The U.S. Market for Religious Publishing and Products

The Products

• Primarily Christian Products
• Product Categories

The Market

• A Robust Market
• Factors Affecting Market Growth
• Sales to Near $7 Billion by 2002
• Table 1-1: US Retail Sales of Religious Products by Category, 1993- 2002 (dollars): Books, Stationery/Giftware/ Merchandise, Audio/Video/Software

The Marketers

• Overview of Competitors
• The Books Category
• The SGM Category
• The AVS Category

Distribution and Retail

• Eclectic Mix of Secular and Religious Vendors
• CBA Stores a Dominant Force
• Figure 1-1: Share of Religious Product Sales by Distribution Channel, 1997 (percent): 3 Distribution Channels
• Independents Outnumber Chain Stores
• Mainstream Retailers Carrying Religious Products

The Consumer

• Church Members Belong to Middle Class
• Churchgoers vs Religious Product Users

Scope and Methodology

• Scope of Market Coverage
• Research Methodology

II THE PRODUCTS

Introduction

• Scope of Report
• Christian Products Dominate
• Specialty Outlets Shape Market

Historical Summary: Christian Products

• Ancient Market for Devotional Objects
• Individuals Take Responsibility for Their Salvation
• The Bible Becomes Widely Available
• The Emergence of a US Religious Publishing Market
• Radical Change in the 1960s and 1970s
• The Televangelist Scandals of the 1980s
• Christian Culture as Strong as Ever

Historical Summary: Non-Christian Products

• Judaica a Discrete Market Segment
• Two Divisions of American Islam
• Orthodox Muslims
• Black Muslims
• The Rise of Eastern Religions Since the 1960s
• "Flower Power" Breeds New Age/Alternative Faiths
• The Expanding Definition of Religious

Market Definition

• Three Broad Categories
• Books the Leading Category
• Bibles Are the Engine
• But Religious Books Are Largest Subcategory
• Religious-Oriented School Curricula
• SGM the Most Diverse Category
• Six Subcategories
• AVS the Third Largest Category
• Audio the Largest Subcategory
• Video Subcategory Still Being Defined
• Software Tends to Be Holy Book Oriented
• Products Classified by Degree of Religiosity

III THE MARKET

• Figure 3-1: Total US Retail Sales of Religious Products, 1993-1997 (dollars)
• Figure 3-2: US Retail Sales of Religious Products by Category, 1993- 1997 (dollars): Books, Audio/Video/Software, Stationery/Giftware/Merchandise

Market Size and Growth

• A $45 Billion Market in 1997
• Table 3-1: US Retail Sales of Religious Products, 1993-1997 (dollars) Books the Largest Category, Music the Fastest-Growing
• Table 3-2: US Retail Sales of Religious Products by Category, 1993- 1997 (dollars): Books, Stationery/Giftware/ Merchandise, Audio/Video/Software
• Methodology: Overall Market Estimates
• Figure 3-3: Share of US Retail Sales of Religious Products by Category, 1995 vs 1997 (percent): Books, Stationery/ Giftware/Merchandise, Audio/Video/Software

Market Composition: By Product Type

• Book Category Share Continues to Erode
• Table 3-3: Share of US Retail Sales of Religious Products by Category, 1993-1997 (percent): Books, Stationery/ Giftware/Merchandise, Audio/Video/Software
• Religious Books Lead Book Category
• Table 3-4: Size and Share of US Religious Book Retail Sales by Subcategory, 1997 (dollars and percent): Religious Books, Bibles, Curricula
• Methodology: Publishing Industry Sales Estimates
• Religious Books a Publishing Industry Niche
• SGM Category the Hottest
• Table 3-5: Size and Share of Stationery/Giftware/Merchandise Retail Sales by Subcategory, 1997 (dollars and percent): Giftware, Stationery/Cards, Church Supplies, Jewelry, Apparel, Other
• Methodology: SGM Estimates
• AVS Category Is Fastest Growing
• Table 3-6: Size and Share of US Retail Sales of Audio/Video/ Software Products by Subcategory, 1997 (dollars and percent): Audio, Video, Software
• Methodology: Audio/Video/Software Figures
• Christian Products Garner Lion's Share
• Non-Christian Market Fragmented

