spending is expected to persist through 2014, driving the Magazine and Periodical Publishing industry's revenue down. Consumer and print advertising spending, the two main determinants of revenue for magazine and periodical publishers, plummeted during the economic downturn. As the economy weakened, low corporate profit forced companies to cut advertising expenditure, severely limiting the industry's largest revenue source. Meanwhile, consumer demand for publications contracted, as many Americans slowed discretionary spending in light of lower disposable income. IBISWorld Economic Analyst Darryle Ulama says" more recently, although disposable income has revived, the protracted decline in print advertising and increasing external competition from digital content has crippled demand for magazines and periodicals." The top four players in this industry are expected to account for much of industry revenue in 2014. Industry concentration has stayed steady since 2009; the top four major players accounted for much of revenue during this period, as recession-induced uncertainty froze consolidation deals over the five years to 2014. Consolidation is anticipated to occur during the five years to 2019, as companies merge to take advantage of economies of scale, such as a joint editorial department.

Over the five years to 2014, publishers cut costs by closing offices, discontinuing unprofitable magazines and laying off employees. However, as revenue dropped, some businesses were forced to exit the Magazine and Periodical Publishing industry. Nonetheless, the industry has fared better than other print media, such as newspapers, since magazines and periodicals give advertisers access to niche audiences.

"To retain an increasingly digitized readership and enable more focused advertising services, the industry is slowly shifting away from print publishing to digital platforms," Ulama says. The improving economy will support increased corporate spending on marketing, driven by an uptick in corporate profit. Companies that can successfully navigate changing consumer preferences and market trends will prove successful, as they will be able to complement print products and expand their audience. Still, escalating competition from new media, decreasing subscriber numbers and less business from advertising will continue to cut into industry revenue. As a result, revenue is forecast to decrease over the five years to 2019.

For more information, visit IBISWorld’s Magazine and Periodical Publishing in the US 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 and Periodical Publishing industry produces and distributes magazines and periodicals in print and online. However, publishers that exclusively sell online magazines or periodicals are excluded from this industry.

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 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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