2016 Publishing Year in Review
FTI Consulting and its Publishing + Digital Media team would like to thank our clients for sharing your challenges with us and letting us partner with you once again to help drive margin improvement and position your publications for stability and growth. As we start 2017, we would like to share a recap of 2016, informed by our work on more than 25 publishing engagements and speaking frequently with many of you.
For those who recall our Year in Review reflections since 2013, we have focused primarily on driving revenue and building a sustainable business, while identifying opportunities to optimize expenses. We’ve emphasized the imperative of doing so as top-line growth continues to be elusive for most newspapers while many magazines are beginning to experience legacy ad revenue declines and increasing subscriber renewal challenges. This year we will again highlight the need to diversify revenue, but our thoughts will be expressed through a slightly different lens. We have summarized some of the best literature on revenue growth, including online video and mobile. So much has been written about the explosion of online video and mobile that we have cited these sources for those of you who wish to review the original articles.
From 2016-2019, ad spending is forecasted to drop an average of 5 percent per year for newspapers and 4 percent per year for magazines according to a ZenithOptimedia forecast.
Given the continued decline in print advertising and the proliferation of online, video and mobile access to news and information today, we ask the question: Is it all about content?