Blog Post

Newspaper, Magazine Publishers: Very Few Making More Than 3 Percent Of Sales Online

The overwhelming consensus among 350 global magazine and newspaper executives at a global media conference last week, Magazine 2.0, at the Hannover Congress Centrum in Germany: there is no profit in going digital.
Taking the pulse of the conference, which was held March 14-15, the IHT reports that only a small number of attendees raised their hands when asked if they were making more than 3 percent of their sales online.
Even in the case of Meredith Corp., which said it was gaining “significant” profit from its 32 websites, related to magazine properties like Better Homes & Gardens and Family Circle, it was largely through advertising and subscription referrals, not the digital sale of what is typically a publishing company’s chief product — text.
Still, aside from commiserating, some publishers offered strategies for transforming their online businesses to become profit generators