Magazine Publishers Industry Profile

The US magazine publishing industry includes about 5,000 companies with combined annual revenue of about $40 billion. Large companies include PRIMEDIA, Meredith, and the magazine divisions of diversified media companies such as Time Warner and The Washington Post Company. While the total number of magazines published in the US is greater than 20,000, less than 400 have circulation of more than 100,000 copies. The industry is concentrated: the 50 largest companies generate about 60 percent of revenue.

COMPETITIVE LANDSCAPE

Demand for magazines is driven largely by growth in consumer income. The profitability of individual companies depends highly on marketing expertise. Small companies can compete by specializing in niche topics and markets, while larger companies benefit from a wide selection of magazine titles to offer advertisers. Large companies also have economies of scale in production and distribution. The industry is capital-intensive: average annual revenue per worker is $320,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Products include weekly and monthly general interest magazines, industry trade publications, and various nonprint information products like CDs and Internet websites. General interest magazines account for about 65 percent of industry revenue; arts and leisure magazines, 20 percent; and financial, professional, and academic publications, 15 percent.

Most companies have an editorial staff that prepares features and a business staff that handles promotion, production, circulation, and advertisement sales. Freelance writers are often used in addition to in-house staff. Printing may occur at one or several locations, depending on how ...