The blossoming of the World Wide Web presents a vast challenge to print magazine publishers, for the Web at its most alluring will spawn vigorous competition for the attention of consumers and advertisers. With magazine circulation flat for five or more years and advertising acutely vulnerable to economic cycles, all but the very strongest magazines must cope with an end to growth—or worse.

Some of the greatest titles in the United States have declined precipitously in this maturing market. National Geographic, Reader's Digest, and Family Circle have lost about 20 percent of their subscribers in just four or five short years. Overall, 43 percent of the magazines audited by the Audit Bureau of Circulation have shed subscribers over the past decade, and more than two-thirds have cut their rate bases in the past three years. Moreover, the rise of the Web has also put pressure on magazines by providing yet another vehicle for fragmenting audiences and advertising budgets. Nonetheless, 1998 was a banner year for launching new magazines—more fodder for the battle that is now shaping up.

Is decline inevitable? Perhaps not. Instead of merely redeploying selected material to create a Web presence, print publications should embrace...