Managing Print Relativity and Profitability in Today's Digital Environment

'Print' used to be the sweet, young damsel that all the young, publishing studs lined up to ask for the next dance. The only girl at the dance under Momma's age, so to speak.

Not any more! Now there are a number of younger, publishing format damsels sitting side-by-side and taking up half of the ballroom floor.

BUT, Miss Print, although older, is still a beauty and in some demand!

Tonight's post is going to examine how to manage the reduced, but still viable, demand and profitability of the print format.

Most print outlets (including magazines and books) have been swinging toward digital and events as a more accessible, efficient and profitable means of reaching more people faster.

And this move is right - especially for those with the long term vision.

But, print is still producing acceptable (but declining) profits in many areas of the publishing universe --- Especially in the established brand market that was initially born out of the print format.

So, how to manage 'print' to make it the most profitable today?

Many publishing companies today have embarked on a digital/print format system that has reorganized its stable of print brands to a tiered value system. To wit (excerpted from tonight's research article):

"First-tier brands, identified by their high-value readers and customers, get the full multiplatform treatment: monthly print issues, a robust digital offering, events and marketing services. Second-tier brands will have the same mix, but with a reduced-frequency print magazine-bimonthly or quarterly. Third-tier brands, where there isn't enough revenue to support print, are digital and events only." 

"A digital-first operating structure supports print as a by-product, as opposed to having print as the core and supporting digital, which is the legacy model," says Peter Goldstone, CEO at Hanley Wood."

"As a result of that reorganization, Goldstone says that while the majority of capital investment has gone towards technology and data infrastructure, as well as new talent, print is getting some resources too. Only now, the company can better determine where to best allocate the funds."

Note by John: As I've said numerous times before, 'print' will never go away completely. It will be used in a vibrant, different, but reduced mission. 

More details, including some neat charts showing publishing ad and revenue losses as well as print investments, are presented in this informative article by Bill Mickey in FOLIO magazine:

Managing Print Profitably 

Deciding whether to contain costs, invest—or both—in legacy products in the age of digital.

It wasn't too long ago that print was considered the center of the wheel from which all other product platforms sprang out of. That's still the case for most traditional publishers, but the newer product platforms are where all the action is now. Companies are declaring "digital-first" or "mobile-first" strategies with brand spin-offs that are anything but print.

So where does that leave the print products, the very brands that gave credence to the digital products and events that are now commanding greater shares of the topline as the magazines plateau or even contract? For some, it means feeding print just enough sustenance to keep lending the other platforms the brand equity needed for audience growth-while the vast majority of the capital investment is poured back into everything but print.

You don't have to look very far to see the trends. According to ABM's most current BIN numbers through August 2013, year-to-date ad pages declined 7.5 percent. Comparing that to the same period from 2008, b-to-b print advertising has declined 37 percent in pages. Most b-to-b publishing leaders will tell you that they don't expect those pages to return.

On the consumer side, full-year numbers provided by PIB show a 34-percent decline in ad pages between 2008 and 2013. The MPA has moved, smartly, from cheerleading print to a focus on magazine brands' cross-platform audience and advertising footprint.

And that's the story most traditional publishing CEOs will tell you. The focus is not on print anymore, it's on total reach. More specifically, it's about growth in digital and events.

The Value of Print

Executives say that readers and advertisers still value print, but those groups are shrinking.

At IDG, which among the other tech-oriented publishers has been a canary in the coal mine with its strategy of managing print against other lines of business, there's been a push towards digital and events for years. In the IDG Enterprise division, which has brands such as Computerworld, Infoworld and CIO, print revenues are now "comfortably under 20 percent" of gross, says IDG Enterprise CEO Matt Yorke.

"Print to profit is definitely something IDG has been talking about for at least five years," he says. But looking at print's contribution to the overall revenue pie has become more complicated. There's the pure financial allocation, but there's also the less tangible strategic view.

"We also look at it strategically in terms of the equity that print brings to the brands. The value, for example, of having a print vehicle that supports robust digital and event offerings. And if so, where is that value derived and how do we do our best to quantify that? Are we prepared to look at it as a marketing expense? Or do we think a particular brand has reached the point where there's far more value in digital and events and having print is actually stopping us from doing other things-therefore there's a negative value?"

 

The flip side, adds Yorke, is looking at opportunities that might become available if print wasn't part of the equation. They could be taking those resources and investing in platforms that offer a higher path for growth.

Active Interest Media, an enthusiast publisher in the outdoors, home, horses and marine markets, has a more stable view of print, but that's likely going to change in the long term. Print is still relatively strong in niche enthusiast markets, says AIM's president and COO Andrew Clurman. Aside from the newsstand, which is extremely challenged right now, subscription and advertising revenues are positive.

"We haven't seen any discernible fall-off in subscription interest and renewals or the core metrics around reader engagement and satisfaction," he says. "And for the overall print mix, we have been flat to slightly up in pages on a global basis."

Accordingly, Clurman says the company is putting about 25 percent more capital towards traditional consumer marketing efforts-direct mail, email marketing and other promotions. But there needs to be a payoff on the other side. The investment isn't arbitrary or done simply to prop up print.

"We're doing that based on our estimation that we're actually going to get a return on that," he adds. "So I think that speaks to the power of print in our markets."

Print revenues overall are just under 50 percent at AIM, with events adding 45 percent to the top line.

