Restructurings, significant lay-offs and bankruptcies are coming fast and frequently in the media business, particularly newspapers and magazines. While many of these companies have few choices given their reliance on collapsing advertising revenues and their crushing debt loads, as a group, they do not appear to be addressing how their customers will interact with their content in three to four years time. Even if they get out of this immediate crisis by rearranging the deck chairs tomorrows customers may have moved on, content to interact and use content in fundamentally different ways.Moody’s said in a credit opinion Feb. 18 that Reader’s Digest’s capital structure appears “unsustainable” and may violate its covenants or restructure within the next year to 18 months. The company faces pressure on cash flow from declining demand for its print-based products and a drop in consumer spending, the ratings firm said. The company also has a high debt-to-EBITDA ratio, Moody’s said.
Reader’s Digest announced Jan. 28 it would eliminate about 8 percent of its 3,500 employees worldwide, citing a drop in consumer spending and magazine advertising in most markets. Reader’s Digest also said at the time it would require U.S. workers to take five days of unpaid time off in each of its 2009 and 2010 fiscal years, and suspend matching contributions to 401k retirement plans.
Showing posts with label Readers Digest. Show all posts
Showing posts with label Readers Digest. Show all posts
Wednesday, March 04, 2009
Reader's Digest May Restructure
According to Bloomberg news, Reader's Digest may be considering a pre-packaged bankruptcy and have hired expert law firm Kirkland and Ellis to advise the company. Reader's Digest founded in 1922 and located north of New York city publishes magazines, books and audio products and operates numerous web sites. (The company is actually more web-savvy than most people probably give it credit for). The company was purchased for $2.4Billion by investor group Ripplewood Holdings in March 2007. Bloomberg also quotes a Moody's report from earlier this year that suggests the debt load of the company is unsustainable and also notes the lay-offs that Reader's Digest announced two weeks ago.
Monday, November 24, 2008
Reader's Digest
Profile this morning in the NYTimes noting the significant changes going on at Reader's Digest led by Mary Berner:
Ms. Berner has been a jolt to the system for this stodgiest of media companies since she became chief executive in a private equity takeover 20 months ago. She has replaced executives, sold unprofitable businesses and even set out to change the company’s name, shaking it up any way she can.
Most important, the company is taking risks, starting dozens of new magazines at a time when its peers are contracting.
One of the biggest new ventures, to be announced Monday, is a multimedia partnership with Rick Warren, the renowned minister and author, hoping to tap into the vast audience for his book “The Purpose Driven Life.”
Together, they are creating a Christian membership organization, The Purpose Driven Connection, built on Mr. Warren’s call to faith and charitable work. Paying members will receive a quarterly magazine edited by Mr. Warren, with DVDs and pull-out study guides in each issue, and access to a social networking Web site.
Monday, January 25, 1999
1/25/99: McGrawHill, Readers Digest, Thomson, Pearson,
Publishing News: January 25th
Mirror Group For Sale
Hirschberg Goes to McGraw Hill
Reader's Digest in Talks with Time Warner
Franklin Also to Sell Rocket ebook Content On Its Website
WH Smith’s Web Efforts
International Thomson Publishing Announces Marketing Venture with VarsityBooks.Com
Pearson Hangs Out the For Sale Signs
Mirror Group For Sale
Mirror Group Newspapers confirmed on Monday that they had received a 200 p per share all cash offer for the company from Regional Independent Media which is backed by venture cap firm Candover. The deal values Mirror Group at STL900MM ($1.4Billion) and Mirror spokesmen confirmed that it would be presented to the board for approval. The current bid exceeds a prior bid by Trinity Media which was to be funded by equity. Things are expected to hot up this week as some of the Mirror Group board of directors have expressed doubts as to the independence of Mirror Group CEO David Montgomery. Some board members believe he is predisposed to bids where he can retain executive management.
Source: Financial Times
Hirschberg Goes to McGraw Hill
The McGraw-Hill Companies today named Henry Hirschberg group president, Higher Education,
Professional and International Publishing, where he will help lead the publishing group's growth agenda. Hirschberg brings more than 25 years of editorial and international publishing experience to his
position. Most recently, he was president of the Higher Education Group for Pearson plc's education
division. Prior to Pearson's recent acquisition of Simon & Schuster, Hirschberg held various positions
at Simon & Schuster, including senior vice president, president of the Higher Education group, and
president of the International Publishing Group. Formerly, he was managing director of Prentice Hall's
U.K. operations and executive editor, where he managed editorial responsibility for computer and
business books. Hirschberg began his career as a sales representative at Prentice Hall in Europe in
1972.
Source: Businesswire Jan. 14, 1999--
Reader's Digest in Talks with Time Warner
Sources close to the companies tell Business Week that Reader's Digest and Time Warner Inc. are discussing a deal to combine Reader's Digest with several Time Inc. publications and direct-marketing businesses. Under the structure being contemplated, Time Warner would become an equal partner with the foundations that now control 72% of the publisher's voting shares. Public shareholders would own a yet-to-be-determined stake. Reader's Digest CEO Thomas O. Ryder, who joined the company last May, would continue as the company's CEO with Time Inc. CEO Don Logan as chairman, the magazine reports. Time Warner, Ryder, and the foundations won't comment on the talks.
Source: Businesswire, Jan. 14, 1999
Franklin Also to Sell Rocket ebook Content On Its Website
Franklin Electronic Publishers, Inc. (NYSE: FEP) and NuvoMedia, Inc. announced an agreement by which Franklin will distribute the Rocket eBook to consumer electronics retailers. The Rocket eBook is the world's first handheld electronic reader capable of downloading digital books from online bookstores. With the NuvoMedia strategic alliance, Franklin becomes one of the first full-service eBook retailers operating on the Internet. Under terms of the agreement, Franklin will also publish and sell content in the RocketEdition(TM) format on its own website -- http://www.franklin.com. RocketEditions are encrypted titles that readers can purchase and download onto their PC for transfer to the Rocket eBook. The Franklin Rocket eBook will be available in spring 1999 with a retail price under $500, and will be sold through leading consumer electronics stores, computer chains and office superstores. Prices for RocketEditions will be comparable to discounted prices for printed books. Franklin will offer RocketEditions on its website beginning in mid-1999. Participating publishers include Addison Wesley Longman, HarperCollins, Harvard Business School Press, Henry Holt and Company, Inc., Macmillan Computer Publishing USA, McGraw-Hill Publishing, Penguin Putnam Inc., Random House, Inc., Simon & Schuster, and St. Martin's. Many of these publishers, including HarperCollins, McGraw-Hill, and Macmillan, already license their works to Franklin for its handheld electronic products
Source: RNewswire 1/3/99
WH Smith’s Web Efforts
Shares in Britain's biggest bookseller, WH Smith Group Plc, hit a record high on Friday, fuelled by hopes for its nascent Internet division. The high street chain, viewed in the past as an unexciting investment, was lifted by news of its 5.6 million pound ($9.28 million) acquisition of Helicon Publishing Plc, a small loss-making provider of reference material. The deal may have been tiny but the market latched on to it as evidence that WH Smith could be a new British Web star and the stock soared to a peak of 675 pence before easing back to end six percent higher at 626-1/2p. Last July the firm bought the Internet Bookshop for 8.8 million pounds to launch its Internet strategy and Chief Executive Richard Handover said the latest purchase highlighted the group's focus on growing its online business.
Source: Reuters 1/15/99
International Thomson Publishing Announces Marketing Venture with VarsityBooks.Com
International Thomson Publishing (ITP), one of the world's largest educational publishers, has entered into a strategic marketing partnership with VarsityBooks.com (www.varsitybooks.com), the leading online college textbook seller. The goal of both businesses is to increase student awareness of how affordable and convenient it is to purchase their course books online. The agreement consists of joint marketing efforts between the ITP sales force and VarsityBooks.com to educate professors and students on the new, more affordable way to buy new textbooks through the VarsityBooks.com Web site. In return, ITP expects additional sales of new textbooks through the Internet. VarsityBooks.com offers customers a selection of 400,000 titles at discounts up to 40 percent, as well as flat-rate shipping at $4.95, no matter how large the order. Students can use the site's powerful search engine to locate textbooks, then use its state-of-the-art encryption system for secure transactions. Presently, VarsityBooks.com offers comprehensive booklists for more than 50 of the largest colleges and universities across the country. This featured list of universities is growing rapidly and is expected to triple in upcoming semesters. The VarsityBooks.com Web site also includes a "mega" search engine, to allow anyone access to the large discounts while purchasing their books.
