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April, 1997 |
  
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Electronic Publishing Works for Corps But Not for MagazinesThe Web offers publishing opportunities to anyone with access and HTML programming language capabilities. This does not guarantee success, however. The "build it and they will come" philosophy, for the vast amount of interconnectivity the web affords, does not mean visitors make it to a site. The latest findings we have gathered for you this month, attest to the power of electronic publishing as a great vehicle for saving money for a corporation but not one, at this time, that makes money for a publisher. Electronic Publishing Results in Huge Corporate SavingsAccording to a Deloitte and Touche study, publishing activities typically consume 12 percent to 15 percent of corporate revenues. Leading organizations are beginning to reduce these publishing costs while enhancing efficiency and productivity by adopting new electronic publishing systems that yield significant advantages:
The Internet, intranets, extranets, CD-ROM, DVD-ROM and other new delivery systems present the potential to improve the management and distribution of corporate knowledge and to reduce associated costs. The Global 2,000 company, however, is often too slow to deliver corporate knowledge and is draining too many resources to meet its information publishing and access needs. To find what steps corporations need to take in order to meet the "Instant Information" challenge you can request a free copy of Dataware Technologies’ newest white paper, "Electronic Publishing and Competitive Advantage." Dataware is an international provider of software for professional electronic publishing. For a copy of this white paper contact Laura Kempke at 617-684-0770, or via e-mail at laurak@schwartz-pr.com. TopOnline Magazines Losing MoneyWhen it comes to making money on the World Wide Web, few online publishers are doing it, according to a report from the Magazine Publishers of America (MPA). The report says that most publishers are producing online magazines to help promote their printed publications, not trying to create a separate profit center. The report found that nearly every online magazine site carries information and forms for subscribing to the associated printed publication. Printed publications are also the cited source for nearly 70 percent of the content carried in online magazines. Profits will occur further down the road when standards for measuring advertising exposure are agreed upon, according to the MPA. The Business of Online Publishing, conducted by Ernst & Young for MPA, is the first study of its kind for the organization. The study surveyed member companies of the MPA. Forty-seven publishing firms participated in the confidential survey. Between the 47 publishers they produce 304 magazines. Of the 304, 287 are traditional print publications and 17 online-only brand magazines. Of the 287 traditional magazines, 158 have an associated online version. The study found fewer than 20 percent of the companies participating in the study said they are making money from their online activities. In addition, all of the companies that claimed profits from online activities are doing so with the digital extensions of their print magazines and not from start-up, online-only publications. The survey showed that only a slim majority of publishers participating in the study expect their online activities to be profitable by 1998. Advertising generated 53 percent of magazine publishers’ online revenues, the study revealed. Online production services for advertisers or customers created 22 percent of online revenues. Subscription fees are expected to have accounted for only five percent of online income. The remaining revenue came from transaction charges and usage fees. More than 75 percent of the online magazines are carried by the World Wide Web, while America Online carries 20 percent of the titles. Many publications do appear in more than one digital location. (Contact: Keith Hark, Ernst & Young, 212-773-5299)
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