Market Composition: By Distribution Channel

• Christian Retailers Claim Two-Thirds of Market
• CBA Stores a Dominant Force
• Mainstream Retail Channels Gain Strength
• Table 3-7: Share of US Retail Sales of Religious Products by Distribution Channel, 1997 (percent): Christian Retailers, Mainstream Channels, Other Religious Specialty Stores
• Direct Marketing Important Though Not Quantifiable

Market Composition: By Region

• Bible Belt the Heart of Christian Segment
• Western States the Least Formally Religious
• Urban Centers Important "High Church" and Non-Christian Markets
• Protestantism Thrives in Non-Metro Areas

Market Composition: By Season

• Christmas Shopping Season Drives Sales
• Other Religious Holidays Set Agenda for Rest of Year
• Table 3-8: Religious Product Selling Seasons (Holiday, Religion, Time of Year, Categories Simulated)

Factors Affecting Market Growth

• The Importance of the Self
• Baby Boomers Age, Become More Introspective
• Increased Demand for Children's Religious Products
• American Distrust of Authority
• Religious Products Cross Over into Mainstream
• Increased Media Coverage of Religion
• Sophisticated, Inquisitive Consumers
• A Need for Solace and Inspiration
• Many Christians Rejecting Traditional Forms of Religious Expression
• Table 3-9: Growth of US Christian Denominations, 1967-1997 (percent): 8 Denominations
• "Other" Religions Alter America's Judeo-Christian Landscape
• Heightened Interest in Buddhism
• A Jewish Revival
• Popularization of New Age
• Millennium Fever
• Figure 3-4: Projected Total US Retail Sales of Religious Products, 1997-2002 (dollars)

Market Projections

• Over $7 Billion by 2002
• Table 3-10: Projected US Retail Sales of Religious Products, 1997- 2002 (dollars)
• Merchandise, Music the Fastest-Growing Categories
• Table 3-11: Projected US Retail Sales of Religious Products by Category, 1997-2002 (dollars): Stationery/ Giftware/Merchandise, Books, Audio/Video/Software
• Potential Red Flag: The Ancient Boom-and-Bust Cycle

IV THE MARKETERS

The Marketers

• Many Small Marketers
• No Dominators
• Religious Specialists Versus Mainstream Conglomerates
• Publishers of Religious Books
• Bible Publishers
• The Catholic Niche
• Publishers of Christian Fiction
• Children's Products
• Buddhist Presses
• New Age Publishers
• Three Types of Music Companies
• Marketers of Contemporary Christian Music
• Videocassette Marketers
• Software Marketers
• SGM Marketers Vary Widely
• Data Insufficient for Market Share Estimates
• Table 4-1: US Market for Religious Publishing and Products: Leading Marketers and Products

Competitive Overview

• Conviction, Not Just Commerce, Drives the Market
• Competition Becomes Intersegmental
• Nelson the Most Diversified
• Tyndale and Zondervan Diversify as Well
• Religious Specialty Publishers More Consistent Competitors
• Mainstream Giants Invade Music Market
• Software Subcategory Continues to Evolve
• Myriad Tiny Marketers Compete in SGM Segment
• Marketers Compete in SGM as Afterthought
• Few Mainstream SGM Players Pay Much Attention
• Keeping an Eye on Disney

Competitive Profile: Bertelsmann AG 100

• Bertelsmann AG
• Acquisition of Random House
• Random House Religious Books
• Doubleday the Leading Catholic Mainstreamer
• Bantam Books Tend Toward New Age

Competitive Profile: Gaylord Entertainment Company

• A Diversified Entertainment and Communications Company
• Gaylord Acquires Word Records from Nelson
• Word Records and Music Second Only to EMI Christian Group
• The Myrrh Label
• Everland Entertainment Scores Big with Veggie Tales
• Z Music Television

Competitive Profile: Jewish Lights

• Relatively New Player
• Examining Jewish Identity
• Ecumenical Books

Competitive Profile: News Corp/HarperCollins

• A Multi-Pronged Mainstreamer
• Zondervan Is Bible King
• Controversy over Zondervan's Update of NIV
• Zondervan Expands into Christian Fiction
• Zondervan Strong in Software
• Zondervan's SGM Entries
• Zondervan Tries to Dissociate Itself from News Corp
• HarperCollins the Leader Among Mainstreamers
• Harper San Francisco
• News Corp Makes Publishing Cuts

