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THE MAGAZINE BUSINESS. Magazine Revenues. 56% advertising 44% circulation Most circulation by subscription. Subscription vs Single Copy. Trends in Magazine Circulation. News magazines trending down “Lifestyle” magazines trending up Entertainment/Gossip magazines growing rapidly.
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Magazine Revenues • 56% advertising • 44% circulation • Most circulation by subscription
Trends in Magazine Circulation • News magazines trending down • “Lifestyle” magazines trending up • Entertainment/Gossip magazines growing rapidly
Circulation of Big 3 News Mags 1988 – 2004
Magazine Ownership • Hybrid market structure • Top tier = oligopoly (4 companies control majority of revenues in industry) • Lower tier = monopolistic competitive market structure
Top magazine owners • Time Warner Time, People, Sports Illustrated, Field & Stream • Advance GQ, Glamour, Parade, Vanity Fair, Jane • Hearst Cosmopolitan, Esquire, Redbook, O, Seventeen • Meredith Corp. Parents, Child, Fitness
Top Magazine Circulation • AARP THE MAGAZINE 24m • AARP BULLETIN 23m • READER'S DIGEST 10m • BETTER H & G 7,6 • NATIONAL GEOGRAPHIC 5,0 • GOOD HOUSEKEEPING 4,6 • FAMILY CIRCLE 3,9 • WOMAN'S DAY 3,9 • LADIES' HOME JOURNAL 3,9 • AAA WESTWAYS 3,7
PEOPLE 3,6 PREVENTION 3,3 TIME 3,3 TV GUIDE 3.2 SPORTS ILLUSTRATED 3.2 TASTE OF HOME 3,1 NEWSWEEK 3.1 COSMOPOLITAN 209 VIA MAGAZINE 2.8 SOUTHERN LIVING 2,8 PLAYBOY 2,7 MAXIM 2,5 AAA GOING PLACES 2,5 AMERICAN LEGION MAGAZINE 2,5 THE OPRAH MAGAZINE 2,4
Contemporary magazine industry • Magazines used to appeal to large homogenous audiences (Life magazine sold 13 million copies a week) • Now more specialized – targeting of niche audiences
Magazine business doing well • More than 17,000 mags published in U.S. • Estimated annual revenues of $46 billion • However, 75% of new magazines launched fold within a few years
Cross-media marketing & branding TV to Magazine • ESPN the Magazine • This Old House • O magazine Magazine to TV • National Geographic TV show • Better Homes & Gardens