Magazine Shutdowns, Magazine Layoffs, And The Looming Pullback In Automobile Advertising

Magazine Shutdowns, Magazine Layoffs, And The Looming Pullback In Automobile Advertising
Posted by Jon fine
http://www.businessweek.com/innovate/FineOnMedia/

In recent days, there have been layoffs at Forbes, Time Inc., Conde Nast Publications, Bauer Publishing, The Economist, and Hearst Magazines. In the past 24 hours, Time Inc's Cottage Living ceased publishing, and Ziff Davis Media's PC Magazine killed its print edition to become an all-digital publication.

This brings me to auto advertising. Auto advertising? Yes, auto advertising. Specifically: advertising from Detroit's Big Three. These tattered titans of America's industrial past still spend massive sums on magazine advertising, even after trimming their buys in recent years.

In 2007, GM, Ford and Chrysler spent $807.3 million on magazine advertising, according to the data-miners at TNS Media Intelligence, who provided all such figures in this post. In the first half of 2008-a year characterized by cutbacks in auto spending-Detroit still spent $306.4 million in mags.

Yesterday I appeared on CNBC to talk about the collateral damage that would ensue from Detroit cutting advertising further. Before I did, I called a senior-level magazine executive well-versed in the auto advertising world.

He told me he's expecting the Big Three's ad buys to drop by around 30% in 2009, across all media.

Assuming that the half-year figure for '08 represents half of the car guys' magazine ad spending this year-it may even underestimate it, given that the car companies spend more at certain times of the year-that means that about $183.8 million in ad dollars will disappear for magazines.

Potential complications loom, like, say, the prospect of an imminent GM bankruptcy, and there's a bit of a drama concerning the Big Three playing out in Congress more or less as I type.

(We can only imagine that this is why American Media Chairman and CEO David Pecker today gently nudged his employees to support a government bailout of the American auto industry. This is sort of funny. One of Pecker's great hopes for his major tabloid titles, The Star and nationa Enquirer, would be that they'd eventually attract auto advertising. But it never quite worked out that way.)

Thus, in the past few weeks we have seen severe contraction among magazines. And, while December's already reckoned to be a terrible month for magazines, much of the really bad stuff hasn't even started happening yet.

Sorta silver lining for magazines: TV gets much more advertising from American carmakers: $2.9 billion in '07 and $1.2 billion in the first half of '08.

This excellent Ad Age article--which, unfortunately, might be firewalled--goes into great detail regarding which media properties run the most auto advertising. Short answer: anything having to do with sports, but read the piece to get the full picture.

Delighting in a Magazine's Death?

Delighting in a Magazine's Death? a Q&A with the blogger behind MagazineDeathPool.com
By Peter Beisser
http://www.pubexec.com/story/story.bsp?sid=113873&var=story


The Grim Reaper, the popular, anonymous blogger behind the Magazine Death Pool at http://www.magazinedeathpool.com, believes the end of days is near for print magazines.

It may not mean coming into physical contact with the blade of a scythe, but appearing on the Grim Reaper's blog may prove just as deadly to a major magazine title. For nearly three years now, the unidentified industry insider regularly has taken pleasure in predicting what popular title will close its doors next. Whether it's a dip in ad revenue or pages, another redesign or a shake-up in management, the Reaper sniffs out the early warning signs and chronicles the shuttering of popular magazines throughout the industry.

While maintaining his (her?) anonymity, the Grim Reaper excused himself for a few minutes from taking pleasure in predicting who's next on the chopping block, and answered Publishing Executive Inbox's questions about his bleak outlook for the future of the industry.

Publishing Executive Inbox: In your opinion, what are the top reasons that all of these magazine titles have been shuttering in such great numbers in the last few years?
Grim Reaper: There are several reasons why titles are closing down, some with greater impact than others. A) Magazines that outlived their usefulness or relevancy, especially being in the line of fire of what's popular on the Web. B) Magazines that were right in the crosshairs of the faltering economy. C) No. 3 titles in some categories were just not going to survive. D) Magazines that were created for advertisers, not for an audience. E) Magazines that did not have a smart and profitable digital strategy. F) Too much reliance on advertisers in trouble or under the gun (i.e. automobiles, liquor).

In the first three cases, there was really not much fault to be given. The times changed. The way people consumed their media changed. The Web began to own certain areas, like gossip, personal finance and sports, so magazines were becoming more vulnerable.

As for D, the biggest mistake is to create a magazine first for advertisers, and hope the audience follows afterwards. Cargo will forever be the poster boy for this line of thinking-that men would want a shopping magazine if women had made Lucky so successful. I have a feeling we will see Portfolio fall into the same trap in the next year or so, and it will create a much more deafening crash in the forest.

As for E, it still amazes me that magazine publishers didn't learn from the first dot-com bubble about slapping their own articles online, thereby cannibalizing themselves. Fast Company and Radar put many of their current issue articles online when they hit newsstands, for example. On the other hand, SmartMoney was intelligent enough to create a site that not only stands on its own, but they created unique Web applications that they can license out.

