2005 PUBLICATION PRINTING Outlook -- Readers Paying the Price
A natural consequence of focusing on circulation revenues is the comeback of the newsstand as a force in the industry, he adds. Though still the exception, publishers are even experimenting with newsstand-only magazine launches like Time Inc.'s All You, which is distributed through Wal-Mart stores.
This trend has a number of implications for printers, along with the publishers. It may sound counter-intuitive at first, but Husni says circulations are going to drop, while total distribution will increase. The greater the move toward single copy sales, the more copies of individual titles that will have to printed, he contends.
"Sales-through rates don't change. They are still in the 37 to 40 percent range, so publishers will print 10 copies to sell four," the journalism professor explains. "With subscriptions, if you have four subscribers you print four copies. The industry is going to see higher volumes of printing."
Newsstand sales can also influence the nature of the publications themselves. A heavier grade of paper may need to be used to ensure that magazines stand up on the shelf and in the rack, Husni points out. Side-by-side comparisons and cover prices may dictate the use of better looking paper.
In addition, newsstand restrictions dictate a degree of uniformity in formats to fit in racks. At the same time, though, U.S. publishers are starting to adopt the "hand bag" or "purse" size that is already quite popular in Europe, Husni points out. "Newsstands here haven't been built to hold that size," he adds.
Publishers may end up being victims of their own success, Husni warns. "There were more than 130 magazines launched in October alone. I've never seen anything like that before," he observes. "All of the major publishers have been starting new titles. Time Inc. started five alone this year and attempted a sixth one. Last year, it didn't launch any.
