The Big Issue - industry

The Big Issue Ltd

• An independent magazine company which is not part of a larger conglomerate

• They work with Dennis Publishing to print the magazine

Not For Profit

• The magazine operates on a Not For Profit basis, using any excess revenue to support homeless people

• Challenges Curran and Seaton

Distribution

• Whilst magazines are available to buy in shops such as Asda and WHSmith

• The Big Issue is sold on the street by vendors

Vendors

• Street vendors purchase copies of The Big Issue for £1.50 each and then sell them on for £3 each

• These vendors are usually homeless

• The goal is to give homeless people a legal way of making money, helping them to support themselves

External funding

• When setting up the magazine The Big Issue Ltd needed external funding.

• The idea of the magazine was niche and risky and they didn’t have a large amount of investors wanting to invest in them

• They secured a £50,000 grant from The Body Shop, a company which supports entrepreneurship, the environment and giving back to those in need

• Gordon Roddick (one of The Big Issue’s founders) was married to Anita Roddick (the founder of The Body Shop)

Diversification

• As The Big Issue grew in popularity they wanted to do more to help those in need

• In 1995 they started The Big Issue Foundation which provided the homeless with training, workshops and information about how to get support in issues such as mental health and domestic abuse

• In 2005 they diversified further by setting up The Big Issue Invest - a financial fund available for charities, small business and individuals who have an idea for a business but are struggling to get funds, perhaps due to poverty

• In 2016 they diversified into retail with their own online shop, including a range of synergetic merchandise. The money from these sales went back into helping the needy

Advertising

• Due to the magazine’s affluent readership, they can make extra money through advertising

• Many brands with similar ABC1 audiences choose to place adverts in the print magazine and on the website which increases revenue for The Big Issue

• They also make sure to place adverts for charities and other community projects, this isn’t as profitable, demonstrates that they are not all about profit and power

Celebrities

• The producers collaborate with celebrities for cover photos, interviewers and even invite some to be guest editors for an issue. This draws in pre-sold audiences who are fans of those celebs

• Eg the article by Grayson Perry in the 30th anniversary edition

International editions

• The Big Issue worked so well that many international versions were created

• There are issues in places such as Japan, Australia and South Africa

• So despite remaining an independent and niche magazine, it has become a globally recognised brand, this is rare

Digital distribution

• They have had to branch out into digital distribution as the magazine industry has declined and so many people are getting their content online

• They work alongside Zineo, a large digital distribution company. The Big Issue is available on their website

• Zinio allows customers to purchase one digital copy of a magazine or subscribe to 12 months upfront. This choice means audiences get a taste of the magazine without a long term commitment

• Digital distribution also helps to target audiences who are online regularly, those who don’t have a local vendor, and those who are avoiding paper copies for environmental reasons

• It also helps to reach a global audience as Zinio distributes to over 174 countries

• The revenue from digital sales is still used to support vendors

Sales

• At the height of their success in the early 2000’s they were selling around 300,000 copies a week

• The magazine industry has suffered massively as more people are choosing online content, as a result sales declined in the 2000’s

• By 2011 sales had declined to 125,000 a week so they decided to rebrand the magazine. They began releasing politically focused stories, discussing social issues, and featuring more celebrity columnists.

• The rebranded magazine had a slightly higher price in an attempt to help vendors make similar money from potentially reduced sales

• In a world where other magazines’ sales continued to plummet, the sales of The Big Issue did eventually pick back up, this is very different to other magazines. This reflects politics and current affairs becoming more important to ABC1 audiences