Magazines to play smaller part in profit of UK's largest newsstand distributor

The largest distributor of magazines in the UK, Smith News Plc (better known popularly as W H Smith, a high street mainstay) reports that is intends to reduce its dependence on newspaper and magazine distribution, though it accounted for three-quarters of its operating profit in fiscal 2012. 
According to a story from Reuters, Smiths said it expected that half of its profit by 2016 will come from books and educational supplies. The news sent its share price up as much as 8 per cent.
The company's diversification strategy is similar to that of rival John Menzies Plc (MNZS.L), which receives most of its profit from aviation support services, said the story. Smiths' newspaper and magazine business slipped 4.3 per cent last year, mainly because of poor magazine sales.

UK consumer mags saw circ fall 1.4% in 2nd half 2011; digital subs increase

Total average circulation among consumer magazine titles in the United Kingdom fell by 1.4% during the second half of 2011. Among the biggest decliners in ABC reporting, according to a story in MarketingWeek, was the women's lifestyle category, down 1.3%.

The number of magazines reporting sales figures for their digital editions increased four fold to 72 titles. Men's Health topped the list, with 7,779 paid digital subs. Conde Naste’s GQ had a digital circulation of 5,731, Dennis Publishing’s Men’s Fitness 3,987 and 3,745 for Hearst’s Esquire.

Paul Keenan, chief executive at Bauer Media, says that magazine brands will continue to build strategies around their core print titles, but adds that new platforms will place a greater focus on tailored content.

He adds: “Advertisers don’t see barriers they just see business and that’s how we have to deliver our solutions.”

British mag industry to release comprehensive sub study

The Periodical Publishers Association (PPA) of Great Britain have carried out a major research campaign about the views about magazine subscriptions called The Loyalty Challenge: How Consumer Subscriptions Work. It's to be launched next month with a series of events starting March 19, at which point advanced copies of the document will be made available to registrants. The printed report will be available for publishers on 16 April.

A sample of almost 5,000 subscribers and non-subscribers was used to survey attitudes and behaviour towards magazine subscriptions. The report also contains what the PPA calls "crucial eye-openers from customer focus group sessions".

This is interesting, but in a way surprising, since the British system of distribution relies so heavily on single copy sales or reservations of copies at news agents. Whereas Canada, where circulation success depends on subscription sales, has never (as far as I know) done a broadly based and independent study like this.