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ROUND TABLEROUND TABLE ««Mass media market in Russia and the USA: differences and common tendencies”Mass media market in Russia and the USA: differences and common tendencies”
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17636
10511
20503
12609
24336
15286
25404
16160
25843
16544
26600
17200
27150
17700
2001 2002 2003 2004 2005 2006 2007(prognosis)
Number of the registered mass media outlets. newspapers
magazines
Russian press market development
Russian press market has one of the fastest growth rate in the world, which is twice as big as in other countries.
Source: FAPMK
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Number of the registered mass media outlets
In 2006 8342 new mass media outlets have been registered. It is 10.7% growth comparing to the year 2005, including:
Newspapers - 12.4% growth and magazines – 11.5%The number of the Internet mass media outlets grew 10.2%
printed; 59184; 82%
on-line; 12770; 18%
10,7%
12,4%
11,5%
10,2%
printed massmedia outlets
newspapers
magazines
on-line massmedia outlets
Mass media market structure Dynamics of the number of the registered mass media outlets (2006 comparing to 2005)
Source: AKAR, expert reports from market participants
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DAILY AND WEEKLY NEWSPAPERS
Local newspapers;
32,1%
Regionalnewspapers;
33,1%
Interregional
federal newspapers;
34,8%
Russian newspaper market structure (circulation, in %, for 2006)
There are 35500 newspaper titles registered in Russia.Combined circulation of all the Russian newspapers in 2006 reached 8.05 billion.
The circulation of interregional federal newspapers is 2.8 billion.
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MAGAZINES
Russian magazine market structure (circulation, in %, for 2006)
Crossword/puzzle magazines; 333 mln; 18%
Women magazines;
351,5 mln; 19%
TV-guides; 296 mln; 16%
Business; 259 mln; 14%
Specialized magazines;
444 млн.экз.; 24%
General interest magazines;
166,5 mln; 9%
Annual growth rate of the Russian magazine market for the last 3 years exceeds 13% per year.
Combined magazine circulation in 2006 reached 1.85 billion, including 900 million of “glossy” magazines.
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1 «PromSwyazCapital» GK 60 996,1
2 «Prof-Media» Holding 44 273,7
3 PG «Hachette Filipacchi Shkulev» and «InterMediaGroup» 33 442,6
4 PH «Moskovskiy Komsomolec» 30 864,1
5 PH «Bauer Russia» 28 045,5
6 PH «News Media» 25 942,7
7 PH «Rossiyskaya Gazeta» 22 837,1
8 «Gazprom-Media» Holding 15 658,9
9 PH «Burda» 15 254,2
10 PH «Pronto-Moscow» 14 180,4
11 PH «Centr Plus» 12 557,0
12 PH «Independent Media Sanoma Magazines» 10 658,3
13 PH «Sobesednik» 9 073,4
14 PH «Mir Novostey Media» 8 297,8
15 PH «Populyarnaya Pressa» 8 038,9
16 PH “ZOJ” Editors” 5 614,0
17 PH «Abak-Press» 4 195,8
18 PH «S-Info» 3 753,8
19 PH «Egmont Russia Ltd.» 2 391,3
20 PH «Edipress-Conliga» 2 201,6
THE LEADING PUBLISHING HOUSES:
Combined average monthly circulation (thousand items), 2006
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LEADING PUBLISHING HOUSES:
Combined average monthly circulation (thousand items)2006
№ Publishing HouseCirculation,
thousand items
1PG «Hachette Filipacchi Shkulev» and «InterMediaGroup»
33 442,60
2 PH «Bauer Russia» 28 045,50
3 PH «Burda» 15 254,20
4 PH «Independent Media Sanoma Magazines» 10 658,30
5 PH «Egmont Russia Ltd.» 2 391,30
6 PH «Gruner + Jahr Russia» 1 050,00
7 PH «Conde Nast» 1 022,00
8 PH «Axel Springer Russia» 975,7
9 PH «Bonnier Russia» 721,4
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Russian advertisement market structure, 2006
0,92%
10,86%
5,30%
18,20%
1,54%
9,10%
5,39%
48,69%
Other
Magazines
Newspapers
Street advertising
Internet
Advertisment newspapers & magazines
Radio
TV
Russian advertisement market is on the 11th place in the world by its size, which reached $ 4 billion in 2006.
18%
2,1%
17,1%
87%
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Dynamics of the printed mass media outlets advertisement revenue,
(in million US dollars)
250 290 345
470580
705
480520
590
2004 2005 2006
newspapers magazines advertisement editions
+16%
+23%
+8%+13,5%
+21,5%
+19%
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Printed mass media: advertisement revenue, 2006
Growth rateShares of the advertising income
PC 2.7%
Women & fashion
16.5%
Advertisement11.8%
Daily11.0%
Business7.1%TV-guides
5.7%Car
5.0%
For men3.3%
Design 3.3%
Other 33.6%
22.0%
19.0%
18.0%
17.0%
13.0%
10.0%
9.0%
7.0%
1.0%
For men
Daily
Car
Women & fashion
PC
Design
Business
TV-guides
Advertisement
Source: TNS Gallup AdFact, 2006
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Electronic version of the printed media
no; 68%
yes; 32%
Does the mass media outlet have an on-line version?
