Industry Flashcards
What is The Big Issue LTD, and how does it operate as a magazine company?
The Big Issue LTD is an independent magazine company that partners with Dennis Publishing to print the magazine. Operating on a not-for-profit basis, it uses any excess revenue to support homeless people.
How is The Big Issue magazine distributed, and who typically sells it?
The Big Issue magazine is not sold through conventional means like shops; instead, it is sold by street vendors, often homeless people or individuals living in poverty.
Street vendors purchase copies of The Big Issue for £1.50 each and sell them for £3 each, using the money to support themselves legally.
How did The Big Issue secure funding when setting up the magazine, and from whom did they receive support?
The Big Issue secured funding for its setup from The Body Shop, with Gordon Roddick, one of the founders of The Big Issue, being married to Anita Roddick, the founder of The Body Shop. The Body Shop granted them £50,000 to start the magazine until it became a self-sustained model.
How did The Big Issue expand its efforts to help people in need beyond the magazine itself, and what initiative did they establish in 1995?
The Big Issue expanded its efforts beyond the magazine by establishing The Big Issue Foundation in 1995. This foundation provides homeless people with training, workshops, and information on how to get support with various issues such as mental health, domestic abuse, and housing.
How did The Big Issue further diversify its efforts in 2005, and what initiative did they establish?
In 2005, The Big Issue diversified its efforts by setting up The Big Issue Invest. This financial fund is available for charities, small businesses, and individuals with business ideas, particularly those who may have been turned away from other investors due to impoverished backgrounds.
The Big Issue Invest provides funds to individuals with viable business plans.
How did The Big Issue further diversify its operations in 2016, and what initiative did they launch?
In 2016, The Big Issue diversified into retail with the launch of its own online shop, offering a range of synergistic merchandise. All proceeds from the online shop go back to helping those in need.
How does The Big Issue differ from most magazines in terms of its focus on profit and community impact?
Unlike most magazines focused on profit and power, The Big Issue prioritizes giving back to the community.
It generates revenue through advertisements from brands targeting similar ABC1 audiences, but it also reserves space for ads about charities and community projects, occasionally venturing into more expensive areas to reach the ABC1 audience.
How does The Big Issue collaborate with celebrities, and what effect does this collaboration have on its readership?
The Big Issue collaborates with celebrities for cover photos, interviews, and guest editorials, drawing in pre-sold fans of those celebrities such as David Bowie and Robert Downey Jr.
Occasionally, they produce special editions with celebrities, creating a sense of exclusivity that encourages readers to buy multiple copies to collect them.
Has The Big Issue expanded globally despite remaining an independent niche magazine in the UK?
Despite remaining an independent niche magazine in the UK, The Big Issue has expanded globally, with versions created in countries such as Japan, Australia, and Ireland. This expansion has turned it into a globally recognized brand.
How has the magazine industry adapted to the decline in print magazine purchases, and what role does Zinio play in this adaptation?
To adapt to the decline in print magazine purchases, the magazine industry has moved into digital distribution, working with companies like Zinio, which distributes thousands of magazines online.
Zinio allows customers to purchase single digital copies or subscribe upfront for 12 months, providing an option to “try” one edition of the magazine without a long-term commitment.
How does digital distribution benefit the magazine industry in terms of audience targeting and global reach?
Digital distribution helps target audiences who are regularly online, those without local vendors, and environmentally conscious individuals avoiding paper copies. It also facilitates reaching a global audience as platforms like Zinio distribute to over 174 countries.
How is the revenue from digital sales utilized by The Big Issue, and how has the magazine industry been affected by the shift towards online content?
The revenue from digital sales is used by The Big Issue to support its vendors. Despite the magazine’s success in the early 2000s, with vendors selling up to 300,000 copies per week, the magazine industry has suffered significantly due to the increasing preference for online content over print.
What steps did The Big Issue take in 2011 to attempt to boost sales, and what changes were made to the magazine?
In 2011, The Big Issue redesigned and relaunched the magazine in an attempt to boost sales. They began featuring more content about political and social reform and included more celebrities, some of whom became regular columnists in the magazine.
How did The Big Issue attempt to maintain vendors’ earnings following the rebranding, and what was the outcome in terms of sales compared to other magazines?
Following the rebranding, The Big Issue increased its cover price slightly to help vendors maintain similar earnings despite potentially reduced sales.
Despite the decline in sales experienced by other magazines, The Big Issue’s sales eventually picked back up.
