Bill Reilly Dies

Folio is reporting that William F Reilly died at his home on Friday. Bill was CEO of Macmillan when I (and Mrs PND) started my career after business school. To one of his staff members, he was an intimidating presence in the board room on the monthly occasions when we presented business results to him. He frequently made clear he knew more about the business than we did (as staff business analysts) but in doing so he imparted a clear perspective on what was important to understanding the true performance of the business. When Reilly joined Macmillan in the early 1980s, the company was on its knees loosing something like $100K a week. The share price was around $2. By the end of the decade, Robert Maxwell had purchased the company for over $90/share and Reilly and several of his management team were very rich. I joined after the Maxwell purchase and worked for Reilly for about a year before he went to join his team at K-III. K-III became Primedia.

Folio reports that services will be held as follows:

A wake is scheduled for October 21 in New York at the Frank E. Campbell funeral home from 2:00 p.m. to 4:00 p.m. and 7:00 p.m. to 9:00 p.m. The funeral will be held Wednesday, Oct. 22 at St. Ignatius Loyola Church in New York at 10:00 a.m.

5/6/99: BookExpo99, St. Martins, Amazon.com, Primedia, Reuters, Barnes&Noble

Publishing News: May 7, 1999
BookExpo 1999
NuvoMedia, Announces RocketPress
St. Martin's Press Provides Golden With Parachute
Yahoo Life did it now eBay tries the Newstand
Amazon Buys Three Companies
Primedia for Sale
Newspapers are Dead
Fast Company Sale
Reuters Job Action
Miller Freeman Inc. Acquires CMP Media For $920 Million
Selling Books from Vending Machines
Barnes and Noble the Publisher
Economist Privacy Article

This is the last issue of Publishing News. Anyone interested in developing something similar should contact Ian Krantz. Anyone needing to get hold of me can e-mail me at mpcairns@sprintmail.com. Thanks for your support.

BookExpo 1999
At the BookExpo show in Los Angeles, the Book Industry Study Group (BISG) reported that last years trade sales declined for the first time in seven years. This information was in contrast to the popularly held belief that internet or online sales had expanded the market for books generally and further the report indicated that affluent educated readers are buying fewer titles. In the day prior to this announcement, I asked Peter Olson CEO of Randon House (who was participating in a panel discussion) that if the market share of online booksellers was to grow to 20-25% of the market by 2003 as is predicted by BCG and Jupiter Communications where he thought this additional share was going to come from. He responded by saying that he believed online sales were incremental to existing book sales and therefore there would occur limited shift from other traditional outlets. The BISG reported that online selling accounted for 2% of total sales last year and as has been the case over the past five years independent book store sales declined and chain stores saw their share of the market increase.

During the same panel discussion, Michael Lynton – CEO of Penguin Group commented that the current price model for online book selling would almost certainly change and that the biggest risk would be the negative gross margin model. “If someone were to take all front list titles and sell them at a loss this would radically change the model for selling publishing product online.” Such companies sell ‘below the line’ products such as credit cards, services and advertising as sources of income. Priceline.com is the most recent example of a model that didn’t really exist on the web six months ago.

While at the show I also had a conversation with Mike Lovett who is the CEO/President of the Ingram Distribution Company. We spoke about the proposed purchase by Barnes and Noble of the company and he is convinced that the merger will go ahead. “They have interviewed – which is a polite way of saying deposed – many, many B&N and Ingram people over the past six months as well as others in the industry” he commented and that the Justice department he believed were ‘trying their best to understand the publishing industry.’ At this point he thinks that the original issues with the merger have been answered and that there may be some request to reduce operations in certain areas but for them it wouldn’t be a big deal. I would think that the transcripts from this review would be interesting reading for anyone interested in this industry.

At the BookExpo show, a company named On Demand Machine Corp displayed a book printing system that can print and bind a standard trade paper back in a machine which measures eight feet by four feet. This machine is designed to fit in a bookstore and can both store electronic titles in its memory and call up additional titles from the company head office via satellite. Customers can order the books, confirm the title is the one they want and purchase using a credit card. The transaction takes a little more than five minutes. The first full implementation is scheduled to take place in June at The Tattered Cover in Denver. My guess is you will see similar machines at Kinkos, Airports and other public places in the not too distant future.

Other interesting comments from panel discussions at BookExpo:
The traditional book distribution channel poses too many problems for some publishers particularly those which are smaller. The difficulty they face is not the risk people will copy their books rather that customers couldn’t find them in the first place. Placing content on the web actually increased sales of the printed product by 30%. National Academic Press and Rough Guides are examples of this. Additionally, McGraw Hill’s Beta Books have been so successful on line (while still generating bookstore sales) that the company is expanding the availability on the internet of non technical titles as well.

Many people commented that the highest risk job in publishing is ‘International Rights Manager.’

Xerox has developed a product that allows the production of a book anywhere in the world via web ordering. There will be literally 100,000’s of titles which were previously ‘out of print’ available via print on demand to individuals over the next five years. Additionally, what are now considered ‘non viable’ titles by publishers will also be made available as publishers make publishing investments without the huge investment in large volume printing. Coupled with this, some projections assume that front list sales will decline as a percentage of total sales as back list sales increase.

NuvoMedia, Announces RocketPress NuvoMedia, Inc., the creators of the Rocket eBook, announced the introduction of RocketPress(TM), a turnkey solution that provides a full spectrum of publishing services for RocketEdition(TM) content. With the announcement of this free Web-based feature, publishing companies as well as self-publishing authors can become publishers of RocketEdition titles. The easy-to-use RocketPress works as a free Web-based interface that allows publishers and individuals to control and monitor the publishing process of RocketEditions from end to end. Users can upload manuscripts into RocketEdition format for distribution over the Web; set the price of a publication; determine the timing of a RocketEdition release; list, preview, edit, and withdraw titles; and view and change title information and status. The service also lets users view or download a record of all transactions associated with a RocketEdition title, while affording state-of-the-Web security protection. As with all aspects of the Rocket eBook System, the RocketPress fits into the existing publishing business model, including full support of such necessary details such as territorial rights.
Source: PRNewswire 4/28/99

St. Martin's Press Provides Golden With Parachute Golden Books Family Entertainment and St. Martin's Press last week announced the acquisition of Golden Books Adult Publishing Group by St. Martin's Press. Golden Books has been beset by financial problems recently and this sale required the approval of a US Bankruptcy Court Judge. The transaction will include the Golden Field Guides, Whitman Coin Guides and such successful titles as Stephen R. Covey's "The Seven Habits of Highly Effective Families", Maria Shriver's "What's Heaven?" and "Parents' Magazine Parents Answer Book." Terms of the transaction were not disclosed. St. Martin's Press is one of the seven largest trade publishers in the United States. Based in New York, it publishes more than 1,800 new titles per year through its five publishing divisions. Golden Books Family Entertainment, Inc., is the leading children's book publisher in North America. The Company owns one of the world's largest libraries of family entertainment copyrights and creates, publishes and markets entertainment products for children and families through all media.
Source: Business Wire 4/26/99

Yahoo Life did it now eBay tries the Newstand
In July you will be able to read eBay, the magazine. Krause Publications, a Wisconsin-based publisher, plans to start publishing a monthly magazine planned to help readers navigate the ins and outs of online auctions. Although the name of the magazine is yet to be decided, the name and brand cachet of eBay will be prominent, says the publication's executive editor, Kevin Isaacson. Its tagline will be: Your roadmap to treasures on the Internet. Isaacson says his initial circulation goal is 400,000. Isaacson says Krause has a marketing partnership with eBay, but eBay hasn't invested in the launch of the magazine.
Source: Business Week, 4/22/99

Amazon Buys Three Companies
Amazon.com Inc has agreed to buy three closely held online companies, including rare book and music seller Exchange.com, for a total of $645 million, mostly in stock – don’t ya love that! The site is home to bibliofind.com, which allows users to buy and sell rare books, and musicfile.com, which provides the same service for fans of recorded music and memorabilia. The company employs about 40 people and had secured about $16 million in venture capital, according to an April 5 article in the Boston Business Journal. The two other companies are Accept.com, which is developing ways to simplify online transactions, and Alexa Internet, which offers a free service to help people navigate the Web. The purchases are the latest by Chairman and Chief Executive Jeffrey Bezos to expand Amazon.com's selection of products and services and draw more customers to its Web sites. The retailer two weeks ago agreed to buy LiveBid.com to add live events to its fledgling auction business and recently bought stakes in Drugstore.com and Pets.com, two retailers that operate Web sites.
Source: PRNewswire 4/22/99

Primedia for Sale
Primedia plans to sell its supplemental education group to streamline operations and reduce debt. The company expects to receive $500MM for the group. There was also speculation the company will sell other units separately. In other news Primedia announced it was setting up two autonomous internet companies to deliver integrated consumer and business oriented content derived from their consumer and trade publications. In addition to the content from the existing 350 titles the company plans on using content from its existing 180 print linked web pages. Details of the plans were sketchy with no indication as to how these companies will operate with the existing Primedia properties; however, the company has indicated tha these new internet companies will be entirely separate from Primedia with their own boards of directors and new senior management. Primedia is actively searching for CEO’s for these businesses. The model appears to be the VerticalNet.com model which offers information and business solutions to subscribers across the value chain. Primedia’s stock price rose dramatically on the news at one point going from $13.56 to $18.69.
Newspapers are Dead
Andy Grove, after being invited to speak at the National Association of Newspaper Editors, told them that ‘newspapers are close to death’ – seems a bit harsh given they were paying for his expenses. Grove believes that because the internet offers instant access to the days events that the traditional role of newspapers has disappeared coupled with emerging problems with advertising – particularly classified – newspapers will be out of business in three to five years.

