David Carr of The New York Times reports today that New York Magazine, a highly decorated weekly news and arts magazine, is cutting back circulation from weekly to bi-weekly in the new year. However, unlike the recent decline and fall of Newsweek, the underlying news out of New York is actually encouraging and if it breaks the right way, a good sign for the whole industry.
Digital revenues have been growing at a rate of 15 percent year-over-year and in the coming year will surpass print advertising revenues, according to Lawrence Burstein, New York’s publisher. But part of the reason those lines are crossing is that the print revenues are plummeting.
Usually, when magazines report their growth in digital revenue, it’s on a percentage basis or without the context that it is a fraction of what print advertising used to provide. In this case, we are seeing that New York is actually making more money from digital advertising, enough to bankroll 15 new jobs after the transition to a less-frequent print product, Carr reports.
That’s a positive sign for all of the magazines who had seen $50,000 full-page ads replaced with digital advertising at a fraction of the cost. As the online audience is proven out, those spreads are starting to converge and it means that journalism as we know it can be funded as we know it.
– Sean Dougherty, Vice President, Media Relations