Inbox: When did it all begin to snowball out of control? What did publishers and the industry do wrong?
Reaper: I sensed it all began to spiral out of control when I started my blog, when Time Inc. began its first round of layoffs in December 2005. The paradigm shift to digital media really kicked in the fear at that point. I do not think publishers did anything wrong for the most part except be in the wrong place at the wrong time, much like the dinosaurs.

Inbox: What are the warning signs that tell you a title is in trouble? When is the plug usually pulled?
Reaper: The warning signs I look for a magazine getting in trouble include: losing lots of ads and/or circulation in a category dominated by the Web or becoming irrelevant, publishers firing in-house sales staff and then outsourcing them, desperate attempts to pretty up the covers into something the editorial isn't, changing the editorial mission, especially to be fad-ish, and consumers basically ignoring them.

Inbox: What do you think magazine publishers can do to stop the hemorrhaging?
Reaper: With some titles, there's nothing that can be done to stop hemorrhaging. For example, I just don't see how newsweeklies are going to survive, so they may as well close up shop and move fully to the Web. I know this sounds terrible, but if you can't beat 'em, join 'em in some cases. Magazine brands and their domains can be very strong and profitable on the Web, as opposed to ink on paper. Others just need to suck it up, cut rate bases, and devote resources to Web sites that can stand alone with well-done SEO to generate revenue.

Inbox: What were your main goals for the Web site? What has the response been from the industry?
Reaper: I set up Magazine Death Pool in February 2006 as a way of marking the slow end of an era in my own special way. It functions to point out some of the foolishness and arrogance of the industry, while certainly mourning the notable titles that have passed on. I've received a lot of e-mails from professors, as well as people who get sentimental about magazines that went under a long time ago. Of course, there are a few bile-spewing e-mails, including ones from the magazines I write about. I don't mind if they post comments in response to what I write. They should have a platform to vent. Knight Kiplinger, Jr. posted quite a long defensive comment on the blog recently. Anybody whose first name is Knight deserves a spot on my blog.

Inbox: Who is going to survive, and why are these titles different?
Reaper: The titles which have the best odds of surviving are the ones that are read for the big splashy ads, like Vogue, Elle, the bridal books. People buy those magazines for their lush spreads and ads. They can not be reproduced on the Web or read comfortably on a mobile phone . . . yet.

In these hard times, some titles are up in pages

When the going's tough, the tough sell
In these hard times, some titles are up in pages
By Diego Vasquez
http://www.medialifemagazine.com
This last quarter was the worst in recent memory for consumer magazines, and it doesn't look very promising going forward, contrary to some forecasts that see magazines rebounding in the second half of 2008.

How bad was the second quarter?

Ad pages were down 7.4 percent, according to Publishers Information Bureau figures, and of the 23 magazine categories tracked by Media Life, all but one saw pages fall.

Just a handful of magazines saw improved ad page counts, among them OK!, up 31.7 percent; The Economist, 3.7 percent; Harper's Bazaar, 9.4 percent; Conde Nast Traveler, 3.8 percent; National Geographic, 11 percent; Popular Mechanics, 8 percent; and Everyday with Rachael Ray, 15.4 percent.

To get a better sense of the state of the magazine industry, and why some magazines are up in pages, Media Life talked to their publishers, as well as longtime magazine consultant Martin Walker of Walker Communications.

These are anxious times, they agree.

"I've seen a lot of ups and downs, but this is scary," Anne Balaban, publisher of Everyday with Rachael Ray, tells Media Life. "We're hearing day after day about how many marketers just aren't advertising. It's across the board. It's every industry, not just ours. These are trying times."

Says Lisa Hughes, vice president and publisher of Conde Nast Traveler: "It's harder to find that customer out there who's still consuming. The economy is the economy, and there are a lot of unknowns right now. The election, will oil prices ever come down? It's a tough business climate for everybody."

William Congdon, publisher of Popular Mechanics, agrees. "We're in for a challenging second half. Right now we're up through the October issue at least, but I know it will be challenging. Through first quarter it will still be very challenging. A lot of it depends on when we get a new president and people figure out what direction we're heading."

Says Jason Webby, vice president of advertising sales at the Economist: "I would hope magazines rebound in the second half of this year. That's everybody's hope. But with what's happening in the financial markets, especially this week, you never know."

Walker doesn't see consumer magazines springing back anytime soon.

"The industry probably won't turn around until at least 2010," he says. "Most of the decisions about next year are being made in the next two or three months, so all of those will be based on what's happening now. If the economy all of a sudden gets good in 2009, that's not enough time to impact the second half of next year, given the print cycle."

A major hurt has been the drop in pharmaceutical ads, which had buoyed consumer titles for several years. For this first half of this year, ad pages for drugs and remedies fell 13.2 percent.

