Industry Analysis & Industry Trends
Though low disposable income in developed nations and diminished revenue from advertising hampered the industry during the Great Recession, newly industrialized nations have increased their consumption and demand for magazines in line with their rising standards of living. Magazine operators will increasingly invest in online and mobile applications to attract readers. As a result of these factors, circulation and revenue are expected to expand over the next five years... read more
Starting a New Business
Companies entering the industry must grapple with reader acceptance of and loyalty to existing titles. Existing periodicals can lock in sales through subscriptions, which are typically a 12-month commitment but can sometimes be as long as three years.
Large established companies in this industry have market power, and they can benefit from economies of scale and scope. For example, large operators can potentially benefit from negotiating lower paper and printing costs. They may be better able to finance new title launches over a wide geographic area or develop new digital products. Large companies also can manage and diversifying risks over more titles and control distribution channels and costs... read more