Thomaz Souto CorrêaVice Chairman
Abril Group
Opportunities for Cross-border publishing:
New Frontiers
26 > 28 May 2003
34th FIPP World Magazine Congress
Carrousel du Louvre - Paris
BRAZIL: AN OVERVIEW
A 176 MM people, 39 MM readers market;
Indicators like GDP and GDP per capita, when measured in dollars, do not reflect the deep changes that affected the country in the past decade. The “Real” was devaluated in 1999 and today is 3 “Reais” to 1 Dollar.
The 90’s — significant socio-economic changes: Inflation dropped from 1,600% to less than 10% per year; Above average growth of socio-economic segments B and C; Number of students in primary and secondary schools rose 50%; Illiteracy levels were reduced by more than 40%;
These changes were followed by an explosion in the availability of services and technology in the past 5 years.
Highlights
BRAZIL, AN OVERVIEW
SOCIAL ECONOMIC INDICATORS
144
164 166176
1990 1999 2000 2002
Source: IBGE
Population - Million Inhabitants
BRAZIL, AN OVERVIEW
SOCIAL ECONOMIC INDICATORS
75
78
80
1990 1995 2002
Source: IBGE
Urban Population - % of Total
NATIONAL POPULATION
The South and Southeastern
Regions represent
74% of total
magazine sales
Total Population: 176.128.497 Total Readers: 38.971.180
Source: IBGEMarplan
IVC
BRAZIL, AN OVERVIEW
469,3
543,0 536,5
602,2
510,3
0,00
0,85
1,791,96
2,32
1990 1994 1999 2000 2001
GDP (US$ Billion) Exchange rate (R$ / US$)
Source: Brazil Central BankNote: 1990 currency converted to Reais
GDP - US$ Billion
BRAZIL, AN OVERVIEW
3,13,4
3,1
3,5
2,9
1990 1994 1999 2000 2001
Source: Brazil Central Bank
Per Capita Income - US$ Thousand
BRAZIL, AN OVERVIEW
8,9 6,0 7,67 12,522,4
1990 1995 1999 2000 2001 2002
Source: IBGE
Inflation - % Per Year1621,0
BRAZIL, AN OVERVIEW
4,64,54,64,64,64,44,54,4
15,8 16,1 16,1 17,8 17,8 17,8 17,5 17,8
26,3 26,9 26,9
31,0 31,1 31,2 30,9 30,6
1995 1996 1997 1998 1999 2000 2001 2002
A B C
Source: Brasil em Foco - IBGE
A CAGR : 0,47%
B CAGR : 1,47%
C CAGR : 1,7%
Social Classes - Percentage
BRAZIL, AN OVERVIEWSOCIAL ECONOMIC INDICATORS
CHILDREN IN SCHOOL
32,1
43,949,1
1990 1999 2002
Source: INEP / IBGE
Students Enrolled In Primary and Secondary Schools - Million
BRAZIL, AN OVERVIEW
SOCIAL ECONOMIC INDICATORS
Source: IBGE
20,0
12,8 12,4
1990 1999 2001
Illiteracy - % Population
BRAZIL, AN OVERVIEW
TECNOLOGY DATA
9,2 10,2
17,7
34,8 35,2
1998 1999 2000 2001 2002
Source: ANATEL
Cellular Phones - Million
BRAZIL, AN OVERVIEW
TECHNOLOGY DATA
22,724,5
30,8
1998 1999 2000 2001 2002
Source: ANATEL
Telephones - Million Fixed Access Lines38,6 38,8
Source: IDC / CSFB
5,2
7,7
12,4
16,6
20,5
1998 1999 2000 2001 2002
Internet Users - Million
BRAZIL, AN OVERVIEW
TECHNOLOGY DATA
BRAZIL, AN OVERVIEW
TECHNOLOGY DATA
6,8
8,3
10,411,2
14,0
1998 1999 2000 2001 2002
Source: SIMENSEN ASS /FGV
Computers - PCs Installed - Million
BRAZIL, AN OVERVIEW
TECHNOLOGY DATA
1,0
2,73,0
3,4 3,5 3,4
1995 1998 1999 2000 2001 2002
Source: ABTA
Cable TV - Million
BRAZIL: THE MAGAZINE MARKET CIRCULATION
Market stable at + 410 million copies per year;
Share of single copies sales and subscriptions also stable;
With the end of a very high inflation rate, a new market was touched: popular magazines.