Fast Company Sale
Appears Fast Company is for sale. The company is shopping the title to Conde Nasty, and a couple of other unnamed companies. Mort Zuckermann is looking to reduce his financial commitment to the three year old magazine, which despite being one of the hottest properties in the business is still not making money. (This is not unusual as it generally takes five years for an new publications to turn a profit). Which reminds me… is there any saving the New York Daily News? They have had major problems transitioning to a new printing plant in Brooklyn which is by some counts a year behind schedule, the color presses at said plant don’t work after an investment of $100MM and now a Brooklyn judge has award a union group millions in accrued back pay at a time when new negotiations are to start with journalists over their contracts. The union award (which could cost over $100MM) is being appealed. Stay tuned.

Reuters Job Action
You will not read this on Reuters newswire: Reuters staff (600 of them) recently voted to strike by a 10 to 1 margin. No word on when this would take place.

Miller Freeman Inc. Acquires CMP Media For $920 Million United News plc unit Miller Freeman announced the purchase of CMP, a leading US technology media company, for $39 per share, a net total cash consideration of $920 million. Rumors about the future of CMP have circulated for months and as a result of this sale CMP will become a division of Miller Freeman Inc. Ad pages in the technical pubs sector are declining and are down 14% for the first quarter this year versus last year and according to AdAge CMP’s pages are down 27%. The combination of Miller Freeman's trade show and publishing businesses and CMP's publishing and internet assets will transform Miller Freeman Inc. into one of the leading market-focused business media groups serving the U.S. and global high-tech sector. It will represent over 300 publications, 480 trade shows and conferences, 250 web sites and revenue approaching $1.5Bill. The acquisition also represents a major step forward in Miller Freeman's strategy to become a leading online provider of business-to-business products and services for the technology market. The merged online businesses are expected to achieve revenues of $35 million in 2000, and to grow rapidly thereafter. The acquisition represents a continuation of the consolidation taking place in the trade magazine publishing business. AdAge also commented that Miller Freeman may also IPO the web site CMPnet before the year is out and it seems clear that without the web sites CMP may have been sold for less than $400MM.
Source: PR Newswire 4/29/88

Selling Books from Vending Machines
A proposal I presented five years ago at Berlitz; a company in the UK will begin selling trade paperbacks from vending machines in the next few months. The machines will be located at Airports and Rail Stations in the UK. Heck, if you can sell bait and beer out of them you certainly should be able to sell books. (I only put this in to show how brilliant I am).

Barnes and Noble the Publisher
An original Barnes and Noble publishing title will be reviewed by the New York Times Book Review; a first. Barnes and Noble your everyday publisher, distributor, book retailer – isn’t this illegal in the US? No wonder they are being circumspect about it; apparently the book is not in Books and Print – so booksellers can’t find it and they have not offered it for sale to Ingram (gee I wonder why). At this point the book is only available in Barnes and Noble stores.

Economist Privacy Article
Anyone interested in the issue of privacy on the internet should read the article in this weeks (May 1st) Economist. Scary stuff.

2/1/99: McGrawHill, Primedia, HoughtonMifflin, Dow Jones,

Publishing News: February 1, 1999
The McGraw-Hill Companies Reports 15% Increase in 1998 Earnings
Internet sales Gain at WH Smith
EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers
Primedia's 1998 Annual Sales Grow to $1.5Billion
Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results
EU Probes FT/Dow Jones/Knight Ridder 1996 deal
Mirror Group CEO is Out

The McGraw-Hill Companies Reports 15% Increase in 1998 EarningsThe McGraw-Hill Companies today reported a 15.1% increase in diluted earnings per share to $3.35 for 1998 compared to $2.91 in 1997. Net income for the year grew to $333.1 million and revenue increased 5.5% to $3.7 billion. Excluding an extraordinary loss and other one-time items, diluted earnings per share were $3.37 and net income was $335.4 million.
Educational and Professional Publishing: Revenues in this segment increased 3.0% to $1.6 billion in 1998 and operating profit improved by 7.7% to $202.1 million. Excluding the write-off for CEC in 1998 and the facilities charge in 1997, operating profit increased 11.1% and operating margin improved to 13.5%. "Revenue in the seasonally slow fourth quarter increased 1.9% to $344.7 million and operating profits climbed by 26.0% to $22.4 million. Despite a lighter adoption schedule in the elementary school market in 1998 and challenging comparisons created by a 25.4% increase in revenue last year, our elementary-high school operations produced a 7.6% gain in revenue to $831.5 million. Outstanding results at Glencoe/McGraw-Hill, our secondary school publisher, SRA/McGraw-Hill, our supplementary publisher, and CTB/McGraw-Hill, our testing division and a better than expected performance by the School Division all contributed to this record. Glencoe produced market-leading performances in math and social studies, scoring well with multi-media programs in both adoption states and open territories. SRA/McGraw-Hill and the School Division combined to take 34% of the California reading market in the second year of the adoption and led the market after two years with a 35% share. The School Division's social studies program also performed well, helping it to overcome a disappointing performance in math. In Higher Education, solid results with both the front and backlists combined to produce a 7.0% gain in revenue to $359.4 million. Revenue for the Professional Publishing Group declined by 4.8% to $429.5 million, reflecting the continuing weakness at CEC. Softness in the Asia-Pacific markets also held back International Publishing operations, although our Spanish-language programs in Mexico and Spain showed solid gains.
Source: Businesswire 1/26/99

Internet sales Gain at WH Smith
British retailer W.H. Smith Group on Wednesday reported a modest sales increase over Christmas and New Year, but saw orders surge at its newly-acquired Internet Bookshop. The Internet Bookshop, the online bookseller Smith bought last July for 8.8 million pounds ($14.54 million), saw sales jump by 70 percent to 1.7 million pounds since September 1 last year, with orders up 170 percent in December. The firm's shares have been swept along on a wave of Internet fever, sparked by investors scouring the UK stock market for Internet plays, which look cheap against U.S. cyber-stocks like rival online bookseller Amazon.com and search engine Yahoo!. Home electronics retailer Dixons, owner of Internet service provider Freeserve, has been the main beneficiary so far. It shares have surged some 70 percent since Freeserve's success first became apparent in November, boosting Dixons' market value by some three billion pounds. Analysts said there has been intense speculation about how Smith might expand its online business, including rumors it might do its own ``Freeserve.'' When Smith bought Helicon it said this marked another step along the way in developing its electronic commerce business and said it would reveal more about Internet plans in the spring.
Source: Reuters 1/27/99

EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers EarthWeb announced today that it has entered into agreements with seven leading Information Technology (IT) publishers to provide the complete text of their technical books on EarthWeb's ITKnowledge. The deals give EarthWeb licensing rights to over 3,000 technical books for its subscription-based online library of IT information. The ITKnowledge roster of publishers comprises many of the most respected companies in the technical publishing industry including: IDG Books Worldwide and its imprints, M&T Books and IDG Books; Macmillan Computer Publishing and its imprints, Hayden, Macmillan Technical, New Riders, Que, Sams, Waite Group Press and Ziff-Davis Press; The Coriolis Group and its Coriolis and Ventana imprints; Wordware Publishing; CRC Press and its Auerbach and St. Lucie Press imprints; 29th Street Press (formerly Duke Press); and ASP Publishing.
ITKnowledge (http://www.itknowledge.com) is EarthWeb's first subscription service and contains the largest online collection of technical books for IT professionals.
Source: PRNewswire 1/26/99

