Monday, May 07, 2007
Circulation figures don't tell whole story
Earl Maucker
Editor
http://www.sun-sentinel.com/news/opinion/columnists/sfl-emcol06may06,0,1139889,print.column
Back in the 1960s when I was a paperboy for the Alton Telegraph, I used to groan each time I received a new subscription order. One more paper to deliver, I thought, more weight in the bag, more time on the route -- less time for play.
Ah, for the good old days of circulation growth.
Fast forward to 2007 and once again we're reminded in stories this week that circulation of newspapers across the U.S. is in decline.
Pretty dismal stuff, it would seem.
But wait. Let's take a deeper look at the facts before we start writing off the future of newspapers.
Yes, circulation figures are dropping in most regions of the United States. That's hardly surprising in today's environment, with so much media fragmentation, so many ways to get news and information.
In reality, some of the circulation declines are deliberate, as publishers seek value from papers they do distribute.
More and more newspaper companies are limiting or eliminating entirely the newspapers they give away for free or at a major discount because, generally, those newspapers are not well read.
But beyond the number of newspapers in the market, experts and analysts in the business say newspaper advertisers care more about readership, which measures whether people are actually reading the paper instead of tossing it into the recycle bin without so much as a glance.
Our focus here at the Sun-Sentinel has been on home delivery or single copy sales, areas where we believe there is substantial value.
The agency that monitors circulation of newspapers is the Audit Bureau of Circulation, which, in my opinion, is still back in the 1960s in the way they count and report numbers.
Sure, they break it down even to the zip code level. They calculate circulation in the primary region and secondary regions of the newspaper's market, individually paid subscriptions, bulk sales, third-party sales and a host of other metrics including total readers of the daily newspaper.
But what they don't report is the total audience a media company like the Sun-Sentinel reaches through its various publications and electronic channels.
Even with fewer copies on the street, our readership is up from what it was two years ago.
The published audits do not take into account the impact of the Internet or subsidiary publications.
We, like most major newspaper companies, are major players in this relatively new, still-evolving medium.
For us, it's Sun-Sentinel.com
Which, by the way, has grown in audience traffic every year it's been in operation.
"We're seeing good audience growth online. So far this year, our Sun-Sentinel.com page views -- one way we measure our audience -- are up more than 12 percent over the same time in 2006," said Kathy Skipper, vice president & general manager for Sun-Sentinel Interactive. "We believe several things are contributing to this growth -- regular news updates, more video and more databases that are focused on helping consumers.
Combined with millions of page views per month on our Internet site and the distribution of our main newspaper, plus niche products like the Jewish Journal, City & Shore magazine, City Link, Teen Link and other products, our total audience reach has grown tremendously over the past few years.
"We recognize that in order to reach our audience effectively we must serve our customers on multiple platforms," said our General Manager Howard Greenberg. "Through Forum Publishing we have the largest family of weekly community publications in South Florida as well as the largest Spanish language audience in the Broward-Palm Beach market through el Sentinel, our Spanish language weekly."
No one is denying that newspapers are dealing with enormous challenges in today's world of fragmented media and the influence of the Internet.
But newspapers and the journalists that work on them have a healthy future ahead, as we transform our business to the new world of multiple media.
The good news is that the appetite for news has never been more robust.
We intend to serve our customers the way they like it.
Sunday, May 06, 2007
Publishers Hear Digital Fingerprinting Pitch
| ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "Heard on the Web" Media Intelligence: Courtesy of BoSacks and The Precision Media Group BoSacks on the WebAmerica's Oldest e-newsletter est.1993 The BoSacks Blog Spot Click here to forward this email ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | |
| "The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled." Andrew Carnegie (Scottish born American Industrialist and Philanthropist. 1835-1919) Publishers Hear Digital Fingerprinting Pitch | |
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E-Media, Postal Rates on the Minds of Western Publishers
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| "It is easy when we are in prosperity to give advice to the afflicted." Aeschylus (Ancient Greek Dramatist and Playwright known as the founder of Greek tragedy, 525 BC-456 BC) E-Media, Postal Rates on the Minds of Western Publishers | |
| Responses to all Articles and Bo-Rants are greatly encouraged and may be included in " BoSacks Readers Speak Out" "Heard on the Web" Media Intelligence: Courtesy of The Precision Media Group.
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Where The Book Business Is Humming
| ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "Heard on the Web" Media Intelligence: Courtesy of BoSacks and The Precision Media Group BoSacks on the WebAmerica's Oldest e-newsletter est.1993 The BoSacks Blog Spot Click here to forward this email ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | |
| "The oldest books are only just out to those who have not read them." Samuel Butler (English novelist, essayist and critic, 1835-1902) Where The Book Business Is Humming | |
| Responses to all Articles and Bo-Rants are greatly encouraged and may be included in " BoSacks Readers Speak Out" "Heard on the Web" Media Intelligence: Courtesy of The Precision Media Group.
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Saturday, May 05, 2007
What to Do When Rupert Calls?
ANDREW ROSS SORKIN
http://www.nytimes.com/2007/05/06/business/yourmoney/06deal.html?_r=1&adxnnl=1&oref=slogin&ref=yourmoney&adxnnlx=1178403919-NiDbnjLQqY6pQzLHofJHrQ
I DON’T regularly watch the Fox News Channel, but when I do, I hardly think it is “fair and balanced.” I confess to reading The New York Post, but more as a delicious treat than a trusted news source. When I lived in London, I picked up The Times of London on my way to work every morning, but felt that the once-august publication had moved a bit down-market.
As we all know, Rupert Murdoch is the owner and steward of each of those media enterprises. And the Bancrofts, the family that is the controlling shareholder of Dow Jones, last week found themselves in a difficult position — forced to consider selling the family’s beloved journalistic jewels to Mr. Murdoch, and not just because his offer of $60 a share is so extraordinarily large.
