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How to make money from digital editions

Print magazines and newspapers are described as being in a ‘death spiral’ with print inflation, advertising decline and online readership migration seriously threatening their ability to operate profitably.

Print inflation across ink and raw pulp has been significant whilst biennial Royal Mail post increases have further eroded margins. The latest postage increase, in April 2010, will see rises of 8% for larger items.

Meanwhile, advertising publishing revenue has plummeted by an average of 10% or more in the UK, with some groups like Trinity Mirror seeing declines of as much as 25%

Overlaid on top of this is a structural transformation with many readers choosing to consume media online rather than in print. In January 2010, the UK’s Daily Telegraph reported sales falling below 700,000 for the very first time yet its website is seeing visitor numbers in the tens of millions per month making it, ironically, one of the world’s most popular news sources.

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