Thursday, April 25, 2013

Meredith, publishing Internet Companies That Beat

On the eve of Valentine's Day, dating shocking news rocked the magazine industry. Meredith (MDP), Iowa-based publisher mum optimistic women's service magazine (including Better Homes and Gardens, Ladies Home Journal ', and Traditional Home), is on the verge of getting in (TWX) Time Warner glossies most vociferous (including people, Entertainment Weekly, and InStyle). It seems like an odd couple that could be a victory for Meredith. To begin with, there is a difference in size. Meredith, with 3,300 employees and $ 1.4 billion in annual revenue, has replaced most of the division with about 8,000 employees and $ 3,4 billion in revenue. Like Time Warner, Meredith, with a market capitalization of $ 1.67 billion, were traded. Union workers will suddenly make Meredith the largest magazine publisher in the country. But hard to imagine a couple with different tastes like. If successful the merger, the owner of Better Homes and Gardens is published, among others, a young British magazine called Nuts. And every fall, the company behind the Ladies' Home Journal Sexiest Man Man coronation. Before the world got to see what the offspring of Meredith and Time would look like, the romance cooled. On the night of March 6, Time Warner announced to go solo for a while and spin-off a company magazine, new public. Meredith Chief Executive Officer Stephen Lacy quickly released a statement indicating there are no hard feelings and left the door open for further conversation. "There is a natural synergy between the two portfolios," Lacy said in a release. "However, we respect the decision of Time Warner and will remain open to continue the dialogue about how our companies can work together on future opportunities."

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Deal suggested that even shows how much publishing has changed. With the advent of the Internet, the main source of advertising revenue and circulation are eroded, while the cost of the magazine printing ink, paper, and increasing distribution. In the 20th century, publishers of all shapes and sizes seem Henry Luce of Time Inc.. For ideas on how to earn the magazine. But in the months and years to come, they are more likely to look at Meredith to learn how to live. Meredith main advantages of this approach. They are experts at repurposing their content on multiple platforms (magazines, books, websites, mobile devices, tablet, etc..) And look more aggressive advertising and circulation for profit. Print, they can stay away from the news. They were very successful licensed the name of their magazine titles' for the big national business selling branded products, they also run their own marketing agency. Meredith has not been immune to the forces battering the industry. But in the last decade, the strategic adjustment of their portfolio, they managed to maintain a stable and reliable income year after year despite the turmoil the margin. (Lacy denied comment.) Figure aggregated by Bloomberg Businessweek from different PublicationsIn Meredith February, Meredith has published an editorial signed by the product of "Bookazine" called Chicken dinner. It is flush with advertising, co-branded under the Better Homes and Gardens willingness, and sold no expiration date. In theory, it can live in stalls or coffee table or kitchen table for months. "Chicken Dinner Chicken dinner if you bought it in May, June, or July," said Samir Husni, director of the Magazine Innovation Center at the University of Mississippi.

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Some 88 years after Harold Ross launches The New Yorker with a pitch that it "was not edited for the old lady in Dubuque," turned on the Iowa surprise the seat of power. "Time is quite powerful to be the news in a way of entertainment," says Isaiah Wilner, author of The Man Time Forgot: A Story of Genius, Betrayal, and the Creation of Time Magazine. "Now we can get the style and attitude and personality on the Internet for free. The meat and potatoes old magazine may have a better chance to survive today because they provide something that people will still be needed. It ... revenge of the old lady from Dubuque-only him from Des Moines' headquarters Meredith. Is manicured campus in downtown Des Moines. Facilities include approximately 5,000 square feet luxury test kitchen where staff test and retest every recipe that goes in the company magazine. According to the Des Moines Register, the kitchen was remodeled in 2005 at a cost of $ 3 million and featuring bamboo flooring, marble countertop, cabinet and remote control. Meredith also maintained garden complex trials. The red 24-foot-tall, ornamental horticulture shovel by Claes Oldenburg and artist standing outside the van Brüggen Coosje. Although the company has maintained a large presence in New York, the majority of the workforce in Iowa.

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Working away from Manhattan magazine provides more than just a different perspective. Also cheap. Readymade magazine edited Andrew Meredith Wagner, on the subject of DIY culture and design, from 2009 until 2011, when the company closed due to falling circulation growth. He said that according to the editorial is essential. "There are many styles of Meredith," said Wagner. "Especially for the title of the house. They are a fascinating picture of the studio. ... Really amazing. But they use the same photographer to light things the same way. Everything Meredith is not directed towards standardization and affordability "to generate ideas, pictures, articles, and tips on living., Meredith has cultivated a list known as a contributor to the far-flung editors contributions from the field or area. Masthead for the March 2013 issue of Better Homes and Gardens list of 36 contributors to the region in areas such as Galveston, Tex.., And Raleigh, NC "We have this content pipeline," said Karol DeWulf Nickell, who served as chief editor of Better Home and Parks from 2001 to 2006. "We had never been on-staff photographer, that's really important for the fee structure overhead. This model is different from the high-end photo shoot of some of our competitors. '

