Web-Sourced Magazine Subs Continue to Rise

MPA member survey says 22 percent of total new biz to come from online this year.

By Bill Mickey
Wednesday, July 29, 2009

The MPA yesterday announced the results of a survey conducted among member publishers that continue a 3-year growth trend of magazine subscription sales sourced online.

"We think the news is exciting," says Ken Godshall, MPA's EVP consumer marketing, "and definitely indicates that the Internet has become a large source across the industry for print subscriptions. For several magazines and several companies it may be number one pretty soon."

Surveys were conducted in 2008 and 2009, covering Internet-sourced subscriptions—DTP and agent, new business and renewals—with 55 magazine titles reporting in. According to the survey, 2009 figures are forecasted from four months' worth of data.

Interestingly, new DTP business is faring much better than renewals. In 2006, new online subscriptions were 13 percent of gross, while online renewals only managed 1 percent. Fast-forward to 2009, and respondents report new business at 22 percent of gross and renewals at 2 percent.

This discrepancy may eventually event out, but for now it reflects how subscribers renew according to where they originally bought their subscription. "People tend to renew in the same manner that they were originally sold," says Bob Cohn, consumer marketing director for Bonnier Corp. "Also, to promote for renewal online, the magazine would have to have the person's email address, and the number of subscribers from traditional sources who provide their email addresses is small."

Godshall adds that publishers may sell the subscription online, but will go back to that reader with an offline renewal offer.

The real star, however, is agent-sold subscriptions, which grew from 2 percent in 2006 to 17 percent of gross in 2009. The steepest jump occurred between 2007 and 2008, when online agent business jumped from 3 percent to 14 percent. "Agent orders are growing," says Godshall. "The big picture is subscription agents are moving to the Web and following the publishers. My recollection is agent orders are about 50 percent of total orders, generallly. They're just catching up with the publishers online."

According to the survey, publishers are forecasting 2009 to be flat year for online sourced subs, with agent subs seeing the only real growth, but, notes Godshall, 2009 results are based on only four months of numbers, and circulators are historically conservative forecasters.