Only 32% of the mass media outlets sell an on-line version of their printed material – less than 1/3 of the titles. Some of the publishers used to sell an on-line version, but rejected
this idea due to the lack of demand.
Types of the electronic versions
CD; 15%
CD+e-mail; 29%
website+ e-mail; 26%
website; 18%
сайт+CD+e-mail; 3%
website+CD; 1%
e-mail subscription; 8%
Many publishers choose e-mail subscription to distribute their electronic
versions. Passworded access to the information on the publisher’s website is
also quite a popular way.
Source: ITCOR, July, 2006
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¼ of Russians use Internet from time to time. As a source of the information Internet is used only by 14% of Russian population. In this field, the level of trust to the Internet
information can be compared to the local and regional radio (13% and 10%).
5%
14%
5%
76%
Nearly everyday
A few timesper month
At least tw ice ayear
Do not use
Internet users in Russia, 2006
Source: WCIOM
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RUSSIAN PUBLISHING MARKET TENDENCIES
Increase in number of registered mass media outlets along with the decrease in circulation;
Increase of specialized titles for special audiences, the decrease of titles with undefined theme;
Rapid growth of the free issues as the most attractive for the advertisers and customers;
Increase of the advertisement revenue because of the growth of the Russian advertisement market;
Increase of the investments into the promotion of the mass media outlets; The growth of the customers’ interest towards the on-line versions of the
newspapers; Decrease of the number of the younger readers (25-35 y.o.);Decrease of the newspapers’ share in the mass media structure;Increase of the number of “glossy” and business magazines readers;Increase in demand for men’s magazines;Continuous consolidation of media assets and concentration of the capital
in publishing business, decrease in investments.
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Printed mass media distribution. Wholesale.Rapid decrease in number of the wholesale distributors
Source: Companies’ data
2004 2005 2006 2008(prognosis)
100% 85%66%
37%
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Printed mass media distribution. Retail.(2006)
Retail sales structure (Moscow)
Source: ARPP
other; 10%
street sellers; 19%
kiosks / street
counters; 53%
supermarkets / gas
stations; 16%
press minimarkets
; 2%
post offices; 6%
kiosks; 60%
other; 7%
supermarkets / gas stations;
5%
street sellers; 9%
street counters; 13%
Retail sales structure (Other regions)
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Number of the supermarkets(up to 2000 square meters)
160 210
8001300
2500
300800
4000
9000
5800
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1998 2000 2004 2006 2008(prognosis)
Moscow
Russia
Source: REWE-GROUP
Retail sales development
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Retail sales development
Market shares of the various retail chains
3% 4%13%
48% 43%37%
35% 42% 38%
1% 1% 3%9%10%13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006
cash&carry, malls
convenience stores /other
discounters
supermarkets
hypermarkets
Source: RBC
181994 1996 1998 2000 2002 2004 2006
Dynamics of the subscription via the Russian Post (mln. items)
Average annual decrease rate - 3%
Source: Russian Post
4.1% growth
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Types of the subscribed mass media outlets (2006)
National newspapers
29%
Regional Newspapers
27%
Local newspapers
27%
TV-guides1,4%
Institutional newspapers
2%
Books0,4%
Regional magazines
1,5%National
magazines13%
Source: Russian Post
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Russian subscription market tendencies
Stabilization on the subscription market;Preference of the local mass media, increase
of the subscribed regional titles; Active implementation of the new and
additional subscription services;New alternative subscription structures in all
the regions of Russia.
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Printed mass media distribution market – main tendencies
Concentration of the capital in the distribution market up to the federal level; Withdrawal of the street sellers and small private businesses; Decline of the importance of the wholesale sellers, wholesale segment has moved to the circulation management and logistics; Decrease of the market share of the super- and hyper-markets in the retail sales; Decrease of the profitability and assortment in the press distribution in the supermarkets due to the retailers’ interference and their intention to gain as much profit as possible, including the advertisement revenue; Increase of the promotional spendings and advertising at the points of sale, aimed to increase the sales; Decrease of the periodicals’ assortment at the retail points of sale, along with increase of assortment of other group of products; Price increase in the market due to the changes in the Russian economy; The market size growth is expected to take place because of the advertisement revenue and price increase.
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The future of the Russian printed mass mediaARPP conception for 2007-2015г.
- official governmental recognition of the press as socially important product to guarantee the freedom of speech and democracy and to create special conditions for the press distribution market;
- to introduce a transparent VAT rate for manufacture and distribution of printed mass media, promote usage of the commission contracts;
- establish as many press retail points of sale as possible (1 POS per 1000 people), in close proximity to the places of residence for standardized prices, defined by the publishers;
- establish advanced logistic areas, warehouses, automated sorting lines;
Suggestions on improvement of the press distribution market infrastructure:
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- to support establishing and development of special press and multimedia products points of sale all over the country, with wide range of products and on-line terminals;
- to develop the subscription market, including governmental support and partial financing of the delivery;
- to create a unified national control system to supervise the movement of the products from the publishers in the distribution chains;
- to introduce the GPS system to adhere the press delivery timetable.
ARPP
The future of the Russian printed mass mediaARPP conception for 2007-2015г.
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