Primedia's 1998 Annual Sales Grow to $1.5Billion
Primedia reported annual sales rose to $1.53 billion, up 26.3%, and EBITDA, rose 15.6% to $323.1 million. According to company sources the company will strengthen our market positions as we accelerate organic growth through market penetration, international expansion and new products, particularly delivered via the ultimate targeted medium - the Internet." Some of PRIMEDIA's brands include Seventeen, HPC Apartment Guides, Horticulture, IntelliChoice, Telephony, Channel One Network and Weekly Reader. During the week there was some media speculation which referred to Primedia as a potential acquition target. The management group which sold Petersens have loads of cash and will apparently be looking to repeat their success.
Source: Businesswire 1/28/99

Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results Houghton Mifflin Company today reported results for the fourth quarter and full year 1998. Net sales in 1998 reached a record $861.7 million for the full year compared to $797.3 million in 1997, an increase of 8.1%. Income from operations was $40.8 million, or $1.40 per fully diluted share, compared to $42.7 million, or $1.48 per diluted share, in 1997. The 1998 results included $.07 per share of operating losses attributable to the Company's July 1998 acquisition of Computer Adaptive Technologies, Inc. and a $.02-per-share charge for the cost of the Company's unsuccessful bid for a portion of Simon & Schuster's publishing assets. Net income for 1998 was $63.6 million, or $2.19 per fully diluted share. This result included other earnings related to the Company's investment in INSO Corporation (INSO) totaling $28.4 million after tax, a $2.0 million after-tax loss on the disposition of certain long-term investments, and a $3.5 million charge for in-process research and development. Net income in 1997, including special items related to INSO totaling $7.2 million, was $49.8 million, or $1.73 per fully diluted share.
Source: Businesswire 1/28/99

EU Probes FT/Dow Jones/Knight Ridder 1996 deal The European Commission said on Friday it was probing a 1996 agreement between Financial Times Information Ltd, Dow Jones Information Publishing Inc and Knight Ridder Business Information, now called Dialog Corp Plc, to set up an electronic database for financial information. The European Union's competition watchdog said in a notice published in the bloc's Official Journal that the agreement was filed for regulatory clearance in June 1997. It added that it could fall under EU regulation 17 which bans anti-competitive agreements and abuse of a dominant position. The Commission called on interested parties to comment within a month. FT Information is controlled by Pearson Plc. Dialog was created in 1997 by the merger of M.A.I.D. Plc and Knight-Ridder Information Inc. The three financial news service providers agreed in September 1996 to cooperate to develop and maintain a new worldwide electronic database for historical business and financial information, the Commission said in the short notice.
Source: Businesswire 1/29/99

Mirror Group CEO is Out
As reported last week, disgruntled investors acted out their threats this week by requesting the resignation of chief executive David Montgomery. Institutional investors cited under-performance and “poor strategic decisions by its senior management” as reasons for the action. Chief among these were management’s decision to invest in the Independent newspaper and establish its Live TV subsidiary.
Source: Financial Times 1/29/99

11/21/97: Primedia, McClatchy, John Wiley, Dow Jones

Summary:
Mcclatchy Purchases Cowles Media Company
Primedia (Kiii) Acquires Publisher
Wiley And Dow Jones Form Publishing Alliance
Dow Jones To Ax 400 Workers
Don’t You Wish Your Last Name Were Murdoch?
Macromedia Purchases New Jersey Newspapers
Dow Jones Board Votes To Sell Markets Unit
Springer Chairman Plans To Step Down
Dow Jones To Acquire Rest Of IDD Enterprises L.P

NOT SO RECENT NEWS

MCCLATCHY PURCHASES COWLES MEDIA COMPANY (Inadvertently left out last week)

McClatchy Newspapers, Inc. (NYSE: MNI) and Cowles Media Company (CMC), announced today an agreement for McClatchy to acquire Cowles, publisher of the Star Tribune in the Twin Cities of Minneapolis/St. Paul, in a transaction valued at $1.4 billion, including the assumption of approximately $90 million in existing Cowles debt. The merger creates the eighth-largest newspaper company in the nation based on daily and Sunday circulation.

The Star Tribune is the leading newspaper in Minnesota with circulation of 387,000 daily and 673,000 on Sunday. It ranks as the 16th largest daily and the 12th largest Sunday newspaper in the country. The Star Tribune's daily circulation is nearly twice that of its primary competitor in the Twin Cities market, the 15th largest in the country. On Sunday, its circulation is two and one half times larger than its competitor and its penetration is the highest among two-paper markets in the United States.

In addition to the Star Tribune, Cowles operates three other business units which McClatchy expects to sell as soon as possible, using the proceeds to reduce debt. The other business units are: Cowles Business Media, Inc., a publisher of specialized business magazines and information services; Cowles Enthusiast Media, Inc., a publisher of 27 special-interest consumer magazines and related books and products; and Cowles Creative Publishing, Inc., a specialty publisher, distributor and direct marketer of books, videos and interactive media for the home arts, home improvement and outdoor markets.

McClatchy Newspapers, Inc., headquartered in Sacramento, California, currently publishes 10 daily and 13 non-daily newspapers located in western coastal states and North and South Carolina. The company reported 1996 revenues of $624 million and had daily circulation of 972,600 and Sunday circulation of 1,175,100. McClatchy's newspapers include, among others, The Sacramento Bee, The News and Observer (Raleigh, NC), The Fresno (CA) Bee, The News Tribune (Tacoma, WA) and the Anchorage Daily News. McClatchy also owns and operates other media-related businesses, including Nando.net, a national online publishing operation and The Newspaper Network, a national newspaper marketing company.
PRNewswire

RECENT NEWS

PRIMEDIA (KIII) ACQUIRES PUBLISHER
Primedia Inc., formerly K-III Communications said that its technical and trade division, Interec Publishing, has acquired Cardinal Business Media, whose magazines include Mix, which covers the professional recording industry; Electronic Musician, which covers computer-generated music production; and Recording Industry Sourcebook, a music industry directory. Also included in the deal are Cardinal's Club Industry News and its related trade shows for owners and operators of commercial health and fitness facilities. Excluding the latest acquisitions, Overland Park, KS-based Interec publishes 17 entertainment and business communications titles including Pool and Spa News, Broadcast Engineering, Millimeter, Video Systems and Telephony. Interec also puts on trade shows. In total, Interec, one of the largest trade publishers in the U.S., publishes 72 magazines, supplements, newsletters and show dailies throughout the world.
PRNewswire

WILEY AND DOW JONES FORM PUBLISHING ALLIANCE
Bonnie Lieberman, Senior Vice President and General Manager of the College Division of John Wiley & Sons, Inc. today announced an agreement with Dow Jones Interactive Publishing, a division of Dow Jones & Company, to develop the Wiley Business Extra program, featuring content from Dow Jones and The Wall Street Journal Interactive Edition, as part of Wiley's print and online college-level business textbook offerings. The Wiley Business Extra program is being created to enhance the student learning experience and offer professors a new level of support resources to strengthen the business curriculum. "We're very excited to be working with Dow Jones to further our long-standing strategic objective to help students to learn and teachers to teach. The Wiley Business Extra program does this by offering students greater insight into their studies through access to Dow Jones publications and articles, including The Wall Street Journal Interactive Edition, and by providing pedagogical tools to help them understand how to use this wealth of information," said Ms. Lieberman.

Wiley Business Extra will deliver the full-text of a selected number of Dow Jones stories, focusing on the topic, industry, or special area of interest relevant to the Wiley textbooks. Dow Jones will scan The Wall Street Journal Interactive Edition and other Dow Jones newswires for stories that match a profile established for the Wiley texts. Stories matching the profile will then be posted on the Business Extra electronic news folder hosted at Wiley's Web site, http://www.wiley.com, along with discussion questions for classroom assignments. Divided into sub-sections, the folder will contain a separate area for each text associated with the program. Wiley will publish a paperback book called The On-Line Business Survival Guide that shows students how to use The Wall Street Journal Interactive Edition, research business problems on the Web, and use the news folder. The customized guide will be available for purchase as a stand-alone or as a supplement to nine Wiley finance accounting, management, and information management textbooks.
(John Wiley)

DOW JONES TO AX 400 WORKERS
Serious Losses at Financial Info Unit As many as 400 workers will be cut from the 4,000-strong staff of Dow Jones Markets, the financial information division of Dow Jones & Co., previously known as Telerate. Reports issued today indicated that Dow Jones & Co., publisher of the Wall Street Journal, would also be announcing its first annual loss since it went public in 1963. That loss is predicted to be as high as $600 million. Dow Jones Market delivers breaking business news and financial information to investors and financial analysts through a proprietary desk terminal network. Reuters and Bloomberg provide competing services. Wall Street analysts had previously speculated that Dow Jones would sell the troubled financial information unit. Today the publishing company said it was reviewing the struggling unit's operations and studying alternative strategies. (See Below)
WSJ

DON’T YOU WISH YOUR LAST NAME WERE MURDOCH?
News America Publishing Group has announced the formation of News America Digital Publishing. The new division will consolidate the Group’s electronic publishing operations, including the TV Guide Entertainment Network (TVGEN); Fox News On-line; Fox Sports On-line; News Internet Services, an internet solutions provider; Kesmai, a multi-player games company; and the Advanced Media Group which focuses on business development and strategic planning. The announcement was made today by Anthea Disney, Chairman and Chief Executive Officer of News America Publishing Group, a division of News Corporation. James Murdoch, formerly News Corporation Vice-President for New Media, has been named President of News America Digital Publishing, reporting to Disney.
(News Corp)

MACROMEDIA PURCHASES NEW JERSEY NEWSPAPERS
Macromedia Inc., parent company of The Record, is purchasing the daily North Jersey Herald & News and 11 weekly newspapers that serve parts of five New Jersey counties. Jonathan Markey, president of the Hackensack-based Record, said Thursday that the Herald & News and the group of weeklies would continue to operate independently, although some administrative functions of the two daily papers may be combined in the future. "We plan to continue to operate the newspaper as the Herald & News, hopefully forever and certainly for as long as it works as expected and continues to provide value," Markey said.

