[Teikoku Databank Co., Ltd.] Popular magazines are also suffering from a “rush to suspend publication” – Over 30% of publishers are in the red, the largest in the past 20 years, unable to escape from the slump due to the publishing recession
Bankruptcies and business closures continue to increase
*Teikoku Databank Co., Ltd.*
Press release: September 8, 2024
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Popular magazines are also in the predicament of a “rush to suspend publication.” More than 30% of publishers are in the red, the largest in the past 20 years, unable to escape from the slump due to the publishing recession. Bankruptcies and business closures continue to increase.
*Trends in bankruptcy, closure, closure, and dissolution of
“publishing companies” (January-August 2024)*
photo by PIXTA
Teikoku Databank Co., Ltd. conducted a survey and analysis on trends in the “publishing industry.”
-Survey results (summary)-
1. Popular magazines are also suffering from a “rush to suspend publication”; more than 30% of publishers are in the red
2. The biggest decline in the past 20 years due to the publishing recession, and the number of bankruptcies and business closures continues to increase
Collection period: Until August 31, 2024
Target of calculation: Bankruptcies due to legal liquidation with debts of 10 million yen or more
Research institution: Teikoku Databank Co., Ltd.
*Survey results will also be posted on the following website https://www.tdb.co.jp/report/index.html
As the number of bookstores continues to decline across the country, the difficult business environment is becoming clear for magazine and book publishers. In fiscal 2023, 36.2% of publishers were in the red, the highest in the past 20 years, and more than 60% of publishers reported “deteriorating performance,” including a decline in profits. Amid the publishing recession, many publishers are in dire straits.
In 2024, famous magazines will be suspended or discontinued one after another. Monthly entertainment magazine “Popolo”, women’s fashion magazine “JELLY”, anime voice actor magazine “Seiyu Animedia”, and others have announced suspension of publication. Riverfield, which published Japan’s only English-language monthly magazine “Eye-Ai” that introduces Japanese traditional culture and entertainment-related topics to the world, went bankrupt in April of this year. In addition to the aging of subscribers, the spread of e-books and the rise of online-only media among young people, sales of print magazines and books have continued to decline since peaking in 1996.
Furthermore, under the reprint system, approximately 40% of
publications are returned as unsold, placing a heavy inventory burden on publishers. In addition, due to the impact of rising prices, printing costs such as paper and ink costs, as well as logistics costs, have risen significantly, creating a vicious cycle in which profits are worsening. Bankruptcies (debts of 10 million yen or more, legal restructuring) and business closures of publishers that occurred from January to August 2024 also occurred at the same pace as in 2023 (65 cases), which increased from the previous year for the first time in four years. The full year of 2024 may be the highest in the past five years.
Currently, major bookstores in the industry are working to reduce book returns, and some magazines and publishers are increasing their business with distinctive themes and editorial styles. On the other hand, it is not easy to publish a hit book or magazine, and it is expected that small and medium-sized publishers, whose financial strength has been exhausted by increased publishing costs, will be forced to close down, go bankrupt, or go out of business.