This is the magazine we have grown up reading to and hearing this news was a bit shocking! The publisher of Magazine, Reader’s Digest Association Inc said that it will file for bankruptcy protection with a plan to swap a portion of its debt for ownership of the company.
For past sometime, Reader’s Digest is facing tough times owing to the splendid growth of Internet and online magazines/articles. This year’s ad declines saw the closing of several high-profile titles including Conde-Nast’s Portfolio, Domino and Blender.
We keep on hearing bad news from publishing front of US, which is facing real tough time owing to the growth of online media. Due to lack of expenditure in print advertisement (which is the only major source of revenue, except subscriptions) publishers are facing major revenue losses.
Moreover most of the articles can be found over net for free, and advertisement over net is also very cheap. So even if I’m reading a Reader’s digest article over net, Google is the only company earning big money.
I strongly feel that it’s time we need some out of the box idea to save this ailing publishing media. Even in India English newspapers are facing some heat due to downfall in subscription numbers. Contrary to this, regional language news papers are doing good which makes it clear that more and more educated junta is moving towards e-paper and blogs.
Let’s brainstorm some of the ideas at this forum. If you think there is some other business model which these publications can follow, kindly share with us.
[This Media Monday post has been written by Rabi Gupta, a start up enthusiast and co-founder of iDubba (Intelligent Box).]