Always controversial, drug advertising has come under closer scrutiny by regulators following a rash of lawsuits over harmful side effects that were not detected or revealed before going to market. Marketers, anxious to avoid tougher regulation, are cutting ad spending, and they've entirely cut advertising for new drugs in their first six months.

Certainly, the falloff in drug advertising has hurt a lot of titles, and it's something publishers have no control over. That's true of all ad categories.

But a huge factor in how well a title is doing is in the hands of publishers, and that's in how hard and how well they sell. That especially matters during tough times, these publishers say.

Conde Nast Traveler's Hughes says it's about coming up with better ideas.

"You have to be really out there, you have to be aggressive as a sales team. Advertisers are demanding great programs, and they scrutinize every dollar they spend. The titles that are hungry for the business and coming up with good ideas are going to win the business."

Says Rachael Ray's Balaban: "This is when it really counts to have good product and smart programs--building a base of smart programs that are unique to our brand and compelling enough to advertisers that makes them feel they're getting so much value with their dollars. "

Says Tom Morrissy, OK!'s publisher: "Those who have strong programs in place and are strong brands will do fine. It just won't be one of those years where everyone is breaking open champagne bottles."

Popular Mechanics' Congdon observes that good programs have a way of rooting out ad dollars. "It's not so much that ad budgets are totally cut. Advertisers are just being cautious. But if you keep going in and keep bringing fresh ideas, they'll still have that money."

Valerie Salembier, publisher of Harper's Bazaar, says it's also about being where your competitors are not.

"Things are tough, but they've been tough before and all of these magazines continue to publish and last and endure," she says.

"In terms of selling advertising, it is back to basics 101. Get out there and make the calls. You don't get ads by sitting behind your desk on the phone, you get them sitting at your client's desk.

Claudia Malley, vice president and U.S. publisher of National Geographic, says it's also about being able to stand apart from your competitors, and a big part of that is reader engagement, which she says resonates with marketers.

"Integration will be a key. Those brands who can differentiate by being a brand leader and then have communication with consumers across all media will be the ones that succeed."

Media Survival: Avoid Obsolescence

Media Survival: Avoid Obsolescence
by Diane Mermigas
http://www.mediapost.com/blogs/on_media/index.php?p=210

Obsolescence is a word that sends chills down the spines of most corporate executives. It also is something we are going to see more of as sweeping changes in digital technology, fuel prices and financial fundamentals disrupt and displace the norms.

This trend is starkly evident at U.S. automakers struggling with car sales at a 10-year lows, and most particularly General Motors, whose stock is trading at 50-year lows. At the core of these troubling trends is a dramatic, swift shift in consumer demand caused by the oil crisis. Detroit automakers are still selling the SUVs and minivans that consumers wanted when gasoline was selling at $2.50 a gallon, but have quickly shunned at $4-plus per gallon.

The knee-jerk response of production plant closings, massive layoffs and other cost reductions do not get to the heart of the problem. GM and other U.S. automakers must unload their existing inventories of gas-guzzling vehicles and completely revamp their operations and infrastructure to accommodate demand for new products. Liquidity is a big issue, as is the ability to revise existing cost structures and union contracts without resorting to bankruptcy. Since none of this can be accomplished overnight, there is going to be transitional pain. They simply cannot shift gears fast enough. For proof, look no further than the financial and logistic nightmare haunting domestic airlines.

Media companies - in particular, broadcasters, cable operators and content creators - must take heed, too. They could be confronted by a similar obsolescence that renders their assets and operations with shrinking value and flexibility. The marketplace's pervasive digital conversion is well ahead of where most traditional media players need to be. There are many instances where their products, services and business models are no longer what technology-empowered consumers want. These companies' public values, balance sheet stability and cash reserves are in decline.

They can't generate new digital revenues fast enough to offset the decline in traditional revenues due to an inability to reform their inefficient legacy structures. They also are limited in their ability to raise capital. Media companies of all stripes have seen their valuations tumble, not just because of the overall stock market malaise. Their revenue and earnings forecasts are being thrown off by massive shifts in content distribution, services and the general flow of money. It is challenging to value new interactive connections between target consumers with the most relevant advertisers and content, much less redefine the value of entire companies.

The parallels to the auto industry are disturbing. GM's market cap has fallen to $6 billion, compared with foreign-based Toyota at $147 billion. CBS is treading a $13 billion market cap compared with Google's low-end $169 billion valuation. New business models, methods and markets are both creating and destroying value.

The media sector where this is most painfully evident is newspapers, which are sustaining record double-digit declines in annual advertising revenues and even some operating margins. The entertainment and broadcasting sectors collectively are down 25% from the first half of 2007, based on soft advertising trends in a worsening economic environment and local markets "more exposed to recessionary trends and lower digital penetration," according to Lehman Brothers analyst Vijay Jayant. All media and telecom (67 stocks in 14 subsectors) were collectively down -15.5% from a year earlier, underperforming the S&P 500 (down 12.8%) the first half of 2008.

