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A Competitive Assessment of the 12 Largest US Consumer Magazine Publishers
by Joe Leider
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The 12 largest US consumer magazine publishers pursue different business strategies. Some sell single copies to retail customers while others chase subscribers. For diversified publishers, magazines are not even the product being sold. Their end product is audience.
Over the last ten years, these diverse strategies have yielded varying degrees of success. This report will explain that success with a look to the future of consumer magazine publishing. We will begin with a summary of high-level strategies at each company, showing which have yielded growing profitability in circulation and advertising sales. The revenue profiles of each publisher will illuminate how each sees the world. Then benchmark statistics such as circulation, revenue, revenue per issue and price will show different degrees of success over the last ten years.
To better understand the profiles of large publishers, we will then look at magazine diversity and the proportion of revenue from advertising, delineating those publishers who focus on marketing content to consumers from those whose strategy revolves around advertising sales.
From there we will correlate success in circulation profitability by a number of factors, including the share of revenue from advertising sales, the share of revenue from single copy sales, diversity of publications among different categories, and dominance of certain categories by each publisher. We will also analyze the premiums each publisher earns from advertising, explaining why some publishers can charge higher ad rates per subscriber.
Exploring magazine launches and acquisitions since 2000 will showcase those areas in which each publisher believes its future lies. Launches illustrate key areas where a publisher can showcase circulation strength, while acquisitions show where a publisher can utilize existing in-house strengths to bring advertising premiums to new audiences.
We will follow with a summary assessment of our publishers' strategies, correlating each to success or failure, moving afterwards to SWOT analyses and further opportunities for each to improve its own competitive situation.
Finally, we will conclude with the future of consumer magazine publishing. With new marketing tactics emerging, and analysts everywhere pushing for radical change to the industry as a whole, how can the 12 largest consumer magazine publishers survive? Which publishers are already leveraging key strengths to secure the future of their businesses?
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