The Indian magazine segment has been on a steady growth path. Over the next three years, it is expected to record an annual growth rate of 6-10%, driven by:
- Market entrants
- New titles
- Alternate revenue streams
A recent survey among magazine companies by E&Y revealed that magazine readership growth will continue to be driven by the metros and India’s 15 largest cities.
Advertising currently comprises around 74% of the magazine industry’s total revenues. While alternate revenue streams such as events and digital delivery are gaining ground, and are expected to account for 20%–50% of total revenues within the next three years. Currently, the magazine segment may not yet have successful strategies and business plans in place to profitably monetize the digital space. But it will soon have to address this concern.
Circulation revenues are also expected to grow, primarily for B2C titles, driven by increased cover prices, growth in niche magazine readership and introduction of new title.
Further, the large and growing number of titles available in each genre remains a concern for growth of ad rates. Companies will need to evolve into multimedia organizations, offering advertisers multiple options to reach their reader communities.
With the easing of entry norms for international magazines, foreign publishers have been, and will continue to, enter the Indian magazine market. There is immense scope for mergers and acquisitions, joint ventures and the licensing of titles in the current scenario, as international publishers witness declining readership in their home markets.
Rising literacy rates, increasing disposable incomes and an expanding earning population continue to stimulate the growth of the magazine segment in India.
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