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“Give the customer many reasons to come back”: Insights from FIPP’s report on paywall strategy

What's New in Publishing 26 May 2020 08:56

The magazine media industry has historically made around 70% of their revenues through print advertising, according to FIPP’s updated edition of Paywalls: How to start your subscription strategy report. This is changing now due to declining ad revenues.

PriceWaterhouseCoopers estimates a 6.2% decline in print advertising, and a 1.6% decline in print circulation worldwide for consumer magazines from 2017 to 2022. 

It also predicts a 5.8% increase in digital advertising and a 5.5% growth in digital subscriptions during the same period. 

For B2B magazines, a 5.2% in decline in print advertising and a 1.5% drop in print circulation is expected. PwC estimates 9% and 13.1% growth in digital advertising, and digital subscriptions respectively, during the same period.

“Magazine mutual fund”

The changing business landscape has led magazine publishers to pursue diversified consumer facing revenue models. 

Bonnier CEO Eric Zinczenko said at a conference last year that he wants Bonnier’s revenues to look like a “magazine mutual fund,” with diversified revenue spreading risk. “We want a portfolio of 33% print, 33% digital and 33% from ancillary activities,” he said.

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Troy YoungHearst MagazinesBonnierFIPPPwC
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