Magazine publishers should not jump on the web, as the chances that they will make money online are low, editors and publishers were told at a conference this week in Bermuda.

The 81st gathering of the Magazine Publishers of America, which is being held this year in the Fairmont Southampton Princess, saw hundreds of high-powered delegates attend the three-day event. One of the highlights has been the study conducted by McKinsey & Co. and the Magazine Publishers of America which shows that the Internet is not profitable for magazines.

McKinsey director Joanna Brash said: "Magazines are going to be losing money on the web for years to come. The economic model for a content provider just isn't there yet.'' Other hot topics this week were advertising and circulation. The general consensus was that advertising faces some uncertainty.

MPA President and Chief Executive Officer Nina Link discussed the industry's consumer marketing challenges, which she said will continue this year through "some rough seas''.

She added from wholesaler consolidation to the demise of stamp sheets, publishers have had a tough year, but added the MPA "has charted a course of action'' and is working to improve the single-copy chain in conjunction with the Magazine Retail Advisory Council.

Mrs Link added publishers are also concerned about a proposed 15 percent hike in postal rates, which could take effect in January.

She said: "We have applied strong and constant pressure on the Postal Service with bipartisan support from leaders in Congress to improve its efficiency and hold down our postal increase. We are hopeful that the Postal Commission will recommend a lower increase on November 13, but even then it won't be over.'' She said a campaign for postal reform is underway.

The other topic was how to break even on the web. At last year's meeting, the word was that magazine publishers needed to be on the web.

This year the message is that they need to have a web presence, but only in the form of a so-called "companion site'', which allows customers to buy print subscriptions and preview what the print title contains.

The report shows only a few publications can justify having brand-name destination sites.

The report claims that declines in advertising expenditures and the rising cost of postage and printing are going to force publishers to be even more frugal with their investments.

BUSINESS BUC