Source: PRNewswire 1/19
Pearson Hangs Out the For Sale Signs
Pearson plc the international media group, is to put a number of its reference and business & professional publishing operations up for sale. The businesses are Jossey-Bass; the General and Library Reference businesses of Macmillan publishing; Master Data Center; Prentice Hall Direct; Appleton & Lange; and the Bureau of Business Practice. In 1997, these businesses made, in total, sales of some $250 million. They were acquired by Pearson last November as part of its $4.6 billion dollar acquisition of the Simon & Schuster education, reference and business & professional operations. Pearson has merged the Simon & Schuster education businesses with Addison Wesley Longman to create Pearson Education, the world's leading educational publishing business. Macmillan Computer Publishing and Macmillan Digital Publishing also form part of the new Pearson Education business.
Source: PRNewswire 1/25/98
Mirror Group For Sale
Hirschberg Goes to McGraw Hill
Reader's Digest in Talks with Time Warner
Franklin Also to Sell Rocket ebook Content On Its Website
WH Smith’s Web Efforts
International Thomson Publishing Announces Marketing Venture with VarsityBooks.Com
Pearson Hangs Out the For Sale Signs
Mirror Group For Sale
Mirror Group Newspapers confirmed on Monday that they had received a 200 p per share all cash offer for the company from Regional Independent Media which is backed by venture cap firm Candover. The deal values Mirror Group at STL900MM ($1.4Billion) and Mirror spokesmen confirmed that it would be presented to the board for approval. The current bid exceeds a prior bid by Trinity Media which was to be funded by equity. Things are expected to hot up this week as some of the Mirror Group board of directors have expressed doubts as to the independence of Mirror Group CEO David Montgomery. Some board members believe he is predisposed to bids where he can retain executive management.
Source: Financial Times
Hirschberg Goes to McGraw Hill
The McGraw-Hill Companies today named Henry Hirschberg group president, Higher Education,
Professional and International Publishing, where he will help lead the publishing group's growth agenda. Hirschberg brings more than 25 years of editorial and international publishing experience to his
position. Most recently, he was president of the Higher Education Group for Pearson plc's education
division. Prior to Pearson's recent acquisition of Simon & Schuster, Hirschberg held various positions
at Simon & Schuster, including senior vice president, president of the Higher Education group, and
president of the International Publishing Group. Formerly, he was managing director of Prentice Hall's
U.K. operations and executive editor, where he managed editorial responsibility for computer and
business books. Hirschberg began his career as a sales representative at Prentice Hall in Europe in
1972.
Source: Businesswire Jan. 14, 1999--
Reader's Digest in Talks with Time Warner
Sources close to the companies tell Business Week that Reader's Digest and Time Warner Inc. are discussing a deal to combine Reader's Digest with several Time Inc. publications and direct-marketing businesses. Under the structure being contemplated, Time Warner would become an equal partner with the foundations that now control 72% of the publisher's voting shares. Public shareholders would own a yet-to-be-determined stake. Reader's Digest CEO Thomas O. Ryder, who joined the company last May, would continue as the company's CEO with Time Inc. CEO Don Logan as chairman, the magazine reports. Time Warner, Ryder, and the foundations won't comment on the talks.
Source: Businesswire, Jan. 14, 1999
Franklin Also to Sell Rocket ebook Content On Its Website
Franklin Electronic Publishers, Inc. (NYSE: FEP) and NuvoMedia, Inc. announced an agreement by which Franklin will distribute the Rocket eBook to consumer electronics retailers. The Rocket eBook is the world's first handheld electronic reader capable of downloading digital books from online bookstores. With the NuvoMedia strategic alliance, Franklin becomes one of the first full-service eBook retailers operating on the Internet. Under terms of the agreement, Franklin will also publish and sell content in the RocketEdition(TM) format on its own website -- http://www.franklin.com. RocketEditions are encrypted titles that readers can purchase and download onto their PC for transfer to the Rocket eBook. The Franklin Rocket eBook will be available in spring 1999 with a retail price under $500, and will be sold through leading consumer electronics stores, computer chains and office superstores. Prices for RocketEditions will be comparable to discounted prices for printed books. Franklin will offer RocketEditions on its website beginning in mid-1999. Participating publishers include Addison Wesley Longman, HarperCollins, Harvard Business School Press, Henry Holt and Company, Inc., Macmillan Computer Publishing USA, McGraw-Hill Publishing, Penguin Putnam Inc., Random House, Inc., Simon & Schuster, and St. Martin's. Many of these publishers, including HarperCollins, McGraw-Hill, and Macmillan, already license their works to Franklin for its handheld electronic products
Source: RNewswire 1/3/99
WH Smith’s Web Efforts
Shares in Britain's biggest bookseller, WH Smith Group Plc, hit a record high on Friday, fuelled by hopes for its nascent Internet division. The high street chain, viewed in the past as an unexciting investment, was lifted by news of its 5.6 million pound ($9.28 million) acquisition of Helicon Publishing Plc, a small loss-making provider of reference material. The deal may have been tiny but the market latched on to it as evidence that WH Smith could be a new British Web star and the stock soared to a peak of 675 pence before easing back to end six percent higher at 626-1/2p. Last July the firm bought the Internet Bookshop for 8.8 million pounds to launch its Internet strategy and Chief Executive Richard Handover said the latest purchase highlighted the group's focus on growing its online business.
Source: Reuters 1/15/99
International Thomson Publishing Announces Marketing Venture with VarsityBooks.Com
International Thomson Publishing (ITP), one of the world's largest educational publishers, has entered into a strategic marketing partnership with VarsityBooks.com (www.varsitybooks.com), the leading online college textbook seller. The goal of both businesses is to increase student awareness of how affordable and convenient it is to purchase their course books online. The agreement consists of joint marketing efforts between the ITP sales force and VarsityBooks.com to educate professors and students on the new, more affordable way to buy new textbooks through the VarsityBooks.com Web site. In return, ITP expects additional sales of new textbooks through the Internet. VarsityBooks.com offers customers a selection of 400,000 titles at discounts up to 40 percent, as well as flat-rate shipping at $4.95, no matter how large the order. Students can use the site's powerful search engine to locate textbooks, then use its state-of-the-art encryption system for secure transactions. Presently, VarsityBooks.com offers comprehensive booklists for more than 50 of the largest colleges and universities across the country. This featured list of universities is growing rapidly and is expected to triple in upcoming semesters. The VarsityBooks.com Web site also includes a "mega" search engine, to allow anyone access to the large discounts while purchasing their books.
Source: PRNewswire 1/19
Pearson Hangs Out the For Sale Signs
Pearson plc the international media group, is to put a number of its reference and business & professional publishing operations up for sale. The businesses are Jossey-Bass; the General and Library Reference businesses of Macmillan publishing; Master Data Center; Prentice Hall Direct; Appleton & Lange; and the Bureau of Business Practice. In 1997, these businesses made, in total, sales of some $250 million. They were acquired by Pearson last November as part of its $4.6 billion dollar acquisition of the Simon & Schuster education, reference and business & professional operations. Pearson has merged the Simon & Schuster education businesses with Addison Wesley Longman to create Pearson Education, the world's leading educational publishing business. Macmillan Computer Publishing and Macmillan Digital Publishing also form part of the new Pearson Education business.
Source: PRNewswire 1/25/98
Sunday, December 28, 1997
12/28/97: Barnes Noble, Pearson, Readers Digest, Scholastic
Summary:
Sun Media Corporation IPO
Readers Digest Annual Meeting: No Family Affair
For the Kids, Scholastic Says 'So Long, SOHO'
Board Changes at Pearson plc
Starwood to sell ITT directories unit for $2.1 billion
Town & Country
Knight-Ridder, NYT Report Online Losses
Barnes & Noble, AOL Make Deal
RECENT NEWS
Sun Media Corporation IPO
TORONTO, Dec. 3 /CNW-PRN/ - Sun Media Corporation announced that it has filed a prospectus with the securities regulatory authorities in each of the provinces of Canada for a combined initial public offering and secondary offering of approximately 23 million common shares in such provinces at a price of $13.50 per share. Sun Media is the second largest daily newspaper publishing group in Canada in terms of circulation and currently publishes five daily newspapers in major urban centers in Canada (The Toronto Sun, The Edmonton Sun, The Calgary Sun, The Ottawa Sun and The London Free Press) and The Financial Post, which is 80% owned by Sun Media. Sun Media's Community Newspaper Group also publishes five daily community newspapers, 80 weekly community newspapers and shopping guides in Canada and in Florida and 17 farming and other specialty publications. SOURCE Sun Media Corporation
Readers Digest Annual Meeting: No Family Affair
Reader's Digest held its annual shareholders meeting last week and, unlike many of the 75-year old company's publications, it was far from family fare. Angry shareholders complained about flagging share prices, fiscal irresponsibility and ineffective leadership, according to Reuters. Among the complaints: the company reportedly borrowed $100 million this year to pay out a 90 cent dividend. Under questioning, the company reportedly admitted that it actually had not earned its dividend for the past three years. Meanwhile chairman and CEO George Grune urged dissenters to be patient. As part of a promised turn-around, he reportedly said the company was re-evaluating its business alliances with Meredith Corp., PBS, Sears, Roebuck and Co., Spiegel Inc. and Avon Products Inc.
