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News

The prices of press came to a standstill pending

The first quarter of 2013 did not bring any significant changes in the price of periodicals. As predicted by experts, in April 2013 the average cost of newspapers and magazines does not differ from the January. This can be explained primarily by the fact that publishers and distributors understand that in a tapering of demand increase in retail prices for periodicals will only lead to further reduction of selling runs.

According to Rosstat, consumer prices for goods and services increased by 1.9% since the beginning of this year. Herewith, monitoring of retail prices showed that the price of 32% of media present at the POS press, just fluctuated within ± 2%.

By most of the auto-moto periodicals prices have not been adjusted upwards, except for the magazines "Auto Review" and "Car Tuning". On average, sports publications ("Sport express", "Soviet sport. Football", "PROsport") and some business magazines: Forbes, TheNewTimes, «Kommersant. Dengi", "Secret firmy" became slightly cheaper. Alsothereisnoincreaseinpricesinthe patchwork segment.

However, 30-50% of the titles went up in such segments as news and daily newspapers ("Argumenty nedeli", "Vecherniaya Moskva", "Nezavisimaya Gazeta", etc.), culinary press ("AIF. Pro kukhniu", "Gastronom" and etc.), as well as women's magazines (Vogue, Harper's Bazaar, «Atmosphere", "All for a woman" etc.). Moreover, the rise in prices for these newspapers and magazines exceeded the rate of inflation and amounted to 10.3%. It should also be noted that the distribution link in the whole, mirror-broadcast the value adjustment of newspapers and magazines by publishers for the customers.

Based on the monitoring data of the market of printed materials, the following features of the changes in retail prices in the 1st quarter of 2013 were also possible to be installed:

The cost of TV guides varied in different directions: "MK Boulevard" and "Sem Dney" grew at almost all points of sales. The largest price increase was in the supermarkets, where the prices of these publications went up about 20%. While the prices of "Antenna A4-Telesem" and "TV Program", by contrast, declined.

Most of the men's glossy and popular science magazines got cheaper by 2-7%: these are Men'sHealth, Maxim, GQ, National Geografic, GEO, «Science and Life", etc.  

Some small change in prices affected magazines on interior design and architecture. Salon-interior and "Housing response" went up in retail, and the cost of publications like "Home. Interiorsplusideas"," Myfavoritehome"andothersdecreasedby5-7%.

If we compare the growth rate of prices in different segments of the distribution market of newspapers and magazines , during the 1st quarter the prices of periodicals grew, especially in the non-stationary retail (+3%) and press mini-markets (+2%). While in the supermarkets the prices for periodicals on average remained at the same level, the booths, the number of which is rapidly falling in many Russian cities, in April, sell newspapers at 2-3% less than in January.

The boost of import duties on coated paper from 5% to 15% in January had no impact on the cost of the press, and in particular, as expected, at the advertising publications and catalogs. Accordingly, the experts suggest that there is no reason to expect a sharp rise in prices in the next quarter of 2013. Especially in light of the fact that at the end of April 2013 import duties on coated paper in the Customs Union again will be declined from 15% to 5%. But do not underestimate the fact that publishers, loses a significant part of advertising budgets in recent years. Therefore, theirdesiretomakeupforrevenues,including raisingprices, iscleartoallmarketplayers.

Thus, within the stabilization of the situation with the distribution of periodicals (prohibiting the demolition of press kiosks and increasing the number of the said objects) in the second quarter of 2013, moderate price increases not exceeding the size of inflationary expectations are projected in the print media market.