New York – Subscription revenues from interactive
periodicals at U.S. newspapers and magazines are projected to reach $3 billion
by 2014, according to a report conducted by Oliver Wyman for Next Issue Media,
a publishing consortium whose members include Conde Nast, Hearst, Time and News
Corp.
The survey of 1,800 U.S. consumers aimed to quantify expected demand
across some 230 periodicals.
It found subscription renewal rates of 64%
among device-owning subscribers, compared with the industry average of 55%,
while 30% of renewing subscribers favor a bundled print and interactive
edition.
Automatic renewals were found to reduce churn rates to 25%,
compared to an industry average of 45%.
Interactive periodicals were also found
to spur 17% of subscribers to make additional purchases.
The report recommends
that publishers "create new interactive products; offer a large library of
cross-sold interactive titles; develop innovative subscription packages; find
mutually beneficial partnerships with leading OEMs; carefully define future
advertising standards and metrics; and fundamentally rethink internal
workflows, capabilities and organization."
Related Links:
http://tinyurl.com/2ccvftl
