Yesterday's post discussed how print media properties are challenged to remain relevant in a time of rising costs and shrinking readers of print versions of their products. One strategy I identified to overcome this challenge is to explore options for publishing niche publications. Today's post is an example. The Philadelphia Inquirer, a large metro daily newspaper facing the declining market referenced previously, has launched a glossy magazine, called I. The magazine will publish six times a year and has the advantage of a built-in distribution as it is inserted into newspapers.
Why would the Philadelphia Inquirer do a brand extension at a time of such uncertainty? To pursue a market opportunity, in this case, reaching affluent consumers. I will target upscale areas of the Philadelphia market, making it attractive to advertisers. Revenues from ads are key to the success of a newspaper operation, and if revenues from the traditional daily newspaper product are unstable, it is imperative to look elsewhere for revenue streams.
A continuation of this trend in the newspaper industry will not be surprising. It is a matter of evolving the business model rather than trying to rely on a mode of news delivery that may be past its prime, the print newspaper.
Link: DM News - "Philadelphia Inquirer Launches Luxury Glossy"
Labels: Marketing Strategy, Newspapers