Top Magazines And Their Top Lines

Folio: The Magazine for Magazine Management, July 1, 1999 by Teresa Ennis

Ask publishers what they remember most vividly about 1998, and the majority will recall wading through an ocean of circulation-related crises: stampsheet agent business was all but disabled by lawsuits and legislative inquiries; ongoing wholesaler and retailer consolidation put an even greater strain on single-copy sales; and response to direct mail continued to dwindle. In spite of the adversity, publishers were able to maintain circulation--252 of the FOLIO: 500 titles had total-circulation gains, while only 132 registered losses. And publishers went on to celebrate another record-breaking year in revenues. The FOLIO: 500 swelled to $26.1 billion in total revenue, up from $24.9 billion in 1997 and $22.5 billion in 1996.

However, the once-unstoppable computer category has begun to stumble. A number of the largest titles suffered significant losses--total revenue for Computer Shopper was off by 26 percent and ad pages were down 29 percent; Computerworld's revenue was down 11 percent, with a 25 percent ad-page loss; and Windows Magazine's revenue slipped by 11 percent, with a 15 percent ad-page decline.

"There has been rampant consolidation among desktop and software vendors in the technology arena this past year, like NEC and Packard Bell and Lotus' acquisition by IBM," observes Peter Longo, senior vice president, publisher of PC Magazine. "The key for us is to recognize that we are now dealing with a smaller revenue base for advertising."

The category must adapt, Longo adds, by recognizing its readership not just as a high-tech savvy audience, but as an emerging, affluent demographic responsive to non-endemic advertising: "Prior to the shakeout among the vendors, we didn't carry ads for Visa, Jeep or Chrysler. Now computer magazines are becoming recognized as the new special-interest category."

The women's category, however, demonstrated its staying power with double-digit revenue growth for seven of the top-1 titles. Myrna Blyth, editor in chief, publishing director, Ladies' Home Journal, says the category's strength shows that, "Women are still interested in magazines they can relate to." She says, "Even with the Internet, TV news programs and problems endemic to the magazine field, you simply can't get between a woman and her magazine of choice."

The men's category was just as healthy, with revenue gains for nine of the top-10 titles. Esquire had the biggest increase, up 25 percent in total revenue, and Men's Journal followed on its heels with a 25 percent bump. Maxim, a newcomer to the category, ranked ninth on the men's top-10 chart with $30.4 million in revenue, but its entree was outdone by the spin-off title Teen People, which debuted with $62.8 million in revenue.

Also notable this year is a new FOLIO: 500 index that groups magazines by publisher. (See page 64.) The breakout charts show that Time Inc. represents 13 percent of total revenue, with $3.4 billion in sales. The number-two company, Conde Nast, accounts for 7 percent, with $1.8 billion in total revenue; and Hearst ranks third, with 1.4 billion, or 5 percent.