October 2010
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Magazine Segment to write a 10% growth story


Mumbai: Driven by new market entrants, the magazine segment in the media industry is expected to grow around 10% in three years, say magazine publishers. It’s not only Indian players who find a growth story in the segment, even international brands prefer India to launch new products due to a favourable demography that drives higher readership in this niche segment. Says Nicholas Brett, editor-in-chief and deputy managing director - BBC Worldwide Magazines, “India is an interesting market with a high youth component. In India, our plans are much bigger. We are investing in the future here. We are trying to fully understand the nature of the business here.”

He further said some of the forthcoming plans he has for India include more titles on food, home-making, and young and energetic Indian youth subjects.


“Well, the magazine market in India is still growing. I don’t think the Indian consumer has yet fully enjoyed a genuinely high-class magazine experience,” he added. Meanwhile, a report released by Ernst & Young states that the advertising revenues which currently comprises 74% of the magazine industry's total revenue, declined by 4.9% in 2009 as advertisers faced the pressure to reduce marketing spends during the slowdown. Going forward, while ad revenues are expected to increase, alternative revenue streams such as events and digital delivery are expected to account for 20-50% of the total revenues within the next three years.


The report further says that the Indian magazine segment’s share in the overall ad market varies from 3%-4%, and is currently estimated at around Rs 1,100 crore.


This is far lower as compared to the global markets, where the segment comprises around 15% of the overall ad spending. With increasing consumer income in India and the resultant focus by advertisers on India markets, the magazine segment clearly demonstrates its potential for significant growth.


Ashish Pherwani, associate director, media and entertainment at Ernst & Young, said, “Of the leading 20 most read magazine in India, only three are in English, while Hindi and regional language magazines comprise the rest.


This is clearly aligned to the trend that regional markets, particularly the non-metros, are driving consumption in India.”

 

 
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