May 12, 2015 | Authored by: Vindicia Team
Time Magazine looking to Over-the-top (OTT) content
In most cases, there's no turning around for print media. As an Advertising Age article proclaimed, the red-letter days for newspapers and magazines are long gone and a renaissance doesn't appear anywhere on the horizon. Yet, digital versions of traditionally print media have taken off and are helping many organizations remain competitive.
Magazines in particular are expected to maintain their resiliency in the consumer markets for the foreseeable future. In fact, AdAge cited data from PricewaterhouseCoopers which found that magazines should continue to generate roughly $24.6 billion in revenue annually over the next three years. Stagnation isn't the most promising outlook for any kind of company, but if you look closer at the digital side of the magazine industry.
"Digital circulation was estimated at grossing $743 million in 2014."
Digital the lone bright spot for publications
While advertising revenue for print media is expected to continue its downward trend for the next several years, digital advertising is predicted to generate revenue of $7.6 billion by 2018. Meanwhile, digital circulation was estimated at grossing $743 million in 2014, which is a 148 percent rise compared to 2009. Still, revenue is expected to grow even more, hitting $1.5 billion in the next three years. This likely gives hope to many print-based media companies, but they still have to implement strategies that will better ensure they see growth.
Time eyes OTT content models
One of the ways that several print media organizations have departed from their traditional business models to include streaming video on demand that is delivered through devices like Apple TV or Roku, explained Capital New York.
"Everyone's coming out with a subscription, over-the-top model," explained Time Inc. CEO Joe Ripp.
According to the Capital article, The Wall Street Journal was ahead of the curve in expanding into the world of OTT content with the WSJ Live channel, which was delivered through Roku Streaming Player, in 2011. The Washington Post also moved ahead with PostTV on Roku and subsequently on Amazon Fire TV.
Apple has sold more than 20 million of its SVOD boxes, while Roku has been able to push 10 million into the consumer market. Accordingly, the consumer market for streaming video as an additional component of digital print media is ripe with opportunities. The benefit for digital magazine publishers expanding into OTT content is there's significant revenue to be earned from subscriptions, which generate recurring revenue and put companies in a strong position to retain customers.
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