However, there will be even more dramatic structural and fiscal fallout evident for some broadcasters when there is no election or Olympic year ad spending in 2009. Local TV broadcasters will be confronted by what veteran analyst and consultant Tom Wolzien has described as the $16 billion challenge, or the growing gap between their primary channel and total revenue goals based on mining digital opportunities.

Wolzien made the point during a TVB presentation that local broadcasters - like their affiliated broadcast networks - will need to do more than shift some of their TV programming and ads online. He made the point using 2006 newspaper statistics. Although newspapers collectively sold $2.7 billion in Web advertising, up 31%, overall newspaper industry growth based on all revenues sources was flat.

In other words, for the beleaguered newspaper industry to post even just 5% returns, it needed for its online sales to rise an estimated 161%. Not all revenues are made equal, especially when priced differently and held up against legacy operating expenses that can only be permanently reduced through a complete embrace of e-publishing models - akin to GM shifting from SUV to hybrid car manufacturing.

On the broadcast front, Borrell Associates estimates that local TV station Web revenues will grow 48% this year to top $1 billion, and grow to an estimated $1.4 billion in 2009. However, analysts point out that online revenues still represent 5% or less of TV stations' overall revenues and generally will not completely offset lost or declining revenues especially in non-election years. The only way to secure more significant, permanent growing new revenues and profits is to structurally alter the local TV broadcast business. It is a tactical overhaul that TV broadcasters - like car manufacturers - must squarely confront and execute to achieve lasting change and a path to survival.

E-editions are gaining ground in the mainstream market.

E-editions are gaining ground in the mainstream market.
By Gretchen A. Peck
http://www.pubexec.com/story/story.bsp?sid=110154&var=story

This spring, Barnes & Noble announced that it would offer both print publications and digital editions of more than 1,000 magazine titles to visitors of BN.com. The e-editions will be fulfilled by Barnes & Noble partner Zinio. Indeed, it’s just one more indication that, despite some debate on their future, digital editions are becoming a viable alternative to print for a growing number of readers.

Cambridge, Mass.-based The Gilbane Group recently published a study, “Digital Magazine and Newspaper Editions: Growth, Trends, and Best Practices,” showing that the number of business-to-business publications offering digital editions increased by more than 300 percent in a two-year span (2005 to 2007), and the number of consumer publications offering digital editions has increased by more than 200 percent.

For publishers, clear economic and environmental benefits exist: Digital editions don’t kill trees, and the cost to produce a digital edition is much less than a printed publication.

Beyond the environmental and economic considerations, many publishers also have found digital editions to be an effective medium for enhancing the editorial and advertising experience with the use of rich media.

Today, even businesses that have for generations been dedicated to printing publications are looking at digital distribution as a new way to serve publishing clients. For example, Brown Printing Co.—one of the nation’s largest magazine printers—announced that it would assist publishers with their digital publications by partnering with iMirus Digital Solutions, the e-edition division owned by parent company Riggs Heinrich Media Inc. Many other printers are now offering digital-publication services to their publishers as well.

Digital editions also can be an effective way for publishers to expand into new markets, and increase their circulations without the additional printing and mailing costs.

It was the opportunity to launch a new global title that prompted the publisher of Recycling Today to venture into e-editions. The global edition of the magazine debuted in April exclusively as an e-edition, with the help of Advanced Publishing Corp.

“We are extending an existing North American title into a global market position,” explains James R. Keefe, executive vice president and group publisher, GIE Media, which publishes Recycling Today. “The launch of the new product, which is different from a content perspective, was easier to achieve in an electronic format, as delivery to a reader base around the world is more reliable and immediate. Therefore, the distribution issue becomes much easier to solve. As well, the platform we selected allows a lot of powerful multimedia and interactive applications.”

The monthly, controlled-circulation title already has 30,000 subscribers, but with reader feedback already very positive, Keefe expects continued circulation growth.

Digital editions are also proving to be a valuable strategy for publishers looking to breathe new life into previously published issues. For example, Wenner Media contracted Bondi Digital Publishing to convert Rolling Stone’s entire printed history into digital format and republish it as a searchable DVD, “Rolling Stone Cover-to-Cover: The First 40 Years.”

Whether the mass market will adopt digital editions as their preferred format for reading magazines in the future remains to be seen—and debated by industry pundits. But with recent triple-digit growth rates and one of the nation’s largest magazine retailers giving space to e-editions on its Web site, the future certainly seems promising for the digital magazine.

Solutions on the Market
As the number of publishers providing digital editions of their publications has grown, so has the number of digital editions solutions providers. Today, publishers have their choice of a wide range of products and services to fit their and their readers’ expectations for a digital publication. Here are a number of today’s top solutions on the market. Many printers of all sizes—such as Publishers Press, RR Donnelley and Sheridan Magazine Services—also now offer solutions to help publishers provide digital editions of their publications (but are not listed here). Many of these solutions are available to non-customers, so they may be worth investigating in your search for the best solution for your needs.