Highlights
245
180157
204181160
238247
139145 148
150
159
170 166 168
3 9 13 1741 40 40
0
1995 1996 1997 1998 1999 2000 2001 2002
Single Copies Subscription Popular
Source: IVC - Dinap
319302 308
331
415
363
413 406
BRAZIL: THE MAGAZINE MARKET 1995 - 2002
Million Copies
2.110
1.698
1.534
1.7441.698
1.889
1.3951.375
1995 1996 1997 1998 1999 2000 2001 2002
Source: IVC - Dinap
BRAZIL: THE MAGAZINE MARKET TOTAL OF TITLES
Source: IVC - Dinap
Average in 2002Per Issue
1 Veja Newsweekly 1.1312 Reader's Digest Monthly 5243 Claudia Women's Monthly 5074 Época Newsweekly 4285 Superinteressante Monthly 4136 Playboy Monthly 3727 Isto É Weekly 3688 Nova Escola Monthly 3589 Manequim Women's Monthly 35310 Viva Mais Women's Weekly 332
Title FrequencyRanking
BRAZIL: THE MAGAZINE MARKET TOP 10 MAGAZINES
Average Circulation
Source: IVC - Dinap
Ranking Segment 1995 2002 % of Growth
1 Women's Magazine 90.201 157.965 75,132 Finance/Business/News 91.312 118.248 29,503 Others 54.505 48.988 -10,124 Children 49.493 34.283 -30,735 General Interest 7.400 14.097 90,506 Men's Magazine 8.325 8.997 8,077 Sports 4.008 6.138 53,148 Computers / IT 4.451 4.928 10,729 Automotive 5.377 4.283 -20,35
10 Travel 3.055 4.196 37,3511 Education 687 3.948 474,67
Total 318.814 406.071 27,37
BRAZIL: THE MAGAZINE MARKET BREAKDOWN OF SEGMENTS 1995 - 2002
Thousand Copies
0 3 10 14 20
56 52 49
90 8687
95103
102 112109
1995 1996 1997 1998 1999 2000 2001 2002
Coverprice under US$ 0.58 Others
8997
109
123
158164
158
90
Source: IVC - Dinap
69%
31%
BRAZIL: THE MAGAZINE MARKET CIRCULATION MARKET WOMEN’S MAGAZINE: 1995 - 2002
Million Copies
Share of magazines is stable;
Significant drop in total advertising expenditure, when measured in dollars, as a result of the devaluation of the “Real”.
BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE
Highlights
985 9381.043
8.815 8.337 8.698
2000 2001 2002
Magazines Others
Source: Projeto Intermeios
9.8599.323 9.636
Magazine Market Share
BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002
Reais - R$ - Million
10,6% 10,6% 9,7%
419 314568
2.9993.548
4.799
2000 2001 2002
Others
Magazines
Dollar Rate: R$ 1,837 R$ 2,350 R$ 2,908
5.367
3.967
3.313
Source: Projeto Intermeios
BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002
US$ - Million
1.153
844
664
262
188
152
419 314568
1.9532.273
3.016
2000 2001 2002
Pay TV
Others
Outdoor
Radio
Newspaper
TV
Magazines
Dollar Rate: R$ 1,837 R$ 2,350 R$ 2,908
5.367
3.967
3.313
Source: Projeto Intermeios
BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002
US$ - Million
TOP ADVERTISING CATEGORIES - 2002
Source: Ibope Monitor/ Projeto Intermeios
Advertising Categories Total Spent in Magazines Magazine Share
Automotive 913.277 9,9%
Finance 680.580 10,9%
Services (government) 659.976 4,4%
Drink 355.806 5,3%
Telecommunications 339.806 8,6%
Health & Beauty 330.029 22,6%
Food 326.407 7,1%
Retail 266.361 14,4%
Clothes & Accessories 181.195 45,0%
Electrical/Electronic 135.837 30,3%
Travel & Tourism 134.287 15,3%
Technology 72.453 42,2%
Reais - R$ - Million
Reader's Digest Reader's Digest RD Brasil
Superinteressante G+J Spain Editora Abril
Playboy PEI Editora AbrilNova (Cosmopolitan) Hearst Corporation Editora Abril
Marie Claire Marie Claire Group Editora Globo
National Geographic NGS Editora AbrilElle Hachette Editora Abril
Estilo de Vida (In Style) Time Inc. Editora Abril
Forbes Brasil Forbes JB S.A.Vogue Condé Nast Carta Editorial
Casa Vogue Condé Nast Carta Editorial
Disney Disney Enterprises Inc. Editora Abril
Marvel Comics Marvel Characters Inc. Panini Brasil DC Comics DC Comics Inc. Panini Brasil
Title Company With
Source: IVC - Dinap
INTERNATIONAL MAGAZINESIN BRAZIL