With some hesitation, given Dow Jones’s storied place in American journalism, let me explore a contrarian view: Mr. Murdoch may be the perfect publisher of The Wall Street Journal.
First, a couple of stipulations: Dow Jones, like the entire newspaper industry, is struggling. It is suffering a slow decline by a thousand cutbacks, notably abroad, where the company has retreated from building its European and Asian editions of The Journal. The company’s staff, like the physical dimensions of the daily newspaper, has been reduced.
Many Journal reporters and editors have bridled at the prospect of a takeover. Jesse Drucker, a Journal reporter and representative of the paper’s union, sounded the alarm in an e-mail message to his colleagues courting them to protest the deal. In his message, he suggested that the Bancrofts’ opposition so far to a deal “indicates that they are committed to maintaining the quality of The Wall Street Journal and all of Dow Jones’ publications and products.”
But an uncomfortable truth remains. The current state of financial affairs — caused by the continuing withering of print advertising revenues, shifting reader demographics and the seismic upheaval of the Internet — has made it extremely hard to continue “maintaining the quality” of The Journal (despite its clutch of Pulitzers) because sources of fresh investment funds are drying up. Dow Jones’s cash reserves have been further strained by the hefty dividends the Bancrofts have pushed for over the years. (Big dividends are in vogue in some newspaper quarters; The New York Times Company, for example, recently raised its dividend.)
So along comes Mr. Murdoch, who says he plans to invest more money in Dow Jones than anyone else imaginable. During an interview in his office on Thursday afternoon, he had this to say of the $5 billion price tag he had just attached to Dow Jones: “We don’t see that as the total investment at all.” In other words, even more money is on the way.
Mr. Murdoch spoke enthusiastically about opening new bureaus and expanding others. He wants to reverse The Journal’s diminished international strategy by investing heavily in the paper in Europe and Asia. He says he is spoiling for a fight with The Financial Times, in much the same way that he took the left-for-dead Times of London and made it a real competitor to The Telegraph. He talked about spending money on marketing and on greatly expanding The Journal’s brand online, leveraging the many media businesses he owns around the world.
The Bancrofts — like the Grahams, who own The Washington Post, and the Sulzbergers, who own this newspaper — are part of an important, even noble, tradition: family ownership of media enterprises dedicated to probing, sophisticated coverage of the world around them. Mr. Murdoch, for the most part, is part of a different journalistic tradition: sensationalism. So the Bancrofts, on journalistic grounds, have good reason to be wary of Mr. Murdoch.
Mr. Murdoch is also part of another tradition: farsighted, creative and risky business gambits. He has made piles of money by thinking ahead of many of his competitors. The Bancrofts have presided over a company that once held a dominant position in business journalism, and they let that lead, and the financial gains that came with it, slip through their hands.
As they confront their continuing financial challenges, the Bancrofts can sit around and pray that a deep-pocketed white knight emerges — Warren E. Buffett, Bill Gates or The Washington Post are said by insiders to be favored choices — but it’s hard to think that even if such potential suitors did buy it they would seriously invest in the business the way Mr. Murdoch claims he would. It could result in just another holding pattern.
The Bancroft family certainly faces a difficult choice, in no small part because Mr. Murdoch, despite promising to insulate The Journal by giving the paper a separate board, may still turn The Journal into the kind of media circus we otherwise know as Fox News and The New York Post. Still, it’s curious that the Dow Jones board has not pushed the Bancrofts harder to at least engage in discussions — because it’s so clear that if the board had considered Mr. Murdoch’s offer in a vacuum, it would have accepted it faster than you can say “Introducing the New Fox Journal Channel.”
Having said that, the Dow Jones board — which is being advised by Arthur Fleischer Jr. of Fried Frank Harris Shriver & Jacobson, Richard I. Beattie of Simpson Thacher & Bartlett, and Goldman Sachs — has no duty to consider the bid unless the family were to acquiesce first. (An aside: Has anyone on Wall Street found it odd that Goldman Sachs, which has been a longtime banker to Mr. Murdoch’s company, the News Corporation — John Thornton, a former Goldman president, is a News Corporation director — is now representing Dow Jones, with which it has never had a relationship before? How hard do you really think Goldman is going to push the News Corporation, considering that if a deal is ever struck, Goldman will want to make Mr. Murdoch’s company a client again?)
Dow Jones’s chief executive, Richard F. Zannino, appears to be a clear advocate of a sale to Mr. Murdoch, describing the benefits of a deal to the board this week, according to people at the meeting. A week before Mr. Murdoch made his bid, the two men had breakfast in Mr. Murdoch’s office. Mr. Zannino has been flirting with Mr. Murdoch for years — often over meetings put together by bankers like Mr. Murdoch’s longtime adviser James B. Lee Jr. of JPMorgan Chase. The News Corporation is also being advised by Nancy Peretsman of Allen & Company and Blair W. Effron of Centerview Partners.
Mr. Zannino stands to make a handsome personal profit if Dow Jones is sold, of course, but when the chief executive thinks that it is better to sell the company than to keep it, shareholders should consider that a clear sign that some sort of financial impasse has been reached.
The Bancrofts have clearly reached such an impasse — some of it of their own making and some of it attributable to revolutionary business shifts beyond their control. If the family cares about preserving the Dow Jones legacy and seeing the company continue to flourish, it’s time to be financially creative. Rupert Murdoch is knocking on their door.