Advanced Publishing Corp.
Solution/Service: RIDE (Rich Interactive Digital Edition) is designed to enable publishers to create digital publications based on Microsoft’s award-winning Silverlight platform. Publications are fully searchable and may be complemented with rich media features. A secure subscription system is provided. Publishers also have access to real-time reports on pages viewed, time spent, click-thrus and more. Advanced Publishing digital-edition service includes conversion, hosting, subscriber access management, customized registration and data capture, e-mail notification delivery, BPA/ABC audit assistance, cross-publication search, archive issues access, and added capabilities for online ads, sponsorships, online video and more.
Pricing: All-inclusive, consisting of a one-time setup fee and a per-page fee based on the number of magazines and the overall volume of pages. For paid consumer magazines, it may also include a per-subscriber fee for each issue.
Magazine customers include: Composites Manufacturing; International Figure Skating; Vertical Magazine; GIE Media Inc.; Western Design & Interiors; Madavor Media LLC
Contact: (866) 785-4400, AdvancedPublishing.com

alQemy
Solution/Service: alQemy is an Adobe Partner that pioneered the first interactive PDF magazine and catalog format with the launch of Magazooms. Today, all digital editions are built in Adobe Flash format, transformed using the company’s Internet-based Flash application and hosted on alQemy servers. Publishers also can present their e-editions, including archives, on their own Web sites via customizable portals, and have access to content feeds to supply their Web sites and RSS feeds with articles from their Magazooms publications. Magazooms offers a “Search and Save” feature, which enables users to conduct global cross-issue searches and save resulting pages to the desktop as a new, customized PDF. AlQemy has announced plans to offer special Magazooms versions for the Apple iPhone.
Pricing: Available as a Free Basic Service, which includes conversion and hosting to qualified publishers (some restrictions apply), or a Full Feature Service, based on cost-per-page with enhanced options such as video insertions, custom hyperlinks, reader graphs and analytics with reader maps, customizable Web portals, shopping-enabled pages and an integrated Shopping Cart.
Magazine customers include: Electronic Retailer; Online Strategies; Dog Fancy; Freshwater and Marine Aquarium; Texas RV Park and Travel Guide
Contact: (864) 284-9918, Magazooms.com

BlueToad Inc.
Solution/Service: BlueToad’s page-flip technology is designed to enable publishers to create and deploy an enhanced online version of print publications. Publishers can upload and convert print files to create a one-of-a-kind online publication with streaming audio and video, and as many as 20 direct Web links per page. Publishers can put a publication on BlueToad’s Web site, or distribute it from their own sites with a BlueToad Icon and a self-contained, online viewing system.
Pricing: No fees for setup, and no contracts required. Pricing is based on a per-page fee, which may be as little as $2.
Magazine customers include: Not available for publication.
Contact: (407) 992-8744, BlueToad.com/publisher

Bondi Digital Publishing
Solution/Service: Bondi Digital Publishing designs, creates and publishes complete print-magazine-archive box sets in searchable digital editions.
Pricing: Not provided.
Magazine customers include: The New Yorker; Playboy Enterprises; Wenner Media
Contact: (212) 405-1655, BondiDigital.com

Content Data Solutions, a div. of Thomas Publishing Co.
Solution/Service: Content DSI converts print-ready publication files into digital replicas that are searchable by keyword or full text, and can include live links, and statistical reporting on editorial content and advertising. Content Data Solutions can also host digital publications on the publisher’s behalf.
Pricing: Not provided.
Magazine customers include: Not available for publication.
Contact: (800) 872-2828, ContentDSI.com

DMC Inc.
Solution/Service: EditionDuo enables publishers to create digital replicas of print publications, enhanced with rich media, and stored and hosted by DMG. Publishers can present the publications on their Web sites; animated GIFs can be sent to subscribers via e-mail; or publishers can distribute a Flash file of the e-edition via removable media. Accessed via standard Web browsers. Among EditionDuo’s features: simple text feeds (an Article Link will open a text version of the article in a new window); article translation; link building through bookmark sites such as Digg, del.icio.us, Google and more; article commenting; and an Adverts Menu, which acts as a table of contents for all of the publication’s advertising features. Links can direct readers to advertisers’ specific Web landing pages. Reader activity is tracked and reported.
Pricing: $229 setup fee plus $3 per-page fee. $0.50 per page for removing all EditionDuo branding (optional). Additional charges include $35 for an animated GIF, and $95 for a compiled Flash file.
Magazine customers include: Golf Georgia; Grape Anticipation; I Do for Brides; Clemson University; Designs Direct Publishing
Contact: (770) 992-5078, EditionDuo.com

Dirxion
Solution/Service: Dirxion’s solution replicates printed publications, and supports restricted or open access. Standard features include: database-driven searches (by keyword, phrase and category); banner ad space; hot links to Web sites and e-mail addresses; customized table of contents; “sticky” notes; cross-reference links; Flash ads; audio/video linking; usage tracking and reporting; and support for multiple languages.
Pricing: Not provided.
Magazine customers include: PennWell; Harrison Group
Contact: (888) 391-0202, Dirxion.com

