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5 Factors


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This was a presentation prepared by me for an interview at IPC media.

The topic was:5 Factors that will influence magazine sales in the next 5 years in the UK market place

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5 Factors

  1. 1. 5 Factors that will influence magazine sales in the next 5 years Mehul Mehta
  2. 2. Contents Current Market Scenario 5 Influencing Factors Future Trends Questions
  3. 3. Current Scenario 2009-2010 The overall circulation for the UK consumer magazines industry in the current year to July was approx 62m - a full 13.31m fewer than in the second half of 2009 The ABC figures for the first half of the year (2010) show that times are still tough in the magazine world, despite some improvements in circulations as the effects of the recession lift slightly Improvements allowed increase in sales for new launches such as women's magazines, celebrity magazines and sports magazines
  4. 4. 5 Influencing Factors Digitalisation of magazines and content Higher rate of TV spin off's Increasing availability of customer magazines Advertising Independent Magazines (Self Publishing) Other factors
  5. 5. 1. Digitalisation of Magazines Readers are now active producers of content Internet allows readers to share their views in a click Digital devices allow prompt delivery of content with at a lower cost and low paper consumption Allows a wide range of magazines to choose from Higher storage capacity using less space
  6. 6. The Digital Switchover By 2015, e-papers and e-readers will be used to display virtually any form of printed content, from monochrome, text heavy, office documents and newspapers to high quality, full color, magazines and multimedia elements. These devices will revolutionise the publishing and advertising industry.
  7. 7. 2. Higher rate of TV spin offs TV channels and shows highly affect the magazine sales Often when spin-offs become very big, they might pull readers away from particular magazine streams (celebrity, fashion, food) They might even expand sales for the total targeted market
  8. 8. 3. Increasing availability of customer magazines These are luring people and advertising away from mainstream publishers  The top 10 circulations in the UK are dominated by such magazines, while 79% of the population read a customer magazine If mainstream magazines lose adverts, they lose revenue that subsidises their cover prices Higher prices would reduce sales and the magazines would be smaller, so perhaps less attractive
  9. 9. 4. Advertising Marketplace Two of the three largest advertising agencies in the world are British About 40% of consumer magazines revenues come from advertising Any changes in the advertisement system would bring about a huge change in sales
  10. 10. 5. Independent Publishing Houses Growing trend in the UK IPC sold a total of 20 specialist magazines to smaller, independent publishing houses Such divestment allows a focus on digital development as well as core products Share resources such as distribution and subscriptions with several similar publishing houses to lower costs and increase output
  11. 11. 6. Other Factors Changes in consumer tastes and preferences Competition for talented people from websites, blogs, app developers, might lure editorial, design and advertising sales people away from magazines, or soak up more graduates More magazines with low editorial standards, more manipulation of images result in poor trust and sales
  12. 12. Future Trend Market value of consumer magazines in 2009 was £2.73bn Key Note forecasts that the market will fall in value in 2010 and 2011, after when there will be a very gradual increase in the market's value between 2012 to 2015. Key Note predicts that the total number of consumer magazine titles will fall year-on-year between 2010 and 2015
  13. 13. Questions
  14. 14. Thank You!