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Home > Business/Finance > Training and Education > Publishing
Magazine Publishers
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About 1,000 companies in the US publish magazines, journals, and tabloids, with combined annual revenue of about $40 billion. Large companies include PRIMEDIA, Meredith, and the magazine divisions of integrated media companies like Time Warner and The Washington Post Company. While the total number of magazines published in the US is greater than 10,000, only about 2,000 have significant circulation. The industry is concentrated: the 50 largest companies hold almost 70 percent of the market.
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 labor-intensive: average annual revenue per worker is $120,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include weekly and monthly general interest magazines, industry trade publications, and various non-print information products like CDs and Internet websites. General interest magazines account for about 60 percent of industry revenue, trade publications for 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 widely the magazine is distributed. Some publishers operate their own printing operations, but most have contracts with outside printers ...
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