E-Book Systems Inc.
Solution/Service: E-Book Systems’ FlipBook Publishing System’s Digital Flip technology is designed to replicate the page-flipping experience. With FlipBook Creator, a Wizard-based program, online magazines can be enhanced with video, animations, music, embedded links and search functions.
Pricing: Not provided.
Magazine customers include: FHM; Primedia; MediaCorp
Contact: (408) 625-8000, FlipViewer.com

iMirus, a div. of Riggs Heinrich Media Inc.
Solution/Service: iMirus enables publishers to create digital editions—online or downloadable—of their print titles. The iMirus Reader may be customized to match the publisher’s branding and deployed via the publisher’s site (no software download is required), or served up as a client application for readers who wish to download a publication “to go.” iMirus also provides advertising and marketing programs, including banner ads, sponsorship programs, custom-published content, and sales of the outside front cover of the e-edition.
Pricing: iMirus operates as a “software as a service” model. Pricing is based on a package, which includes all services, or a la carte, which start at as low as $600 (including hosting).
Magazine customers include: Business Traveler; NWA World Traveler; Dental Economics; Rhode Island Monthly; Giant
Contact: (918) 492-0660, Imirus.com

NewsStand Corp.
Solution/Service: NewsStand takes a consultative approach to developing solutions for publishers of magazines, books, newspapers and more. NewsStand’s services and solutions include archiving, content management and repurposing, electronic editions, subscriber management and custom publishing. In addition to its public-facing NewsStand.com site, the company also works with b-to-b and corporate publishers to develop e-editions and Intranet-based content portals, enabling more robust advertiser-publisher programs.
Pricing: NewsStand.com’s e-editions are created based on flat fees dependent upon circulation. For pricing of other services, contact NewsStand.
Magazine customers include: Barron’s; Harvard Business Review; Laptop Magazine; Flight International; Nature Publishing
Contact: (866) 837-4567, NewsStand.com

Nxtbook Media
Solution/Service: Nxtbook Media’s e-edition solution features include: bookmarks and page notation; word searches (current issue and archival); “forward content to a friend” capabilities; hyperlinks and e-mail links; and permalinks. The e-edition may be enriched with toolbar ads and sponsorship programs; Flash ads; audio and video ads; gatefolds, bellybands and inserts; and Gravicon surveys. Reader behavior is also tracked.
Pricing: Not provided.
Magazine customers include: Advanstar Communications; Reed Business Information; Weaver Official Publications; EContent Magazine; Primedia
Contact: (866) 268-1219, NXTBookmedia.com

Olive Software
Solution/Service: Olive Software is designed to create exact print replicas, through a centralized data-storage system and a single workflow, and to enable publishers to use the software to produce and host the digital edition—or, via its outsourced model, have Olive produce and host the title.
Pricing: Not provided.
Magazine customers include: Time Inc.; ESPN; Reed Business Information; Hearst Business Media; Newport
Communications
Contact: (866) 654-8387, OliveSoftware.com

PageSuite Ltd.
Solution/Service: PageSuite is an online, interactive, page-turning software application that enables publications to be presented in a digital edition deployed via the Internet.
Pricing: From $500; depends on page count and frequency.
Magazine customers include: Condé Nast; Cambridge Style; City Living; Working Mother; Clarity Media Group
Contact: Info@PageSuite.co.uk, PageSuite.co.uk

Pressmart Media Ltd.
Solution/Service: Pressmart converts publishers’ digital prepress pages into digital editions, using a patent-pending technology, and delivers them via the Web, mobile, podcasts, RSS feeds, social networks and content-aggregation services. Publications are promoted to subscribers via Pressmart.net, as well as by online advertising, new-edition notifications, news alerts and e-mail campaigns. E-editions are pre-
integrated with social-networking sites and content-
aggregation services, and are search-engine ready.
Pricing: Not provided. No upfront investment; fees based on a per-page rate.
Magazine customers include: Not available for publication.
Contact: (212) 351-5090, Pressmart.net/eedition.html

Qiosk.com
Solution/Service: Qmags’ electronic issues, delivered via the Internet, can be exact copies of the printed magazines, or digital publications created with the QuVu format, which enables the publication to fit readers’ computer screens, requiring no page manipulation. E-magazines can be enhanced with audio and video, hyperlinks and electronic search capabilities.
Pricing: Not provided.
Magazine customers include: Animation Magazine; Armchair General Magazine; Computer Magazine; IEEE Security & Privacy; Waste Management World
Contact: (212) 947-6050, ext. 11, Qmags.com

