Publishing/Writing: Insights, News, Intrigue

02/28/2011

Printed Magazines: Young Adult Readership Up & 90% Prefer Ink Format!


Pundits predicting the extinction of printed mags are wrong! In fact, printed mag readership (especially among the under 35 group with digital exposure) has steadily risen over the past 5 years, even through the recession…as reported by David McDonald (bio at ‘Read and learn more’ link below) in FOLIO magazine.

Now, I don’t know if the ad revenue has matched the same performance of the ‘readership’ stats (from what I’ve read, it hasn’t)…but, if the ad revenue is indeed down, this non-expert wonders why? It would not be logical on the surface. If the advertisers are just pulling the ad money from print to concentrate on the new digital formats, it would appear they are missing a growing opportunity, huh?    

On to David McDonald’s article:

Teach Your Children Well

Is the training of tomorrow’s magazine and media professionals keeping up?

While many media pundits purport that magazine readership is dropping or that printed magazines are soon to be extinct, the truth emerges that year after year magazine readership continues to grow. In fact, magazine readership has increased for the past five years—right through the recession—according to MPA, which found that four out of five U.S. adults read magazines. Another 2010 survey from MRI discovered that young adults (those under 35) read the most, despite the abundance of new media alternatives. A recent CMO Council survey of 1,000 consumers with digital exposure indicated that 90 percent of magazine subscribers prefer the printed format to the new e-reader apps.

Consumers continue to engage magazines in the printed form, but they are also looking beyond print and accessing magazine content in very personal ways—Web sites, e-media, mobile and rich media, and various other content platforms are increasingly more relevant to today’s magazine and media consumer. This emerging diversity in how we encounter magazine content speaks to the complexity of how consumers engage the content they want—on their terms, in many formats and across multiple platforms—and again, only the content they want. So we better serve it up the way they want it, right?

Educating the Next Generation

Today’s magazine and media companies—as well as the staff of journalists and designers who package content for consumers—are working within a new world order. The rules of journalism are changing and Media Ethics are not immune from this evolution. Ethics, while important, are often irrelevant to a media transaction. Many publishers believe that those who drive the formation of ethical opinion will continue to refine their perspective within the larger media landscape and come to terms with the ideals of branded and custom content and the demands of what I call Transcendent Media platforms.

Do ethics, as we know them today, have a place in media? Yes, in some instances… but not all. The ideals of church and state that have for so long driven the philosophies, perspectives, and opinions of media must and will change to embrace the new world order of Transcendent Media. And this is an important fact to the universities teaching tomorrow’s magazine professionals.

Read and learn more

Remember, you can get this blog on your Kindle here

Advertisements

12/04/2010

Mag Publishers Branching Out


In order to save money, and also seek new revenue in non-traditional functions, magazine publishers are taking on related tasks usually contracted out to vendors. Actually they are strengthening their own vertical (business model) in-house capability.

These tasks include such things as launching all kinds of media products, from Web sites to custom publishing, virtual events, databases, books, supplements and spinoffs…Afterall, if you’re going to branch out you might as well stick to your core business and who knows what a publisher needs more than a publisher?

This magazine publishing branch-out (or in-house vertical strengthening, as I like to call it) kind of reminds me of what writers (novel writers as well as others) have had to do to break loose from traditional publishing “slush piles” and non-action by learning and taking on more of the tasks performed by publishing houses in the past…This all was made more possible and easier through the new digital technology. Let’s all drink a scotch on the rocks to that!

Tony Silber and Matt Kinsman, reporting for FOLIO magazine, analyze it this way:

When Publishers Become Vendors

Dave Schankweiler, CEO and publisher of Journal Publications Inc., a Harrisburg, Pennsylvania regional publisher, remembers the day he became not just a publisher, but a vendor to publishers too.

Back in 2004, the company, which publishes the Central Penn Business Journal, Central Penn Parent, and NJ Biz, launched a new survey, called Best Companies in Pennsylvania. It used an outside survey firm to do the first report. The night the winners were presented was a huge success. “That night,” Schankweiler remembers, “it was loud, and there was a countdown and a lot of excitement. And that’s exactly when we decided to change the company, because we were coming down from the high of the event. We said, ‘Why don’t we take this out into the market and do it as a service to other publishing companies?’ ”

Magazine publishers are by nature entrepreneurial types. They like to tinker with their businesses. They’re incessantly launching all kinds of media products, from Web sites to custom publishing, events, databases, books, supplements, spinoffs. But there aren’t a lot like Dave Schankweiler. Most media companies tend to stick to their knitting and limit their creative impulses to media products.

Some companies, though, are transforming themselves into a different kind of hybrid, media companies that have branched out into businesses traditionally occupied by publishing-industry vendors. Gulfstream Media, the Fort Lauderdale, Florida-based regional publisher is one. Gulfstream is the parent company of Magazine Manager, a popular ad-sales management software. UBM’s TechWeb is another. TechWeb created UBM Studios, which develops in-house virtual events for tech publisher UBM as well as for external clients.

Read and learn more

02/16/2010

Reader’s Digest, Playboy, Others Miss Rate Base


A magazine’s “rate base”, as I understand it, is the rate charged to advertisers in the magazine and is related to the circulation figures of the magazine…The higher the circulation the higher the cost to advertise in the periodical since it reaches more potential buyers.

FOLIO magazine’s Jason Fell wrote an informative article on this subject today:

While many of the consumer magazines included in the Audit Bureau of Circulations’ FAS-FAX report for the second half of 2009 made their rate base requirements for the period, many others, including some heavyweights, did not.

