Behind magazines'
newsstand woes
You can blame the economy for the tumble in single-copy sales
By Diego Vasquez
Feb 14, 2012
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OK! is off 27.5 percent for
the second half of 2011 |
The big question for the magazine industry is whether the recent decline in single-copy sales can be halted. The answer is yes, but it's going to take a huge effort on behalf of publishers and retailers to turn it around, according to analysts. The publishing industry needs to remind the public of reasons why to buy the magazines, from the lush visuals that are less striking on digital screens to the simple pleasure of flipping through a well-conceived book. Retailers, meanwhile, must make better decisions about how they display magazines. And the entire industry could really benefit from a stronger economy, which has certainly hurt sales over more recent years. During the most recent six-month reporting period, newsstand sales were
off nearly 10 percent. John Harrington, partner at Harrington Associates, which also runs the web site http://www.nscopy.com, talks to Media Life about how the industry can turn its circ woes around, what's really behind the sliding numbers, and how much digital publishing is hurting print.
Why have newsstand sales been on such a steady decline for so many years?
The sales slump began in 2008 at the beginning of the so-called Great Recession. Although the economy has picked up, retailers, particularly supermarket operators, report customers have changed shopping habits, sticking to their lists. That hurts impulse sales, which is bad for magazines.
Publisher digital initiatives and aggressive subscription marketing have hurt as well.
A financially distressed wholesaler level also hurts because it emphasizes cost cutting.
Retailers have also made some bad decisions about magazine display placements. And that is measureable.
Does this say more about the magazine industry or the economy? Why?
It’s both.
Publishers’ very public stressing of their digital products confuses retail management and the public as well. Don’t people tell you they do more and more of their reading on the internet, or on their phones, or their tablets?
But the economy is still a major factor.
Do you foresee any end to the newsstand sales dip anytime in the next few years? Why or why not?
I really think it can regain some of its losses, but everyone--publishers through wholesalers--will need to embark on a major marketing and promotion program to remind consumers of the excitement and value of magazines, especially at retail.
Which categories are seeing the biggest newsstand circ dips and why?
Obviously celebrity is taking a hit.
There are so many sources of that type of information, social media particularly. Yet some of them had big numbers, particularly on the royal wedding and the Osama Bin Laden assassination.
The history of newsstand sales is that one or two categories drive the business, both in up periods and downturns. Celebrity books are the main group driving them down right now. Of course, not many are doing all that well.
But the big new category may be just around the corner. I’m always an optimist.
Are there any categories that are holding up fairly well? Why?
The Food Network Magazine is still growing, and fast. It may bring other food books. A number of specials, book-a-zines, have done well. Some may develop into regular frequency titles and continue to prosper.
Will the increasing adoption of tablets, and the availability of magazines in electronic form, begin to impact newsstand and/or subscription sales?
I don’t think digital publishing has found its place yet, or its format. It is hard to tell if it will be the new form of publishing or become a truly new media format.
My feeling is that they will depress print subscriptions more than newsstand in the long run. The newsstand is still where new magazines are introduced and where consumers can shop for them. Nobody really browses a digital newsstand. Again, I’m an optimist.
Are electronic subscriptions being included in ABC numbers?
Yes, in some cases, but I can’t tell which ones definitively. I think you’d have to check with ABC.
What's the most important thing that media buyers and planners can take away from the most recent set of ABC numbers?
Not to jump to conclusions. There are so many factors impacting the newsstand, as well as the whole publishing business, that it would be unwise to make major changes in your media plans.
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