Nevertheless, when taking a longer-term view of print AIM is hedging its bets. The outdoor group, for example, is moving much more quickly towards a digital mentality, at least from a customer perspective, where marketers have become very sophisticated with their own earned and owned media efforts. And as that digital favoritism creeps into other markets, print's growth curve becomes pressured. Even now, Active Interest Media has a very conservative outlook for print.

"We don't see print as a growth business for us," Clurman says. "Our strategy is to go find the premier legacy media brands in the special interest markets that we're in, and those are almost entirely print magazine brands. That's the gateway and it gives us access and credibility to do all the other stuff which is to surround the print brand with events, digital and services."

The Influence of Print

At the same time, print still holds a cross-platform influence. "If you let the print brand slip, then people in those markets, whether they're readers or advertisers, will think the brand has lost its luster. That has an impact on everything else we do," says Clurman.

Article continues here

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Association Publishers Experimenting With Multiplatform Publishing

Association Publishing

Move over consumer brand magazines! You're not the only type magazines that are utilizing splashy, multiplatform formats; such as responsive design websites, e-newsletters, dedicated tablet and smartphone apps --- Non-profit associations and their plain print newsletters and magazines are moving in AND investing in the resources to expand beyond print to reach their members.

This is all in the name of immediacy and accessibility for the publishers' readers. Today, as we are all learning, the readers come first and they demand to read what they want when they want where they want and how they want.

And publishers who want to grow are spoiling readers to the hilt with on-demand immediacy and accessibility.

Tonight we will look at four case studies of how associations are engaging their members way beyond print and the takeaway lessons and business results of each case .

These case studies are neatly nestled in this article from FOLIO magazine:


Association Media: Case Studies in Multiplatform Publishing

How four associations are engaging their members well beyond print.

Immediacy and accessibility are vital for today’s publisher. And now, multiplatform publishing is no longer a luxury just for consumer brands with flexible liquidity. In fact, there are several non-profit association publishers investing in new product suites that include responsive design websites, e-newsletters and even dedicated tablet apps.

Here, FOLIO: looks at four associations that have expanded beyond print to reach their members on a variety of platforms and channels. And, in turn, have expanded their reach and grown their brands.

The SmithsonianWith 19 museums, a magazine, a tablet edition, a website and events, the Smithsonian has plenty of ways to reach its membership.

ASAEThe American Society of Association Executives launched a suite of new products in 2012—a website redesign, newsletter and dedicated app.

Society for Human Resource Management
SHRM’s media assets celebrate revenue generation as much as content creation.

The Sierra ClubThe organization’s “explore, enjoy, and protect” motto couples well with the non-profit’s push for reader interactivity.

Original research article is located here 

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Magzter, Digital Newsstand, Provides Global Digital Distribution

Talk about publishing with adrenaline pumping deadlines --- That's magazine publishing with weekly and monthly drop dead dates. Think about writing AND publishing a complete book every week or month. I know, they have staffs (some not so much, though) but an awful lot has to continually come together. I'd say the magazine publishing environment is to the publishing industry as the emergency room environment is to the health care industry.

Publishing a DAILY newspaper is another story --- How about writing AND publishing a book every day?

Magazines, once on the decline and now rising again, owe new successes to adapting digital business models. Selling, distribution and paywalls have been problems, but, they are obviously being solved.

Magzter, a two year old digital magazine newsstand, is bursting at the seams in growth because they are providing what appears to be the most comprehensive global distribution.

IF ONLY the digital book publishing industry had a similar global distribution mechanism! They don't have such a thing, do they? I guess Amazon, and maybe even Apple, have international customers --- but, do they wait for the customers to come or do they actively distribute to these customers?

Magzter has offices in India, London, Singapore and New York and has been making its way across Asia and Europe.

Could digital book publishing learn and take away something from the digital newsstands' biz models?

This from Bill Mickey, Editor of FOLIO magazine:


Hearst Signs on with Digital Newsstand Magzter

All U.S. titles, plus some international editions will be available.

Magzter, one of a burgeoning sector of digital magazine newsstands, has been courting the North American market, recently signing Maxim and Newsweek. The company just landed another big fish in Hearst, which has put all of its U.S. titles, and some of its international ones, onto the platform.

The two-year-old Magzter has offices in India, London, Singapore and New York and has been making its way across Asia and Europe, more recently setting its sights on signing up magazines in the U.S. The service now claims about 7 million app downloads from a collection of 1,500 magazines from 600 publishers.

Global digital distribution is something publishers are clearly interested in—the original digital editions were often used to grow international subscriptions without the cost of shipping print—and the various digital newsstands have differing degrees of regional representation. Magzter says its highest concentration of downloads are in the U.S., India, UK, China and Singapore.

Available platforms are currently iOS, Android and Windows 8.

For thepublishers that are able to, distributing tablet editions through as many outlets as possible has been the over-riding strategy. "We absolutely have to be wherever digital magazines are being sold and we were impressed with some of the marketing plans and objectives shared with us by the Magzter team," says Chris Wilkes, vice president of Hearst Magazines' App Lab. "As the space develops further, we think we will see many additional niche players enter the space successfully and we will want to partner with many of them."


Read and learn more



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Publishing and the Paper Industry

Pulp Mill
Paper Production
 

Studying the publishing industry aspects of paper also allows us to learn more about commercial paper, itself, --- an interesting little journey for those who take paper for granted and may not understand it fully. This will also shed light on why the physicality of a printed book is so much more intense than its digital, virtual  brother.

What would we do without paper? Think of all the things we use paper for --- from writing to making money of, all the way to ass-wipe and thousands of things in-between  --- not to mention the millions of things that paper is an integral part of.

