Pages for Sale: Magazine and its Perils
Sunday, March 18th, 2007
Magazine seems to be a medium which keeps evolving. Recently printed media world just introduced a new magazine concept: free magazine – a magazine without a price, located for grabs only in special places.
Is the magazine business is such a lucrative one? So enables much innovation going around? The answer might come as a bit of a surprise.
The margin of magazine business is so small. Without advertisement, there would in fact be no margin at all, but significant losses. This is how it really is in magazine world – at least according to one resouces. Advertisement is what saves the magazine medium from drowning. The price on the cover merely cover the printing costs.
If advertisement is what really pays the bill and revenue from given prices is insignificant, then why not put most of the content as advertisement spaces and lose the price tag? This is what the free magazine people did. They put the entire burdern of costs to the advertisers, and in return make most of their pages as advertisements. In essence, the magazine is turning into a big catalogue.
Is this ethical? To sell magazine as product advertisements? They say there is nothing ethical these days, especially when it comes to surviving. The reality simply said, without selling out, you can’t pay in your bills.
It is even more ironic when one realize that most money actually came out of and get into corporations. A free magazine who wants to pay for their expenses and costs waits the corporation to churn out advertisement cash for them. The consumer who didn’t have to pay the magazine “pay” to the corporation by way of buying the corporation’s product. So, instead of having money flows: consumer – magazine, now money flows: consumer – advertising corporation – magazine. Corporation is becoming the intermediary, especially in terms of cashflows. What is afraid of is: since the corporation become an important stakeholders of the publishing companies, what if the content reduces its idealistic qualities and become only full of the interests of the advertiser companies?.. this could just of course be a overfearfull thinking, but imagine the possibility, when the magazine is under the power of corporations, then of course the corporations would press all the magazine potentials to reap profit, especially when the sacrifices to do that is only soft and incalculable things like ethics and idealism.
The worry above may not be a reality, but building a buffer against total dependency of advertisers is always good – at least for times when advertisers interests in free magazine decline. Building a price tag is maybe one small way to do this. It bridges direct connection of cashflows between the reader and the journalist/publishing companies, without the money ever have to enter and leave corporations. This allows certain (financial) dependency of the publishing company. A price tag is a small form of buffer against total dependency of advertisers.
Apart from the emerging reign of advertisers companies, other thing is also worth noting: the costs involved in printed media is still enormous compared to the purchasing power and market size of its market. This explains the minute margin. The heavy burden of the publishing companies to cover costs forces them to “sell around”. The consequence of “selling around” is of course the reduction of dependency, especially to the advertisers. Dependency in turn leads to reduction of real content, and more to commercial content, producing in the end thick magazines consists mostly of advertisements. Again, the question is again ethical: is it ethical to have magazine all filled up with commercials as in a catalogue?
The problem of huge publishing costs turn our heads toward the internet. The internet is revolutionary because it introduces medium for publishing with very little costs. Moreover, it is interactive (requires user to participate more in browsing the page), can involve movies and sounds, and easily updatable – what more could a reader want? (the complain of course is that internet pages are not printed pages, therefore untouchable and less portable). Apart from its unprinted medium, the internet is a direct threat to magazines. its low cost publishing remains its winning factor. If magazines do not lower its publishing costs (I think this is unlikely, since paper prices will increase due to usages of wood is more controlled), or offer some other new breakthrough to overcome internet’s winning points, then there could be a big possibility where magazines will perish from the face our media world.
CONCLUSION
Magazines should not be depended too much from advertisers companies, since this will deprived them from the independence much needed in the world of quality journalism. Second, magazines should innovate new ways to overcome internet’s major winning points, otherwise general public preference of internet over magazines may threat the very existence of magazine medium.