Friday, May 04, 2007
Time Warner's Parsons: I Won't Sell Magazine Biz
by Jon Ogg
Filed under: Television, Time Warner (TWX), Interviews, News Corp'B' (NWS), Dow Jones and Co (DJ)
http://www.bloggingstocks.com/2007/05/03/cnbcs-maria-bartiromo-interviews-twxs-dick-parsons/
CNBC's Maria Bartiromo has interviewed Time Warner Inc's (NYSE: TWX) Dick Parsons about a myriad of issues, and more of this will be showed later.
She asked Parsons about selling the magazine business: He noted that it has acquired magazines and that it has been pruning that back to what it thinks works inside the company. Parsons said he likes magazines and publishing and will stay in the field, which he has maintained before.
Bartiromo also asked him about the integration of print to online via AOL, People.com, Time.Com and the like: Parsons said letting AOL integrate all the properties didn't work from the start. AOL is a broad portal and the company wants to make its content available across many platforms and many formats. It wants to distribute as much content as it can. As far as keeping AOL, Parsons said it is increasing performance and once Wall Street understands that this is a sustainable model enabling it to grow faster than the industry as a whole, there will be more support of this strategy.
Bartiromo also asked "How do you drive revenues into new products at AOL?" Parsons noted that AOL needs users rather than subscribers. It wants to bring back people who left AOL (or those who were never there), and monetize the visits to keep revenues growing. AOL is in a growth mode again, he said. Bartiromo noted that the cash flows are something to be jealous of and asked about private equity. Parsons said they (private equity) are looking at committing capital to everything. The current construction of AOL is the horse to ride, and that's the plan.
Bartiromo's interview was pre-recorded and Parsons' message about his opinion on the News Corp (NYSE: NWS) offer to buy Dow Jones (NYSE: DJ) will be a topic. Stay tuned......
Publishers Hear Digital Fingerprinting Pitch
by Karlene Lukovitz
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59820&Nid=30069&p=204904
WATCHING GOOGLE AND VIACOM DUKE it out in court is interesting, but in the real world, publishers and other site owners are more interested in finding a practical way to monitor who's using their content and either get some reimbursement or get it off the Web.
As the business world read about Google/YouTube filing for a dismissal of Viacom's $1 billion copyright infringement suit earlier this week, a group of publishing executives gathered at a Magazine Publishers of America "Meet the Innovators" session to hear a pitch for one potential answer.
Attributor Corp., a privately held Redwood City, CA company started by Silicon Valley executives, is testing technology that scans and captures digital "fingerprints"--or identifying characteristics--of text, images and audiovisual content and then continuously scans its index of the Web to pick up matches.
The company claims that the system can spot content reuse within just about any Web area/format, including RSS feeds, self-published sites, social networks, advertising networks, search engines and aggregators, based on a few text sentences, bits of an image, or seconds of an audio/video clip.
Attributor doesn't claim to know exactly what is and is not "fair use" under the evolving legal precedents surrounding the Digital Millennium Copyright Act; rather, the system employs a site owner's own specified criteria to generate automatic responses to identified instances of reuse, explained CEO Jim Brock, a former Yahoo copyright counsel who co-founded Attributor in 2005 with Silicon Valley entrepreneur Jim Pitkow.
Depending on the scenario (the percentage of content used, whether it's being used for commercial purposes, etc.), a content reuser might, for instance, receive a request to remove content, or a proposal to allow continuing reuse of the content in return for giving the originator a portion of advertising revenue or licensing fees. A single console provides the site owner with ongoing monitoring of each issue's status until there is some kind of resolution.
Site owners can also employ a searchable public registry that allows anyone wishing to republish content to identify the owner and seek a licensing agreement.
In short, Attributor may present a more streamlined and wide-ranging solution than existing content monitoring systems like Indigo Stream Technologies' Copyscape, which relies on Google's search engine to seek out unauthorized uses.
Attributor is now in beta with several "large, international publishers," and is taking requests to generate free trial reports for interested publishers while the development phase continues, Brock said. Between 40 and 45 million Web pages per day are being added to the system through RSS feeds and periodic content scanning/conversions, he added.
In December, the company announced that it had received $10 million in funding to date from investors including Sigma Partners, Draper Richards LP, First Round Capital, Amicus and Selby Venture Partners.
Where does Brock think digital fair use definitions are headed? "At this point, nobody can say that a certain percentage of an article equates or does not equate to fair use," he says. "It's still subjective under the law. But once we have the systems in place for transparency, we believe those standards will evolve."
Meanwhile, he says, "if from a business standpoint, it's not fair use by your standards, you can address that, negotiate, respond as you see fit." For example, if no attribution is provided, a significant portion of a given piece of content is being used, and it's being used for commercial purposes, "then you've got three indicators that might set off a 'ding, ding, ding,'" Brock notes.
Mag Bag: At Discover, Children Art the Future
by Erik Sass
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59808&Nid=30071&p=204904
At Discover, Children Art the Future
Discover is putting the cover design for its October issue on the future of science in the ink-stained hands of some lucky elementary or middle school student. The mag is holding a national design contest open to students from the third through eighth grades. While it sounds dicey, given their Photoshop skills, today's students might just put some graphic designers out of a job.
According to the magazine, "the winning entry, to be selected by Discover's editorial team, will be the design that best captures the wonderment and possibilities of science." The submission deadline is Wednesday, June 20, 2007. The winning artist and six finalists will be profiled in the magazine and online. Contest details are available on the Discover Web site.
The contest is designed in part to spread awareness of the magazine among a new generation of potential readers, following a wide-ranging revamp of the magazine by publisher Bob Guccione Jr. He acquired Discover in October 2005 from the Walt Disney Co., then spent much of the past 18 months revitalizing its readership and ad base, discarding the "junk" circulation it inherited to make it more appealing to Madison Avenue.
"Taking this unprecedented step--given the importance of a magazine's cover--underscores our commitment to raising this discussion," said Guccione. "There's no better snapshot of the future of science in America than what a child sees and perceives science to mean today."
