Published in The Australian, May 22 2003

IN recent years, the computer magazine market has been stagnant. Most titles have seen large circulation drops. One-time market leader Australian Personal Computer has fallen from a peak circulation of 72,658 to just 52,865. Advertising dollars have also evaporated as technology companies have seen profits plummet in the wake of the dotcom collapse.

Despite those problems, magazine giant ACP believes there's still life in the old tech dog. Earlier this month, it acquired the Australian and New Zealand editions of NetGuide, a consumer-centric Internet magazine. Rumours of a buyout have been rife in the tech media market. After a slow start, NetGuide has become a conspicuous success, with an audited circulation of 40,980, up 6 per cent year-on-year.

ACP's plan is to increase that figure by aggressive cross-promotion through its existing magazines and websites. ``We see substantial opportunities to promote and drive the copy sales growth of NetGuide, and provide additional marketing opportunities to advertisers,'' says John Alexander, CEO of PBL Media (of which ACP is the magazine arm). ACP also hopes to use NetGuide as a fresh entry point to the NZ market, dominated by rival IDG.

Historically, the best-selling Australian PC titles have been aimed at dedicated techies, but those readers are becoming less enamoured of print. ``More experienced computer users are finding their information on the Internet,'' says Philip Sim, managing director of Media Connect, an IT media consulting and promotion firm.

ACP has experimented with consumer-focused technology titles before. Last year, it released a series of beginner's computer guides under the The Australian Women's Weekly Home Library banner. In 2001, APC attempted a relaunch as a broader consumer title, but has since switched back to the ``power user''. The current top-selling computer magazine, Australian PC User (also from ACP), is pitched at both beginners and more experienced users.

Initially, there are unlikely to be significant changes at NetGuide. Managing director Phil Ryan is contracted to stay with the title for three years, and all existing staff are transferring across. (ACP hasn't disclosed figures, but reports have suggested it paid several million dollars for the acquisition.)

However, the market will expect NetGuide's performance to improve significantly under ACP's ownership. ``They really have to make that circulation explode,'' says Sim.

That could be a challenge. While consumer titles have performed better than their enterprise technology counterparts, the field is still littered with failures. Pacific Publications' mid-1990s attempt, Computer Living, crashed and burned, as did a rival from APN News & Media, Family PC. ``A lot of titles have tried to tap the consumer technology market, but not many have succeeded,'' says Sim.

At least ACP has been down this road before. The company's existing technology titles were acquired from OzEmail founder Sean Howard. Howard also founded the Australian edition of NetGuide before selling out to Ryan.

Angus Kidman is a former editor-in-chief of APC.