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”
“Why would the Philadelphia Inquirer do a brand extension at a time of such uncertainty?” I believe the answer is that it is something new, something fresh, and different. People are attracted to those type of emotions when new products hit the market. A glossy magazine is such an interesting approach to the problem. I can imagine that it will be very upscale therefore attracting higher end readers and advertisers. Not a bad idea. It will be interesting to see if this works. I agree with your comment that it is a way of revolving the business model. New and creative ideas are what it takes to keep the cycle going.