The company also was lambasted for its aging board. For example, one shareholder reportedly singled out board member Melvin Laird who, at 75, was the U.S. Secretary of State under former President Richard M. Nixon. The company paid Laird $400,000 for consulting services last year. Mediacentral: 12/16
For the Kids, Scholastic Says 'So Long, SOHO' (Folio: First Day)
Scholastic Corp. certainly is serious about this core-business-focus stuff that corporations are always prattling about in their life-imitates-Dilbert manner. To hear Scholastic executive VP Hugh Roome tell it, the $1-billion children's publisher will unburden itself of several profitable operations when it completes the sale of its SOHO Group [small office/home office] to privately held CurtCo Freedom Group in the next four weeks. The plum properties in the deal, announced last Thursday and valued at $20 million, are Home Office Computing -- launched 15 years ago by Scholastic as Family Computing -- and HOC offshoot Small Business Computing.
Roome, hired by New York-based Scholastic seven years ago to re-launch Family Computing as HOC, says that both HOC and SBC are profitable; so, he said, is Scholastic's six-year-old SOHO Custom Publishing unit. Its projects have included Small Business, produced for Microsoft, and Small Business Handbook, of which it sold 100,000 copies to AT&T. The unit also puts out four newsletters with total circulation of 2 million. Other properties acquired by CurtCo include HOC Online (www.smalloffice.com), which Roome said has sold out its banner-ad space 18 months running. Roome said the SOHO Group's 50-odd employees will move to Curt Co's expanding offices on West 56th Street in Manhattan and that he doesn't believe any of those personnel will be cut. In its announcement of the acquisition, the privately held CurtCo, based in Malibu, CA, pointed to the "synergy" Scholastic's SOHO Group has with such CurtCo magazines -- it publishes 21 along with 27 daily newspapers -- as Portable Computing Direct Shopper, Mobile Computing & Communications and Sales & Field Force Automation.
HOC's paid circulation rose by 2.4% to 461,353, thanks to a 20,000-plus increase in subscriptions to 441,000 in the first six months of 1997 compared with the first half of '96, according to the Audit Bureau of Circulation’s. Single-copy sales averaged 20,361, a 32% decline. Ad pages through November totaled 903, a 1.5% improvement over 890 in the first 11 months of '96; ad dollars rose 15.8% to $22.4 million from $19.4 million, according to Publishers Information Bureau. Small Business Computing, launched in January 1996, has controlled circulation of 140,000. CurtCo president and CEO William J. Curtis didn't return calls from First Day, but Roome said CurtCo "has intentions to expand the magazines' circulation’s in many dimensions and build other spin-off properties."
Sources familiar with the transaction's history said bidders for Scholastic's SOHO Group at one time or another have included Inc. magazine and Cowles Business Media. Roome acknowledges that it received unsolicited bids for the SOHO Group four years ago; at that time, those same sources said, the SOHO Group could have fetched a much higher price. New York investment banking firms DeSilva & Phillips Inc. and Veronis, Suhler & Associates Inc. represented CurtCo and Scholastic, respectively, in the transaction. (Neil Cassidy) Source: Mediacentral 12/15
Board Changes at Pearson plc
David Veit and Pehr Gyllenhammar are to step down from the board of directors of Pearson plc. David Veit, 59, an executive director and president of Pearson Inc, will retire at the company’s annual general meeting next May. He has been a Pearson director since 1981 and the senior Pearson executive in the United States for more than twenty years. Pehr Gyllenhammar, 62, who has been a non-executive director since 1983, will retire from the board at the end of December 1997. Source: Pearson plc 17th December 1997
Starwood to sell ITT directories unit for $2.1 billion
NEW YORK, Dec 18 (Reuters) - Starwood Lodging Trust, the victor in one of the year's biggest takeover fights, began on Thursday to break apart its prize. The real estate and hotel investment trust announced plans to sell ITT Corp.'s highly-profitable telephone directories business for $2.1 billion to Dutch publisher NV Verenigd Bezit VNU (OTC BB:VNUNY - news; VNUN.AS). The sale, which is contingent upon the completion of the proposed $10.2 billion ITT-Starwood transaction, came sooner than expected and is the first of several non-core assets expected to be sold by Starwood. Phoenix-based Starwood said it would use proceeds of the sale to reduce debt associated with the acquisition of ITT.
VNU, one of the world's largest information companies, is the dominant publisher of consumer magazines in the Netherlands and Belgium. It said the directories business had sales of about $545 million last year and earnings before interest, taxes and depreciation of about $178 million. ``This fits very well with our present portfolio. Half of (ITT World Directories) is aimed at the consumer, but the other half is aimed at the business to business segment,'' VNU Chief Financial Officer Frans Cremers said in Amsterdam. The Dutch firm was one of several companies that had expressed interest to ITT earlier this year when it was selling assets to defend itself against Hilton's hostile bid. ITT later abandoned that plan and sealed a transaction with Starwood. Although the unit has strong profit margins, it is a slow-growth business and was not considered to be a core asset for either ITT or Starwood.
VNU also publishes newspapers in the Netherlands and is active in business information in the United States and Europe. Cremers said in an interview that the ITT directories business was about evenly split between consumer and professional markets, like VNU itself. ``We are committed to both sectors. We want to grow in three areas: marketing information, trade journals and consumer information,'' he said. Cremers said VNU also had been attracted to ITT World Directories because the company.
For Those Last Minute Gifts… Town & Country's Top Ten Gift Ideas for the Holiday Season
Addressing different aspects of life such as beauty, kitchen and home, clothing and charity, Editor-in-Chief Pamela Fiori suggests imaginative gifts in a variety of price ranges. With that in mind, her favorite beauty picks include: --Estee Lauder Re-Nutriv Intensive Lifting Cream ($150) --Annick Goutal Eau d'Hadrian in a Baccarat bottle ($550) --Bliss Spa Gift Basket ($50-$200); call 888/243-8825 Kitchen and Home. Among Fiori's suggestions for the domestic sphere are: --Fresh caviar from Caviarteria --Aluminum cultivator from Smith & Hawken ($7) --Magafesa Rapid II 8 quart pressure cooker ($109) --Hurrell's Hollywood Portraits (Abrams, $39.95). Classic clothing and accessories, can have added panache when special attention is paid to choosing unique fabrics or decorations. to bring an imaginative touch to these standards try: --Anything cashmere --Costume Brooches, Art Deco Jewels ($65). With respect to charity; "Giving to a charity of a favorite cause unites friends and family in the true holiday spirit -- thinking of others," states Fiori. She suggests: --A donation to the African Wildlife Foundation (202-939-3333) or the Nature Conservancy (800-628-6860) in a friend's name.
ON-LINE NEWS:
Knight-Ridder, NYT Report Online Losses
Both Knight-Ridder and The New York Times reported tens of millions of dollars in losses for their New Media ventures for 1997 at the Paine Webber Media Conference here in New York. Yet both companies emphasized their optimism that revenues will increase next year, with possible profitability by 2000. Knight-Ridder will spend about $27 million this year on its 32 web sites but will take in only $11 million in revenue, according to chairman P. Anthony Ridder. Outlays for next year probably will be the same if not higher, but revenue also is expected to grow. Meanwhile the Internet is a valuable investment, said Ridder, pointing to his San Jose Mercury News, which has a daily circulation of 287,000 while drawing 1.2 million readers a month to its Web site. Knight-Ridder also is talking with the Tribune Co. and Washington Post about developing their online real estate and auto classified businesses. Knight-Ridder may part in the real estate portion, but Ridder said his company is not interested in becoming the third, full partner in the effort. Ridder said that he was "disappointed" with this year's debut of the New Century Network -- nine major newspapers sharing a common Web site aimed at luring national advertisers online -- and is looking at ways improve the site. Meanwhile, The Times expects a $12 million to $15 million loss for 1997 and an $8 million to $11 million loss next year, when it will launch its New York Today local content Web site and broaden its Boston Globe (http://www.boston.com) site. Despite its red ink, The Times' Web site (http://www.nytimes.com) has nearly 3 million registered users and is growing at the rate of about 200,000 users per month. Source: Mediacentral 12/12/1997
Barnes & Noble, AOL Make Deal
Barnes & Noble on Tuesday said it is paying America Online $40 million to be the exclusive seller of books on the nation's largest online service, shutting out Amazon.com and other major sellers of books on the Internet. Amazon.com, based in Seattle, is not currently promoting its books across America Online's network. But the Barnes & Noble Inc. deal locks up AOL for the next four years and expands where the bookseller can show ads, including the service's financial, travel and entertainment sites, and with its international subscribers.