Texterity
Solution/Service: Texterity converts publishers’ titles into the Published Web Format (PWF) from PDF files. PWF replicates page-turning, and enables cover wraps, bellybands, etc., to be transformed into overlays, pop-ups or animation. Buyers’ response cards appear as blow-ins (layered on the publication), and direct readers to specific advertiser locations. Texterity’s Lead Management System enables publishers and advertisers to offer premium content, such as white papers, within the digital edition, prompting readers to opt-in. PWF reader reports may also be used for BPA and ABC circulation statements.
Pricing: Not provided. Costs include a per-page conversion fee; a monthly maintenance fee for document hosting with customer-branded URL, search engine visibility, archive issues, and availability across all platforms without a plug-in or application (Windows PC, Macintosh, and iPod Touch or iPhone), among others; and a delivery fee. Other services also are available.
Magazine customers include: Make Magazine; Game Developer; Internal Auditor
Contact: (508) 804-3000, Texterity.com

YUDU Media
Solution/Service: YUDU Publishing Pro features include video, audio and Flash file insertion; a digital rights management system; contextual and archival search; bookmarking and notations; advertising components, such as tabs, gatefolds and bellybands; statistics capture; and more. It offers crisp vector text (which eliminates pixelation) and infinite zoom.
Pricing: Not provided.
Magazine customers include: Not available for publication.
Contact: (888) FOR-YUDU, Yudu.com

Zendition
Solution/Service: Zendition’s a base model application is designed to enable page flipping, print capabilities, search functions, zoom, table of contents and more. Add-on modules include audio, video, pop-ups, back-end integration, BPA auditing, and registration and user tracking.
Pricing: Not provided.
Magazine customers include: Strategy & Business; Relix; Global Rhythm; Trader Monthly; Corporate Leader
Contact: (646) 278-0621, Zendition.com

Zinio LLC
Solution/Service: Zinio’s Publisher Growth Services Group collaborates with publishes to help integrate and tailor online marketing programs to a publisher’s circulation, ad sales, brand extension or other audience-building goals.
Pricing: Not provided.
Magazine customers include: Primedia; Reader’s Digest; VNU (now Nielsen); Disney; The Hearst Corp.; Rodale; National Geographic; TV Guide
Contact: Zinio.com/publishers

Zmags Inc.
Solution/Service: Zmags Publicator is designed for creating and editing electronic versions of print publications. It is designed to enable creation of e-editions in as few as five minutes, on average. The solution is Web-based, requiring no software downloads. Available in two levels—PublicatorExpress and PublicatorPro. PublicatorPro also features advanced editing; archives management; high-resolution zooming; advanced analytics; and automatic linking to internal and external sources.
Pricing: Starting at $45/month per publication.
Magazine customers include: Not available for publication.
Contact: (613) 627-4101, Zmags.com PE

Gretchen A. Peck is a freelance author who writes about the international printing and publishing industries.

New Rules of Custom Publishing

Hell, there are no rules here-- we're trying to accomplish something.
Thomas A. Edison (1847 - 1931)

New Rules of Custom Publishing - New Complimentary White Paper: Nine Strategies to Create a World-Class Content Marketing Company
Posted by Joe Pulizzi
http://blog.junta42.com/content_marketing_blog/2008/04/new-rules-of-cu.html

The web and a continuing modification of buyer behavior (among other things) have changed the rules of what most people call the "custom publishing" industry. Traditional custom publishers, who profit from the creation and execution of customized content solutions for clients, must understand the new rules of custom publishing in order to survive. To help, I put together this complimentary white paper titled: The New Rules of Custom Publishing: Nine Key Strategies for Creating a World-Class Content Marketing Company.
Although this white paper is clearly targeted for publishers, or the providers of content services for marketing professionals, there is tremendous value for both marketers and publishers. This is especially true, since it doesn't matter if you make your money off of publishing or not. We are all publishers . . . so we all need to understand what is going on in the marketing/publishing world in order to compete in it (with content).
Unfortunately, most custom publishers are still hanging on to older business models and, as such, are getting plowed down by those abiding by the new rules of custom publishing. That said, there is a huge opportunity for those organizations that do choose to adopt the new rules as part of their overall business strategy.
The nine strategies highlighted in "The New Rules of Custom Publishing" are:
Understand the Changes That Are Leading the Content Marketing Future - A comprehensive overview of the changes in technology, publishing and marketing that are driving the custom content revolution.
Be Active in Social Media: It's Mandatory for the Future of Custom Publishing - From blogs to LinkedIn to Facebook, the new landscape of social media is an essential part of any strategy.
Acquire Expertise in All Forms of Content - Forget about focusing on one custom product; these days publishers need to be masters (or access to expertise) of everything from print magazines to Webcasts.
Walk the Talk - Don't expect a client to have confidence in your expertise if your company is not its own best content marketer.
Position Yourself as Both a Marketing and a Publishing Expert - Only companies that understand - and work with - both sides of the business are going to thrive.
Have a Clear Value Proposition - At some point the custom publishing field will become glutted. What's going to differentiate your company from the masses?
Price Your Services According to What the Customer Values - From industry standards to client specifics, everything a company could need to know about pricing.
Value the Role of the Project Manager - No project is going to manage itself. Don't underestimate the importance of good oversight.
Use Questions, Not Answers: Five Steps to Closing the Deal - How to make the client knock on your door...
Download this complimentary white paper The New Rules of Custom Publishing: Nine Key Strategies for Creating a World-Class Content Marketing Company and take your content company into the new world of publishing. I hope you enjoy it!

