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Digital Magazine and Newspaper Editions: The Data
Based upon the current trends and data provided by vendors, we project that the
total number audited and unaudited of publications offering digital editions will
climb from 3286 in 2007 to approximately 8000 at the end of 2009. This
represents growth of 247% for the two year period. We expect the number of
digital subscriptions to grow from 13,436,993 to approximately 31,500,000. This
represents growth of 236% for the same period. The number of digital
subscriptions could be even greater if penetration rates increase.
Newspapers
Because of limited audited data and only one vendor source, it is not possible to present
a similarly thorough presentation of newspaper data. There are some clear trends that
can be gleaned from the data that is available:
The Wall Street Journal is a complete anomaly in this market. Their percentage of
digital subscribers is fairly constant at around 16%-17%. This percentage is very similar
to B2B publications and once again demonstrates that when content is aligned with a
reader’s job responsibilities, digital subscriptions are more popular. The rest of the
newspaper market has been trending upward in digital subscriptions and is now
approaching 1%. There are three trends that are likely to drive this percentage higher in
the near future:
Many newspapers are now providing digital editions for classroom use.
According to industry executives, this trend is growing rapidly. The cost savings
are significant, and the archive feature is very useful to both teachers and
students (see the Denver News Agency — Olive Software case).
Some newspapers are now offering free digital subscriptions to print
subscribers. These hybrid subscriptions enable travelers or readers who live in
remote locations to stay current with their hometown paper while on the road
and allow subscribers to read their digital edition wherever they have computer
and network access.
Certain archives (see The Guardian — Olive Software case) are driving their own
digital subscriptions serving institutions and individuals.
As we examine the data presented above, there are several questions that immediately
come to mind:
Why is there such a discrepancy between the B2B and B2C markets? There are
several possible explanations:
o The B2B market serves professionals at work and is part of their continuing
professional education. It is quite acceptable to be reading an industry
magazine on one’s computer while at work. Many magazines serving this
market deliver key industry information to their readers and they therefore
prefer the faster delivery provided by digital editions. This is especially
important to international subscribers located in remote locales. It is likely
that B2B magazines will have a higher percentage of international readers
than B2C magazines. Digital editions gain readers when the information
contained therein is enduring in value and archiving is a desired outcome.
©2008 Gilbane Group, Inc.
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