In August, the media giant Gannett Co. announced that it would purchase the Asbury Park Press and the Home News & Tribune. All the papers being purchased by Macromedia are part of North Jersey Newspapers Co., a subsidiary of William Dean Singleton's Denver-based Media News Group. Ten other weeklies operated by North Jersey Newspapers Co. in Union and Warren counties will be kept by Media News. Markey would not disclose the price of the purchase. A newspaper industry analyst, however, estimated the price at $40 million to $50 million, although the total may be lower because the deal does not include real estate or the Herald & News' out-of-date presses.

John Morton, president of a Maryland consulting firm that analyzes media companies, said it is no surprise that Singleton was willing to part with the Herald & News. Singleton's sale of North Jersey Newspapers comes just weeks after Garden State Newspapers, another of his companies, announced that it would purchase the Press-Telegram of Long Beach, Calif., from Knight-Ridder Inc. "He's trying to `cluster' his papers, and if this is the last one in northern New Jersey, I suspect it's something he was planning to sell for some time," Morton said. Morton said that if the Herald & News were the only paper in its market, it might fetch as much as $1,400 per reader, or roughly $75 million. Because the North Jersey market is a competitive one, however, the purchase price most likely is considerably smaller.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 03:37:2

DOW JONES BOARD VOTES TO SELL MARKETS UNIT
Dow Jones & Co.'s (DJ) board voted Thursday to put its Dow Jones Markets unit up for sale, The New York Times reported Friday, citing a person close to Dow Jones. On Wednesday, the company said Dow Jones Markets will focus on competitive strengths in content and its workstation product line, while continuing to examine all alternatives. The company also said it will cut the unit's staff by 200 to 300 by early 1998, while scaling back the investment program for Dow Jones Markets. Dow Jones added that it plans a "sizable" fourth-quarter charge, reflecting a write-down of goodwill, severance and other costs. According to the Times, the person close to Dow Jones said an analysis of Dow Jones Markets is expected to be prepared and completed in about three weeks and will then be available to prospective buyers. The Times said possible buyers include Bloomberg LP (X.BBG); Reuters Holdings PLC (RTRSY); Thomson Corp. (T.TOC); and Welsh, Carson, Anderson & Stowe, the investment company that owns Bridge News.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 02:28:35

SPRINGER CHAIRMAN PLANS TO STEP DOWN
Axel Springer Verlag AG Chairman Juergen Richter will step down from his position at the end of the year, the company said. The German media group said that "after events of the last few weeks and publicized disparagements against (Richter), continuation of his contract cannot occur." Mr. Richter will continue performing all functions of chairman until Dec. 31, Springer said. In recent weeks, various German newspapers have speculated that Mr. Richter would be asked to step down, due to disagreements over his management style. Springer didn't say who would replace Mr. Richter, and company officials weren't immediately available to comment.

Axel Springer Verlag AG is a major German publishing and broadcasting group. Its principal operations are in newspapers, including the country's top-circulation tabloid "Bild" and daily newspaper "Die Welt." Springer also has magazine and television operations.
Copyright (c) 1997 Dow Jones and Company, Inc.

DOW JONES TO ACQUIRE REST OF IDD ENTERPRISES L.P.
Dow Jones & Co. said it plans to acquire the roughly 30% it doesn't already own of IDD Enterprises L.P. and sell parts of the financial-publishing, software and on-line services concern. Terms weren't disclosed. Dow Jones said it also plans to restructure IDD as part of a continuing program to shed noncore businesses. Under the restructuring plan, Dow Jones said it sold IDD's publishing operations, including magazines Investment Dealer's Digest and Mergers & Acquisitions Journal, to Securities Data Publishing, a unit of Thomson Corp. Dow Jones said it agreed to sell IDD's retail investment-services operations to a management group led by Leonard W. Hirschfeld, currently senior vice president with IDD. Mr. Hirschfeld will leave IDD to head the new business. The major remaining IDD asset to be kept by Dow Jones is Tradeline, a market information database used by investment banks and financial-services and information companies. In addition to IDD, Dow Jones publishes The Wall Street Journal, The Wall Street Journal Interactive Edition, Barron's magazine, electronic business information services including Dow Jones Markets and the Dow Jones Newswires, and the Ottaway group of community newspapers. Dow Jones also produces business television programming.
Copyright (c) 1997 Dow Jones and Company, Inc.

11/7/97: MacmillanUK, Primedia, Reuters, Amazon.com

Summary:
Macmillan, Ltd (UK) name new CEO:
Newspaper Circulation Figures Down
Outlook for Contract (Magazine) Publishing
Expectations for Professional Publishing
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
Another Celebrity Book Bites (the Dust)
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations
The Mouth Strikes…TED TURNER
Reuters and Chutzpah:
Amazon.com biggest Penguin Customer
Publish Your Own Book
Golden Books and Disney Licensing
Leading Online News Delivery Services Merge as NewsEdge
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Technology Brief: Easing of Indian Internet Rules

Recent News:

Macmillan, Ltd (UK) name new CEO:
RICHARD CHARKIN, former chief executive of Reed International Books, is to return to mainstream publishing as chief executive of Macmillan, Ltd. Mr Charkin, who will be responsible for all Macmillan companies apart from St. Martin's Press and Macmillan Magazines, succeeds Nicholas Byam Shaw, who is 64 and has worked at Macmillan for 34 years. Mr Byam Shaw will act as deputy chairman of the company and Mr Charkin and John Sargent, chief executive of St. Martin's Press and Ray Barker, managing director of Macmillan Magazines, will report to him. Dieter von Holtzbrinck, of Holtzbrinck, the privately-owned German publishers that bought Macmillan two and a half years ago, will become chairman of Macmillan. (The London Times)

Newspaper Circulation Figures Down:
Circulation figures released on Monday show Sunday sales dropping at many of the biggest Sunday papers. Five of the top eight Sunday editions showed declines according to ABC figures -three of them, The Washington Post, NY Daily News and The Chicago Tribune showed large declines. The Daily News sold 80,000 fewer newspapers for the prior six months than in the year before. Sunday circulation is important to newspapers because a Sunday paper reaps about three times the advertising revenue of a weekday paper. The Daily News, which has the country's sixth-largest weekday circulation, attributed the drop in Sunday readership to a price increase in April, to $1.50 from $1. (Editor and Publisher)

Outlook for Contract (Magazine) Publishing:
USA Today reported on the rise in the number of "lifestyle" magazines with "splashy graphics" that are sponsored by companies like Mercedes-Benz (Momentum) or Philip Morris (Unlimited) Land Rover (LandRover Journal). According to USA Today, "These magazines are a booming business for mainstream publishers. Magazine Publishers of America estimates that contract publishing generates more than $1.3 billion in annual revenue for publishers. There are some ethical issues as these corporate magazines increasingly look like independent magazines. Also, the report says, "Media watchdogs grumble about cozy relations between marketers and publishers." (USA Today, 12B, Nov. 1997)

Expectations for Professional Publishing:
The latest media industry mega-deal between Dutch giant Wolters Kluwer and Reed Elsevier, two of the leading publishers in legal, medical, scientific/technical and business markets, is another sign of strength in one of the segments of the publishing industry showing growth in 1997. Sales of professional books, journals, newsletters and online data are projected to grow 6.3 percent to $11.28 billion in 1997, according to Publishing for Professional Markets: 1997-98: Review, Trends and Forecast, the latest research report from Cowles/Simba Information.

