Industry Analysis & Industry Trends
Global economic volatility and the rise of accessible internet has severely diminished advertising revenue and circulation for the Global Magazine Publishing industry, which has been slow to recover. Alternative media, including quickly expanding online content, is increasingly competing for readers' time and for advertising spending. However, new technologies represent expansion opportunities for magazine publishers. Online distribution models and e-zines make it easier for companies to sell their products to new markets. This will be propelled by rising living standards and disposable income in newly industrialized countries like China, India and Brazil, which house a significant share of the world's population.
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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 diversify risks over more titles and control distribution channels and costs... read more