Gilbane Research Report - Digital Magazine Editions - (Page 9) Digital Magazine and Newspaper Editions: The Data Based upon the current trends and data provided by vendors, we project that the total number audited and unaudited of publications offering digital editions will climb from 3286 in 2007 to approximately 8000 at the end of 2009. This represents growth of 247% for the two year period. We expect the number of digital subscriptions to grow from 13,436,993 to approximately 31,500,000. This represents growth of 236% for the same period. The number of digital subscriptions could be even greater if penetration rates increase. Newspapers Because of limited audited data and only one vendor source, it is not possible to present a similarly thorough presentation of newspaper data. There are some clear trends that can be gleaned from the data that is available: The Wall Street Journal is a complete anomaly in this market. Their percentage of digital subscribers is fairly constant at around 16%-17%. This percentage is very similar to B2B publications and once again demonstrates that when content is aligned with a reader’s job responsibilities, digital subscriptions are more popular. The rest of the newspaper market has been trending upward in digital subscriptions and is now approaching 1%. There are three trends that are likely to drive this percentage higher in the near future: Many newspapers are now providing digital editions for classroom use. According to industry executives, this trend is growing rapidly. The cost savings are significant, and the archive feature is very useful to both teachers and students (see the Denver News Agency — Olive Software case). Some newspapers are now offering free digital subscriptions to print subscribers. These hybrid subscriptions enable travelers or readers who live in remote locations to stay current with their hometown paper while on the road and allow subscribers to read their digital edition wherever they have computer and network access. Certain archives (see The Guardian — Olive Software case) are driving their own digital subscriptions serving institutions and individuals. As we examine the data presented above, there are several questions that immediately come to mind: Why is there such a discrepancy between the B2B and B2C markets? There are several possible explanations: o The B2B market serves professionals at work and is part of their continuing professional education. It is quite acceptable to be reading an industry magazine on one’s computer while at work. Many magazines serving this market deliver key industry information to their readers and they therefore prefer the faster delivery provided by digital editions. This is especially important to international subscribers located in remote locales. It is likely that B2B magazines will have a higher percentage of international readers than B2C magazines. Digital editions gain readers when the information contained therein is enduring in value and archiving is a desired outcome. ©2008 Gilbane Group, Inc. 9 http://gilbane.com http://gilbane.com
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