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Brand Licensing for Magazines

Posted on Friday, June 30, 2017 at 12:13 AM

In the news: More and more publishers are turning to brand licensing to compensate for falling ad revenue.

For publishers whose print ad revenues are in decline, brand licensing is emerging as a lucrative alternate revenue stream. Writes Max Willens of Digiday.com: "[Magazines] are finding increasingly willing participants on the other side of the negotiating table, as the years of investment that magazines have poured into digital presences, social footprints and creative studio capabilities have made them attractive partners for product manufacturers."

Several major publishers are capitalizing on brand licensing ventures, including Meredith, Hearst, and Condé Nast. In the past, brand licensing was a largely untapped option because, as Willens writes, "Their principal source of revenue was print advertising. Publishers carefully protected the relationships that fueled that income. And brand licensing was a threat: If a beauty magazine launches a branded makeup line, L'Oréal might not appreciate the extra competition."

Read more about how magazines are tapping into brand licenses here.

Also Notable

Newsstand Sales in the First Quarter

Magazine newsstand sales are down in the first quarter, according to the latest numbers from MagNet. According to Greg Dool of Foliomag.com, the decline in units sold was a sharp 13.5 percent from the same quarter last year, and revenue fell 8.7 percent. Celebrity and women's magazines fell significantly, but some of the sharpest declines hit the general interest category (down 19.7 percent in units sold and 13.1 percent in revenue, reports Dool). Read more here.

Shakeups at Major Magazine Publishers

Last week brought announcements from two major magazine publishing presences. Wenner Media announced that it had sold Men's Journal to American Media, Inc., and Rodale issued a release indicating that it may sell the company or individual brands therein. Read more here.

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