wazua Thu, Apr 2, 2026
Welcome Guest Search | Active Topics | Log In

5 Pages«<2345>
Why did True Love and Drum fail?
Kusadikika
#31 Posted : Thursday, March 25, 2010 10:10:54 PM
Rank: Elder

Joined: 7/22/2008
Posts: 2,721
mukiha wrote:
The assumption that a magazine must have high circulation o be profitable is not valid! Thus you do not have to sell to the $2/day income group - they don't have the money to buy newspapers, let alone magazines!

I once did consultancy work for a Kenyan magazine which targeted senior corporate managers [and their wannabes!]. Circulation averaged 1,200 copies per month - one large Kenyan corporate had a subscription of 200 copies that it used to give to its key customers!]

Street sales were less than 100 copies per month, the rest was through subscription. Cover price was sh200 and this was ten years ago - no wonder street sales were so low.

This magazine had a gross turnover of between sh800k and 1m each month - from advertising. KQ used to book the back page in blocks of six months at a cost of sh180k each. DT Dobie would block the inside front cover for several months at sh230k.

Inside pages would get 3 - 4 full-page ads per month at sh150k each.

Printing cost for the magazine averaged sh250k per month and other production costs [writers' fees and administration would take another sh150k]

That would leave about sh500k for the owner per month....

That the magazine still went bankrupt! Couldn't pay printers; couldn't pay writers etc!!

Why?

Why?

Why?

Simple:- The ME (Managing Editor, for the uninitiated) kept withdrawing too much money from the business! Eventually, it had to fold - and that was quite a shame!

I tell this story to dispel the popular belief that you have to sell to all the economic groups to survive.

In a previous thread, I related the story of how DEACONS survived by up-scaling its target market and completely ignoring the lower income groups. Same happened to BATA. And both survived... and today they are very successful.

Why did EAM Close down? Give me time, I will find out


Mukiha, the issue here is not necessarily high circulation but a deep readership and advertisement pool. The example you just sighted is a classic one for a magazine that was destined for failure right from the start. You can name the number of big advertisements on your hand. While the numbers may add up as you have added them up for one issue it is unsustainable for the long run if the pool of potential advertisers is not deep and the publishers cannot find a replacement advertiser for KQ and DT Dobie should they change their mind. This is what I was talking about in the first post. A brilliant young guy starts a magazine and he has his buddies at KQ and DT Dobie and then asks that they "promote" his magazine. They agree to this deal not because it makes sense to KQ to advertise there but because "watu wanajuana". The young guy thinks that because he has this big contract with KQ and DT Dobie that pays for the magazine for 6 months then his magazine is a success. Over reliance on Big clients who you cannot replace because the pool is shallow is a problem.

Same thing goes for the circulation. 200 copies of a magazine sold to a single customer with a total output of 1200 should have made that guy very worried. You have a magazine that was at the mercy of 3 people!!! the 200 copies buyer, KQ and DT Dobie. No wonder it folded, it could not have survived for long.

I am also reliably informed informed that the same problem affects insurance companies. You get a contract one year from big insurance spenders like say KPLC, KQ, City Council etc and suddenly you think you are the most successful insurance company in Kenya. When next year these few companies opt to shift to another insurer and you are suddenly looking at a big hole in your revenue and wondering what went wrong. There is one of the big insurance companies that has recognized this and has structured its business to focus more on a high volume of small business and individual clients than on these few high premium clients and have found the business to not only fluctuate less year in year out but is amenable to marketing initiatives that can grow the business predictably.
Ric dees
#32 Posted : Friday, March 26, 2010 8:32:17 AM
Rank: Member

Joined: 3/6/2008
Posts: 632
Excerpts by: Helge Rønning, Professor, Department of media and communication, University of Oslo.

As of now the most important communication media in Africa are radios and cell phones. Radio usage and radio stations have like mobile telephony witnessed a remarkable growth in the last decade. Radios are becoming common in poor rural areas and new radio stations in the form of private commercial broadcasters and local community radios are spreading fast and provide alternative voices and perspectives to, in many cases, staid and authoritarian state broadcasters. Both radios and mobile phones are communication media that are cheap and flexible. They do not need permanent electricity supply, and the still substantial illiterate sections of the population can use them. As regards media use in general Africa is still a communication poor continent. This is the case for print media. Newspapers are an elite and urban phenomenon. Book reading is not widespread outside educational contexts. Television is largely an urban medium.

The Internet is even in South Africa used by only 11.6 percent of the population. Only 5.3 percent of the total African population has access to the Net. [5] The countries with more than 10 percent Internet penetration were Algeria (10.4), Egypt (10.5), Mauritius (26.7), Morocco (21.3), Reunion (FR) (27.4), São Tomé & Principé (11.2), Seychelles (38.9) and South Africa 11.6). Twenty-two countries had an Internet penetration rate of less than 2 percent. Patterns of unequal distribution are equally evident for mobile phones, where mobile penetration is highest in South Africa, Morocco, Egypt, Algeria, Tunisia, which all except for Egypt had a penetration of over 50 percent in 2007 – a little less than the double of the continental average.