Trade book markets are projected to remain flat this year. The industry reached an estimated $10.62 billion in 1996, up 6 percent from 1995, according to the report. Thomson Corp. was the leading professional publisher, with worldwide sales from professional information at an estimated $3.39 billion in 1996. Legal publishing remains the largest segment of the professional publishing industry, with revenues projected to reach $4.24 billion in 1997, up 5.9 percent from 1996. According to the report, books, online and newsletter/looseleaf are the leading delivery methods for legal information and Thomson is the leading legal publisher-at least until the Reed Elsevier/Wolters Kluwer merger is completed early next year. Scientific/technical is the second largest segment of the industry, followed by medical and business. Journals represent the largest medium for sci/tech information, while books account for the largest portion of medical information sales.

Online and books dominate the business segment. Books are the leading overall medium for professional information, accounting for $4.23 billion, or 37.5 percent of all sales in 1997. Thomson Corp., which generated $725 million in professional book revenues and Times Mirror, which generated $530.4 million, were the leading publishers of professional books in 1996. Journals represented the second-largest segment of the professional publishing industry, followed by online, newsletters/looseleafs, directories and "other" media, which includes some CD-ROM revenues and revenues from miscellaneous media, such as audio and video. The professional publishing industry is projected to grow 6 percent in 1998, 5.8 percent in 1999 and 5.9 percent in 2000, according to the report.

The legal segment is forecast to remain the largest and books will continue to be the leading medium for professional information over the next three years. However, online is forecast to surpass journals as the second-largest medium by 1999. Publishing for Professional Markets, 1997-98 includes an overall ranking of worldwide revenues for leading professional publishers, rankings for the leading publishers in each of the four industry segments-legal, scientific/technical, medical and business, as well as rankings of leading publishers by each major professional publishing medium-books, journals, directories, newsletters/looseleafs and online. In addition, the report provides revenue forecasts through 2000 for each of the four market segments and each major medium and detailed profiles for 34 leading professional and university press publishers. The report costs and can be obtained by calling Bill MacRae at Cowles Simba, or by e-mail at bill_macrae@simbanet.com. Business Editors STAMFORD, CT--(BUSINESS WIRE)--Nov. 3, 1997--

K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy:
NEW YORK, Oct. 30 /PRNewswire/ -- K-III Communications Corporation (NYSE: KCC), today reported that third quarter sales and EBITDA from continuing operations each increased 15.5% setting new records. The parent company of such prime media brands as Seventeen, Soap Opera Digest, Weekly Reader, Channel One, Ward's Automotive and The World Almanac, also reaffirmed its growth strategy: focus on its fastest growing businesses, complete certain divestitures and change the Company's name to PRIMEDIA. This quarter, the Company begins presenting results from continuing operations which exclude businesses that have been, or will be, divested. "The continuing operations results show our true earnings power," said William Reilly, chairman and chief executive officer. "As just one measure, EBITDA margins were more than two percentage points higher in the nine-month period when the divestitures are removed." Results from Continuing Operations (Excluding businesses divested in or held for sale)

($ millions) 3Q97 % Change 3Q96 9 mos %Change 9 mos 96
Sales $305.7 15.5% $264.8 $884.9 16.1% $762.0
EBITDA $63.4 15.5% $54.9 $192.3 15.1% $167.0
Margin 20.7% 20.7% 21.7% 21.9%


Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
NEW YORK, Oct. 22 /PRNewswire/ -- William F. Reilly, chairman and CEO of K-III Communications (NYSE: KCC) announced today that Charles Siegel, 51, has been named to the newly created post of chief operating officer for its consumer magazine division. Siegel has held several general management positions at K-III, Simon & Schuster, and Macmillan Publishing Company. Most recently Siegel has been president and CEO of K-III's Newbridge Communications. He will manage the team responsible for the 24 consumer magazines in the K-III Consumer Magazine stable. K-III's consumer magazines include New York, Chicago, Seventeen, Automobile, American Baby, Modern Bride, Soap Opera Digest and Soap Opera Weekly. Siegel will report to K-III chairman and CEO Reilly until a replacement is named for the late Harry McQuillen who was president of the K-III Media Group. A search for a President of the K-III Media Group is still underway. learning and workplace learning), and information (consumer directories and business directories).

Another Celebrity Book Bites (the Dust):
Now you can get Paula Barbieri's book at a steep discount--$9.95, instead of the $23.95 list price. And in plenty of time for stocking stuffing. Barbieri's "The Other Woman," a memoir of her relationship with O.J. Simpson, arrived to a thunderous ho-hum recently, despite a $3-million advance that had been paid to the former model by a confident Little, Brown and Co. Rather than have to take back thousands and thousands of unsold copies, the publisher is offering booksellers a credit on each book sold, allowing them to slash the price. In the business, it's known as "remaindering a book in place"--a polite description for a book that is fizzling. Cowles Business Media

News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations ---- By John Lippman:
Rupert Murdoch's News Corp. posted a better-than-expected 9.5% profit increase for its fiscal first quarter, citing a robust U.S. television-advertising market, and sounded an upbeat note about the current quarter ending Dec. 31. But per-share results fell, reflecting an increase in shares outstanding at the acquisitive Australian company. And pretax operating profit fell 43% at the Filmed Entertainment unit, as the Fox film and TV studio faced a tough comparison with a year-earlier quarter fattened by megahit "Independence Day." For the first quarter, ended Sept. 30, Australia-based News Corp. reported that net income rose 9.5% to US$243 million, or 26 cents an American depository receipt, from $222 million, or 27 cents an ADR, a year earlier. Revenue for the quarter increased 16% to $2.9 billion while cash flow -- earnings before interest, taxes, depreciation and amortization -- for the media giant rose 23% to $436 million. Operating profit before special items was up 7% to $240 million. The Wall Street Journal via Dow Jones

The Mouth Strikes…
TED TURNER, the founder of Cable News Network, yesterday reignited the personal feud with Rupert Murdoch by once again likening the chairman of The News Corporation to Hitler. Mr Turner, in London with his wife, Jane Fonda, was challenged yesterday by William Shawcross, author of an unauthorised biography of Mr Murdoch, whether it was true that he had likened the News Corp chairman to Hitler at a lunch on Monday. "I didn't use that word," said Mr Turner, who added that he had instead likened Mr Murdoch to "the former leader of the Third Reich". Mr Shawcross asked the American media mogul, who is now a vice-president of Time Warner, whether it was "appropriate for a businessman like you ­ who pretends and purports to be working for the benefit of mankind ­ to compare a competitor to Hitler?" "If the shoe fits, wear it," replied Mr Turner, who was in turn accused of a "stupid and cheap shot" by Mr Shawcross. Raymond Snoddy - London Times

Reuters and Chutzpah:
REUTERS, the online information company, is to charge many of its institutional clients for correcting the millennium bug that threatens to paralyze its equipment in the year 2000. The company, which yesterday detailed its approach to the problem, said that clients who need their computers changed overnight or at the weekend could be sent a bill for the privilege. The move marks a distinct break from the industry norm, where companies usually agree that their customers should not be asked to pay for the supplier's failure to plan for the date change. Raymond Snoddy - The London Times.

Amazon.com biggest Penguin Customer:
THE Penguin Group, the publisher owned by Pearson, yesterday said that Amazon.com, the Internet bookstore, may soon be Penguin's largest customer. Michael Lynton, Penguin chairman and chief executive, said that Amazon bought $1 million of books from Penguin last year. This year's total looked likely to be $10 million, and the growth rate was 40 per cent a quarter. Mr Lynton said: "If this current growth continues in the next two to three years, they will probably be our largest customer." More than 90 per cent of Penguin's US backlist sales come from Amazon. The enormous Internet backlist sales, Mr Lynton said, "could be of huge importance to us".

Golden Books and Disney Licensing:
Disney Licensing Deal Will Cost Golden Books At Least $47.7M (Simba/Book Publishing Report) Golden Books Family Entertainment will pay the Walt Disney Co. at least $47.7 million in royalties over the next four years for its recently extended licensing agreement, according to a document the company filed recently with the Securities and Exchange Commission. Golden Books has agreed to pay at least $7.4 million for the period between Jan. 1 and Sept. 30, 1998, then $11.7 million in the second, $13.3 million in the third and $15.3 million in the fourth year of the agreement, the document said. Cowles Business Media

Reed Elsevier Seeking Content Acquisitions:
Calling content "the crown jewel," Dutch multimedia publisher Reed-Elsevier said it is considering snapping up new content partners. Chatting with executives at a Financial Times publishing conference, Reed-Elsevier chairman Nigel Stapleton countered rumors that his firm was on the hunt to buy a software firm, saying "the thing that we're most looking to acquire is more and more content." Reed-Elsevier will be going through a little consolidation itself should its prospective merger with Amsterdam-based publishing giant Wolters Kluwer NV go through. The London Times.