Well, the publishing industry uses its fair share of paper and with the big move to digital has caused wild swings in paper prices the last few years.

But, according to inside analysts, good news may be breaking for the paper people.

Michael Rondon gives this insight in FOLIO magazine:

Paper Industry Begins to Stabilize

Things are beginning to stabilize after years of wild swings

It’s no secret that the paper industry has suffered through volatility as digital mediums wrest readers from print. The aggregate effects of publishers slashing pages and mills shutting down swung prices wildly over the past several years on yet another front of the battle between digital and print.

The market may be stabilizing though as paper mills adjust and page counts slow their decline.

For Terry Choate, president of Making Magazines, static pricing has been a function of the paper mill industry’s ability to manage their own supply.

“The paper mills have done a better job downsizing recently,” he     says. “[They’re at] the point where their capacity is pretty much in line with demand.”


(John's Note: CWT = 100 lb. weight; the 50,60,70 numbers in the first column above is weight (lbs) of a certain grade of paper in a standard configuration. Example from above table: #3 grade 50# paper costs $50 to $53 per 100 lb. weight) 

The other side of the pricing equation—demand for paper—has stayed relatively flat or declined slightly as of late, Choate says.

Ad pages, a generally reliable indicator of overall page counts, declined 8.3 percent for the industry as a whole in 2012, according to PIB. The numbers stabilized through the fourth quarter however, ending with a 7.3-percent reduction year-over-year.

The gradual stabilization of the paper mill industry, page counts, and therefore pricing, played out in last year’s fall increases. The 2012 catalog season saw a roughly $3/CWT bump across the board—a standard hike Choate says—but those prices have yet to come back down.

“It stuck,” he says. “Prices haven’t decreased since that [fall] increase. And that has to do with that consolidation of paper mills and bringing capacity in line with demand.”

Marie Myers, senior vice president of manufacturing at UBM, agrees. She’s seen the same prices holding in the market, as well.

“They haven’t really shifted one way or the other,” she says. “They’re holding.” The future is a little less certain though.

Read and learn more

A great related link: Printing is More than Reproducing Words and Images on Paper.

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Just What Is 'Content Licensing' ?

Guess what? Nobody knows exactly what the hell 'content licensing' is.

Like many things in the new, much uncharted, digital publishing universe ... the general concept is still in flux; but, getting it's focus little by little.

Content licensing implies monetizing written content in some way. And this is important for publishers to get right (after all it is money!). Exactly what is it, what and how to charge for it, how to police the contracted content for abuse, etc., etc., etc.

This insight from Stefanie Botelho in the Login section of FOLIO magazine:

Content Licensing: Making It Work for You

Publishers on creating an additional revenue stream, managing pricing and more

The term “content licensing” is an ambiguous one, especially among publishers. Some consider reprints and e-prints to be a full-fledged content licensing operation; while others leasing out logos and awards for third-party use count it as their content licensing service. Still others have moved custom publishing under the umbrella term of “content licensing”, with syndication often finding itself in this category as well.

Brian Kolb, vice president of Wright’s Media (which works with publishers like Forbes, LAPTOP Magazine and FOLIO: on content licensing deals) says, “We started doing this five years ago, which was the paradigm shift where many of the advertisers were gaining the content they wanted to use for free, like accolades, pull quotes, etc. In order to make up for the lost revenue from e-prints and reprints, we had publishers understand that shift and monetize the access they were giving away for free.”

For publishers who choose to monetize their property beyond advertising and subscriptions, vetting appropriate partners, managing the business and monitoring client contracts can equate to a full-time job. For what can seem like an overwhelming task, deciding which content to barter with may be the first step for companies considering a move into the content licensing business.

Offering the Best, Partnering with the Best

At Northstar Travel Media (NTM), VP of business development and licensing Sheila Rice says the publisher’s wealth of data drives its content licensing business. NTM’s central database includes 70,000 geographic places, 160,000 hotels, 54,000 hotel ratings, 900 convention centers, 30 million news alerts sent annually and a plethora of additional data (including visitor bureaus, cruise lines, ships and more).

“With the raw hotel data, I license it for public view and public use on large travel sites or OTA’s. My partners have the ability to choose the look and feel of how they present their data on their website because they have it in a raw format,” says Rice.

Read and learn more

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Editors - What they Make in 2011 - Too Much or Not Enough?

I have discussed 'editors' in some detail in previous posts.

There are many different types of editors ... from the wordsmithing, novelist-improving type --> all the way to the magazine management, operational business type (e.g. editor-in-chief, executive editor, senior editor, associate editor, managing editor, etc., ad infinitum!).

This FOLIO Magazine survey reflects the salaries of the latter business type (by category); where, I strongly suspect, the most money is.

From FOLIO by Stefanie Botelho:

2011 Editorial Salary Survey

While all levels of editors are finding themselves with increasing responsibilities and decreasing resources, at least some of those surveyed are seeing relief in their paychecks. However, the editorial categories that experienced monetary gain are certainly earning their dollars.

A vast amount of editors who participated in FOLIO:’s 2011 Editorial Salary Survey, conducted by Readex Research, claimed digital duties added the most to their job descriptions this year. One respondent says, “I am now in charge of managing edit for the iPad, tracking print contributions for our dotcom and repurposing content for our dotcom as well.” In addition to the health of digital products, social media site management is another digital responsibility put under the care of editors surveyed here.

Perhaps in a reflection of these additional responsibilities (or the slowly stabilizing economy), three out of the four geographic regions surveyed experienced a spike in editorial director’s/editor-in-chief’s salary; only the West experienced a drop, polling $83,000 in 2010 and $72,400 in 2011.

