PWC released their Global entertainment and media outlook stating that total magazine revenue (globally) will resume growth in 2015.
Online claiming large piece of the pie
In 2015, the magazine publishing industry will reverse years of decline to record 0.2% year-on-year growth as overall digital gains outweigh falling print revenue. In 2018, total magazine revenue will reach US$98.1bn, up from US$97.1bn in 2013.
Trade magazines account for fast growth
The outlook concludes that emerging middle classes in large-scale markets such as China and Brazil will drive revenue growth in trade magazines. Markets such as France and Switzerland, with strong advertising revenues, are classified as higher-growth and larger-scale. Alongside them are countries such as Brazil, Russia and South Africa, where emerging middle classes have been able to increase discretionary spending and drive magazine sales.
Key insights at a glance
- Globally, total magazine revenue will resume growth in 2015. In 2015, the magazine publishing industry will reverse years of decline to record 0.2% year-on-year growth as overall digital gains outweigh falling print revenue. In 2018, total magazine revenue will reach US$98.1bn, up from US$97.1bn in 2013.
- While digital consumer magazine circulation revenue will see the fastest growth… Global digital consumer magazine circulation revenue will rise at a 31.2% CAGR, reaching US$5.7bn in 2018. As companies see more success in turning digital magazine consumption from free-of-charge websites to paid-for digital editions, digital will move from accounting for 4% of total consumer magazine circulation revenue in 2013 to 14% in 2018.
- …Digital consumer magazine advertising revenue is much larger. Global digital consumer magazine advertising revenue will be US$12.4bn in 2018, rising at a 17.6% CAGR. This compares to a decline of -3.9% CAGR for consumer magazine print advertising revenue. Currently advertising is centred on magazine websites, but, as digital circulations increase, electronic editions will become increasingly popular for advertisers.
- All-you-can-read subscription services are yet to take off but will be transformational… While they are still to gain traction, with a number of subscription services and paid-for aggregators on the market, user numbers are soon to reach critical mass. With growing magazine circulations will come rising circulation and advertising revenue.
- …But total consumer magazine circulation revenue will continue to decline. Growth in digital circulation will not be enough to compensate for print declines and global consumer magazine circulation revenue will fall by a -0.7% CAGR to 2018. However, there are signs that the decline may level out in the long term, as the year-on-year fall in 2018 will be just -0.3%.
- Emerging economies will see fastest growth in trade magazines. Markets such as China, India, Russia and South Africa will see the fastest growth in total trade magazine revenue as local businesses look to the global markets to inform their strategies. Turkey and Hungary will also see strong growth in trade magazine revenues with CAGRs of 5.3% and 3.7%, respectively, while Peru, Venezuela and Argentina will all see growth of at least 6.8% CAGR, albeit from a low base.
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