The deal is the latest this year with America Online Inc., which has staked its future profits on revenues from advertisers. In exchange for helping to promote their products, the Dulles, Va.-based company is receiving more than $225 million from companies including CUC International Inc., a buying club, and Tel-Save Holdings Inc., a seller of long-distance telephone service.
By clicking on the Barnes & Noble icon, AOL's 10 million subscribers can link up to the company's Internet site and order books. "Effectively it gives us great positioning, locks out the competition, and gives us the next four years" of exclusive advertising, Barnes & Noble vice chairman Steve Riggio said. An Amazon.com did not immediately return a phone call seeking comment. America Online declined to comment. Amazon.com continues to sell books over AOL's World Wide Web site. December 16, 1997 By THE ASSOCIATED PRESS
Sun Media Corporation IPO
Readers Digest Annual Meeting: No Family Affair
For the Kids, Scholastic Says 'So Long, SOHO'
Board Changes at Pearson plc
Starwood to sell ITT directories unit for $2.1 billion
Town & Country
Knight-Ridder, NYT Report Online Losses
Barnes & Noble, AOL Make Deal
RECENT NEWS
Sun Media Corporation IPO
TORONTO, Dec. 3 /CNW-PRN/ - Sun Media Corporation announced that it has filed a prospectus with the securities regulatory authorities in each of the provinces of Canada for a combined initial public offering and secondary offering of approximately 23 million common shares in such provinces at a price of $13.50 per share. Sun Media is the second largest daily newspaper publishing group in Canada in terms of circulation and currently publishes five daily newspapers in major urban centers in Canada (The Toronto Sun, The Edmonton Sun, The Calgary Sun, The Ottawa Sun and The London Free Press) and The Financial Post, which is 80% owned by Sun Media. Sun Media's Community Newspaper Group also publishes five daily community newspapers, 80 weekly community newspapers and shopping guides in Canada and in Florida and 17 farming and other specialty publications. SOURCE Sun Media Corporation
Readers Digest Annual Meeting: No Family Affair
Reader's Digest held its annual shareholders meeting last week and, unlike many of the 75-year old company's publications, it was far from family fare. Angry shareholders complained about flagging share prices, fiscal irresponsibility and ineffective leadership, according to Reuters. Among the complaints: the company reportedly borrowed $100 million this year to pay out a 90 cent dividend. Under questioning, the company reportedly admitted that it actually had not earned its dividend for the past three years. Meanwhile chairman and CEO George Grune urged dissenters to be patient. As part of a promised turn-around, he reportedly said the company was re-evaluating its business alliances with Meredith Corp., PBS, Sears, Roebuck and Co., Spiegel Inc. and Avon Products Inc.
The company also was lambasted for its aging board. For example, one shareholder reportedly singled out board member Melvin Laird who, at 75, was the U.S. Secretary of State under former President Richard M. Nixon. The company paid Laird $400,000 for consulting services last year. Mediacentral: 12/16
For the Kids, Scholastic Says 'So Long, SOHO' (Folio: First Day)
Scholastic Corp. certainly is serious about this core-business-focus stuff that corporations are always prattling about in their life-imitates-Dilbert manner. To hear Scholastic executive VP Hugh Roome tell it, the $1-billion children's publisher will unburden itself of several profitable operations when it completes the sale of its SOHO Group [small office/home office] to privately held CurtCo Freedom Group in the next four weeks. The plum properties in the deal, announced last Thursday and valued at $20 million, are Home Office Computing -- launched 15 years ago by Scholastic as Family Computing -- and HOC offshoot Small Business Computing.
Roome, hired by New York-based Scholastic seven years ago to re-launch Family Computing as HOC, says that both HOC and SBC are profitable; so, he said, is Scholastic's six-year-old SOHO Custom Publishing unit. Its projects have included Small Business, produced for Microsoft, and Small Business Handbook, of which it sold 100,000 copies to AT&T. The unit also puts out four newsletters with total circulation of 2 million. Other properties acquired by CurtCo include HOC Online (www.smalloffice.com), which Roome said has sold out its banner-ad space 18 months running. Roome said the SOHO Group's 50-odd employees will move to Curt Co's expanding offices on West 56th Street in Manhattan and that he doesn't believe any of those personnel will be cut. In its announcement of the acquisition, the privately held CurtCo, based in Malibu, CA, pointed to the "synergy" Scholastic's SOHO Group has with such CurtCo magazines -- it publishes 21 along with 27 daily newspapers -- as Portable Computing Direct Shopper, Mobile Computing & Communications and Sales & Field Force Automation.
HOC's paid circulation rose by 2.4% to 461,353, thanks to a 20,000-plus increase in subscriptions to 441,000 in the first six months of 1997 compared with the first half of '96, according to the Audit Bureau of Circulation’s. Single-copy sales averaged 20,361, a 32% decline. Ad pages through November totaled 903, a 1.5% improvement over 890 in the first 11 months of '96; ad dollars rose 15.8% to $22.4 million from $19.4 million, according to Publishers Information Bureau. Small Business Computing, launched in January 1996, has controlled circulation of 140,000. CurtCo president and CEO William J. Curtis didn't return calls from First Day, but Roome said CurtCo "has intentions to expand the magazines' circulation’s in many dimensions and build other spin-off properties."
Sources familiar with the transaction's history said bidders for Scholastic's SOHO Group at one time or another have included Inc. magazine and Cowles Business Media. Roome acknowledges that it received unsolicited bids for the SOHO Group four years ago; at that time, those same sources said, the SOHO Group could have fetched a much higher price. New York investment banking firms DeSilva & Phillips Inc. and Veronis, Suhler & Associates Inc. represented CurtCo and Scholastic, respectively, in the transaction. (Neil Cassidy) Source: Mediacentral 12/15
Board Changes at Pearson plc
David Veit and Pehr Gyllenhammar are to step down from the board of directors of Pearson plc. David Veit, 59, an executive director and president of Pearson Inc, will retire at the company’s annual general meeting next May. He has been a Pearson director since 1981 and the senior Pearson executive in the United States for more than twenty years. Pehr Gyllenhammar, 62, who has been a non-executive director since 1983, will retire from the board at the end of December 1997. Source: Pearson plc 17th December 1997
Starwood to sell ITT directories unit for $2.1 billion
NEW YORK, Dec 18 (Reuters) - Starwood Lodging Trust, the victor in one of the year's biggest takeover fights, began on Thursday to break apart its prize. The real estate and hotel investment trust announced plans to sell ITT Corp.'s highly-profitable telephone directories business for $2.1 billion to Dutch publisher NV Verenigd Bezit VNU (OTC BB:VNUNY - news; VNUN.AS). The sale, which is contingent upon the completion of the proposed $10.2 billion ITT-Starwood transaction, came sooner than expected and is the first of several non-core assets expected to be sold by Starwood. Phoenix-based Starwood said it would use proceeds of the sale to reduce debt associated with the acquisition of ITT.
VNU, one of the world's largest information companies, is the dominant publisher of consumer magazines in the Netherlands and Belgium. It said the directories business had sales of about $545 million last year and earnings before interest, taxes and depreciation of about $178 million. ``This fits very well with our present portfolio. Half of (ITT World Directories) is aimed at the consumer, but the other half is aimed at the business to business segment,'' VNU Chief Financial Officer Frans Cremers said in Amsterdam. The Dutch firm was one of several companies that had expressed interest to ITT earlier this year when it was selling assets to defend itself against Hilton's hostile bid. ITT later abandoned that plan and sealed a transaction with Starwood. Although the unit has strong profit margins, it is a slow-growth business and was not considered to be a core asset for either ITT or Starwood.
VNU also publishes newspapers in the Netherlands and is active in business information in the United States and Europe. Cremers said in an interview that the ITT directories business was about evenly split between consumer and professional markets, like VNU itself. ``We are committed to both sectors. We want to grow in three areas: marketing information, trade journals and consumer information,'' he said. Cremers said VNU also had been attracted to ITT World Directories because the company.