I still do not think internet and blogs are the reason why this publications are folding though Kusadikika may be onto something when he talked about a lack of multi - faceted revenue stream.

In my opinion we lack critical thinkers in majority of our sectors and in this particular case it becomes an uphill task to maintain readership.Until we challenge the norm and stop using "retreads" then we will continue reading this stories.
I am appalled at an advert in Supersport that depicts a man in Angola in 2037 talking bout how the world cup was in Africa and from where he seated to me does not depict 2037...surely what were you guys smoking!!!

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
Peppy
#33 Posted : Tuesday, March 30, 2010 10:59:02 AM
Rank: Member

Joined: 11/20/2006
Posts: 75
Location: Nairobi, Kenya
A different analysis to this:I used to buy both copies faithfully, until i discovered that my local salon and the one at the office mezzanine stock them, then aha, i could use the 500 for a pedicure and read both for free, why not.
I can do everything through Christ who strengthens me: Phil 4: 13
Mkimwa
#34 Posted : Friday, April 23, 2010 7:49:44 PM
Rank: Member

Joined: 10/26/2008
Posts: 380
Interesting Read.

There used to be a copy of the business daily in our office, i read it faithfully until i stumbled on stockskenya. and forgot about Business daily. More relevant discussions, and interactive. The power of new medias. They cannot be ignored in the new age, and will eventually lead to diminished returns for the hard copy publishing industry. Imagine a magazine doing a story of makmende at this time, would it not be a blend of archers blog and makmende.com?

Mukiha is right, newspaper/magazine sales contribute to a very small fraction of the revenues. Nation advertises that it has 1m readers, the actual figures for the copies sold are somewhere between 100K to 200K copies sold per day. KQ's msafiri magazine is free but generates higher (if not highest) revenue figures in the magazine industry locally.

I never bought drum/True Love primarily because i did not find the stories all that relevant. In fact, i would rather buy a novel rather than either of the two. Clearly wasnt in their target market. I however liked the quality of the production.
Drew
#35 Posted : Friday, April 23, 2010 9:16:20 PM
Rank: Member

Joined: 1/13/2009
Posts: 36
they failed because the were practically south african and theoretically Kenyan. It was a good read while waiting for your turn to get a hair cut
chepkel
#36 Posted : Wednesday, April 28, 2010 8:50:03 AM
Rank: Member

Joined: 4/6/2010
Posts: 741
Location: Nairobi
i never bought them because i thought they were above my price range. I used to like drum until they hiked the price. So i just go to the salon and read all the copies back to back as i get my hair done.
FundamentAli
#37 Posted : Wednesday, April 28, 2010 9:14:47 AM
Rank: Veteran

Joined: 11/4/2008
Posts: 1,289
Location: Nairobi
The magazines folded because the South African company closed all its publishing operations world wide. It was not a decision that affected Kenya only
muganda
#38 Posted : Wednesday, April 28, 2010 1:11:52 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Hmmn since the topic is still here, just thought to share on the credentials of East Africa Magazines, the company that owns Drum and True Love.

East Africa Magazines was part of Media24 publishing almost 60 titles in 5.9 million magazines monthly with readership of 8.7 million people. If you were in SA, you'd know of their very popular 24.com with news24.com, fin24.com, sport24.com etc. In Mar 2009 they had turnover of Kes70b with net profit of Kes3.25b

But Media24 is wholly owned by Naspers - a leading multinational media group listed on the Johanesburg Stock Exchange. So What's interesting is in Kenya, Naspers owns Multichoice and kalahari.co.ke



So for EAst Africa Magazines, I guestimate they put in Kes 113 mil for 49% stake and sales in 2008 were Kes45mil dropping to Kes24mil in 2009 estimating from sale of goods to related party 2009/2008. Definitely not enough to live on!

http://www.welkomyizani....nacialStatement2009.pdf

Out of interest for you investors, an investment in Naspers at the JSE in May 08 ~16,500R price would yield a 100% return currently valued at ~32,340 price Apr 10.


leona
#39 Posted : Monday, May 03, 2010 9:34:18 AM
Rank: Elder

Joined: 8/1/2008
Posts: 1,432
Location: Marsabit
There was this rumour doing the rounds that Alfred Mutua wanted to buy off EAM once they folded and revive all the magazines...but they were giving him a hard time! Now,he has a new lifestyle magazine out(PASSION for life),with Clay Muganda as the Editor! I wonder if he decided to do the magazines under his own brand and focus on EAM's target groups?Will he revive most of EAM's brands?(travel,ladies,men..etc)
Nevermind what haters say, ignore them til they fade away - Just live your life
Fundaah
#40 Posted : Monday, May 03, 2010 9:51:15 AM
Rank: Elder

Joined: 11/19/2008
Posts: 1,267
leona wrote:
Now,he has a new lifestyle magazine out(PASSION for life),with Clay Muganda as the Editor!


Just curious ....any relation with our Muganda who incidentally seems to have much interest on the thread?
Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
5 Pages«<2345>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2026 Wazua.co.ke. All Rights Reserved.