Of the 30 or so large circulation magazines with rate bases of 2 million or higher—including AARP, Time and Better Home & Gardens—Reader’s Digest and Playboy were the only titles to fall short of their circ. guarantee. Playboy reported an overall circ. of 2,021,751, more than 570,000 off its 2.6 million rate base. The magazine also fell short during the first half of 2009, delivering a total paid and verified circ. of 2,453,266.

With an 8 million rate base, Reader’s Digest delivered an overall paid and verified circulation of 7,099,558 during the second half. Last summer, the magazine said it was cutting frequency and reducing its rate base to 5.5 million—an 18-month process that would start with the February 2010 issue. A Reader’s Digest spokesperson told FOLIO: that missing its rate base during the second half last year was part of that strategy.

Generally, when a magazine doesn’t make its rate base, its publisher is required to issue refunds to its advertisers or make other concessions.

A number of celebrity titles also had trouble reaching their minimum circ. numbers during the second half of 2009. Among them were American Media’s Star (1.1 million rate base compared to 1,035,713 overall circ.), OK! (800,000 rate base vs. 753,886 overall circ.) and Bauer’s In Touch (800,000 rate base vs. 790,395 overall circ.).

Chicago-based Johnson Publishing also failed to reach its circ. promises. Ebony reported an overall circ of 1,169,870 compared to a rate base of 1,250,000. Jet, meanwhile, missed its 900,000 rate base, reporting an overall circ of only 795,055.

Other notable titles that missed rate bases were Harper’s (200,000 rate base vs. 195,114 overall circ.), Soap Opera Digest (500,000 rate base vs. 487,629 overall circ.) and Emmis Publishing’s Los Angeles (150,000 rate base vs. 140,022 overall circ.).

Biggest Overall Gainers

Although the vast majority of magazines claiming rate bases saw overall total paid and verified circulation declines during the last six months last year, some in fact reported significant gains. The biggest growth came from Rodale’s Women’s Health, which saw overall circ grow 21.5 percent to 1,454,545.

That was followed by Martha Stewart Living Omnimedia’s Body + Soul (+19.7 percent to 678,136), Birds & Blooms (+14.7 percent to 1,737,397), Meredith’s Siempre Mujer (+11.8 percent to 458,000) and All You (+10.6 percent to 1,023,242).

12/31/2009

Playboy Passes Core Business Duties to AMI


Playboy is delegating advertising, sales, marketing, circulation and production to get lean and mean and return to profitability by 2011!

The venerable mens magazine is also being assaulted by the current economic times as well as technological multi-media advances (what ever happened to Mariyln Monroe ?)

Jason Fell of Folio Magazine reported the inside info on this Playboy re-structuring with some interesting, insightful figures:

During a recent earnings call, Playboy Enterprises CEO Scott Flanders said he was working on a joint venture to develop a new business model that would help Playboy magazine profitable again. Some details of that venture have come to light.

Playboy said it has agreed to farm out the magazine’s advertising sales, circulation, marketing, production and all other business operations to American Media Inc. Playboy will continue to oversee the magazine’s editorial operations.

AMI’s Distribution Services, Inc. will handle Playboy’s newsstand marketing and distribution services.

Roughly 25 jobs will be affected as a result, although some of those could be transferred to AMI. “AMI will be interviewing all of our employees in the areas being outsourced, and it’s not clear how many of them will be asked to join their company,” a Playboy spokesperson told FOLIO:. “We will also keep a few employees.”

Playboy will incur a $2 million restructuring charge in the fourth quarter related to the deal.

Financial terms were not disclosed. As part of the agreement, Playboy said AMI will be paid “negotiated fees” and will be incented to increase both advertising and circulation revenues. The publishers expect to complete the transition by March 2010. UPDATE: Under terms of the contract, AMI said it will be paid “potential fees” in the range of $5 million for advertising, circulation, production and related services. This, the company said, would result in profitability of approximately $2 million.

When asked about AMI’s strategy behind boosting Playboy’s ad and newsstand sales, and its plans for managing the magazine’s recently reduced rate base and frequency, AMI CEO David Pecker had no comment.

According to Flanders, AMI will be able to manage the magazine operations “more effectively than we can as a standalone publisher. By joining forces with American Media, we will be able to significantly reduce our cost structure and leverage the economies of scale related to manufacturing, distribution and marketing that are available to this large, multi-title publisher.”

Flanders said Playboy magazine is expected to lose $8 million this year. This deal, he projected, will allow the magazine reduce the loss to approximately $5 million in 2010 and to reach profitability again by late 2011.

During the earnings call, Playboy Enterprises reported a $23.5 million net loss through the third quarter, down from a $13.6 million net loss in 2008. The company’s print/digital group reported a $900,000 loss through the first nine months compared to a $3 million loss during the same period last year. Flanders said he expects the magazine to report a 38 percent decline in ad pages during the fourth quarter this year.

AMI publishes several titles already targeting man aged 18 to 34 years, including Men’s Fitness, Muscle & Fitness and Flex. AMI also publishes Shape, Star, Natural Health and the National Enquirer.

It was not immediately clear how the agreement with AMI might affect a potential sale of Playboy Enterprises. The company has been said to be entertaining a number of offers, including one from London-based brand management firm Iconix Group. The Playboy spokesperson declined to comment on a potential sale.

Create a free website or blog at WordPress.com.

%d bloggers like this: