THE MAGAZINE BUSINESSTHE MAGAZINE BUSINESS

Magazine RevenuesMagazine Revenues

56% advertising 44% circulation Most circulation by subscription

56% advertising 44% circulation Most circulation by subscription

Subscription vs Single Copy

Subscription vs Single Copy

Trends in Magazine CirculationTrends in Magazine Circulation

News magazines trending down “Lifestyle” magazines trending up

Entertainment/Gossip magazines growing rapidly

News magazines trending down “Lifestyle” magazines trending up

Entertainment/Gossip magazines growing rapidly

Circulation of Big 3 News MagsCirculation of Big 3 News Mags1988 – 20041988 – 2004

Av. age of news mag readers

Av. age of news mag readers

Av. Income: news mag readers

Av. Income: news mag readers

Magazine OwnershipMagazine Ownership

Hybrid market structure Top tier = oligopoly (4 companies control majority of revenues in industry)

Lower tier = monopolistic competitive market structure

Hybrid market structure Top tier = oligopoly (4 companies control majority of revenues in industry)

Lower tier = monopolistic competitive market structure

Top magazine ownersTop magazine owners

1. Time WarnerTime, People, Sports Illustrated, Field

& Stream

2. AdvanceGQ, Glamour, Parade, Vanity Fair, Jane

3. HearstCosmopolitan, Esquire, Redbook, O,

Seventeen

4. Meredith Corp.Parents, Child, Fitness

1. Time WarnerTime, People, Sports Illustrated, Field

& Stream

2. AdvanceGQ, Glamour, Parade, Vanity Fair, Jane

3. HearstCosmopolitan, Esquire, Redbook, O,

Seventeen

4. Meredith Corp.Parents, Child, Fitness

Magazine Revenue by Corp.

Magazine Revenue by Corp.

Recent growth trendsRecent growth trends

Negative growthNegative growth

Top Magazine CirculationTop Magazine Circulation

1. AARP THE MAGAZINE 24m2. AARP BULLETIN 23m3. READER'S DIGEST 10m4. BETTER H & G 7,65. NATIONAL GEOGRAPHIC 5,06. GOOD HOUSEKEEPING 4,67. FAMILY CIRCLE 3,98. WOMAN'S DAY 3,99. LADIES' HOME JOURNAL 3,910.AAA WESTWAYS 3,7

1. AARP THE MAGAZINE 24m2. AARP BULLETIN 23m3. READER'S DIGEST 10m4. BETTER H & G 7,65. NATIONAL GEOGRAPHIC 5,06. GOOD HOUSEKEEPING 4,67. FAMILY CIRCLE 3,98. WOMAN'S DAY 3,99. LADIES' HOME JOURNAL 3,910.AAA WESTWAYS 3,7

PEOPLE 3,6PREVENTION 3,3TIME 3,3TV GUIDE 3.2SPORTS ILLUSTRATED 3.2TASTE OF HOME 3,1NEWSWEEK 3.1COSMOPOLITAN 209VIA MAGAZINE 2.8SOUTHERN LIVING 2,8PLAYBOY 2,7MAXIM 2,5AAA GOING PLACES 2,5AMERICAN LEGION MAGAZINE 2,5THE OPRAH MAGAZINE 2,4

PEOPLE 3,6PREVENTION 3,3TIME 3,3TV GUIDE 3.2SPORTS ILLUSTRATED 3.2TASTE OF HOME 3,1NEWSWEEK 3.1COSMOPOLITAN 209VIA MAGAZINE 2.8SOUTHERN LIVING 2,8PLAYBOY 2,7MAXIM 2,5AAA GOING PLACES 2,5AMERICAN LEGION MAGAZINE 2,5THE OPRAH MAGAZINE 2,4

Contemporary magazine industry

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

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

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 & brandingCross-media marketing & branding

TV to Magazine ESPN the Magazine This Old House O magazine

Magazine to TV National Geographic TV show Better Homes & Gardens

TV to Magazine ESPN the Magazine This Old House O magazine

Magazine to TV National Geographic TV show Better Homes & Gardens