Skip to main content

Legacy Print Publishers Ponder the Digital Realities


The ongoing transition to digital publishing and online content distribution has created a potentially significant upside opportunity for forward-thinking publishers. But what are the key trends in this rapidly evolving marketplace?

How are electronic newspapers and magazines being monetized? What role do digital newsstands and aggregators play in marketing eNewspapers and eMagazines? And, how are publishers, advertisers and merchants addressing consumer demand for ecommerce capabilities on tablet editions? These are the questions that eMarketer considered for their latest market study of the American ePublishing sector.

Theoretically, the rising adoption of tablets, smartphones and ereaders point to a favorable business climate for publishers of digital newspapers and magazines -- as well as for other stakeholders in the publishing industry.

Despite this momentum though, the traditional publishing industry faces numerous hurdles in the quest to fully monetize its digital content. And, while some mainstream advertisers are jumping into the tablet space, eMarketer says that many are still waiting until audiences increase and common user behaviors become more apparent.

In the U.S. market, media tablet users will number 133.5 million by 2015, representing 51.9 percent of internet users and 41 percent of the total population. This is an increase from 69.6 million in 2012, a tally equivalent to 29.1 percent of internet users and 22 percent of the total population -- according to the latest eMarketer assessment.

Although newspaper and magazine publishers are encouraged by positive trends in technology adoption and consumer behavior, their biggest challenge remains monetizing tablet audiences to make up for print losses.

Clearly, they have good reason for their concern. A mid-2011 Pew study in conjunction with The Economist Group found that only 21 percent of U.S. tablet users were willing to pay up to $5 per month for news, and just 10 percent were willing to pay $10.

Advertising is by far the biggest revenue source for legacy publishing companies, and therefore a barometer of the health of the industry.

That being said, U.S. newspaper print ad revenues are expected to drop significantly in the coming years, slipping to $16.4 billion in 2016 from $19.14 billion in 2012. Digital revenues -- which include all digital platforms -- will edge up to $4 billion from $3.4 billion, so they will not cover losses from print.

The U.S. magazine industry is in better shape but still faces hurdles. Print ad revenues will drop marginally to $15.10 billion in 2016 from $15.19 billion in 2012. In the same period, digital ad revenues will grow to $4.08 billion from $3.14 billion. This means a slight net gain in total magazine ad revenue to $19.18 billion in 2016, up from $18.33 in 2012.

eMarketer says that any gain is better than a loss, but publishers would prefer to see more aggressive growth curves. Most agree that little can be done to boost print ad revenues, so their sights are trained on digital.

Both magazine and newspaper publishers believe that greater scale will help pave the way for a brighter future, but they also feel that more adventurous ads that take advantage of the media tablet format will captivate readers and generate more business. We'll have to wait and see what happens as the digital realities unfold in the coming weeks and months.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Why Cloud-Native is The Future of IT Spending

The leading organizations that create a digital transformation plan will gain the most from their use of public cloud computing. However, some CIO and CTO leaders still struggle with how to build a modern cloud migration strategy. The worldwide cloud computing Infrastructure as a Service (IaaS) market grew 41.4 percent in 2021, to a total of $90.9 billion -- that's up from $64.3 billion in 2020, according to the latest market study by Gartner. "The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads," said Sid Nag, vice president and analyst at Gartner . Cloud IaaS Market Development Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprise leaders to address emerging needs such as sovereignty, data integration, and enhanced customer experience. In 2021, the top five IaaS providers accounted for over 80 percent of the market. Amazon AWS conti

Private 5G Networks and Enterprise Wi-Fi Converge

The global enterprise wireless networking market is evolving. Driven by a desire to take advantage of the available 6 GHz communications spectrum, with greatly improved broadband throughput and latency rates, more organizations may choose to adopt Wi-Fi 6E technologies. According to the latest worldwide market study by ABI Research, shipments of Wi-Fi 6E access points and routers will rise from 1.5 million units in 2022 to 5.2 million units by 2024. Wireless spectrum expansion is just one facet of the commercial wireless network market transition, as the technology of Wi-Fi customer premise equipment will be upgraded once again with Wi-Fi 7 (IEEE 802.11be standard) devices. Enterprise Wireless Network Market Development "The adoption of Wi-Fi 7 access points will accelerate following the protocols standardization in 2024, and just two years later, most 6 GHz enabled access point shipments will be supporting Wi-Fi 7," said Andrew Spivey, industry analyst at ABI Research . Anot