Advertising revenue is a major concern for editors in 2011, as a digital answer to decreasing print ad revenue has not yet been cemented. One respondent says of their biggest challenges, “Along with the increased focus on revenue and declining resources, I also have to counter the perception that print is dead.” Another respondent sees building new revenue streams to replace faltering print ad resources as one of the most formidable challenges at their publication.

Overall, respondents to this year’s survey are interested in keeping business viable, maintaining a capable staff and staying relevant in the evolving landscape. Editors find satisfaction in their jobs in a variety of ways through their products and industry. One respondent says, “I value seeing a finished product in my hands, happy readers and friendship in the industry."

SALARY BY CATEGORY: EDITORIAL DIRECTOR/EDITOR-IN-CHIEF

Overall, the editorial director/editor-in-chief sector saw its pay increase in 2011. While there is still a sizeable gap between genders, both female and male editorial executives experienced rises in salaries this year; male editoral directors are up at $99,300 from 2010’s $96,900, and their female counterparts earned $77,600, up from 2010’s $74,200.

Editorial directors in the New York city area saw a fruitful 2011, with their mean salaries up about $10,000 to $108,900. The same group earned a mean of $98,200 in 2010.

Read and learn more

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So Which Is It...Custom Publishing or Content Marketing?

The subject of this post is really a trick question...Simply because custom publishing and content marketing can be the same thing.

'Says Joe Pulizzi, founder of content marketing specialists Junta42: “We decided to go with ‘content marketing’ because brands didn’t get it—they automatically thought book publishing or print. The idea is that marketers need to be publishers today. When you talk to a brand, they get it right away.”'

The golden nugget in all things publishing has, is and always will be "King Content"...I've drilled this fact into many posts and other presentations. Success will be predicated on how we can mold, massage and present content...for whatever purpose.

FOLIO magazine presents these details by Matt Kinsman and Tony Silber:

The Content Marketing Revolution
How is content marketing a different business for publishers?

Each year the publishing world seems to become enamored with a new strategy that will redefine the industry. In 2011, that’s marketing services. Last month, Penton Media bought Washington, DC-based EyeTraffic Media, an online marketing firm, and in April is expected to announce a company-wide shift toward marketing services.

“If you look at Outsell, they say 60 percent of a marketer’s internal spend is going to their Web site and that it’s the biggest pain point,” says Penton senior vice president of marketing services Kim Paulsen. “We want to help companies do a much better job of utilizing their Web sites with great content and understanding social media. Companies all say they need a Facebook page or a Twitter feed, but they’re not sure what to do with it.”

Under the umbrella of marketing services comes “content marketing,” which really isn’t much different from custom publishing, it just sounds sexier (and more dotcom-friendly). “If you look at branded and custom content, it’s all the same,” says Joe Pulizzi, founder of content marketing specialists Junta42. “We decided to go with ‘content marketing’ because brands didn’t get it—they automatically thought book publishing or print. The idea is that marketers need to be publishers today. When you talk to a brand, they get it right away.”

Three big factors are driving the content marketing boom—brands’ focus on social media, search engine optimization and lead generation. “You need unique content for any of those three to work well,” says Pulizzi.

WATT Publishing is seeing dollars go to three particular areas online: ROI Integrated Marketing Programs (“After three long years of evangelizing measuring programs, we’re seeing traction,” says director of e-strategy and marketing Jeff Miller); virtual events; and custom programs/content creative that includes social networking and video. “We are providing a variety of new services including ‘ghost blogging’ and producing content intended to boost SEO,” says Miller.

A New Business Model

But while publishers may have offered successful custom publishing services in the past, content marketing as a business can be radically different from traditional publishing, from the client relationship to pricing and sales cycles.

Read and learn more

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The Economics of Content Marketing and Custom Publishing

The new growth business in the online publishing industry is a new strategy (perhaps just a revamped strategy) called 'marketing services'

New marketing services businesses, such as Outsell (and soon Penton Media), offer an array of flexible services to help publishers and commercial information providers identify and grow markets and revenue.

Custom marketing means something totally different in modern publishing than it did in traditional publishing (TP) and that's why TP people still don't get the importance of the newer business model concepts that can grow online money with lower margins than existed under the old TP models.

I just love reading about and understanding (when possible) the inside numbers and strategies that make a business (especially the publishing biz) go (or fail). I admit, upfront, that I'm no expert in this territory; but Matt Kinsman, managing editor of FOLIO magazine, has a lot of answers with this post in FOLIO:

The Content Marketing Revolution
Content marketing is hot but how does it compare as a business?

Each year the publishing world seems to become enamored with a new strategy that will redefine the industry. In 2011, that's marketing services. Last month, Penton Media bought Washington, DC-based EyeTraffic Media, an online marketing firm, and in April is expected to announce a company-wide shift toward marketing services.

"If you look at Outsell, they say 60 percent of a marketer's internal spend is going to their Web site and that it's the biggest pain point," says Penton senior vice president of marketing services Kim Paulsen. "We want to help companies do a much better job of utilizing their Web sites with great content and understanding social media. Companies all say they need a Facebook page or a Twitter feed, but they're not sure what to do with it."

Under the umbrella of marketing services comes "content marketing," which really isn't much different from custom publishing, it just sounds sexier (and more dotcom-friendly). "If you look at branded and custom content, it's all the same," says Joe Pulizzi, founder of content marketing specialists Junta42. "We decided to go with ‘content marketing' because brands didn't get 'custom publishing'---they automatically thought book publishing or print. The idea is that marketers need to be publishers today. When you talk to a brand now, they get it right away."

