US Consumer Magazines: Weakness to Continue (But Better Positioned Than Newspapers)

11 page (6374 word) report published Jul 09, 2008

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...The shift toward digital media consumption ha s had a high-profile negative effect on traditional print advertising media. While not as dramatically affected as the newspaper industry, consumer magazines are feeling th e adverse impact of the digital transition. Both single-copy circulation and subscriptions have been under some pressure. Advertisers are consolidating and shifting their advertisin g budget mix. Revenue growth has stagnated in recent years and has been under pressure in 2008, as pu blishers struggle to offset circulation and declining advertising page volume in many categories with price increases. Magazine companies have become more proactive in recent years in addressing the fundamental challenges facing their industry. To avoid significant margin compression, successful publishers have cut la bor costs, repositioned their portfolios (inc luding shutting down titles) and migrated their content o nline. Over the past few years, print publications such...

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