For Those Last Minute Gifts… Town & Country's Top Ten Gift Ideas for the Holiday Season
Addressing different aspects of life such as beauty, kitchen and home, clothing and charity, Editor-in-Chief Pamela Fiori suggests imaginative gifts in a variety of price ranges. With that in mind, her favorite beauty picks include: --Estee Lauder Re-Nutriv Intensive Lifting Cream ($150) --Annick Goutal Eau d'Hadrian in a Baccarat bottle ($550) --Bliss Spa Gift Basket ($50-$200); call 888/243-8825 Kitchen and Home. Among Fiori's suggestions for the domestic sphere are: --Fresh caviar from Caviarteria --Aluminum cultivator from Smith & Hawken ($7) --Magafesa Rapid II 8 quart pressure cooker ($109) --Hurrell's Hollywood Portraits (Abrams, $39.95). Classic clothing and accessories, can have added panache when special attention is paid to choosing unique fabrics or decorations. to bring an imaginative touch to these standards try: --Anything cashmere --Costume Brooches, Art Deco Jewels ($65). With respect to charity; "Giving to a charity of a favorite cause unites friends and family in the true holiday spirit -- thinking of others," states Fiori. She suggests: --A donation to the African Wildlife Foundation (202-939-3333) or the Nature Conservancy (800-628-6860) in a friend's name.
ON-LINE NEWS:
Knight-Ridder, NYT Report Online Losses
Both Knight-Ridder and The New York Times reported tens of millions of dollars in losses for their New Media ventures for 1997 at the Paine Webber Media Conference here in New York. Yet both companies emphasized their optimism that revenues will increase next year, with possible profitability by 2000. Knight-Ridder will spend about $27 million this year on its 32 web sites but will take in only $11 million in revenue, according to chairman P. Anthony Ridder. Outlays for next year probably will be the same if not higher, but revenue also is expected to grow. Meanwhile the Internet is a valuable investment, said Ridder, pointing to his San Jose Mercury News, which has a daily circulation of 287,000 while drawing 1.2 million readers a month to its Web site. Knight-Ridder also is talking with the Tribune Co. and Washington Post about developing their online real estate and auto classified businesses. Knight-Ridder may part in the real estate portion, but Ridder said his company is not interested in becoming the third, full partner in the effort. Ridder said that he was "disappointed" with this year's debut of the New Century Network -- nine major newspapers sharing a common Web site aimed at luring national advertisers online -- and is looking at ways improve the site. Meanwhile, The Times expects a $12 million to $15 million loss for 1997 and an $8 million to $11 million loss next year, when it will launch its New York Today local content Web site and broaden its Boston Globe (http://www.boston.com) site. Despite its red ink, The Times' Web site (http://www.nytimes.com) has nearly 3 million registered users and is growing at the rate of about 200,000 users per month. Source: Mediacentral 12/12/1997
Barnes & Noble, AOL Make Deal
Barnes & Noble on Tuesday said it is paying America Online $40 million to be the exclusive seller of books on the nation's largest online service, shutting out Amazon.com and other major sellers of books on the Internet. Amazon.com, based in Seattle, is not currently promoting its books across America Online's network. But the Barnes & Noble Inc. deal locks up AOL for the next four years and expands where the bookseller can show ads, including the service's financial, travel and entertainment sites, and with its international subscribers.
The deal is the latest this year with America Online Inc., which has staked its future profits on revenues from advertisers. In exchange for helping to promote their products, the Dulles, Va.-based company is receiving more than $225 million from companies including CUC International Inc., a buying club, and Tel-Save Holdings Inc., a seller of long-distance telephone service.
By clicking on the Barnes & Noble icon, AOL's 10 million subscribers can link up to the company's Internet site and order books. "Effectively it gives us great positioning, locks out the competition, and gives us the next four years" of exclusive advertising, Barnes & Noble vice chairman Steve Riggio said. An Amazon.com did not immediately return a phone call seeking comment. America Online declined to comment. Amazon.com continues to sell books over AOL's World Wide Web site. December 16, 1997 By THE ASSOCIATED PRESS
Wednesday, December 10, 1997
12/10/97: Reader's Digest, Reed Elsevier, Kluwer, Thomson
Summary
Shareholder Unrest Brewing At Reader's Digest
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
Wolters Plans Acquisition Of Thomson Publications
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Harcourt General Announces Results For Fourth Quarter And Full Year
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer:
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
Wolters Kluwer Reed Elsevier
New York Times Says It Plans Acquisition In 1999
RECENT NEWS
Shareholder Unrest Brewing At Reader's Digest
(Book Publishing Report) A minority shareholder is going forward with its bid to place two candidates on the Reader's Digest board of directors, despite the fact that the company has politely refused its request. Making matters worse for Reader's Digest-which will hold what could be a fractious annual meeting this Friday (12th)-is the fact that shareholder Corporate Value Partners has chosen to conduct its efforts publicly. The shareholder discord is just the latest problem to beset Reader's Digest, which has been struggling to reverse an alarming drop in its financial performance caused by a steadily eroding customer base (BPR, Aug. 18). BPR has learned that Barbara Morgan, senior vice president and editor in chief of the company's Books and Home Entertainment Products division, is leaving the company. The division's operating income sank 37.5% to $201.1 million on revenues that fell 11.9% to $1.85 billion in fiscal 1997, ended June 30. Morgan is the latest in a series of executive departures that began with chief executive officer James Schadt's forced resignation in August. Since then, CFO Stephen Wilson, senior VP of strategic planning Glenda Burkhart, senior VP and general counsel Paul Soden and RD Europe president Martin Pearson have also left.
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
After a year of talks, media giants Dow Jones & Co. and General Electric Co.'s NBC division announced today that they will form a global television and Internet partnership cementing the brands internationally and tempering losses both companies are experiencing in their overseas operations. The merger will consolidate the two companies' business-news channels in Europe and Asia -- cutting costs and expanding each side's distribution -- while also adding Dow Jones news, and perhaps interviews with its Wall Street Journal reporters, to CNBC's programming in the United States. Dow Jones lost $48 million in its television ventures last year, while NBC 's subsidiary CNBC lost $15 million in Asia. NBC will pay a licensing fee to Dow Jones but did not disclose how much. CNBC will now be known both domestically and internationally as "a service of NBC and Dow Jones. For Dow Jones, the alliance comes at a time when Kann is under intense pressure from the company's board to curtail money-losing operations. Revenue from this deal, as well as the cash from several recent deals to license the well-known market barometer Dow Jones industrial average as a vehicle for the trading of futures and options contracts, will enhance the company's bottom line. But Kann's larger problem, analysts said, is Dow Jones Markets, the real-time news and data service formerly known as Telerate, which is losing market share to competing services run by Reuters Holdings PLC and Bloomberg Financial Markets. Kann announced a controversial plan in January to spend $650 million to revive the ailing unit, which drew the ire of shareholders and certain members of the Bancroft family, which controls 70 percent of the voting shares of Dow Jones stock and has four of the 15 seats on the company's board of directors. After pressure from outsiders and a fresh look at the plan by Dow Jones's board, the company changed course and announced it was "exploring options" regarding Dow Jones Markets, including the sale of the unit. "It has got to be sold," said Michael Price, the influential money manager who holds 4.1 million shares of Dow Jones stock and has been pushing the company since January to sell the flagging unit. Still, one of the things Kann has been criticized for is not doing enough to leverage the Dow Jones franchise as a premiere provider of financial news. Today's deal will help give the company a worldwide television platform to showcase its stories. CNBC will have worldwide television rights to Dow Jones stories and plans to set up studios at the Wall Street Journal's headquarters in the World Financial Center in downtown Manhattan. For NBC , the move strengthens its CNBC subsidiary, which is accessible in 65 million households and is projecting a $100 million profit this year. On the Internet, the Web site run by MSNBC -- an existing NBC -Microsoft Corp. joint venture -- will provide highlights from the Wall Street Journal, flagged under the CNBC/Dow Jones logo. As part of today's deal, Dow Jones acquired a third of MSNBC Business Video, which delivers video clips from corporate speeches and conferences to clients' computers. Both NBC and Dow Jones acknowledged that fourth-quarter earnings may be pinched by restructuring costs related to today's announcement. December 10, 1997 Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Plans Acquisition Of Thomson Publications
AMSTERDAM -- Dutch publisher Wolters Kluwer NV said it agreed to acquire scientific and medical publisher Thomson Science from Thomson Corp. of Canada. Wolters Kluwer didn't provide financial details of the planned transaction. However, the company said it expects the deal to be completed around the end of the year. Wolters said a significant number of Thomson Science's medical publications fit well with those of Wolters' U.S. medical publisher Lippincott-Raven, while its general scientific publications complement those of Wolters Kluwer Academic Publishing. Wolters said the acquisition won't include the German medical and scientific publications of Thomson Science. Wolters Kluwer's core activities include the legal, medical, educational, and other scientific and professional fields. Its principal operations are in the U.S. and eight European countries including Spain, Italy, Germany and France. Copyright (c) 1997 Dow Jones and Company, Inc.