Guccione Jr. is also in talks with his father, Bob Guccione Sr., to acquire Omni, the seminal science and science fiction magazine that spawned a new category of consumer magazines, including Discover. Time Inc. launched Discover in 1980, partly in response to the success of Omni, and Guccione Jr. recently told MediaDailyNews he would like to revive it as a "high-gloss science fiction quarterly" early next year. Omni ceased publication as a monthly print magazine in 1996, and a Web version of the magazine was disbanded in 1998. Time Inc. sold Discover to Disney in 1991.
Hearst Launches 3 Mobile Ventures
Three of Hearst Magazines' titles delivering home and lifestyle advice to women--Good Housekeeping, House Beautiful and Redbook--are launching mobile-content services targeting women 35+ in partnership with Crisp Wireless. The sites, specially designed for mobile format, include interactive features like calculators, quizzes, downloadable wallpapers, search and user-generated content.
Stacy Morrison, editor in chief of Redbook, explained: "Cell phones are how a woman stays connected to friends and family, keeps herself organized, and now, with our new mobile sites, she'll be able to use her phone to actually make her life easier."
Content areas at Redbook and Good Housekeeping include recipe libraries with related grocery lists and nutrition facts, diet and exercise tips, and an array of lifestyle advice. Redbook also features "Mommy Strategies," where user suggestions team with interactive features. Good Housekeeping's content includes a searchable list of every product with the mag's seal of approval and an exercise calculator. House Beautiful offers a "Design Dictionary" and paint calculator.
This news follows the recent announcement that CosmoGirl and Popular Mechanics, both published by Hearst Magazines, will be creating digital content, including video, in partnership with Fox Television Studios. The first video content for CosmoGirl is a drama about three female best friends during their junior year of high school.
Source Magazine Files for Bankruptcy
The bad business practices of former management have left a cloud hanging over the Source--at one time widely regarded as "the hip-hop Bible"--according to the magazine's current publisher, Jeremy Miller, who was forced to file for Chapter 11 bankruptcy in a Manhattan court Friday of last week.
The court papers allege that the misuse of magazine funds by founder David Mays and president Raymond "Benzino" Scott caused the magazine's advertisers to jump ship. The two men were fired in 2006 amid revelations of corruption and falling newsstand sales. In addition to dipping into the magazine's funds, they allegedly issued bad checks, put people unrelated to the magazine on the payroll and failed to deliver issues to 140,000 subscribers. Industry insiders also buzzed about rumored fraud in the millions of dollars, including unreported travel and jewelry purchases.
The Source has been in court a lot lately. In October 2006, a former editor in chief won $15.5 million in damages from the magazine in her lawsuit for wrongful termination. The case also suggested widespread sexual harassment at the company. Kimberly Osorio was fired in March 2005 after filing a gender discrimination complaint against the founders. Although the federal jury decided in Osorio's favor on the wrongful termination charge, they dismissed a related sexual harassment charge. Michelle Joyce, a former marketing executive, had joined Osorio in alleging sexual harassment.
AARP Set To Host First Hispanic Event In Puerto Rico
AARP is about to host the first national Hispanic-themed event in its history, the Feria de la Segunda Juventud or "Festival of the Second Youth," May 5-6 at the Puerto Rico Convention Center in San Juan, Puerto Rico. The festival--sponsored by UnitedHealth Group, Banco Popular, Walgreens, Kimberly Clark, Pfizer, Univision and Rums of Puerto Rico--is expected to attract over 9,000 attendees, with an array of celebrity speakers and performers including Gloria Estefan and Jose Feliciano. AARP President Erik Olsen remarked: "This two-day festival celebrates much more than the boomer and 50+ community--it's about family, intergenerational relationships and helping our members live a full, healthy life." AARP has over 1.2 million Hispanic members, according to Olsen.
PBS Picks Up "Wired Science"
PBS announced it will pick up "Wired Science," a production of KCET/Los Angeles that's co-branded with Wired, with the first episode set to air nationally on October 3, 2007. The one-hour episodes will air once a week for 10 weeks, covering new developments in science and technology with the magazine's trademark attitude and forward-thinking aesthetic. The series will also have a substantial Web presence hosted on the PBS site, including streaming video, articles and audience interaction features.
Home Refocuses With May Issue
Home is refocusing its editorial content on remodeling and home makeovers beginning with its May issue, publisher Hachette Filipacchi announced this week. The revamp includes the introduction of new front-of-book sections like "Your Home" and "Mini Makeover." Donna Sapolin, Home's editor in chief, says: "The remodeling market has almost doubled in size over the past decade, and our readers are at the forefront of this upward trend." Also in the redesign are more prominent referrals to the Web site; new font; new logo; a "What We'd Do" section from the editors; and a "Make It Green" feature.
Ladies' Home Journal Issues Commemorative Stamps
To celebrate its 125th anniversary in 2008, Ladies' Home Journal is offering a collection of 12 first-class postage stamps with famous vintage covers from 1903-1951. The covers were designed by some of the era's best-known illustrators, often with seasonal themes. Archival issues of the magazine, one of the nation's oldest, are a repository of cultural history illustrating the lives of American women in the 19th and early 20th century.
Cynthia Leive Re-Elected President of ASME
Cynthia Leive, the editor in chief of Glamour, has been re-elected president of the American Society of Magazine Editors. Roberta Myers, editor in chief of Elle, has been elected vice-president, while Adam Moss, editor in chief of New York, has been elected secretary, and David Willey, editor in chief of Runner's World, has been elected treasurer. Marlene Kahan is the executive director of ASME.
