Readers have opted to consume digital publications instead of printed magazines and periodicals.
New York, NY (PRWEB) October 31, 2014
Falling consumer demand and lower print advertising revenue have devastated the Magazine and Periodical Publishing industry. Readers, with ever-increasing access to digital media, have opted to consume digital publications instead of printed magazines and periodicals. This trend has been fueled by the swift adoption of tablet computers and the increasing capabilities of smartphones. Similarly, advertisers have moved to digital platforms and have lowered their total spending on print, severely limiting publishers' opportunities for revenue growth. “Publishers have responded by cutting staff, slimming production and expanding their digital offerings,” according to IBISWorld Industry Analyst Darryle Ulama. However, industry operators have only slowly recaptured lost revenue with digital editions of magazines and periodicals. As a result, in the five years to 2014, industry revenue is forecast to decline at an annualized rate of 3.0% to $2.1 billion.
The entire publishing sector is shifting as a result of evolving media consumption and the proliferation of digital-only publications. Subscriptions to magazines and periodicals continue to slide, as consumers switch to digital editions and online-only publications, which are not included in this industry. Reform in government subsidies occurred in 2010, when the Canadian Periodical Fund mandated a 5,000 annual paid circulation requirement to qualify for assistance and a $1.5 million per-year cap on subsidies provided to a single publisher. “The new requirements have impacted both small operators, which have struggled to meet the circulation requirements, and large publications, which have absorbed higher costs due to the assistance cap,” says Ulama. Industry consolidation and exit are rampant, as publishers struggle to remain afloat. In 2014, industry revenue is anticipated to drop by 1.1%.
In the five years to 2019, publishers will refocus on strengthening their digital offerings. As more consumers adopt the digital form, advertisers will follow suit through higher and more targeted digital advertising. To capture digital advertising, publishers will expand their digital presence, although competition from online-only publications will accelerate. As such, IBISWorld expects internal and external competition to increase in this industry during the next five years. Growth in digital revenue will offset declines in subscription sales, with industry revenue forecast to rise at an annualized 0.5% rate to $2.1 billion in the five years to 2019.
For more information, visit IBISWorld’s Magazine and Periodical Publishing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry produces and distributes magazines and periodicals in print and online. This industry does not include firms that exclusively sell online magazines or periodicals.
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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