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
NEW YORK, Dec. 9 Penguin Putnam Inc. has signed a multi- year strategic license agreement with DreamWorks Consumer Products, it was announced today by Douglas Whiteman, Executive Vice President of Penguin Putnam. The deal grants Penguin Putnam publishing rights for at least the first five animated feature films for DreamWorks Pictures, as well as the option to propose publishing programs for other DreamWorks properties, including live action motion pictures, animated and live action TV programs and direct-to-video films. Penguin Putnam's rights encompass most book formats with a suggested retail price of $4.00 and above. Penguin Putnam is currently working on more than two dozen titles in support of the 1997-1998 motion pictures set for release from DreamWorks Pictures. The first four books shipped in early November and are based on the film Amistad, directed by Steven Spielberg. Penguin Putnam is also developing a range of titles and formats for Small Soldiers (Summer 1998). Directed by Joe Dante (Gremlins, Innerspace) and with special effects from Stan Winston Studio and Industrial Light & Magic (The Lost World: Jurassic Park), the film tells the story of a small town that is overtaken by artificially intelligent toys. Grosset & Dunlap plans six titles, including a movie storybook and a top secret dossier, all capturing the innovative look of the film. In support of DreamWorks' first animated film The Prince of Egypt (Holiday 1998), Penguin Putnam is developing titles in at least a dozen formats, with age-appropriate content for both adults and children, and honoring the ground-breaking animation style of the film. SOURCE Penguin Putnam Inc via Businesswire
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Thomson Financial Services announced today the acquisition of The EDI Group, Ltd. by its Thomson Financial Publishing unit. Terms of the agreement were not disclosed. The EDI Group is a professional services organization specializing in providing the highest quality research, publication and education services to companies participating in the EDI and Electronic Commerce marketplace. The EDI Group also offers public and private courses in EDI, EC and financial EDI/EFT. In addition, The EDI Group publishes quarterly a professional journal; EDI FORUM: The Journal of Electronic Commerce. Source Businesswire
Harcourt General Announces Results For Fourth Quarter And Full Year
Harcourt General, Inc. (NYSE:H) today reported that its Harcourt Brace publishing businesses achieved strong year-over-year gains in the fourth quarter of fiscal 1997, resulting in a record full-year performance by the Company before non-recurring charges and amortization associated with the acquisition of National Education Corporation (NEC). For the full year, Harcourt General reported that revenues rose 12.2 percent to $3.69 billion from $3.29 billion in 1996. Before NEC-related amortization of goodwill and acquired intangibles and non-recurring charges, operating earnings for the year were $375.7 million, a 9.0 percent increase from $344.7 million in 1996. After $104.1 million in NEC-related amortization of goodwill and acquired intangible assets and $277.2 million in non-recurring charges, the Company had an operating loss in 1997 of $5.7 million. The Company reported a net loss of $115.1 million, or $1.64 per share, for the full year, compared to net income of $190.9 million, or $2.62 per share in 1996. Revenues in the Harcourt Brace publishing operations increased 12.8 percent in the fourth quarter to $398.0 million, while operating earnings were up 22.3 percent to $97.0 million. For the full year, Harcourt Brace publishing revenues increased 14.5 percent to $1.25 billion, with operating earnings before non-recurring charges rising 13.3 percent to $223.1 million.
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer: Reed Elsevier today issues a brief status report on the progress of the proposed merger of Reed Elsevier with Wolters Kluwer and, in line with the practice introduced last year, an update on recent trading and some other material issues. Proposed Merger with Wolters Kluwer: "On 13 October 1997, the Boards of Reed International P.L.C., Elsevier NV and Wolters Kluwer NV announced that they had agreed in principle to propose to their respective shareholders a merger of their businesses. Progress continues to be made in developing the detailed merger proposals. The major steps implemented so far have included relevant employee consultation processes in the Netherlands, as well as the filing of necessary information with the competition authorities in various jurisdictions. "It is expected that, subject to receiving certain regulatory clearances, a circular to the shareholders of Reed, Elsevier and Wolters Kluwer, setting out details of the proposed merger will be issued on 27 March 1998 together with the respective 1997 annual reports. IPC Magazines: "On 27 October 1997, Reed Elsevier announced the possible divestment of IPC Magazines, its UK consumer magazines business. Review of the available options is continuing and if it is decided to pursue such a divestment, it is intended that any transaction would be concluded early in 1998. Update on Reed Elsevier’s Trading: "In September we completed the $447 million acquisition of the Chilton Business Group, a major US business to business publisher. Also, in October, we agreed a merger between Utell, our hotel reservation and representation business, and the US company, Anasazi Inc., which is the leading supplier of technology solutions to the hotel and hospitality market. "Reed Elsevier’s 1997 preliminary results will contain a number of exceptional items, the most significant of which will be substantial provisions in respect of the Reed Travel Group. Since the announcement, on 26 September 1997, of irregularities in circulation claims made by the Reed Travel Group, considerable progress has been made in determining the extent of the misstatements and in developing recompense plans for advertisers in the affected publications. Revised sales and marketing practices have already been introduced and circulation claims are now being rigorously controlled. "It is not possible at this stage in the process to quantify either the full financial effect of the recompense plans or the impact on the future profitability of the Reed Travel Group and the related value of its intangible assets. The exceptional charges will be in relation to the recompense plans, together with a non-cash write-down of intangible asset values. Source: Reed Elsevier
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
The National Geographic Society's chief executive resigned yesterday, only 18 months after taking the top job at the venerable Washington educational and publishing organization. Reg Murphy said he had been planning the move all along and dismissed any suggestions of dissension in his departure. He had been the society's No. 2 executive since 1993. During his tenure, Murphy, 63, a former newspaper publisher, aggressively cut costs and steered the nonprofit society toward profit-making ventures, such as producing dramatic TV movies and starting a chain of National Geographic stores. He also launched new foreign-language editions of the society's famed yellow-bordered magazine in one of the biggest expansion pushes in the publication's 109-year history. The strategic changes made Murphy a controversial figure within the society, a genteel, tradition-bound outfit that has long projected a semi-academic air. Murphy's successor, appointed by the society's board yesterday, is John Fahey, who joined National Geographic just 20 months ago from Time-Life, the direct-marketing arm of Time Warner . Fahey, 45, was recruited by Murphy from Time-Life in Alexandria to run National Geographic Ventures, the for-profit subsidiary Murphy started in 1995. The management changes represent a swift transition at an institution not known for moving quickly. They underscore the ascendancy of executives who've come from outside the organization and have a keener eye on the bottom line. Fahey takes over at a time when the society is in relatively strong shape. Circulation of its flagship magazine, which lost readers throughout much of the 1980s, has stabilized at about 9 million subscribers, who receive the magazine by becoming dues-paying "members" of the society. Its major growth area is its television operations. National Geographic Television produces documentaries and nature programs appearing on NBC and the TBS and Disney Channel cable networks. It has also moved into making dramatic movies for theatrical and broadcast distribution. Its first dramatic offering, "Forbidden Territory: Stanley's Search for Livingstone," was broadcast on ABC Sunday. Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Kluwer Reed Elsevier
The European Union Commission Friday opened a detailed four-month inquiry into the planned merger of Anglo-Dutch publisher Reed Elsevier (N.ELS, U.REE) and Dutch publisher Wolters Kluwer NV (N.WOK), an E.U. source said. Via Newsedge
New York Times Says It Plans Acquisition In 1999
The New York Times Co. said Thursday that it was ``counting on an acquisition to provide considerable future growth'' sometime in 1999. The company also predicted increases in revenues and operating profits, and its stock rose to a 52-week high. ``The next step in our external development plan is to bring an investment banker on board'' to examine potential properties, the company's president and chief executive, Russell T. Lewis, said at a New York conference of investors, sponsored by Paine Webber. But Lewis added that he did not ``anticipate any significant developments in this area until 1999.'' The Times also disclosed that it planned a new section of technology news called Circuits in February and that it would publish seven to nine special one-time sections in 1998. In addition, the company made its earnings predictions, reporting that operating profit for the newspaper group, its largest division, was expected to rise 35 percent from last year to between $430 million and $440 million. The Times also said that earnings before interest, taxes, depreciation and amortization were expected to rise 30 percent, to between $590 million and $600 million. The Times Co., which had revenues of $2.6 billion in 1996, publishes The Boston Globe and 21 regional newspapers in addition to The New York Times, as well as three magazines. The company also operates television and radio stations
Copyright (c) 1997 The New York Times Co. Received via NewsEDGE from Desktop Data, Inc.
