The American Society of Magazine Editors (ASME) just
announced finalists for the Magazine of the Year (General Excellence) and other
awards. The list includes the familiar
and impressive heavyweights: Esquire,
Glamour, National Geographic, New York,
and TIME. I don’t envy my friends at ASME the task of
sorting through the best of the print best while giving a nod to digital. So far, all is right with the world.
I was very happy to see TIME
on the list, not only because many friends still work there, but also because
of the way it was knocked around during the rumors about Meredith acquiring
Time Inc. TIME was said to be left out of that fantasy transaction and a
place at the table. Perhaps this
indignity prompted the Atlantic Online
post by Joshua Macht, who leaves nothing to the imagination in his title:
“Running out of TIME: The Slow, Sad
Demise of an American Magazine.”
Thank you ASME for giving this relic of a magazine one last
acknowledgement at the upcoming awards dinner because, well, you never
know. But Macht seems to know,
suggesting that it’s hard to imagine there will be much left of the brand in 36
months.
He exaggerates and I exaggerate. There is some sadness in his blogger voice. He wonders out loud how Time Inc., so early in
the game with a $100 million investment in the Pathfinder portal, long before
Google and when Netscape and AOL were still tiny, has not been able to capitalize
on the web? Obviously the huge distraction with the AOL deal that some have
called the worst media merger in history didn’t help.
But this is all a prelude to the real dance. Frank Rich’s current New York piece, “Inky
Tears” sucks all the sentimentality out of our much-aired historical narrative
about the demise of the media titans. “TIME is on the block. The New
York Times is teetering. It can get
an alumnus down, but the last thing the news business needs is a case of
nostalgia.” He writes that whether print
survives or not is borderline irrelevant: “Survival, not survival of a print edition, is
what’s at stake now.”
My earlier remarks about TIME
magazine point back twenty years to those halcyon days. Rich suggests that “If you look back at TIME in its heyday, it’s a model more
worthy of parody than emulation.” Here Rich is referring to the magazine’s far flung
bureaus, editorial redundancy in the extreme, and a profligate waste of money
worthy of an Evelyn Waugh satire. Accordingly, the seeds of the magazine’s
decline were planted a long time ago. The
writer notes that “In the modern history of media, the reigning giants have
nearly always been caught napping by transformative change.” There is something almost biblical in that statement.
In the last couple of days, I’ve had occasion to look at The Week, a modest, hardly handsome,
print summary of domestic and international news within the fair-use doctrine. When Felix Dennis of Maxim fame launched The Week in the US in 2001, the WSJ wondered
out loud whether the man was nuts. I
know Dennis and have called him a lot of names, but “nuts” wasn’t one of them. Dennis, who is rich, unpredictable, and a Brit
with a wicked wit, gave his best quote to the NYT: “In the end, The Week will inherit the earth.”
The Week has
neither inherited the wind nor the earth, but it has gained a tidy, secure,
foothold on a piece of expensive real estate by behaving like a very
traditional print magazine. It has a
paid circulation of about 540,000, a fraction of the 3+ million TIME enjoys. Its circulation base is almost completely
subscription. Newsstand sales are
insignificant as are digital replicas. The Week sells a lot of gift
subscriptions. The magazine has a very
active web site, but is just now looking more seriously at digital
revenue-generating opportunities, such as e-commerce and the like, an effort
that is likely to be helped by sister company Mental Floss. The Week
is said to generate about $50 million in total revenue with a 10-15% ROR.
By publishing standard, this is a very small enterprise, but
the example is instructive nonetheless. Over
the years, The Week has reminded the
publishing community that it is not a legacy magazine trying to adapt to the current
news environment. The magazine
identified its niche, filled it, and served the readers well. My guess is that the ratio of consumers who
subscribe to those who renew their subscriptions for the next term is very
high. And this is the secret sauce. You can bet that Felix Dennis, a stickler on
cost control and, as I’ve noted in earlier blogs, a trenchant critic of
American magazine cost structures and largesse, has kept the business very
lean. I’ve heard people argue that The Week isn’t a real magazine; that it
is built on the backs of other journalists.
This sounds like legacy thinking.