Thursday, May 03, 2007
Editor resigns over apparent ad pressure
By Tom Krazit
http://news.com.com/PC+World+editor+resigns+over+apparent+ad+pressure/2100-1030_3-6181075.html
Story last modified Thu May 03 06:39:03 PDT 2007
Award-winning Editor-in-Chief Harry McCracken of PC World resigned Tuesday over disagreements with the magazine's publisher regarding stories critical of advertisers, according to sources.
McCracken, reached Wednesday evening, confirmed that he resigned after 12 years at the magazine and 16 years at publisher International Data Group, over disagreements with management. He declined to comment on the nature of those disagreements.
But three sources, who spoke on the condition of anonymity, told CNET News.com that McCracken informed staffers in an afternoon meeting Wednesday that he decided to resign because Colin Crawford, senior vice president, online, at IDG Communications, was pressuring him to avoid stories that were critical of major advertisers.
Wired News reported Wednesday evening that McCracken quit after Crawford killed a draft story titled "Ten Things We Hate About Apple."
An IDG representative confirmed McCracken resigned, but said he was unable to comment on personnel matters. In an e-mail to News.com, Crawford denied that advertiser pressure played any part in McCracken's resignation.
PC World is best known for its product reviews and how-to expertise. The magazine has won numerous awards over the years for its coverage of the PC industry and technology in general, including six prizes--such as Best Computer/Consumer Magazine--just awarded last week at the Maggie awards, run by the Western Publications Association.
Now on News.com:
Digg in tough spot with DMCA debacle
Images: Hidden gems among Webby winners
A battery of questions about lithium ion
Extra: A cleaner environment--through beer
Video: Play old games on your PC
"I spent 12 years at PC World; it's been incredibly good to me," McCracken said. He said he will still have some sort of writing relationship with the organization.
A source at PC World who wished to remain anonymous praised McCracken's decision.
"It saddens us all that Harry, a PC World institution, decided to leave," the source said. "But dammit, we're proud of him of doing it."
PC World is published by IDG, a venerable trade publishing organization that has been covering the technology industry since 1964. The monthly magazine reaches 4.3 million "purchase influencers," and PCWorld.com has 6.8 million unique visitors per month, according to a Wednesday press release touting the Maggies winners.
IDG also publishes well-known trade magazines and Web sites about the computer industry such as ComputerWorld, Network World, and InfoWorld, which recently shuttered its print publication and focused solely on its Web site. IDG was founded by Patrick McGovern and is privately held.
Crawford has been with IDG since 1994, according to his blog, when he became CEO of Macworld. He ran Macworld until 2003, when he became vice president of business development within IDG's corporate management structure, before assuming his current role.
Wednesday, May 02, 2007
NAA, ABC Report Newspaper Circ Slide
Wednesday, May 02, 2007
By Chandra Johnson-Greene
According to the Newspaper Association of America’s Fas-Fax analysis of circ data for the six-month period ending March 31, the average daily circ for the 745 newspapers reporting for comparable periods was 44.9 million, a decrease of 2.1 percent over the same period a year ago.
On Sunday, the average circ for the 601 newspapers reporting was 48.1 million, a decrease of 3.1 percent over the same period a year ago.
The New York Times lost daily circ and is down 1.9 percent to 1.1 million, while its Sunday edition fell 3.3 percent to 1.6 million. Both USA Today and The Wall Street Journal, on the other hand, both reported small increases, with +0.2 percent (2.2 million) for the former and +0.6 percent (2 million) for the latter.
“The latest ABC circulation figures are in range with what we expected,” stated NAA president/CEO John F. Sturm.
Sturm says the losses are due to publishers moving away from “short-term circulation sales programs toward longer-term marketing initiatives that deliver the most value and make economic sense.”
Sturn’s statement is confirmed by the NAA’s 2007 “Circulation Facts, Figures & Logic” study of newspaper and circ marketing practices, which was released in conjunction with the Fas-Fax analysis.
The study found that newspapers are retaining subscribers in greater numbers, with subscriber churn down to 36.5 percent in 2006, compared with 42.1 percent in 2004 and 54.5 in 2000.
The only newspapers that seem to be immune to the current circ trends are the New York tabloids.
Weekday circ for the New York Post rose 7.6 percent for the six months ending March 31 while the Daily News saw a 1.4 percent gain, according to ABC.
The Post’s Sunday paper rose 6.2 percent to 439,202 while the News still leads Sunday circ despite a 2.8 percent decline.
New York magazine wins 5 awards
New York magazine won five National Magazine Awards on Tuesday night, clinching more than any other title. National Geographic won the prize for overall excellence in the largest circulation category.
Esquire magazine was nominated for seven prizes but wound up winning just one, for reporting, for an article by C.J. Chivers about a three-day siege of a school by Chechen terrorists in the Russian town of Beslan.
The awards were announced Tuesday night by the American Society of Magazine Editors, an industry association.
The other winners for general excellence included Rolling Stone in the 1 million to 2 million circulation category; Wired in the category of circulation between 500,000 and 1 million; New York for 250,000 to 500,000; and Foreign Policy for 100,000 to 250,000. The Bulletin of the Atomic Scientists won in the smallest category, under 100,000 circulation.
Winners of other prizes included Glamour magazine for personal service; O, The Oprah Magazine for leisure interests; GQ for feature writing; The Georgia Review for essays; and The Nation for reviews and criticism. Vanity Fair won awards for public interest as well as columns and commentary.
In addition to general excellence and profile writing, New York magazine also won for best magazine section, design, and best interactive feature. McSweeney's won for fiction.
Time Warner Profit Falls Less Than Estimates on Cable
By Cecile Daurat
May 2 (Bloomberg) -- Time Warner Inc., the world's largest media company, raised its 2007 forecast after surging cable- television earnings helped first-quarter profit beat analysts' estimates.
