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The Globalization of Magazines in India: A case study
Unformatted Document Text:  20 44 in its launch year to 140 on average in 2009 with a 50-50 share of luxury brands and lifestyle brands. In 2005, the revenue split was 30:70 circulation to advertising compared to 50:50 in most Western countries (Shukla, 2006). Growing circulation and subscription numbers is key to increasing revenues. Some international magazines are looking at promotions through flagship events or tie-ins with TV channels to increase brand recognition and ultimately drive up circulation. While data on profits are hard to come by, Conde Nast India publisher Kuruvilla claimed that Vogue had met its target to break-even in its second year and was turning a profit by its third year (Interview, Feb. 15). But for most publishers it is this market‘s future potential that makes it attractive. Conclusion This paper offers an understanding of the factors that have led to media globalization of magazines in India. By using literature on globalization strategy it shows how this framework can be applied to analyze the development of this new global market. Changing lifestyles, increased incomes and relaxed regulation have made India an attractive market for foreign magazine publishers. But the nature of this market creates challenges for new entrants. Earning significant revenues is not possible given the low cover costs and relatively low advertising rates. The lack of audited circulation figures means that publishers cannot guarantee the numbers quoted to advertisers. Despite the changes in regulation that allow wholly-owned subsidiaries most global publishers prefer to use licensing as an entry mode. Entering the market

Authors: Shrikhande, Seema.
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20 
 
44 in its launch year to 140 on average in 2009 with a 50-50 share of luxury brands and 
lifestyle brands.     
 
In 2005, the revenue split was 30:70 circulation to advertising compared to 
50:50 in most Western countries (Shukla, 2006).  Growing circulation and subscription 
numbers is key to increasing revenues. Some international magazines are looking at 
promotions through flagship events or tie-ins with TV channels to increase brand 
recognition and ultimately drive up circulation. 
 
While data on profits are hard to come by, Conde Nast India publisher 
Kuruvilla claimed that Vogue had met its target to break-even in its second year and 
was turning a profit by its third year (Interview, Feb. 15). But for most publishers it is 
this market‘s future potential that makes it attractive. 
Conclusion 
 
This paper offers an understanding of the factors that have led to media 
globalization of magazines in India.  By using literature on globalization strategy it 
shows how this framework can be applied to analyze the development of this new 
global market.  
 
Changing lifestyles, increased incomes and relaxed regulation have made India 
an attractive market for foreign magazine publishers. But the nature of this market 
creates challenges for new entrants. Earning significant revenues is not possible given 
the low cover costs and relatively low advertising rates.  The lack of audited 
circulation figures means that publishers cannot guarantee the numbers quoted to 
advertisers.  Despite the changes in regulation that allow wholly-owned subsidiaries 
most global publishers prefer to use licensing as an entry mode.  Entering the market 


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