In his New York
article, Rich raises the question, first raised by PaidContent, that “At what
point does it become more of a hindrance than a benefit to be associated with a
traditional media brand?” Rich is
referring here to newspapers and news magazines, but his question probably has
broader media implications. The brand
remains the glue, the identity, the existential positioning for media properties. Magazine publishers now design for branded,
edited content that will thrive in a cross platform and cross-channel world. Print is just one component of this content
universe. This positioning is vital,
pragmatic, and defensible in the business sense. And this approach should become more secure
as publishers get better at delivering and monetizing content across these
platforms, especially tablets where advertising CPMs are favorable, without all
those workflow and staff redundancies.
Speaking of awards: this is the 20th anniversary of the
launch of Wired Magazine by Jane
Metcalfe and Louis Rossetto, a date worth celebrating. I recall meeting Ms. Metcalfe in 1996, showing
up in their office in the low-rent district of SF in my very NY suit and tie to
chat about expanding the title internationally.
Three years earlier, New York
publishers had rejected their business plan, so they turned to Nicholas
Negroponte, founder of the MIT Media Lab, for financial support to publish
their version of Rolling Stone for
the digital age. (Ad Week’s Ted
Greenwald has a wonderful article on the launch of Wired in the current issue. The
20th anniversary edition of Wired
will be available for download April 16 and on newsstands April 23).
The launch of Wired
now seems gutsy and charming in a way, brought to life by founders who had a
clear sense of purpose and who perhaps fortuitously lived three thousand miles
from the epicenter of publishing. The
founders could bring in alumni from Ziff-Davis and Macworld to help bring the
magazine to life where, in the East, few seemed to speak that language. I don’t think the magazine would have stood a
chance in New York in 1993.
Media disruption today can be found in the app stores. The joke in Silicon Valley is that everyone is
working on an app, but it’s not that funny. Google just booted 60,000 apps from its Google
Play, many apparently spam-like. I’m
working on a couple of mobile apps and have learned how difficult it is to
differentiate and bring something genuinely new to market. And
like most in the space, we keep an eye on Flipboard.
The platform is said to have 50 passive and 4 million active
users. That’s a sizeable community any
way you slice it. Though there has been
some pushing and pulling with publishers, especially over revenue-sharing,
Flipboard appears a useful tool in the publishing arsenal. And with the introduction of Flipboard 2.0,
this relationship could get even more interesting--and complex.
We’re heard ad nauseum
for the last decade or so that one grand end-game for digital is to allow every
consumer to be an editor and publisher. To
a degree, this wish-fantasy has already come to life as the proliferation of
blogging and self-publishing tools have become widely available. Flipboard 2.0 raises the stakes even more. In this version, the navigation is much
simpler and I can flip through digital pages as if I am thumbing through a
print version. But for me, the really
interesting part is that consumers are now able to create custom magazines in
literally seconds for sharing or private use. Have a look at the Flipboard video available
on the site and watch magazines such as Living
in Trees, Mountain Biking, and Mid-Century Amazing, about houses and
the like, come to life. And with the new
bookmarking feature, you don’t have to be on the platform to add content from
other sources, such as the web.
Paul Armstrong at PaidContent has referred to Flipboard as a
“giant iceberg lurking in the path of media,” As an ex-Navy guy with long stints at sea, I
can appreciate this metaphor, even if it appears to be somewhat
overstated. But Armstrong is absolutely
right about Flipboard 2.0 signaling a “pivot from purely curation-based
interaction to one that uses full-blown creation abilities.”
Flipboard’s business model would become much more
interesting if the platform became a digital magazine incubator, a media
laboratory, an experiment in beautiful branded content, particularly for the
publishing verticals, all with the energy and insights of the crowd. Flipboard could be a real partner to magazines
and media companies.
In my most recent post, I wrote that the software that will
make content more intelligent and an increasing dependence on algorithms to
solve editorial tasks over time will impact the magazine publishing model. Flipboard might be a more old-fashioned
disruptor, making use of technology plus the wisdom of the crowd. IDG, publisher of Macworld and other computer
titles, realized years ago that its readers knew as much, if not more, than its
editorial staff and embraced that talent. This seemed an important awakening.
Going forward, magazines publishers will likely
need a lot more of this brand of humility.