Net income declined 18 percent to $1.2 billion, or 31 cents a share, from $1.46 billion, or 32 cents, a year earlier, New- York based Time Warner said today in a statement. Sales rose 9.2 percent to $11.2 billion.
Profit was dragged down by a 27 percent decline at the film division, which failed to produce a hit to beat last year's ``Harry Potter'' DVD release. Cable profit rose 54 percent after the purchase of Adelphia Communications Corp. AOL earnings gained 27 percent as advertising revenue increased, a sign that Chief Executive Officer Richard Parsons may be succeeding in his effort to revive the Internet unit.
``The key takeaway is the company seems to be on the right track,'' said Tuna Amobi, an equity analyst at Standard & Poor's. ``The highlights of the quarter were the cable unit and AOL.''
Excluding one-time items, profit of 22 cents beat the 21- cent average of 17 analyst estimates compiled by Bloomberg.
Time Warner raised its 2007 forecast for earnings before one-time items to $1.05 a share, from $1 on Jan. 31. Analysts expected 99 cents on average, based on 23 estimates compiled by Bloomberg. Earnings on that basis were 81 cents in 2006.
Shares of Time Warner, which also owns CNN and Fortune magazine, rose 62 cents, or 3 percent, to $21.21 at 1:16 p.m. in New York Stock Exchange composite trading. They had fallen 5.5 percent this year before today. Time Warner Cable Inc. rose 75 cents to $36.97.
Phone, Web Service
Earnings were buoyed by a $670 million gain on the sale of AOL's Web access division in Germany and $146 million from investments related to cable assets in Kansas City, Missouri. Excluding one-time items, profit a year ago was 26 cents a share.
Time Warner Cable, the second-largest U.S. cable company, began trading publicly in January as part of the parent company's purchase of cable franchises from bankrupt Adelphia.
The Stamford, Connecticut-based cable division, 84 percent owned by Time Warner, benefited from demand for packages of phone, digital cable and Internet services.
Revenue rose 61 percent to $3.85 billion, making it the fastest-growing Time Warner unit for the 14th straight quarter.
``We like the fact that with our own currency we can continue to participate in the inevitable consolidation in the cable space,'' Parsons said on a conference call.
AOL Gains
Cablevision Systems Corp. today agreed to be taken private by the Dolan family for $10.6 billion in cash, capping their two-year effort to buy the company.
``Our position for many years has been that if the Dolans were ever to decide to part with that business, we would be on their list of people to talk to,'' Parsons said.
AOL profit rose to $542 million as ad revenue gained 40 percent. The growth in ad sales beat the 28 percent estimate by Spencer Wang, an analyst at Bear Stearns Cos. in New York.
Parsons, 59, hired TV veteran Randy Falco in November to run AOL and accelerate ad sales growth. He reiterated today that AOL's ad revenue will rise faster than the U.S. market this year.
``Our confidence in AOL's strategy is higher than ever,'' Parsons said. ``It's going very well so far.''
Sales dropped 25 percent after AOL started offering its e- mail and software for free to broadband users last year to attract Web surfers and advertisers. The Web access division lost 1.2 million subscribers in the quarter.
Harry Potter
Profit at the film division fell to $332 million. Revenue declined 1.3 percent to $2.7 billion.
Earnings will fall in the first half and rise ``sharply'' in the second half, Parsons said. Warner Bros. will release ``Harry Potter and the Order of the Phoenix'' in theaters in July.
First-quarter DVD sales of ``The Departed'' and ``Happy Feet,'' at $132 million and $198 million, respectively, failed to match the $209 million and $290 million turned in last year by the ``Wedding Crashers'' and ``Harry Potter,'' according to Goldman Sachs Group Inc. analyst Anthony Noto.
The unexpected theatrical success of ``300,'' an epic about Spartan warriors battling a larger Persian army, wasn't enough to lift earnings. The film took in $207 million in North American box office receipts, according to Box Office Mojo.
Publishing Cuts
At the cable-networks unit, including HBO, CNN and TNT, operating profit rose 6 percent to $937 million.
Publishing profit fell 28 percent to $84 million.
The unit cut 290 jobs in January, or 2.8 percent its workforce, to reduce expenses. The publisher of People and In Style eliminated 600 positions in 2006 as advertising sales declined. The unit also closed Life magazine, less than three years after restarting the title as a weekly.
Fortune's ad sales fell 5.4 percent in the first quarter, according to data from Publishers Information Bureau. Sports Illustrated, People and In Style gained 6.7 percent, 8.2 percent and 1.5 percent respectively in the period.
(For a replay of Time Warner's conference call visit http://ir.timewarner.com/ .)
P&G Will Boost Marketing Spending for Fiscal '08
Emphasis Will Be on 'Nonmeasured Media' but TV Still a Priority Investment
By Jack Neff
Published: May 01, 2007
BATAVIA, Ohio (AdAge.com) -- Procter & Gamble Co. will spend heavily on marketing for its year starting July 1 -- possibly at the expense of margin goals -- as it makes boosting top-line growth a priority, executives said today.
Despite an emphasis in 'nonmeasured media' as an area P&G will increase spending, TV still remains 'a hell of an efficient investment.'
The comments came as P&G issued quarterly results that, while meeting or exceeding its stated goals, failed to impress the market. P&G shares were down 2.2% to $62.95 today. Morgan Stanley analyst Bill Pecoriello said in a research note that P&G's trade-up of consumers to higher-priced items and its margins both were lower than he had expected.
Maintaining sales growth
Speaking on a conference call for analysts, Chief Financial Officer Clayton Daley said, "For fiscal-year 2008, the priority for the company is to sustain strong sales growth. As such, we plan to invest in our leading brand equities. We plan to launch a strong initiative program."