Competitive Profile: Provident Music Group

• Formed in 1997
• 4HIM Records for Benson Music
• Reunion Records
• Essential Records Crosses into Mainstream with Alternative and Rock
• Diadem Scores with Bob Carlisle's Butterfly Kisses
• WOW Gospel Spin-Off Debuts in 1998

Competitive Profile: Shambhala Publications

• Roots in 1960s Counterculture
• Shambhala's Early Successes
• An Impressive Array of Authors
• Exploring Spiritual Traditions
• AVS Offerings
• Crossing the Line Between Books and SGM

Competitive Profile: Thomas Nelson, Inc

• 1997 Sales of $243 Million
• The First Christian Conglomerate
• Distribution Goes Mainstream
• NelsonWord Leads Religious Book Specialists
• Nelson's Book and Bible Sales Fall
• Nelson Enters Children's Market
• Testament Shoppes Open in Books-A-Million
• Nelson Sells Word Records to Gaylord Entertainment
• Thomas Nelson Presses Its Advantage
• CD-ROM Product Catalog Debuts in 1998

Competitive Profile: Thorn EMI Plc/EMI Music

• EMI Christian Music Group Is Music Leader
• Sparrow Records Boasts Many Stars
• Star Song
• ForeFront Is Christian Rock Leader
• EMI Launches Gospel Label
• The WOW Phenomenon
• Chordant Distribution

Competitive Profile: Time Warner

• The World's Largest
• The Celestine Anomaly
• Other New Age Publications from Warner
• Warner Alliance Markets Contemporary Christian Music
• Warner Christian Distribution
• Turner Home Entertainment Leads in Video

Competitive Profile: Tyndale House, Inc

• Tyndale the Other Top Independent
• Tyndale's New Living Translation
• Popular Christian Fiction
• Tyndale a Pioneer in Children's Video

Competitive Highlights: Selected Other Marketers

• Ave Maria Press
• Bethany House Publishers
• Broadman & Holman Publishers
• Crossway Books
• Cook Communications Ministries
• Harold Shaw Publishers
• Harvest House Publishers
• Infobases, Inc
• Integrity Music
• Kregel Publishing
• Liguori Press
• Logos Research Systems, Inc
• Moody Press
• NavPress
• Parallax Press
• Paulist Press
• Simon & Schuster
• Snow Lion Publications
• Tarcher Books
• Wisdom Publications

Marketing Trends

• Spirituality Preferable to Religion
• The Appeal of "Lite" Religion
• Marketers Target Interest Groups
• Category Crossovers
• Conspicuous Christianity
• Tie-Ins to Special Occasions

New Product Trends

• WWJD
• Christian Apparel
• Niche Bibles
• Children's Bibles
• Other Children's Products
• Christian Fiction
• The Star Power of Religious Celebrities
• A Proliferation of Judaica
• Books Concerned with Buddhism
• New Age Products Run the Gamut

Advertising and Promotion

• Atypical Spending on Advertising
• Alternative Media Account for the Budget
• Probably Around $20 Million

Profile: The Christian Media

• Successful Recovery from 1980s Scandals
• Robertson's CBN
• Robertson's Family Channel
• The Faith & Values Channel
• Z Music Television
• The Inspirational Network
• Christianity Today Is Leading Publisher
• Moody a Veteran
• Second-Echelon Publications
• Christian Media Advertisements

Advertising Positioning

• Two Basic Positionings
• Book Advertisement Positionings
• Audio/Video/Software Positionings
• The Stationery/Giftware/Merchandise Category
• Examples of Religious Product Advertising

V DISTRIBUTION AND RETAIL

Distribution

• Three Overlapping Distribution Systems
• Eclectic Mix of Vendors Serve Christian Retailers
• Spring Arbor Leads Among Distributors
• Leading Wholesaler Acquires Spring Arbor in 1997
• Mainline Distributors Increasingly Important
• Other General Religious Distributors

