1. THE MAGAZINE BUSINESS

2. Magazine Revenues  56% advertising  44% circulation  Most circulation by subscription  56% advertising  44% circulation  Most circulation by subscription

3. Subscription vs Single Copy

4. Trends in Magazine Circulation  News magazines trending down  “Lifestyle” magazines trending up  Entertainment/Gossip magazines growing rapidly  News magazines trending down  “Lifestyle” magazines trending up  Entertainment/Gossip magazines growing rapidly

5. Circulation of Big 3 News Mags 1988 – 2004

6. Av. age of news mag readers

7. Av. Income: news mag readers

8. Magazine Ownership  Hybrid market structure  Top tier = oligopoly (4 companies control majority of revenues in industry)  Lower tier = monopolistic competitive market structure  Hybrid market structure  Top tier = oligopoly (4 companies control majority of revenues in industry)  Lower tier = monopolistic competitive market structure

9. Top magazine owners 1.Time Warner Time, People, Sports Illustrated, Field & Stream 2.Advance GQ, Glamour, Parade, Vanity Fair, Jane 3.Hearst Cosmopolitan, Esquire, Redbook, O, Seventeen 4.Meredith Corp. Parents, Child, Fitness 1.Time Warner Time, People, Sports Illustrated, Field & Stream 2.Advance GQ, Glamour, Parade, Vanity Fair, Jane 3.Hearst Cosmopolitan, Esquire, Redbook, O, Seventeen 4.Meredith Corp. Parents, Child, Fitness

10. Magazine Revenue by Corp.

11. Recent growth trends

12. Negative growth

13. Top Magazine Circulation 1.AARP THE MAGAZINE 24m 2.AARP BULLETIN 23m 3.READER'S DIGEST 10m 4.BETTER H & G 7,6 5.NATIONAL GEOGRAPHIC 5,0 6.GOOD HOUSEKEEPING 4,6 7.FAMILY CIRCLE 3,9 8.WOMAN'S DAY 3,9 9.LADIES' HOME JOURNAL 3,9 10.AAA WESTWAYS 3,7 1.AARP THE MAGAZINE 24m 2.AARP BULLETIN 23m 3.READER'S DIGEST 10m 4.BETTER H & G 7,6 5.NATIONAL GEOGRAPHIC 5,0 6.GOOD HOUSEKEEPING 4,6 7.FAMILY CIRCLE 3,9 8.WOMAN'S DAY 3,9 9.LADIES' HOME JOURNAL 3,9 10.AAA WESTWAYS 3,7

14. PEOPLE 3,6 PREVENTION 3,3 TIME 3,3 TV GUIDE 3.2 SPORTS ILLUSTRATED 3.2 TASTE OF HOME 3,1 NEWSWEEK 3.1 COSMOPOLITAN 209 VIA MAGAZINE 2.8 SOUTHERN LIVING 2,8 PLAYBOY 2,7 MAXIM 2,5 AAA GOING PLACES 2,5 AMERICAN LEGION MAGAZINE 2,5 THE OPRAH MAGAZINE 2,4 PEOPLE 3,6 PREVENTION 3,3 TIME 3,3 TV GUIDE 3.2 SPORTS ILLUSTRATED 3.2 TASTE OF HOME 3,1 NEWSWEEK 3.1 COSMOPOLITAN 209 VIA MAGAZINE 2.8 SOUTHERN LIVING 2,8 PLAYBOY 2,7 MAXIM 2,5 AAA GOING PLACES 2,5 AMERICAN LEGION MAGAZINE 2,5 THE OPRAH MAGAZINE 2,4

15. Contemporary magazine industry  Magazines used to appeal to large homogenous audiences (Life magazine sold 13 million copies a week)  Now more specialized – targeting of niche audiences  Magazines used to appeal to large homogenous audiences (Life magazine sold 13 million copies a week)  Now more specialized – targeting of niche audiences

16.  Magazine business doing well  More than 17,000 mags published in U.S.  Estimated annual revenues of $46 billion  However, 75% of new magazines launched fold within a few years  Magazine business doing well  More than 17,000 mags published in U.S.  Estimated annual revenues of $46 billion  However, 75% of new magazines launched fold within a few years

17. Cross-media marketing & branding TV to Magazine  ESPN the Magazine  This Old House  O magazine Magazine to TV  National Geographic TV show  Better Homes & Gardens TV to Magazine  ESPN the Magazine  This Old House  O magazine Magazine to TV  National Geographic TV show  Better Homes & Gardens