Later, Mr. Daley made it clear P&G will be willing to sacrifice margin improvements if required for the sake of top-line growth. He said if P&G can meet its double-digit earnings-per-share growth goal "with more sales growth and less margin expansion, that's OK. ... I don't want to imply that we are going to do anything to try to hold back sales growth."
While P&G may be looking to spend more aggressively in fiscal 2008, it appears to be pulling back on measured media right now in what Chairman-CEO A.G. Lafley termed a shift toward the internet and "nonmeasured media."
Shifting mix
"If you step back and look at our [marketing] mix across most of the major brands, it's clearly shifting, and it's shifting from measured media to in-store, to the internet and to trial activity," Mr. Lafley said. The latter he didn't define precisely, though he gave Gillette sampling programs, which include distribution of free razors by mail, as one example. On Gillette Fusion razors, he said, "you are going to see ... more sampling, because we still have relatively low trial rates."
Though it's impossible to measure how much P&G is spending in-store, as much of it is accounted for as deductions against net sales, data from TNS Media Intelligence do appear to indicate a pullback in measured media spending in its fiscal first quarter. P&G spent $459.9 million in January and February according to TNS, excluding newspaper inserts, a run rate that, if sustained over a full year, would trim P&G's measured spending 17.5% in 2007.
But the proportion P&G spent on TV in January and February -- 70.4% -- is in line with proportions the company has had for years and last year's 69.9%. P&G's spending on internet display ads inched up to 2.1% of its outlay in the first two months of 2007 vs. 1.6% last year.
Efficiency in TV
"We are still investing a lot in television, because, especially in developing markets, it's a hell of an efficient investment," Mr. Lafley said.
Overall, he said P&G ad spending as a percent of sales was "about 10%" in the fiscal third quarter, about where it was last year.
The talk comes after two consecutive years in which P&G has trimmed reported advertising spending as a share of sales, which peaked at 10.7% in 2004 and slid to 9.9% of sales last fiscal year.
It's not clear where that number will end up in fiscal 2007, as P&G officials have declined to provide specifics and won't report the number until after the fiscal year closes. But Global Marketing Officer Jim Stengel and Mr. Lafley have said in investor presentations late last year that they were more concerned with advertising effectiveness and brand equity than with ad-spending-to-sales ratios. P&G's trims in ad-spending ratios also have come as rising raw-material costs have pressured margins in recent years.
P&G reported sales up 8% to $18.7 billion, up 6% organically, or excluding acquisitions, divestitures and currency effects. Earnings per share rose 17% to 74 cents. Both numbers were helped by a weakening dollar, which added two percentage points to sales, and by a relatively weak year-ago performance, when P&G's top line and profits were pressured by consolidation of distributors for newly acquired Gillette and apparently temporary weakness in Russia and China.
Beauty biz not so pretty
While the fabric and home-care business led growth, with sales up 12% (10% organically) the beauty business trailed the company as a whole and rival L'Oreal with organic sales growth of 5%.
P&G also reported relatively weak results in three more areas. Gillette's blades and razor business had only 4% organic-sales growth, despite comparison to a year-ago period hurt by sales lost as distributors were consolidated in China and despite much stronger growth reported last week by rival Energizer Holdings' Schick. Organic sales for the Braun and Duracell businesses, acquired along with Gillette in October 2005, were flat. And sales for the pet food, snack and coffee business declined 1%, hurt by the Iams and Eukanuba pet-food recall, whose impact P&G declined to specify.
Toothpaste spending pays off
One area where P&G ad spending has been unrestrained -- U.S. toothpaste -- appears to be seeing some strong results, and Mr. Lafley claimed P&G has taken broad market leadership in the U.S. toothpaste market.
He noted that in 1998, the first full year after Colgate Total was launched in the U.S., Colgate had a 27% toothpaste while P&G had a 25%-plus share. Last quarter, he said P&G had a 38% in all outlets, including Wal-Mart, club and dollar stores not measured by syndicated services, compared to 32% for Colgate, he said.
"There is plenty of room," he said, "for our principal competitor to grow and for us to grow in the oral-care business."
Tuesday, May 01, 2007
B-to-B Media Being Transformed Into An Event Marketing Biz
by Joe Mandese, Tuesday, May 1, 2007 8:00 AM ET
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59585&Nid=29924&p=204904
BUSINESS-TO-BUSINESS AD PAGES ARE CONTINUING to decline in the U.S. business press, but revenues are rising due to the expansion of new business streams including digital media sales, and so-called "face-to-face" media (ie. events, conferences and trade shows). Ad pages dropped 2.8% in February vs. February 2006, according to estimates released Monday by American Business Media. The decline was driven by sharp drops in ad page demand in the automotive, aviation, business/advertising/marketing, and computer, though restaurants and travel were up sharply for the month., according to the estimates compiled by the Business Information Network.
Interestingly, the surge in ad pages in the travel/business conventions & meetings category (+12.9%) correlates with skyrocketing B-to-B event revenues also being reported by the ABM.
"Business-to-business media is still on an upswing overall due to other performers, particularly face-to-face, growing at 10% to $11.3 billion and exceeding magazine revenues," the trade association said.
ABM President-CEO Gordon Hughes said the data signals an "era of transformation" for the B-to-B media industry, noting that traditional print revenues are "being out-billed by events.
"This again does not mean that print is going away; it just means now more than ever we must look to our entire brandscape and focus on those platforms that are changing the balance in the overall $31 billion pie," he stated.
Joe Mandese is Editor of MediaPost.
From Bad To Worse: Newspapers' Circ Declines
by Erik Sass, Tuesday, May 1, 2007 8:00 AM ET
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59553&Nid=29924&p=204904
AMERICA'S FLAGSHIP NEWSPAPERS ARE STILL afloat, but their crews may want to don swimsuits soon. The Audit Bureau of Circulations posted numbers Monday showing that in the six months ending March 2007, total daily circulation fell 2.1% to 44,961,066. Sunday circ fell 3.1% to 48,102,437, compared to the same period last year.
