As if things weren't bad enough already for print publishers, the United States Postal Service is raising rates in May by around 4%.
The rate hike, which will apply to first class, standard and periodical mailings, is one more stake in the heart of the already troubled print media industry. In times such as these, it's hard to imagine an ad rate hike that could realistically cover higher distribution costs.
While small, this rate hike is added incentive for publishers to reconsider their digital strategies. The venerable Christian Science Monitor has already announced plans to cut back its daily print publication to a weekly edition, while continuing to update its web site every day. With the cost of moving dead trees from here to there, expect other print publications to follow suit.
The upside, of course, is digital. Like it or not, a rate hike will force publishers and cataloguers to concoct more robust digital strategies or risk extincition. When online components are must-haves, rather than nice-to-haves, it pushes the channel forward. Stay tuned for broader adoption of email, RSS, online loyalty programs and of course, more online content.
Rebecca Lieb oversees Econsultancy's North American operations.
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3:26PM on 13th January 2010
There is a very similar situation here in the UK - far too many catalogue companies still insist on sending catalogues out to a significant tranche of their customer base that is no longer as welcoming to paper catalogues as a marketing medium. As long as this reluctance to change continues, the postal service will continue to reap the rewards.
3:14PM on 5th May 2011
I dont agree with you Helen. Online communication will soon take mail order catalouges by a storm, look at the figures and see for yourself!!