While print still dominates the custom market ($24 billion was spent on print production and distribution in 2010, compared to $3.6 billion spent on other forms of content according to a new report from the Custom Content Council and ContentWise), three big factors are driving the content marketing boom today--social media, search engine optimization and lead generation. "You need unique content for any of those three to work well," says Pulizzi.

Read and learn more

The Web is Dead? Say What?

Some experts and execs in media are saying the web is dead (RE digital publishing)...That the relay wand has been passed from the "open web" to the "app Internet."

Pure cow chips!

The main reason the open web will thrive and grow in offering good published works is the consumers never-ending pursuit of the cheapest (or most value) content in lieu of paying more for piled-on-costs items such as Apple's required in-app purchases and 30% cut for selling!

This insight from FOLIO magazine's "Login Section":

THE WEB IS DEAD?

Execs say the torch has passed to the "app Internet."

There was a question during a session at the DeSilva+Phillips Media Dealmakers Summit last month that crystallized what a lot of people are thinking about the future. "Are tablets and e-readers the future of media?"

For George F. Colony, CEO of Forrester Research, the answer was simple: "Yes. These devices are the nexus of media."

"Not only are tablets the future," Colony said, "but We think the Web is dead." "It may always be there," he said, "but it's not the future." "Nor are e-readers--devices like Amazon's Kindle." "There's one advantage to those things and that's that they can be read on the beach," he said. "That's not enough."

Not surprisingly, not everyone agreed. Some of the comments provoked strong response from FOLIO readers.

"Baloney," said Eric Shanfelt, founder of e-Media Strategist Inc. "The Web is thriving, growing and not even at full maturity yet, let alone being dead. Apps are a piece of the media puzzle, but the real money for media companies is still in Web and e-mail and will be for a long time to come."

Open-sourced, Web-based solutions remain attractive. "Apple's actions--essentially turning the eBook and eMagazine businesses on their head by requiring in-app purchases and a 30 percent cut for Apple--demonstrate why Colony and Forrester are wrong," said Len Feldman, author of The Feldman File Blog. "So long as Apple, or any company, can change the rules without warning, there's a strong incentive to use the Web as an open alternative."

And how many can afford to give up print? "The question that should have been asked of the attendees was: "How many of you will still be in business a year from now if all your print and event revenues went away today?" wrote one reader. "Those that raised their hands were the people that should have been on the discussion panel."

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Digital Magazine Covers Now Mini-Movies!

And the world of complex content moves ever onward. At the recent MPA Digital E-Reading event, Esquire magazine introduced some of its unique covers that actually come to life as videos if you press the play button.

The already unique Esquire covers have become what I term "action-unique"...

Matt Kinsman of FOLIO magazine shares more detail:

VIDEO: Esquire's Mini-Movie iPad Covers

At the MPA Digital E-Reading event yesterday, several publishers shared "Two-Minute Drilldowns" of some of their best app ideas. Esquire associate editor Julian Sancton shared how the magazine has turned some of its iPad covers into almost "mini-movies," including live action direction of its subjects, such as "Sexiest Woman Alive" Minka Kelly doing her thing and actor Liam Neeson (a former boxer) throwing a couple shots at the cover/screen. (Sorry about the obligatory sponsor message but it's worth the wait.)

Read and learn more AND view a video "action-unique" cover

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More on Apple's Dictatorial Asininity

Please read my two posts on the Publishing/Writing: Insights, News, Intrigue Blog RE specific Apple issues with publishers' content management for background on this post.

Apple is further restricting access apps for other than Apple devices (e-readers, tablets, etc) to read mags and newspapers to be offered through their iStore...even to the point of forcing some to have to buy Apple's own iPad tablet if they want to read the iStore offerings.

At least, that is the way this humble boob interprets the situation.

In my past posts, referenced above, I discussed Apple's outrageous fee (30%) charged to publishers who want to sell their content through the iStore, AND the fact that Apple did not want to share the subscribers data with the publishers...A BIG mistake.

Me thinks Apple is getting too big for it's britches...and they should stick to selling devices and not messing with content and all it derives.

Wonder if Apple's deal with Rupert Murdoch's "The Daily" has influenced the "money-grabbing" messy management?

Apple is definitely not the only kid on the tablet block anymore (and probably doesn't even have the best tablet computer!) with the introduction of Motorola's Xoom among others.

I believe Apple is managing itself into the cellar...and they will need a completely "new device" to start over again. They are taking the bite out of their own apple!

Matt Kinsman, managing editor of FOLIO magazine, has more details RE Apple's tightening grip on content sales:

Apple Rejects Sony Reader App, Tightens Grip on Content Sales
From now on, all in-app purchases must go through Apple.

Apple has reportedly rejected Sony's reader app from the App store for selling content within the app and letting customers make purchases outside the App store (such as within the Sony Reader Store, according to The New York Times.

From now on, all in-app purchases have to go through Apple, according to Steve Haber, president of Sony's digital reading division. "It's the opposite of what we wanted to bring to the market," Haber is quoted as saying by The Drum. "We always wanted to bring the content to as many devices as possible, not one device to one store."

The news comes the day before Apple and News Corp. are supposed to debut News Corp.'s new digital magazine The Daily, and many observers predict Apple will use that opportunity to unveil a new subscription system.

Read and learn more

Who Controls Social Media?

