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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%,
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.
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.
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
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.
literacy rates, increasing disposable incomes and an expanding earning
population continue to stimulate the growth of the magazine segment in India. Source: http://www.ey.com/