At The Retail Level

• Marketing as Ministry
• Average CBA Store Does Close to $450,000
• Independents Still Outnumber Chain Stores
• Parable and Other Marketing Groups
• Major Chains Continue to Expand
• Book and Music Club Scene Changing
• Christian Products Hit Mass Market
• Nelson Broke into Mainstream First
• Wal-Mart, Target Take the Lead
• Blockbuster Increases Christian Offerings
• BAM Opens Testament Shoppes

Retailer Profile: Family Christian Stores (FCS)

• The Leading Retailer
• Freed, Then Goes on Spree
• Maintains Community Contacts

Retailer Profile: Christian Superstores

• Superstores Come on Strong
• Full-Service Christian Resource Centers
• Most Chains Have Superstores
• Formidable Managerial Tasks

VI THE CONSUMER

Introduction

• Note on Simmons Market Research Bureau Data

US Religious Groups

• Most Americans Profess Belief
• Church Members Belong to Middle Class
• Table 6-1: Demographic Characteristics Favoring Membership in Church/Temple/Synagogue, 1997 (US Adults)
• Catholics and Baptists Are Largest Groups of US Christians
• Table 6-2: US Population of Christians: By Denomination (number and percent): 14 Denomination
• Approximately One in Five Americans Is Non-Christian
• Table 6-3: US Population of Non-Christians: By Religion (number and percent): No Religious Preference, Other Religion, Jewish, Muslim
• Older Americans Maintain Judeo-Christian Traditions
• Upscale/Downscale American Religious Groups
• Many Variations in Middle-Range Profiles
• Single Americans Resist Mainline Protestant Denominations
• Household Profiles Correlated to Age and Marital Status
• Table 6-4a: Demographic Characteristics Favoring US Christians: By Denomination, 1997 (US Adults): Catholic, Baptist, Methodist
• Table 6-4b: Demographic Characteristics Favoring US Christians: By Denomination, 1997 (US Adults): Lutheran, Presbyterian, Pentecostal/Charismatic
• Table 6-4c: Demographic Characteristics Favoring US Christians: By Denomination, 1997 (US Adults): Christian Church, Other Protestant, Other Evangelical Christian
• Table 6-4d: Demographic Characteristics Favoring US Christians: By Denomination, 1997 (US Adults): Episcopal, Church of Jesus Christ of Latter Day Saints, United Church of Christ
• Table 6-4e: Demographic Characteristics Favoring US Christians: By Denomination, 1997 (US Adults): Russian or Greek Orthodox, Unitarian
• Table 6-5a: Demographic Characteristics Favoring US Non-Christians by Religious Affiliation: No Religious Preference vs Other Religion, 1997 (US Adults)
• Table 6-5b: Demographic Characteristics Favoring US Non-Christians by Religious Affiliation: Jewish vs Muslim, 1997 (US Adults)

Purchasers of Religious Products

• Who Are the Religious Products Consumers?
• Churchgoers vs Religious Product Users
• Almost 8 Million Buy Music at Religious Retailers
• Table 6-6: US Purchasers of Religious Products: By Retail Outlet (number and percent): Religious Articles Stores, Mail Order, Telephone Order
• Middle-Class Families Patronize Religious Stores
• Table 6-7: Demographic Characteristics Favoring Purchase of Religious Products: By Retail Outlet, 1997 (US Adults): Religious Articles Stores, Mail Order, Phone Order
• Users of Religious Recordings
• Table 6-8: US Adult Users of Religious Recordings by Category, (number and percent): Contemporary Christian, Black Gospel,
• Other Religious
• Who Listens to Religious Recordings?
• Diverse Group of Gospel Users
• Table 6-9: Demographic Characteristics Favoring Use of Religious Audio Recordings, 1997 (US Adults): Contemporary Christian, Black Gospel, Other Religious
• Bibles Versus Other Religious Books
• Table 6-10: US Users of Religious Books: By Category (number and percent): Religious Books, Bibles
• Readers of Religious Works
• Table 6-11: Demographic Characteristics Favoring Use of Religious Books: Religious Books vs Bibles, 1997 (US Adults)

APPENDIX I: EXAMPLES OF CONSUMER AND TRADE
ADVERTISING

APPENDIX II: ADDRESSES OF SELECTED MARKETERS, DISTRIBUTORS, RETAILERS, TRADE ORGANIZATIONS, MAJOR MEDIA