Online Publishing:

Publish Your Own Book:
Nov. 3, 1997-- 1stBooks Champions Aspiring Authors, Bypassing "Gatekeepers" and makes it possible for authors to "publish" their work and still retain full legal ownership and rights. For less than $500, they will digitize an author's book and publish it on the Web, along with a "digital book jacket." This "virtual cover" offers the prospective reader much the same information as a traditional book jacket: a cover design or illustration, a summary of the book and a biographical sketch of the author. There is even a free two or three page excerpt from the text itself, for the potential buyer who might like to leaf through a few virtual pages before making a purchase. "A typical book in the library can be purchased and downloaded for $5.95 to $9.95, less than the cost of most paperbacks. A few highly technical books are offered for as much as $25.00. As hardbacks, they would probably cost $50 or more," The buyer can download the book electronically, and typically is offered a choice of formats. For authors who have gone the subsidized publishing route, the site also offers the opportunity of selling traditional bound copies of their books. The site also offers authors full-service accounting and record keeping, as well as detailed marketing, customer tracking and prospect-to-sale ratio information. And authors receive a commission or royalty of 40% of the selling price, less any credit card fees, on each "book" sold.

Leading Online News Delivery Services Merge as NewsEdge:
Established electronic news aggregators Desktop Data Inc. and Individual Inc., both of Burlington, MA, are merging companies and services in a stock swap deal to be closed in first-quarter 1998. The new company will be titled NewsEDGE Corp. -- named after the flagship news delivery service of Desktop Data -- and headed by Desktop Data founder and CEO Donald L. McLagan. Combined, the companies drew $75 million in revenues during the year ending Sept. 30, 1997 -- a 35% growth from the year prior.

Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Dow Jones & Co. said The Wall Street Journal Interactive Edition has attracted more than 150,000 paid subscribers just over a year after it began charging for access to its site on the World Wide Web. The Interactive Journal has the largest circulation of any paid-subscription site on the Web and is among the top sites for generating advertising revenue on the Internet, according to Thomas Baker, business director of the Interactive Journal.

Technology Brief: Easing of Indian Internet Rules:
The Indian government said it has lifted all restrictions on the number of private Internet-service providers allowed to operate in the state-controlled Internet market and on the fees they charge subscribers. The companies, however, will still have to obtain government licenses to operate. The government said the aim of the move is to bring Internet connections to as many as two million Indians within two or three years, from 40,000 now. Until now, the state-run Videsh Sanchar Nigam Ltd. has controlled Internet access in New Delhi, Bombay, Calcutta, Madras, Bangalore and Pune, while the Department of Telecommunications provided access in the rest of the country. AP-Dow Jones The Asian Wall Street Journal via Dow Jones

10/28/97: Primedia, Dow Jones, Amazon.com,

Summary:
Washington Post Co. 3q Profit Up 29%
K-Iii Communications Creates A New Division, The Supplemental Education Group
Dow Jones Rumored To Be Mulling Sale Of Markets Unit
Saddle Up Silver….Polo Magazine Re-launch For Stylish Ride
Gruner & Jahr Reported Looking At Reed IPC Magazines
Amazon.Com And Barnes & Noble Drop Suits
Knight-Ridder, NY Times Unveil New Online Initiative
Busy Week For Ziff-Davis Publishing
Soundscan
Costco

RECENT NEWS:

WASHINGTON POST CO. 3Q PROFIT UP 29%
The Washington Post Co. reported net income of $71.6 million or $6.64 per share for the third quarter, up 29% from net income of $55.4 million or $5 per share in the year-ago period. Quarterly revenue totaled $478.4 million, up 4% from revenue of $460.3 million in the year-ago period. The company cited strength from its print businesses, partially offset by increased spending at the company's other business. The results include a one-time after-tax gain of $16 million relating to the sale of its PASS Sports subsidiary and termination of its regional sports network. Third-quarter newspaper division revenue rose 4%; broadcast division revenue rose 1%; and the cable division, which serves 635,000 households, had revenue increased 13%.

The Post Co.'s stock closed Tuesday at $457.75 per share, down $1.5625.

Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.

K-III COMMUNICATIONS CREATES A NEW DIVISION, THE SUPPLEMENTAL EDUCATION GROUP
K-III Communications, publisher of several trade and consumer magazines and educational properties, such as the World Almanac and Westcott Communications' 22 educational TV networks, has announced the creation of a new division, the Supplemental Education Group. The new group will comprise national elementary school publication The Weekly Reader, Funk & Wagnall's Encyclopedia, the World Almanac and educational video company Films for the Humanities & Sciences. Weekly Reader president and CEO Richard LeBrasseur will be the group's president.

Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.

DOW JONES RUMORED TO BE MULLING SALE OF MARKETS UNIT
Dow Jones & Co. said it was placing its revamp of its Dow Jones Markets financial information service under review, suggesting to some analysts that it might be planning to sell off the struggling unit. Dow Jones spokesman Richard Tofel would only say that the board of directors was "reviewing" Dow Jones Markets' previously announced $650 million overhaul and considering "various alternatives" for the unit, which was formerly known as Dow Jones Telerate. Tofel noted that review is part of the company's overall budget planning for the coming year.

Dow Jones Markets currently provides electronic financial data to corporate customers, but has faced increasing competition from online services, brokerage houses and other suppliers of financial information. The review comes on the heels of Dow Jones taking a 34% third-quarter earnings hit, in part due to Dow Jones Markets suffering an 83% loss in operating income.

Analysts conjecture that rivals Reuters PLC and Bloomberg LP may be in line to bid on the unit. Thus far, Dow Jones has only denied rumors that the unit is for sale. A joint venture with NBC was floated as another possibility for Dow Jones Markets.

Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.

SADDLE UP SILVER….POLO MAGAZINE RE.LAUNCH FOR STYLISH RIDE
POLO magazine, which for 23 years has continuously chronicled the game and lifestyle of polo, goes into mass circulation this week expanded into a bold and colorful journal of adventure, elegance and sport. The glossy magazine's re-launched October / November issue of 550,000 copies is one of the largest in publishing history and exceeds House & Garden's vaunted re-launch last year. POLO magazine will send copies of the magazine and a special subscription offer to 1 million Neiman Marcus card holders over the next year.

Beginning early next year, POLO magazine will be sold at $6 an issue at newsstands at selected airports, bookstores, grocery stores and high-end retailers. The magazine will also expand on its international readership in such markets as London, Paris and Buenos Aires. POLO magazine, which derives its name from what is called "the sport of kings," also will distribute the magazine to royalty throughout the world including kings, queens, princes, princesses and sultans. In fact, the magazine plans an upcoming feature on the Sultan of Brunei, who reportedly keeps his polo field lighted throughout the night and a stable of players and ponies at the ready 24 hours a day for whenever he has the urge to play.

SOURCE Westchester Media Company

GRUNER & JAHR REPORTED LOOKING AT REED IPC MAGAZINES
LONDON (AP-Dow Jones)-- Gruner & Jahr , a 75% owned publishing subsidiary of Germany's Bertelsmann AG (G.BRT), has held 'informal' talks with Reed Elsevier (u.ree n.els) about buying IPC Magazines, the Anglo-Dutch publisher's U.K. consumer magazine business officially put up for sale Monday. Executives familiar with the situation confirmed late Monday that the Bertelsmann unit had approached Reed Elsevier about buying IPC, which publishes some 70 titles ranging from Woman to Marie Claire to Loaded.

A person familiar with the situation said G&J 'were interested and indeed have informally contacted' Reed Elsevier about buying IPC. However, stiff competition for the unit could come from EMAP PLC, a U.K. magazine publisher with significant French publishing interests. A management buyout of the titles is a further possibility, onlookers said. The publishing executive said Reed Elsevier had chosen to sell IPC now because 'the business is at a peak' with advertising revenue at cyclical highs and paper prices at cyclical lows. The executive also noted that IPC had undergone drastic cost cutting, while receiving little in the way of new investment.

'I cannot imagine someone buying the whole thing,' the executive said, while acknowledging that Reed Elsevier will push hard to sell the unit in one piece. The source also said that IPC could fetch $1.2-1.5MM, should several interested bidders emerge. In the year ending December 1996, IPC (excluding New Scientist) reported sales of 314 million GBP and profit of 63 million GBP

Onlookers note that G&J, which publishes women's market titles such as Prima and Best, is a natural fit with IPC, whose titles include Woman, Woman's Own and Marie Claire. 'It's a perfect match with IPC,' said one onlooker.

A spokesman for SBC Warburg Dillon Reed, which is advising Reed Elsevier on the sale, refused comment on whether talks with G&J had begun. Other buyers for IPC could include U.S. publishers Time Warner and Hearst Corp. as well as French publishers Matra Hachette and Havas.