From outside the publisher's world, no one should control social media from my blurred point of view. Speaking just as an outsider (my specialty) and everyday web surfer, I like to think everything "internet" is open and free with no underbelly of strategic plotting behind every damn piece of content to "hook" me into doing something that I probably really don't want to do in the first place.

Just let social media develop naturally and be formed (and, yes, controlled...if there must be any control) by those visiting for their own enjoyment and seeking like-minded folks.

But, realizing that many things (if not all) on the web are free due to a secret source of monetization coming from some damn hidden place, I have to put on my magic pragmatic glasses and peer into the sucky-sucky world of internet control for money, money, money. You know, advertising and marketing...with actual content coming in last most of the time.

So, going undercover inside the publisher's world with my magic glasses, I found some interesting insights into this topic from Matt Kinsman, executive editor at FOLIO magazine...Insight further honed from his attendance at the MPA's (Magazine Publishers of America) Social Media conference yesterday:

For Publishers, Who Are the Gatekeepers of Social Media?
Who gets the keys to the engine, edit, sales or marketing?

Ten years ago, as the prospect of monetizing Web sites started becoming a reality for publishers, different departments butted heads over prime real estate: editorial wanted it for content; sales wanted it for advertising; marketing wanted it for promotion.

Today, as the emphasis shifts away from publishers serving their audience on their own Web domain into places that are daily destinations (such as Twitter and Facebook), publishers are again faced with the question of who controls what (and it's even more important today because social media offers the chance to directly engage with--or alienate--your audience).

That was a key debate at MPA's Social Media conference yesterday. "Should all stakeholders be given the capability to tweet?" asked Matthew Milner, vice president of social media at Hearst, and moderator of a session called Who Controls Social Media at Your Magazine Brand? "And is the ultimate stakeholder necessarily editorial, or marketing, or could it even be the technology department, which may ultimately own the cost of social media?"

For Time Inc., social media is very much an editorial enterprise (last fall, a survey by The Wrap found that five of the 10 magazines with the most Twitter followers were Time Inc. brands). The publisher even maintains a team dedicated to fine-tuning Twitter captions. "Social platforms can be remade in your own image," said Jim Frederick, managing editor of Time.com and executive editor of Time.

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Publishing is Drowning in Ads!

Ads, ads, ads and more ads! We get bombarded with them everywhere! Not only in digital publishing, but in print, too. They are all over the place on the internet (hell, even on the Merriam-Webster online dictionary when you look up a word!) AND even on the covers of print magazines in the form of corner page-peels, belly bands, ad “windows” of varying sizes and false, glued-on covers and gatefolds#@*%?!

Now, I can understand a reasonable amount of ads to make up lost revenue due to faltering subscriptions, etc...BUT, damn, have a little consideration for the consumer.

My advice to advertisers: Don't overplay your hand! Consumers are overwhelmed with legit data as it is, but the more ads they have to wade through just dilutes not only their effectiveness but the legit site content they are placed on gets a bad rap as well.

A good example of this conundrum is illustrated in this article by Jason Fell in FOLIO magazine:

Does This Cover Push the Ad/Edit Line Too Far?


I’ve seen my share of advertisements on magazine covers over the last couple years. I’ve seen corner page-peels, belly bands and ad “windows” of varying sizes. I’ve also seen false, glued-on covers and gatefolds.

Something like this, however, I haven’t seen.

The cover of the October 7 issue of Canon Communications’ EDN magazine [pictured top, left] features the EDN nameplate as it usually would, but the remaining two-thirds—which normally is devoted to editorial—is all advertising. The space is shared by an ad from a company called Avago Technologies and a corner page-peel ad from Digi-Key Corp (which also has a full-page ad inside the magazine).

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E-Media Revenue Numbers - A Reality Check for Mags

Since the intro and explosion of digital media and publishing, how are the e-media revenues shaping up?

How are the profit margins changing?

What are the current realized earnings for small to large publishing firms now riding on the digital pony in the internet rodeo?

Well, for those who like charts and numbers (and interesting they are), I am presenting a great layout by Matt Kinsman, Executive Editor, at FOLIO magazine:

Digital is the priority for most publishers, yet many executives have had to re-adjust their e-media forecasts just as they did with more traditional revenue streams such as print and events. Online ad spending in the U.S. dropped 5 percent to $5.5 billion in the first quarter of 2009 and 7 percent to $6.2 billion in the second quarter, according to market analyst IDC.

Digital revenue remains relatively small, despite massive percentage growth in recent years (and massive slumps in traditional revenue streams). “Those who have been aggressively pursuing digital will likely see it between 8 percent and 15 percent of the overall revenue mix,” Deborah Esayian, co-president of Emmis Interactive told FOLIO: recently.



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Video In Print Magazines

Ever since Entertainment Weekly put a video (chip?) in an issue of their print magazine awhile back I have been mesmerized with the concept. Now Meredith Corp.’s Successful Farming has included a video ad in their August issue.

I am still like a kid in an astrology lab, being completely blown away with all the new wonderment! This video-in-print-pages process, I admit, I don't understand...but, I'm just flabbergasted by the whole reality of it!

Jason Fell, FOLIO magazine, wrote this fine piece today about video in print:

It was only a matter of time before more print magazines followed Entertainment Weekly’s footsteps and start incorporating video elements into their print magazines. Next up on the list is Meredith Corp.’s Successful Farming, which partnered with advertiser Bayer CropScience to develop a video insert that appeared in the August issue.