Shareholder Unrest Brewing At Reader's Digest
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
Wolters Plans Acquisition Of Thomson Publications
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Harcourt General Announces Results For Fourth Quarter And Full Year
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer:
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
Wolters Kluwer Reed Elsevier
New York Times Says It Plans Acquisition In 1999
RECENT NEWS
Shareholder Unrest Brewing At Reader's Digest
(Book Publishing Report) A minority shareholder is going forward with its bid to place two candidates on the Reader's Digest board of directors, despite the fact that the company has politely refused its request. Making matters worse for Reader's Digest-which will hold what could be a fractious annual meeting this Friday (12th)-is the fact that shareholder Corporate Value Partners has chosen to conduct its efforts publicly. The shareholder discord is just the latest problem to beset Reader's Digest, which has been struggling to reverse an alarming drop in its financial performance caused by a steadily eroding customer base (BPR, Aug. 18). BPR has learned that Barbara Morgan, senior vice president and editor in chief of the company's Books and Home Entertainment Products division, is leaving the company. The division's operating income sank 37.5% to $201.1 million on revenues that fell 11.9% to $1.85 billion in fiscal 1997, ended June 30. Morgan is the latest in a series of executive departures that began with chief executive officer James Schadt's forced resignation in August. Since then, CFO Stephen Wilson, senior VP of strategic planning Glenda Burkhart, senior VP and general counsel Paul Soden and RD Europe president Martin Pearson have also left.
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
After a year of talks, media giants Dow Jones & Co. and General Electric Co.'s NBC division announced today that they will form a global television and Internet partnership cementing the brands internationally and tempering losses both companies are experiencing in their overseas operations. The merger will consolidate the two companies' business-news channels in Europe and Asia -- cutting costs and expanding each side's distribution -- while also adding Dow Jones news, and perhaps interviews with its Wall Street Journal reporters, to CNBC's programming in the United States. Dow Jones lost $48 million in its television ventures last year, while NBC 's subsidiary CNBC lost $15 million in Asia. NBC will pay a licensing fee to Dow Jones but did not disclose how much. CNBC will now be known both domestically and internationally as "a service of NBC and Dow Jones. For Dow Jones, the alliance comes at a time when Kann is under intense pressure from the company's board to curtail money-losing operations. Revenue from this deal, as well as the cash from several recent deals to license the well-known market barometer Dow Jones industrial average as a vehicle for the trading of futures and options contracts, will enhance the company's bottom line. But Kann's larger problem, analysts said, is Dow Jones Markets, the real-time news and data service formerly known as Telerate, which is losing market share to competing services run by Reuters Holdings PLC and Bloomberg Financial Markets. Kann announced a controversial plan in January to spend $650 million to revive the ailing unit, which drew the ire of shareholders and certain members of the Bancroft family, which controls 70 percent of the voting shares of Dow Jones stock and has four of the 15 seats on the company's board of directors. After pressure from outsiders and a fresh look at the plan by Dow Jones's board, the company changed course and announced it was "exploring options" regarding Dow Jones Markets, including the sale of the unit. "It has got to be sold," said Michael Price, the influential money manager who holds 4.1 million shares of Dow Jones stock and has been pushing the company since January to sell the flagging unit. Still, one of the things Kann has been criticized for is not doing enough to leverage the Dow Jones franchise as a premiere provider of financial news. Today's deal will help give the company a worldwide television platform to showcase its stories. CNBC will have worldwide television rights to Dow Jones stories and plans to set up studios at the Wall Street Journal's headquarters in the World Financial Center in downtown Manhattan. For NBC , the move strengthens its CNBC subsidiary, which is accessible in 65 million households and is projecting a $100 million profit this year. On the Internet, the Web site run by MSNBC -- an existing NBC -Microsoft Corp. joint venture -- will provide highlights from the Wall Street Journal, flagged under the CNBC/Dow Jones logo. As part of today's deal, Dow Jones acquired a third of MSNBC Business Video, which delivers video clips from corporate speeches and conferences to clients' computers. Both NBC and Dow Jones acknowledged that fourth-quarter earnings may be pinched by restructuring costs related to today's announcement. December 10, 1997 Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Plans Acquisition Of Thomson Publications
AMSTERDAM -- Dutch publisher Wolters Kluwer NV said it agreed to acquire scientific and medical publisher Thomson Science from Thomson Corp. of Canada. Wolters Kluwer didn't provide financial details of the planned transaction. However, the company said it expects the deal to be completed around the end of the year. Wolters said a significant number of Thomson Science's medical publications fit well with those of Wolters' U.S. medical publisher Lippincott-Raven, while its general scientific publications complement those of Wolters Kluwer Academic Publishing. Wolters said the acquisition won't include the German medical and scientific publications of Thomson Science. Wolters Kluwer's core activities include the legal, medical, educational, and other scientific and professional fields. Its principal operations are in the U.S. and eight European countries including Spain, Italy, Germany and France. Copyright (c) 1997 Dow Jones and Company, Inc.
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
NEW YORK, Dec. 9 Penguin Putnam Inc. has signed a multi- year strategic license agreement with DreamWorks Consumer Products, it was announced today by Douglas Whiteman, Executive Vice President of Penguin Putnam. The deal grants Penguin Putnam publishing rights for at least the first five animated feature films for DreamWorks Pictures, as well as the option to propose publishing programs for other DreamWorks properties, including live action motion pictures, animated and live action TV programs and direct-to-video films. Penguin Putnam's rights encompass most book formats with a suggested retail price of $4.00 and above. Penguin Putnam is currently working on more than two dozen titles in support of the 1997-1998 motion pictures set for release from DreamWorks Pictures. The first four books shipped in early November and are based on the film Amistad, directed by Steven Spielberg. Penguin Putnam is also developing a range of titles and formats for Small Soldiers (Summer 1998). Directed by Joe Dante (Gremlins, Innerspace) and with special effects from Stan Winston Studio and Industrial Light & Magic (The Lost World: Jurassic Park), the film tells the story of a small town that is overtaken by artificially intelligent toys. Grosset & Dunlap plans six titles, including a movie storybook and a top secret dossier, all capturing the innovative look of the film. In support of DreamWorks' first animated film The Prince of Egypt (Holiday 1998), Penguin Putnam is developing titles in at least a dozen formats, with age-appropriate content for both adults and children, and honoring the ground-breaking animation style of the film. SOURCE Penguin Putnam Inc via Businesswire
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Thomson Financial Services announced today the acquisition of The EDI Group, Ltd. by its Thomson Financial Publishing unit. Terms of the agreement were not disclosed. The EDI Group is a professional services organization specializing in providing the highest quality research, publication and education services to companies participating in the EDI and Electronic Commerce marketplace. The EDI Group also offers public and private courses in EDI, EC and financial EDI/EFT. In addition, The EDI Group publishes quarterly a professional journal; EDI FORUM: The Journal of Electronic Commerce. Source Businesswire
Harcourt General Announces Results For Fourth Quarter And Full Year
Harcourt General, Inc. (NYSE:H) today reported that its Harcourt Brace publishing businesses achieved strong year-over-year gains in the fourth quarter of fiscal 1997, resulting in a record full-year performance by the Company before non-recurring charges and amortization associated with the acquisition of National Education Corporation (NEC). For the full year, Harcourt General reported that revenues rose 12.2 percent to $3.69 billion from $3.29 billion in 1996. Before NEC-related amortization of goodwill and acquired intangibles and non-recurring charges, operating earnings for the year were $375.7 million, a 9.0 percent increase from $344.7 million in 1996. After $104.1 million in NEC-related amortization of goodwill and acquired intangible assets and $277.2 million in non-recurring charges, the Company had an operating loss in 1997 of $5.7 million. The Company reported a net loss of $115.1 million, or $1.64 per share, for the full year, compared to net income of $190.9 million, or $2.62 per share in 1996. Revenues in the Harcourt Brace publishing operations increased 12.8 percent in the fourth quarter to $398.0 million, while operating earnings were up 22.3 percent to $97.0 million. For the full year, Harcourt Brace publishing revenues increased 14.5 percent to $1.25 billion, with operating earnings before non-recurring charges rising 13.3 percent to $223.1 million.