AP-DOW JONES NEWS 27-10-97

ON-LINE NEWS:

AMAZON.COM AND BARNES & NOBLE DROP SUITS
According to the joint press release, online booksellers Amazon.com and BarnesandNoble.com agreed Tuesday to drop their respective lawsuits. The plaintiffs recognized "they would rather compete in the marketplace than in the courtroom." In a related note B&N reported web sales could top $100MM in 1998 which is the close to the expected level for Amazon.com.

KNIGHT-RIDDER, NY TIMES UNVEIL NEW ONLINE INITIATIVES
Knight-Ridder New Media made the newspaper industry's debut entry into the online city guide network field on Monday with Real Cities (http://www.realcities.com). The rollout includes 32 Web sites of local Knight-Ridder newspapers across the U.S., networked under the umbrella brand Real Cities; all sites had already existed independently. However, Real Cities has added proprietary services such as CarHunter, HomeHunter and entertainment search engine JustGo; these and others will apply to all Real Cities member sites as Knight-Ridder continues to build out the network.

Real Cities is going up against established online brands Digital City from America Online and Sidewalk from Microsoft, as well as numerous individual city guides and the emergence of localized directory and search sites such as Yahoo. But the company hopes to distinguish itself through the home-grown content of its local publications and its reputable journalism. "On other online guides, there is a lack of quality in community reporting," said Real Cities national marketing director Amy Rabinovitz.

Meanwhile, The New York Times announced that it is launching New York Today (http://www.nytoday.com) in January, which is intended to be the definitive guide to New York culture, news and services. It's unclear how the newspaper company plans to outdo the many local guides for New York City, which include – in addition to national brands Sidewalk, Digital City, CitySearch and Yahoo – local properties such as the Village Voice http://www.villagevoice.com), Total New York (http://www.totalny.com) and recently launched New York magazine (http://www.newyorkmag.com).

Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.

BUSY WEEK FOR ZIFF-DAVIS PUBLISHING
While its parent company Softbank Corp. is floundering financially as a result of making acquisitions it can't afford, Ziff-Davis Publishing Co. -- purchased by Tokyo-based Softbank in 1994 -- owns several leading products in the computer publishing industry. In an effort to create community-focused services, ZDNet joined with personalization technology developer Firefly for the launch of My Hot Files (http://hotfiles.firefly.com).

Firefly, which also provides the underlying technology for Yahoo's My Yahoo service (http://www.my.yahoo.com), has enabled users in search of shareware to tailor ZDNet's shareware site Hot Files to their needs. Now those customers can receive alerts and recommendations based on their registered profiles (which are dynamically compared to other users) and their shareware preferences through Firefly's collaborative filtering.

Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.

DID YOU KNOW?
Soundscan reports sales (POS system) for 85% of all music stores (and growing) and the company is expanding into book store sales reporting. Soundscan has been criticised in the Music business for being too expensive to subscribe to however the system is being credited with reducing music store returns from 23% to 13% (1990-93). Each point is worth $15MM. A system called BookTrack has been operational in the UK for the past year and currently 40% of all book publishers use the system.

COSTCO, a warehouse club, has moved to vendor managed inventory for it’s book departments. Over 40% of book sales at warehouse clubs are Harcover fiction titles.

10/10/97: Newspaper Revenues, Wiley Pearson, Primedia, ReedElsevier

Summary:
Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Gannett, Knight-Ridder, New York Times Co, Washington Post, Tribune Co. Times Mirror, A.H. Belo, Providence Journal, Dow Jones & Co., E.W. Scripps, Central Newspapers, Media General
Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network
Gannet Buys Two Maine TV Stations
Cowles Media Company for sale
Changes at Reed Elsevier Business Information
News Corp. Chief Admits Setbacks
Wiley to Acquire Van Nostrand Reinhold
Sulzberger Steps Down As NYT Chairman, Company Profits Up
Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Earth's Biggest Bookstore Serves Millionth Unique Customer
Dutch Publishing Merger Creates Formidable Online Business

Recent News

Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Newspaper publishers' third-quarter earnings are expected to be higher than a year ago as advertising revenue continued to flow in the period and newsprint prices rose only modestly. The price of newsprint, which typically constitutes about 20% of a publisher's costs, rose in the third quarter from the second period but was still below the year-earlier level.

Gannett Co. stands out among big publishers, with third-quarter earnings expected to rise to $1.01 a share from 79 cents, according to analysts' estimates compiled by First Call Inc. Revenue has been climbing at the Arlington, Va., company's flagship publication, USA Today, as well as at its smaller newspapers and television stations. Knight-Ridder has been divesting non-core assets and fine-tuning its newspaper portfolio by buying, selling and swapping papers. First Call puts earnings for the company, which publishes the Miami Herald, the Philadelphia Inquirer and the San Jose Mercury News, at 42 cents a share, up from 37 cents a year earlier. New York Times Co.'s earnings are expected to rise to 43 cents a share in the third quarter from 38 cents a year earlier as its flagship newspaper cashes in on booming national advertising.

Washington Post Co.'s earnings are seen rising to $5.14 a share for the quarter from $5 a share. Tribune Co.'s earnings are expected to rise to 49 cents a share from 46 cents. Tribune, which publishes the Chicago Tribune, gained a substantial TV presence through its purchase of Renaissance Communications last spring. At Times Mirror Co. of Los Angeles, third-quarter earnings are seen jumping to 59 cents a share from 43 cents, but analysts caution that the increase isn't so much from top-line growth as it is from a massive restructuring and cost cutting initiated by Chief Executive Officer Mark Willes 18 months ago.

A.H. Belo & Co.'s earnings are expected to drop sharply to 18 cents a share from 42 cents. The drop reflects dilution from the Dallas company's $1.5 billion acquisition of Providence Journal Co. early this year. Dow Jones & Co.'s earnings are expected to fall to 22 cents a share from 33 cents. The New York publisher of The Wall Street Journal said early in the year that it expects weaker earnings as it invests as much as $650 million over the next several years to restructure its dataservices unit, Dow Jones Markets, formerly called Telerate.

Among smaller publishers: Earnings at E.W. Scripps Co. of Cincinnati are seen rising to 34 cents a share from 29 cents. Central Newspapers Inc. of Indianapolis is expected to post an earnings jump to 75 cents a share from 57 cents. At Media General of Richmond, Va., earnings are seen falling to 35 cents a share from 59 cents.

Despite generally upbeat numbers, analysts are somewhat cautious on the sector going forward. Newsprint prices may not be rising as quickly as feared, but they definitely are headed up. Newsprint, which cost about $570 a metric ton in the third quarter, will reach $600 a ton in the first quarter of 1998, up almost $100 from the year-earlier period. (A metric ton equals 2,204.62 pounds). Analysts are not convinced that retail advertising, the largest chunk of ads for most newspapers, will be strong enough to offset higher newsprint prices.

WSJ via NewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 10/06/97 02:14:51

Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network

CINCINNATI, Oct. 15 /PRNewswire/ -- The E. W. Scripps Company (NYSE: SSP) today completed two previously announced transactions at a total cost of approximately $700 million.
First, Scripps acquired six newspapers (five in Texas and one in South Carolina), plus stations KENS-TV and KENS-AM in San Antonio from Harte-Hanks Communications. Then, through a subsequent transaction, Scripps traded the KENS stations to A.H. Belo in exchange for Belo's 56 percent controlling interest in The Food Network and $75 million in cash. Transfer of the KENS broadcast licenses to Belo is subject to final government approval.

Following these transactions, Scripps operates:
* Nine network-affiliated television stations;
* Newspapers in 20 markets;
* Two television networks -- Home & Garden Television and The Food
Network;
* United Media, a licensor and syndicator of news features and comics;
* Cinetel Productions, a creator of programming primarily for cable TV
networks;
* Scripps Howard Productions, a creator of programming primarily for
broadcast TV networks.

Source: The E.W. Scripps Company

Gannet Buys Two Maine TV Stations

Gannett Co., Arlington, Va., said it agreed to acquire two Maine television stations. Terms weren't disclosed. Gannett is buying WCSH, the NBC affiliate in Portland, from Maine Radio & Television Co., and WLBZ, the NBC affiliate in Bangor, from Maine Broadcasting Co. The transaction is subject to the approval of the Federal Communications Commission. Upon completion of this transaction, Gannett Broadcasting will have 20 television stations.

Source: Dow Jones

Cowles Media Company for sale
Recently the trustees of the Cowles family announced that it was examining `strategic alternatives'' to its ownership of Cowles Media Co, and The Star Tribune, its flagship newspaper, including a possible sale that could reap at least $1 billion. There has been only a very thin market for the relatively few shares of Cowles Media that are traded, and the price of the stock today, in the mid-$50s - is still undervalued compared with the more than $70 a share that analysts think it would be worth in a sale. The Minneapolis StarTribune accounts for about two-thirds of Cowles Media's revenues, which was $517 million in the fiscal year ended March 29. The company also publishes a number of small magazines and business and marketing publications.