According to publisher Scott Mortimer, Successful Farming and the pesticide company—through its communications agency Rhea+Kaiser—began collaborating on the initiative more than six months ago. The ad, for Bayer’s Votivo product, is a four-page insert that includes a two-inch-by-two-inch video screen on page 20 of the magazine. The screen plays an opening message when a reader opens to the page and then four additional videos depending on which buttons the reader pushes.

The video ad insert was distributed to 17,000 of Successful Farming’s subscribers. The magazine helped cross reference its sub list with the Bayer CropScience’s database in order to target the most qualified potential customers for the Votivo product.

Read more and see a demonstatiion video at http://alturl.com/v5vkj

Special Report: E-Reader Revolution in True Digital Format!

For those who have not experienced the new digital ambiance through an e-reader and all it's convenient interactivity, todays post will take you there through FOLIO magazine's special report:

THE E-READER REVOLUTION: Digital Magazines, Mobile Media, E-Readers and the Opportunities for Media Brands


If anything, this year will be a year of transformation for the digital magazine, driven by an exploding mobile device market, including e-readers and tablets. Publishers have renewed their interest in producing digital editions for these new platforms while simultaneously continuing to distribute “traditional” digital replicas of their magazine brands. Here, we check in with vendors and publishers for an update on the state of the digital magazine, its new opportunities and where it’s headed. ■

CLICK HERE to view this digital report in its entirety in true digital format.

Penton Media to File for Chapter 11 Bankruptcy

Penton Media, one of the giants in business-to-business and trade publications, had to restructure it's debt load or die! They have done so and I, for one, am greatly relieved they have survived...What would we do without Barron's, FitPregnancy, Musician's Friend, Museum of Modern Art Design Store Catalog, Crutchfield, Broadcast Engineering, Radio Magazine and so on and so on and so on! Penton publishes in 17 different industry markets...Can you imagine!

Jason Fell of FOLIO magazine describes Penton's reorganization and shedding of $270 million dollars in debt:

Trade publisher Penton Media Tuesday announced that it has reached an agreement with its lenders on the terms of a restructuring through a pre-packaged Chapter 11 plan of reorganization. If approved, the plan is expected to eliminate $270 million in debt.

In addition to the agreement, the company said a number of its existing shareholders have agreed to make “a significant” new investment in the company. When contacted by FOLIO:, a Penton spokesperson declined to say exactly how much of an investment will be made.

In financial restructurings, it's common for an equity exchange to happen between company owners and their lenders. The spokesperson, however, said there will be no changes in the company’s ownership, which includes MidOcean Partners and Wasserstein & Co. No layoffs are associated with the restructuring, she said.

Roland DeSilva, co-founder and managing partner of media investment bankers DeSilva + Phillips, called the Chapter 11 filing “unfortunate” but said the restructuring, overall, is a positive move for Penton. “Penton is going through an effective transition from a traditional b-to-b publisher to an information and digital media company,” he said. “This reorganization will be effective because Penton will now be able to manage the transition in the markets as opposed to managing the balance sheet and servicing the debt, which was the problem.”

Last fall, Penton hired global investment bankers Rothschild Inc. to assist with an evaluation of its current capital structure. MidOcean and Wasserstein acquired the company in 2006 for $194.2 million, plus assumption and payment of debt, putting the total value of the deal at $530 million. The company’s current debt has been estimated at close to $1 billion.

The Penton spokesperson, however, declined to say how much debt Penton carries and said she was not immediately sure what type of debt will be eliminated as part of the pre-packaged reorganization plan.

In announcing the reorganization, Penton CEO Sharon Rowlands called the restructuring a “positive, strategic step” for Penton. “This restructuring will allow us to achieve a debt level that is more sustainable in the current economic environment. With a strengthened capital structure, we will be better positioned to fully leverage our operations, which have been and continue to be profitable.”

Penton said it will operate with “business as usual” through the restructuring process. It said it expects to emerge from Chapter 11 within 30 to 45 days.

Lebhar-Friedman Sells Dowden Professional Publications

Publishing Executive, FOLIO and other publishing industry sources have reported that Lebhar-Friedman, an 80 year old B2B publisher, has indeed sold its medically oriented Dowden Professional Publications Division.

FOLIO's Jason Fell reported:

Trade publisher Lebhar-Friedman has sold Dowden Professional Publications to multimedia communications company Quadrant HealthCom Inc. Financial terms were not disclosed.

Included in the deal are Dowden’s four medical journals: OBG Management, Current Psychiatry, The Journal of Family Practice and Mayo Clinic Proceedings. Also included is its events division.

According to Lebhar-Friedman president Roger Friedman, the sale allows the publisher to better “concentrate” its media strategies. About 30 Dowden Professional Publications staffers are expected to relocate to Quadrant HealthCom Inc.’s headquarters in Parsippany, New Jersey.

What the deal means for the remaining Dowden properties was not immediately clear. A Lebhar-Friedman spokesperson did not immediately return a call seeking comment.

Quadrant HealthCom publishes nine medical journals and their affiliated Web sites serving a number of markets, including dermatology, primary care, neurology, emergency medicine and women’s health.

One investment banker contacted by FOLIO: said the deal seems “surprising.” “It must have been for a robust price,” the banker said. “Lebhar-Friedman seemed to love this business. Health care media is still a desirable sector.”

Lebhar-Friedman acquired Dowden Health Media in 2005, effectively expanding the company beyond the retail and foodservice markets it had traditionally served. The purchase was financed through GE Commercial Finance Global Media & Communications.