The ABC FAS-FAX numbers follow a litany of bad industry news over the last few weeks, including weak first-quarter earnings from leading newspaper companies, and a decline in the housing market, with ominous implications for newspaper classifieds.
This marks the 17th straight year of decline for both weekday and Sunday circs; this is an industry in distress. Indeed, the latest ABC FAS-FAX numbers look almost identical to previous figures, released biannually in what has become a grim drumbeat of contraction. In the September 2006 report, daily circ fell 2.8% as Sunday circ dropped 3.4%; in March 2006 they fell 2.5% and 3.1%, respectively; September 2005, 2.6% and 3.1%; and March 2005, 1.9% and 2.5%.
As in previous years, big metro dailies took some of the biggest hits, with The New York Times down 1.9%, the Los Angeles Times down 4.2% to 815,723, The Washington Post down 3.5% to 699,130, Chicago Tribune down 2.1% to 566,827, Houston Chronicle down 2% to 504,114, Dallas Morning News down 14.3% to 411,919, the San Francisco Chronicle down 2.9%, Long Island's Newsday down 6.9% to 398,231, and The Boston Globe down 3.7% to 382,503.
These figures actually contain (relatively) good news for some of the big titles, as their percentage rate of decline appears to be slowing. In the September 2006 ABC report, the New York Times' daily circ was down 3.5%, Los Angeles Times 8%, San Francisco Chronicle 5.3% and The Boston Globe 6.7%. On the other hand, losses accelerated slightly at the Chicago Tribune and The Washington Post, increasing by about half a percentage point.
In this gloomy environment, publications that hold their own are success stories: USA Today's circ is up 0.5% and The Wall Street Journal grew 0.6%. The biggest standouts were New York City's two daily tabloids, as the New York Daily News grew 1.4% to 718,174, and the New York Post jumped a remarkable 7.6% to 724,748.
In recent weeks, the nation's biggest newspaper companies have posted weak first-quarter results, citing revenue declines due to Internet competition. In the first quarter of 2007, the New York Times Company saw print ad revenue decline 3.4%, compared to the same period last year, as total profit fell 9.9% to $54.5 million. At the Tribune Company, overall operating revenues slipped 4% to $1.2 billion and operating profit was down 16% to $181 million. Gannett saw total revenues decline slightly from $1.88 billion in 2006 to $1.87 billion in 2007, as net income fell from $235.3 million in first quarter 2006 to $210.6 million in 2007, a roughly 10.5% drop.
It's cute, green -- and may change world

It's cute, green -- and may change world
By Carolyn Y. Johnson, Globe Staff | April 27, 2007
CAMBRIDGE -- With its cute bunny ears, its whimsical pull-string charger, and its big plastic handle, the lime-green XO laptop doesn't look like a technology that will change education and computing worldwide.
But at a demonstration in the Cambridge offices of non profit One Laptop Per Child yesterday, founder Nicholas Negroponte said that was exactly what would happen as the project moves from dream to reality this September.
"We talk about the mission, versus the market," Negroponte said.
The so-called $100 laptop -- which today costs $175 -- is a low-power, lightweight computer that can withstand a torrential rainstorm, work in bright sunlight, and be powered by kids who are willing to wind cranks or yank cords to keep it running.
Negroponte said he hopes ultimately to put his computer in the hands of 1 billion children between ages 6 and 16 in developing countries, with production ramping up to 400,000 units per month by the end of this year, for a total of 3 million in the first production wave . His partners, companies like chip maker Advanced Micro Devices , software maker Red Hat , and display manufacturer Chi Mei Group , echoed his high-minded wish to change the world through technology.
But tooling around on the laptop is also fun.
The green-and-white laptop has a small, high-resolution screen that swivels to turn into a tablet. A sliding button turns the backlight out, allowing users to save energy or take the laptop outside and use it in bright sunlight.
On either side are 2-inch-long plastic rabbit ears that flip up to increase its wireless range. They look rather fragile but have been drop-tested successfully from up to 5 feet, its makers said.
The laptop features a keyboard so tiny it seems suited only for children's hands, with game controls on either side of the screen that turn it into a big Gameboy.
Negroponte said that the computer can run Windows, but it s current operating system is a simple, open-source menu with big friendly icons stripped across the bottom of the screen. And while its creators envision the laptop used as an educational tool for collaboration, children will also be able to play a Tetris-like game called BlockParty or compose a sonata using a virtual orchestra consisting of everything from a baby's coo to a guinea pig's squeak.
Hundreds of the laptops are already being tested by children in seven launch countries including Brazil, Argentina, Uruguay, Nigeria, Libya, Pakistan, and Thailand. But starting in September, the makers plan to ramp up production, releasing 400,000 laptops per month.
The entire contraption folds up into a miniature plastic white briefcase that its makers said would withstand a heavy rainstorm. During testing, they dunked the laptop in a bucket of water for 10 minutes, with no effect on its function.
For power, the laptop can plug into an electrical outlet, or users can yank on its pull charger, crank a handle, or sit in bright sunlight with a flexible solar panel.
The string pull charge, on display yesterday, means about six minutes of pulling for an hour to use the device in its low-power e-book mode, with no backlight.
In contrast to today's computers, which are mainly about connecting to the Internet and bringing stuff down, this computer is made to send stuff up, allowing the user-generated revolution to hit the developing world.
"How big is the horizon for the kids in some of these villages?" said Josh Bernoff, analyst at Forrester Research. "Now they will have a way to communicate with the rest of the world."
Carolyn Y. Johnson can be reached at cjohnson@globe.com.


