I was interested to see an email from a publishers’ representative, urging me to place advertising orders now because “print publishers are reported to be increasing rates by some 10-12% in 2011”. Frankly I see no opportunity for any print publisher in our industry to achieve anything but the smallest increase. However the email did highlight some of the pressures that the print industry is facing, including:
World paper costs wholesale price is looking about to increase by around 25%
World utility costs are up 14%
Transport costs are up 11%
Postage increasing around 8%
With these cost increases, and the pressure from advertisers to hold pricing, it’s not surprising that magazine publishers are feeling squeezed. With no other way out, I’m sure we will see a continued migration to digital distribution in 2011.