American magazine market towers over Britain

American magazine market towers over Britain
Dan Sabbagh: Analysis
http://business.timesonline.co.uk/tol/business/columnists/article1867868.ece

Visiting the headquarters of the world’s biggest magazine company, Time Inc, on New York’s Sixth Avenue, reveals plenty about the difference between British and American media. In Britain, television and newspapers rule, and magazines are a cottage industry. Yet one look at the vast reception and escalators in the atrium of the 1950s skyscraper, opened, naturally, by Marilyn Monroe, suggests that the balance of power is somewhat different in a country where there are only a handful of national newspapers. After all, Time Inc – home to Time, People, Fortune and Sports Illustrated – makes $1 billion (£505 million) a year, which is somewhat more than the £72 million that Emap ground out of the magazine market back home.

It helps, of course, that the United States is a country the size of a continent. A niche title in America can find a circulation of a few hundred thousand, and afford staffing to match, whereas in Britain three journalists and two production staff can easily chuck out a monthly. The great strength of the scrappy British culture is its innovation, thinking nothing of building titles on the back of boob jobs or high street fashion, but its problem is that it encourages a lack of ambition as the internet changes the rules of the game – which is partly what did it for Emap’s boss Tom Moloney, who was ousted last month.

In the States, magazine publishers such as Time have their eyes on television. Collectively, Time websites manage 19.3 million monthly unique users, not much behind Disney (which owns ABC, as well as Mickey Mouse) or CBS Corporation, at 22 million and 23 million respectively. The publisher believes that, on the net, its products could exceed the reach of competing television shows, and that ad dollars may follow. Why shouldn’t Sports Illustrated run a video interview with Tiger Woods, or put together a one-hour weekly show if that’s what people want to watch – or People take on the late night talk shows for audience: they have enough capital to be competitive.

It’s not immediately easy to imagine the same dynamic back in Blighty. Emap has pushed brands like FHM, Kerrang! and Mojo into television and/or radio, but brand extension is not about trying to dominate a category such as sports. Troublingly, even Time is not so sure – and it owns IPC, the Horse & Hound market leader in the UK. Back in New York, the parent company is asking whether British magazines have the reach to take on the BBC. That, in turn, hardly bodes well for IPC, which seems to have become a straight financial investment for Time Inc’s parent, Time Warner. We already knew that most magazines don’t travel internationally: Sports Illustrated’s swimwear issue (the swimwear is worn by women) may be racy enough for American tastes, but hardened readers of Nuts and Zoo would be underwhelmed. However, a diversion of strategy between Time and IPC could be wrong.

Internet economics shows that the spoils go disproportionately to the winner. The traditional game in magazines is to identify the right audience and exploit the gap, but the new model requires more ambition. Already the BBC has seized the consumer motoring audience with the transition of Top Gear online (although, fortunately, it can’t buy AutoTrader to control the car market as well). If magazines are to have a chance, the sector needs to cultivate more ambition: bet on winners and build audiences before the BBC snaffles them all. Or find new owners and managers who are willing to try.

— Six weeks from now, even the most hopeless Muggle will not be able to move for the outburst of Harry Potter mania. The fifth film – which will gross somewhere between $800 million (£404 million) and $1 billion, if previous form is anything to go by – will be followed just over a week later by the last book. Amazon.com has already passed 1.5 million preorders of the title globally; 12 milion copies have been printed in the States; small children will wear out overjoyed parents as they queue for the midnight release.

This, of course, is big business. The author J. K. Rowling is worth more than £500 million. She has helped to create an industry with some 200 spin-off titles and, even if the wizard does not survive the Deathly Hallows, he will live on in the remaining two movies, even more spin-offs and a theme park in Florida that ought to be sponsored by Eton, as Hogwarts is such a good advert for the British boarding school.

The curiosity with Harry Potter is that the books are so startlingly successful in the postmodern era. The usual refrain of commentators is to bang on about how audiences are fragmenting, how computer games and/or the internet are ruining reading, and corrupting supposedly innocent teenagers. Read Chris Anderson’s The Long Tail, with its emphasis on discovering there is money to be made on supplying niches, and you’d be forgiven for thinking that hits don’t matter so much any more.

Yet as shareholders in Bloomsbury, Rowling’s British publisher, can ruefully attest, profits slumped last year when there was no new book to be released. Audiences are fragmenting, but there are times when vast numbers of people want to consume the same thing, whether it’s the World Cup final, The X Factor, Spider-Man 3 or Harry Potter’s seventh and last story. Mass entertaintment is far from dead: and those who reach global audiences make super-normal profits.