First-Half Newsstand Declines in More Detail

MagNet data reveals the drops in single copy volume and revenue across publishers, chains and class of trade.

By Bill Mickey
Wednesday, August 31, 2011

On the heels of ABC's and BPA Worldwide's reports for the first half of 2011 circulation numbers comes MagNet's review of the retail channel for the same period. The latest figures are an update from a release earlier in August, when the retail sales data provider had about 4 weeks' worth of returns at the time.

Unit sales have declined in each of the first two quarters compared to same period 2010, says MagNet. This is on top of a smaller draw. The total number of copies distributed in the first half of 2011 dropped by 70 million compared to the first half 2010, and yet first and second quarters in 2011 were down two percentage points each to 33.3 percent and 32.7 percent respectively.

According to MagNet numbers, total draw in the first half of 2010 was 1,292,848,180 copies and in the same period 2011 it was 1,221,361,040.

Revenue, expectedly, was down too. In the first half of 2011, all U.S. titles made $1.6 billion versus $1.8 billion in the first half of 2010, a $187 million, or 10 percent, decline.

The top 100 titles by revenue, which account for 55 percent of total retail revenues, dropped 10 percent in the first half of 2011.

All of the top 10 performing publishers by revenue dropped as well when comparing the two periods. Meredith, at a 2011 rank of number 6, fell the most, 16 percent, according to the MagNet data. Number-one ranked Time Inc. fell 7 percent in single copy revenue. AMI, at number two, fell 13 percent and Bauer, at number 3, fell 12 percent. Number 4 Hearst dropped almost 10 percent and Wenner, at number five in retail sales for 2011, fell the least at 3.6 percent in the first half.

The top 10 chains (Barnes & Noble, Borders, CVS/Caremark Corp., Hudson News-Terminals, Kroger, Publix, Safeway, Target, Wal-Mart and Walgreens) remained relatively flat in share of business, but dropped 11 percent in revenue between first half 2010 and first half 2011 to $878 million. Independents, with about a 5 percent share of business in first-half 2011, fell 12 percent to $99 million.

Supermarkets are still the dominate class of trade in the first half, at 33 percent share of business, far above the second highest class, supercenters, at 14 percent, yet each fell 9 percent and 13 percent respectively in revenue generated.