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Meredith devotion to the service of journalism is built on the roots. Edwin Thomas Meredith, who founded the company in 1902, could start a successful farm, which still publishes Meredith. In 1922, Meredith launched to Fruit, Garden and Home, the title of services aimed at middle-class family, who later became Better Homes and Gardens. Along the way, Meredith came to the editorial guidance law is still followed today: "no fiction, no fashion, no nonsense, no passion." Meredith always stay away from the news and time sensitive stories. In recent years it has developed and get a site designed to appeal to a mass audience with a service-oriented women, evergreen content. In 2012 it was purchased Allrecipes.com, which paidContent described as the "largest food site in the world," from Reader Digest Association for $ 175 million. In a call with analysts in January, said Lacy digital advertising revenue rose 110 percent during the first half of fiscal 2013. Company's growing digital audience, he said, that make e-commerce opportunities, mainly produces commands to subscribe magazines.Instead news, editorial Meredith has focused on product known as special-interest publishers, or SIP (which is sometimes called bookazines, magalogues, or magabooks). Has a cover that looks like a magazine, crammed full of ads, and sold at newsstands each SIP. Currently, Meredith publishes nearly 100 titles SIP, including decking ($ 12.99), American Patchwork & Quilting ($ 5.99), and chicken dinner ($ 9.99). The SIP allows the Meredith content that appears on one of the magazine and reuse. Meanwhile, Meredith magazine printed on a regular schedule and have a limited life kiosks, SIP is printed on demand and sold for the month. Because it is paid, SIP can be very profitable. (Meredith does not come out of his earnings for SIP.)

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Lacy, who led the company since 2006, told analysts in January that during the housing boom Meredith publishes titles like Good Kitchen & Bath up to six times a year. When a market falls, Meredith down. "But it's still the most profitable things we do," said Lacy. "If you're going to blow the back of your house and drop $ 150,000 in the kitchen, it is not the same investment as a dress or a pair of shoes. We are always thinking about business SIP as the accordion, we can improve things like crazy "Advertising remains the lifeblood of the company ... In 2012 advertising sales account for $ 769.8 million of the $ 1.37 billion in revenue Meredith. Of that amount, 64 percent comes from the publishing division of the company. The rest comes from advertising sales at 13 Meredith local TV stations. In 2012, Meredith sold some 9,417 pages of magazine ads, according to data from Kantar Media (WPPGY) provided by Publishers Information Bureau. Better Homes and Gardens 1365 led advertising page. Meredith told advertisers that the company has developed a unique machine to tell the story of the brand for 100 million American women, gathered in different titles, each one comes in about the same topics as health, shelter , food, and the parents are little different angle. Ad buyers know exactly what they are getting. "It is actually very simple when you look at the existing publishers to see how they designed their portfolio," said Audrey Siegel, president of media agency TargetCast TCM.

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Meredith will not rest until every corner of the house brand: from the magazine mail slot bathroom accessories and furniture in the back lawn. Wal-Mart Stores (WMT) is now selling more than 3000 Better Homes and Gardens products, including Rug bath, lotion pumps, and fire pits. Selling FTD (UNTD) Better Homes and Gardens line of bouquets. Meredith magazine titles for publisher licensing partners abroad. Living with diabetes now published in Italy, Greece, and Russia. Since 2008, Realogy, the parent company of Century 21, who sold homes nationwide by Better Homes and Gardens line of residential real estate office. Figure aggregated by Bloomberg Businessweek from different PublicationsWhen Meredith Wagner joined Meredith in 2009 as editor of the Readymade, he found a hospitable culture, discipline, and relentless. Tight budget. Wagner remembered every day the company hanging of signs announcing the closing price of Meredith. "It's not about, 'See fascinating piece of content we do and let us get inspired,'" Wagner said. "It was like, 'Look at the stock price!" You know what they are working. "In 2011, Meredith closed the Readymade, and Wagner now works in marketing for various companies. Meredith believes she is well positioned on top of current industry changes. "These are the ones who lead the way in the breakdown between content and marketing," said Wagner. Meredith is so good at self-assembled entity marketing business-to-business, she called Meredith Marketing Xcelerated, or MXM. This group works directly for the brand (current client Kraft (KRFT), Chrysler, and Lowe (low)) selling marketing services for designing print ads, build customized mobile applications, Web shoot-sponsored video series, and using word of mouth campaigns on sites such as Facebook and YouTube. According to press materials Meredith, MXM has over 700 employees and 150 clients. Currently generates $ 150 million in revenue up from $ 75 million in 2005. Meredith also courting two segments of the advertising expenditure does not show signs of vulnerability Web-video and cable TV last bulking up Meredith Video Studios, a production unit for the advertiser-friendly show filled with product integration . Among other things, the MVS when creating women-friendly Web-video series paid for by brands such as Kmart (shld) and Home Depot (HD). There is also a TV talk show called Show more efficient, the interesting part of Meredith magazines and broadcast at least 160 markets, including the Meredith-owned stations such KSMO in Kansas City, Kansas On March 4, Meredith announced a deal to syndicate Show better emblem Channel, with 87 million U.S. cable subscribers. On the same day, Lacy appeared in the conference in Palm Beach, Florida, said that business and marketing agent Meredith has never looked stronger. He noted that in 2013, Meredith has been expanding the brand licensing program in real estate and retail. On the side of publishing, Lacy is interested in expanding its offering of tablet because the margin is much better. At present, he said, Meredith spends $ 300 million a year in paper, printing catalog, and. Which is not to say Meredith fell in print. In Palm Beach, Lacy suggests that the interest in the company at that time only the beginning, and that many covet Meredith implicit that the company could do a better job than the current owners in managing distressed assets "based on magazine brands.". "We were fortunate last year to unload both Allrecipes and [Every Day] Rachael Ray Reader's Digest before filing for bankruptcy mercy on them, and then do the second EatingWell and FamilyFun," said Lacy. "We thought we were pretty good operator." In other words, they know how to change a budget.

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