Cowles Media is not discussing its list of possible suitors, nor would its spokesman say whether the company had, in fact, tried and failed to line up a buyer before it announced its possible sale last month. Many analysts think a deal may be reached by Thanksgiving. The Washington Post Co. is considered to be the front-runner because it already owns 28 percent of the Cowles stock. Its treasurer, Jay Morse, said his company did not comment on potential acquisitions.

Also mentioned is Times Mirror Corp., owner of The Los Angeles Times and Newsday. Its chairman, Mark Willes, the chairman of Times Mirror, has been spinning off companies not directly related to Times Mirror's core media businesses since he came to the company two years ago. But he has said in the past that he would not be opposed to acquisitions that ``fit'' Times Mirror 's publishing and broadcasting interests.

c.1997 N.Y. Times News Service 23:38 EDT OCTOBER 12, 1997

Changes at Reed Elsevier Business Information
Folio, First Day reports of 100 job cuts, magazine and research-units being put up for sale and the establishment of new publishing divisions at Reed Elsevier Business Information, the sprawling Reed Elsevier PLC unit created by the merger of Cahners Publishing and Chilton Publishing. Company spokesperson Margaret Pantridge tells First Day that nine properties are being
divested in addition to the four computer magazines (Government Computer News, Government Computer News State & Local, Datamation and Reseller Management) previously announced.

The nine properties newly up for sale include: Chilton Research Services, a major operation serving Fortune 500 companies, and the Business Research Group, which is being lumped in with the divestment of the four aforementioned computer magazines; as well as seven other magazines including CabinetMaker; Cheese Market News; Dairy Foods; Furniture Design & Manufacturing; Instrumentation & Control Systems; Home Improvement Market; and Upholstery Design & Manufacturing.

Key personnel moves in a realignment of the Cahners-Chilton entities include the naming of three former Chilton executives to a steering committee: Lee Hufnagel, Andrew Weber and Bill O'Brien. Pantridge says the realignment "basically" establishes three magazine divisions: the 39-title manufacturing/new-product unit (among its notable titles are Design News and Manufacturing Systems); entertainment, communications and media, headed by headed by executive VP Mark Lieberman, who'll oversee Variety, Broadcasting & Cable, Publishers Weekly, Multichannel News and 18 other publications; and the 59-title business publications division, headed by executive VP Brian Nairn.

In addition to serving on the steering committee, O'Brien is chief operations officer of the entertainment/communications/media unit. Hufnagel's role is to coordinate the Cahners-Chilton integration. He and the rest of the management team report to Reed Elsevier Business nformation president/CEO Bruce Barnet, based in Newton, MA.

Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved.

News Corp. Chief Admits Setbacks
Speaking at News Corp.'s annual meeting in Adelaide, Australia, chairman and chief executive Rupert Murdoch offered shareholders an upbeat speech, but also admitted to some setbacks. In discussing News Corp.'s net profits for the year ended June 30, including millions in charges from HarperCollins, the News Corp. chief reported that the troubled book publisher would generate revenues of $700 million and "will be profitable, although not magnificently so." He conceded that the unit was a source of "a great deal of difficulty."

Cowles/Simba Media Daily 10/8/97
Copyright 1997 Cowles Business Media. All rights reserved.

Wiley to Acquire Van Nostrand Reinhold
New York, N.Y. October 9, 1997. Charles R. Ellis, President and Chief Executive Officer of John Wiley & Sons, Inc. (NYSE: JW.A and JW.B), the global publishing company headquartered in New York, today announced that it has reached an agreement with International Thomson Publishing (ITP), a division of The Thomson Corporation (TSE: TOC) to purchase the assets of its Van Nostrand Reinhold (VNR) operating unit, which is located in New York. The terms of the sale, which should close in the fall, were not disclosed; however, the transaction is subject to the Hart-Scott-Rodino waiting period.

VNR is a publisher of books and electronic products for professionals in architecture/design,
environmental/industrial science, culinary arts/hospitality, and business technology. VNR is known for its numerous "franchise" titles, which are regarded by many professionals as indispensable; examples include Ching's Architectural Graphics, Sax's Dangerous Properties of Industrial Materials, the Culinary Institute of America series, Kerzner's Product Management, and
Considine's Van Nostrand Scientific Encyclopedia.

Sulzberger Steps Down As NYT Chairman, Company Profits Up
The New York Times Co. announced on Thursday that Arthur Ochs Sulzberger, its chairman and CEO, has stepped down after leading the company for 24 years, and that in his place Arthur O.
Sulzberger Jr. has been elected chairman, effective immediately. The senior Sulzberger will remain on the board of directors as chairman emeritus, while his son will continue on as publisher of the company's flagship enterprise. In addition, president Russell T. Lewis has been named to the position of CEO.

Online Publishing Information:

Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Addison Wesley Longman and Headland Digital Media, both Pearson companies, announced today an alliance to provide fully accredited educational materials from leading institutions to students via the World Wide Web. The venture will publish learning and teaching systems so that students of any age and from anywhere in the world can advance their academic degrees online. Leading universities and distinguished scholars and instructors will offer the curriculum.

The alliance is designed for students who want to take academic subjects such as business, mathematics, communications, and computer science by means of the Internet. The venture will also provide online solutions to help students develop the skills and training to succeed outside the classroom. Students will be able to download materials directly from the World Wide Web, thus reducing their costs of commuting and housing, and permitting flexible scheduling. The programs are expected to reach existing students and to extend fully accredited courses to students who might not otherwise be able to attain a college degree.

Each partner brings considerable expertise and industry-specific success to the venture. Addison Wesley Longman, through its global publishing business, has relationships with many of the most respected and highly regarded authors of educational texts. They have also fostered strategic
relationships with top academic institutions.

Earth's Biggest Bookstore Serves Millionth Unique Customer
SEATTLE, Oct. 14 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN) today announced it will be the first Internet retailer to reach the one-millionth new customer milestone. Celebrating its number one status in e-commerce traffic, the company today kicks off a two-week customer promotion "You're One in a Million at Amazon.com." In just two years, Amazon.com (http://www.amazon.com) has established itself as not only the leader in online booksellers but as the leading Internet retailer, according to the latest report from Media Metrix (formerly PC
Meter). With an estimated 4.5% of all Web households visiting Amazon.com during August, 1997, Amazon.com received more traffic than Internet giants wal-mart.com, QVC.com, and landsend.com combined.

SOURCE Amazon.com, Inc.

Dutch Publishing Merger Creates Formidable Online Business
The proposed merger between Reed Elsevier and Wolters Kluwer, would create one of the largest online legal, tax and public records publishers in the United States with 1996 online sales of $410 million, according to Electronic Information Report (EIR) estimates. The deal, if approved by shareholders, would bring together Reed Elsevier's LEXIS LEXIS and Wolters Kluwer's CCH Online services. EIR estimates LEXIS had 1996 sales of $345 million, while CCH Online generated $65 million in 1996. This places the combined properties a close second behind Thomson's WESTLAW online legal service, which posted sales of $450 million in 1996, according to EIR estimates.

Overall, the Dutch combination, to be called Elsevier Wolters Kluwer (EWK), would allow the
companies to overtake Thomson Corp. as the largest professional publisher in the world. EWK
would have pro forma sales of $4.66 billion in 1996. Thomson would be bumped to second place
with sales of $3.39 billion in 1996 and McGraw-Hill would move into a distant third with sales of
$1.37 billion in 1996. The merger, to be conducted as a stock swap, is expected to be completed
in the first quarter 1998.

Apart from size, the combination of CCH and LEXIS brings together complementary content,
according to Meryick Payne, senior partner at Management Practice, a professional publishing
consultancy. CCH's 700 print and CD-ROM tax titles would finally give tax and accounting
professionals, who as a group have shunned online access in favor of CD-ROM and print
products, a reason to try LEXIS-NEXIS, he said. LEXIS-NEXIS's has 839,000 online subscribers.

Conversely, LEXIS's strength in U.S. federal and state case law as well as its broad range of
specialized libraries in securities, banking, the environment, energy, international and public
records, could be the content boost CCH Online needs to invigorate flagging sales. In its second
year under the ownership of Amsterdam-based Wolters Kluwer, CCH's 1996 legal information
sales were flat at $130 million, according to EIR estimates.

Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved

DID YOU KNOW:
Newspaper circulation has been declining relative to U.S. household formation for years, and today is only 57 million nationwide. Circulation had been falling by 0.5%-1.0% a year since 1987, but the drop accelerated to 2% in each of the last two years.