According to its Web site, Dowden Health Media also publishes the Annals of Clinical Psychiatry (American Academy of Clinical Psychiatrists), Current Clinical Practice, and Sexuality, Reproduction & Menopause, and produces APCToday.com. The division also includes the Medical Education unit and Dowden Custom Media, which develops and produces custom publications, interactive e-media solutions and live multi-channel events for healthcare organizations.

Last week, Lebhar-Friedman announced leadership changes in both advertising and editorial for its Nation’s Restaurant News publication

The Media Company Of Tomorrow

With the transformation taking place in the publishing industry and the seemingly indisputable decline in print revenues, one wonders what the future of the media company will metastasize into.

Tony Silber of Folio Magazine relates what F+W Media Company's CEO David Nussbaum
thinks the future media organization will be like:

'One of our keynote presentations at the virtual FOLIO: Show Virtual last week included a panel of leading executives in the industry, including F+W Media CEO David Nussbaum.

Nussbaum gave one of the most provocative responses during the hour-long discussion, essentially saying that print advertising is an irrevocably declining source of revenue, and that companies that don’t recognize that do so at their own risk.

As it turns out, Nussbaum jotted down some notes to the questions I asked the panelists to consider in advance. Here are Nussbaum’s notes, with the questions that prompted his thoughts.

Q: When will the industry see some recovery?
A: This is totally unclear, but there is a sense that we have found the bottom of the market. However, with consumers still under siege (credit difficulties, high unemployment, no or low salary increases), it is hard to see what the impetus will be for growth.

Q: What will the recovery look like?
A: I don’t think it will be ad driven. But rather, we’ll see an expansion of marketing budgets looking for “non-traditional ways to reach buyers.” That will mean everything from custom content solutions, to one-to-one marketing, and expanding our portfolio around our core brands to create new, profitable products and subscription services, like Webinars, which are a growing part of our business.

Q: Will we see the robust industry health of 2005 to 2006 again?
A: I really don’t know.

Q: How will the business be different going forward?
A: In a few ways.

1. Print advertising will continue to be a no growth-to-declining business.
2. Events will rebound, but event producers will need to find a way to mitigate the high costs of exhibiting.
3. High quality and unique content, always at a premium, will be even more important as the Holy Grail of dollars for content will become even more intense.
4. Staff size will be kept lean, with those making it through the recession owning a wider variety of skill sets than those who came before. We need to be bringing new talent to the industry from outside our standard recruitment channels, and producing new ideas across e-commerce, retail, social media. There’s no limit to what we can learn.
5. Online advertising rates will continue to erode, but engagement will be at a premium.
6. Social networks, location-based marketing, custom content selection—these will all be critical for future media providers. And those who aren’t already building their communities may get left behind.

Q: Are media companies being disintermediated on the reader side through social media and blogs?
A: Yes and no. Yes in that there is much more competition for community building, for content presentation and for lead generation. No in that media companies are becoming strong participants in the blogosphere and in using social networks to both build community and drive traffic to sell stuff. F+W and other enthusiast media companies have a unique advantage in that our communities already exist, created around a common interest or goal. Being of and in the community, and respected and trusted though our own blogs, positions us well. Social media interactions are the key.

Q: What are the most important things media companies can do now? Adjust organizational structure? Change their approach to content creation? Layoffs? Debt reduction?
A: Media companies need to find a way to focus as vertically as possible, make community building the core of existence, ensure that staff is cross-trained, fleet of mind, and willing to adapt to radical change comfortably. Portfolio management is critical. Organize your resources around the core communities and properties with the most opportunity for success.

Q: What will the media company of 2012 look like?
A: Community focused, really good at demographic analysis, excellent at nurturing around verticals, diverse in terms of product offerings and delivery systems, Web centric, advertising will be considered gravy, customers pay for content and contribute to the creation of content.

Q: What is the most important lesson og the 2007-2009 recession?
A: The sheer desire of people to adapt and to participate in tomorrow. I have really been impressed with the willingness of people to learn and to change.'

115 Magazine and Media Predictions for 2010

Here are great insider, professional & industry predictions for 2010:

Jason Fell and FOLIO: has reached out yet again to a wide selection of magazine/media industry professionals—publishers, editors, chief executives, dealmakers, bloggers—to channel their inner Nostradamus and work up some predictions for 2010. Which magazines will survive? Which won’t? Which technologies will propel the industry next year? Some responses were humorous. Most, understandably, were serious. Whether or not 2010 proves to be as grim and depressing as 2009, one thing seems clear: next year should shape up to be just as volatile in terms of technology and evolving business models, if not more so, than 2009.

Put on your seat belts, folks. The roller coaster of a year that was 2009 is grinding to a halt and 2010 is getting ready to blast off.

We saw bankruptcies. Layoffs. Shuttered magazines. Shattered dreams. But it’s nearly 2010, dammit. That’s all behind us now. Right?

Well, maybe not.

Keeping with tradition, FOLIO: has reached out yet again to a wide selection of magazine/media industry professionals—publishers, editors, chief executives, dealmakers, bloggers—to channel their inner Nostradamus and work up some predictions for 2010. Which magazines will survive? Which won’t? Which technologies will propel the industry next year? What are the keys to staying in business while hopefully making a profit in the process?

Some responses were humorous. Most, understandably, were serious. Whether or not 2010proves to be as grim and depressing as 2009, one thing seems clear: next year should shape up to be just as volatile in terms of technology and evolving business models, if not more so, than 2009.

So, here you have it—115 (give or take) magazine and media predictions for 2010, mostly unedited and in no particular order. Get it here: http://alturl.com/55az