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer: Reed Elsevier today issues a brief status report on the progress of the proposed merger of Reed Elsevier with Wolters Kluwer and, in line with the practice introduced last year, an update on recent trading and some other material issues. Proposed Merger with Wolters Kluwer: "On 13 October 1997, the Boards of Reed International P.L.C., Elsevier NV and Wolters Kluwer NV announced that they had agreed in principle to propose to their respective shareholders a merger of their businesses. Progress continues to be made in developing the detailed merger proposals. The major steps implemented so far have included relevant employee consultation processes in the Netherlands, as well as the filing of necessary information with the competition authorities in various jurisdictions. "It is expected that, subject to receiving certain regulatory clearances, a circular to the shareholders of Reed, Elsevier and Wolters Kluwer, setting out details of the proposed merger will be issued on 27 March 1998 together with the respective 1997 annual reports. IPC Magazines: "On 27 October 1997, Reed Elsevier announced the possible divestment of IPC Magazines, its UK consumer magazines business. Review of the available options is continuing and if it is decided to pursue such a divestment, it is intended that any transaction would be concluded early in 1998. Update on Reed Elsevier’s Trading: "In September we completed the $447 million acquisition of the Chilton Business Group, a major US business to business publisher. Also, in October, we agreed a merger between Utell, our hotel reservation and representation business, and the US company, Anasazi Inc., which is the leading supplier of technology solutions to the hotel and hospitality market. "Reed Elsevier’s 1997 preliminary results will contain a number of exceptional items, the most significant of which will be substantial provisions in respect of the Reed Travel Group. Since the announcement, on 26 September 1997, of irregularities in circulation claims made by the Reed Travel Group, considerable progress has been made in determining the extent of the misstatements and in developing recompense plans for advertisers in the affected publications. Revised sales and marketing practices have already been introduced and circulation claims are now being rigorously controlled. "It is not possible at this stage in the process to quantify either the full financial effect of the recompense plans or the impact on the future profitability of the Reed Travel Group and the related value of its intangible assets. The exceptional charges will be in relation to the recompense plans, together with a non-cash write-down of intangible asset values. Source: Reed Elsevier
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
The National Geographic Society's chief executive resigned yesterday, only 18 months after taking the top job at the venerable Washington educational and publishing organization. Reg Murphy said he had been planning the move all along and dismissed any suggestions of dissension in his departure. He had been the society's No. 2 executive since 1993. During his tenure, Murphy, 63, a former newspaper publisher, aggressively cut costs and steered the nonprofit society toward profit-making ventures, such as producing dramatic TV movies and starting a chain of National Geographic stores. He also launched new foreign-language editions of the society's famed yellow-bordered magazine in one of the biggest expansion pushes in the publication's 109-year history. The strategic changes made Murphy a controversial figure within the society, a genteel, tradition-bound outfit that has long projected a semi-academic air. Murphy's successor, appointed by the society's board yesterday, is John Fahey, who joined National Geographic just 20 months ago from Time-Life, the direct-marketing arm of Time Warner . Fahey, 45, was recruited by Murphy from Time-Life in Alexandria to run National Geographic Ventures, the for-profit subsidiary Murphy started in 1995. The management changes represent a swift transition at an institution not known for moving quickly. They underscore the ascendancy of executives who've come from outside the organization and have a keener eye on the bottom line. Fahey takes over at a time when the society is in relatively strong shape. Circulation of its flagship magazine, which lost readers throughout much of the 1980s, has stabilized at about 9 million subscribers, who receive the magazine by becoming dues-paying "members" of the society. Its major growth area is its television operations. National Geographic Television produces documentaries and nature programs appearing on NBC and the TBS and Disney Channel cable networks. It has also moved into making dramatic movies for theatrical and broadcast distribution. Its first dramatic offering, "Forbidden Territory: Stanley's Search for Livingstone," was broadcast on ABC Sunday. Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Kluwer Reed Elsevier
The European Union Commission Friday opened a detailed four-month inquiry into the planned merger of Anglo-Dutch publisher Reed Elsevier (N.ELS, U.REE) and Dutch publisher Wolters Kluwer NV (N.WOK), an E.U. source said. Via Newsedge
New York Times Says It Plans Acquisition In 1999
The New York Times Co. said Thursday that it was ``counting on an acquisition to provide considerable future growth'' sometime in 1999. The company also predicted increases in revenues and operating profits, and its stock rose to a 52-week high. ``The next step in our external development plan is to bring an investment banker on board'' to examine potential properties, the company's president and chief executive, Russell T. Lewis, said at a New York conference of investors, sponsored by Paine Webber. But Lewis added that he did not ``anticipate any significant developments in this area until 1999.'' The Times also disclosed that it planned a new section of technology news called Circuits in February and that it would publish seven to nine special one-time sections in 1998. In addition, the company made its earnings predictions, reporting that operating profit for the newspaper group, its largest division, was expected to rise 35 percent from last year to between $430 million and $440 million. The Times also said that earnings before interest, taxes, depreciation and amortization were expected to rise 30 percent, to between $590 million and $600 million. The Times Co., which had revenues of $2.6 billion in 1996, publishes The Boston Globe and 21 regional newspapers in addition to The New York Times, as well as three magazines. The company also operates television and radio stations
Copyright (c) 1997 The New York Times Co. Received via NewsEDGE from Desktop Data, Inc.
Saturday, November 01, 1997
11/1/97: Harpercollins, KnightRidder, SimonShuster, Amazon.com, Readers Digest,
Summary:
New Head Of Harpercollins Publishers
A.H. Belo Corp.: Net Income Declines 21% But Beats Analyst Forecast
Apple Begins Program To Support Position In Education Market
Reader's Digest Posts $56.4 Million Loss, Citing Weak Mailings
Knight Ridder Sells Newspapers
Harpercollins Signs Jewel
Bookwire Offers Redesign
Bookpages - Another Internet Bookstore
Harpercollins Gets Mystery Web Site
Simon & Schuster Recognized For Having Best Commercial Web Site
Amazon Marches On
RECENT NEWS:
NEW HEAD OF HARPERCOLLINS PUBLISHERS
News Corp. named Jane Friedman, one of the publishing industry's best-regarded executives, to lead HarperCollins Publishers, its troubled book publishing unit.
Ms. Friedman, currently a senior executive at Advance Publications Inc.'s Random House unit, will assume her new position next month. She will succeed Anthea Disney, who last month was elevated to the post of chairman of News America Publishing Group, a newly formed News Corp. unit that includes both HarperCollins and TV Guide magazine. Ms. Friedman will report to Ms. Disney.
HarperCollins has had a variety of problems in recent months. In August, the company said it would take a $270 million charge -- the biggest in the history of book publishing -- to cover write-downs for losses on author advances and unsold books as well as other restructuring costs. Some of News Corp.'s major investors have encouraged Rupert Murdoch to unload the unit, and there have been repeated rumors that he might do so, unsettling the publisher's employees. Ms. Friedman went to Los Angeles to meet with Mr. Murdoch in late September, and she says she came away believing that "he is in it for the long term." She also said HarperCollins's difficulties didn't cause her to hesitate joining the publisher. "They have had some tough knocks," Ms. Friedman said. "But I believe the company has turned the corner, and it now has a pretty clean slate."
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
A.H. BELO CORP.: NET INCOME DECLINES 21% BUT BEATS ANALYST FORECAST
A.H. Belo Corp. said third-quarter net income decreased 21% to $15 million, or 24 cents a share, from $18.9 million, or 42 cents a share, in the year-earlier period. Earnings per-share were affected by the issuance of about 25 million common shares, related to an acquisition. The Dallas television and newspaper concern said sales increased 58% to $319.1 million. The company also said a 51% revenue increase in its newspaper publishing division, combined with strong advertising demand in all of its broadcasting markets, contributed to the earnings results. A survey of analysts by First Call had estimated Belo would report net of 18 cents a share.
Copyright (c) 1997 Dow Jones and Company, Inc.
Received via NewsEDGE from Desktop Data, Inc.: 10/29/97 02:22:31
APPLE BEGINS PROGRAM TO SUPPORT POSITION IN EDUCATION MARKET
Apple Computer Inc., seeking to shore up its sagging U.S. education stronghold, has launched a special promotion to credit schools with 10% of the purchase price of computers bought by students' parents.
Under the "Power of 10" program, which began Oct. 15 and is to run through Jan. 31, the schools will be able to use those credits towards purchase of their new Apple computers. The program was conceived by Apple interim Chief Executive Officer Steve Jobs, and is designed to strengthen the company's presence in a market that has been beset by competitors allied around the industry's dominant standard of Microsoft Corp. software and Intel Corp. microprocessors.
Under the promotion's terms, parents can buy directly from Apple any of 10 computer models, including some which previously had been offered only to schools. They can then designate the 10% credit to the K-12 school of their choice. If a school receives 10 of those credits, it can apply those to a free computer.
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
READER'S DIGEST POSTS $56.4 MILLION LOSS, CITING WEAK MAILINGS
Reader's Digest Association Inc. reported a loss of $56.4 million, or 53 cents a share, for the fiscal first quarter, reflecting weak customer response to mailings and costs related to a corporate realignment of operations.
The loss for the quarter ended Sept. 30 compares with year-earlier net income of $34.6 million, or 32 cents a share. Revenue fell 13% to $561 million from $644 million. The latest results included a pretax charge of $70 million, or 49 cents a share, reflecting severance costs for staff reductions in Europe, the U.S. and at the corporate level, as well as a discontinuation of certain businesses.
The results reflected increased spending in product development and direct-marketing operations, the company said. George V. Grune, chairman and chief executive, said revenue in the quarter reflected lower customer response to company mailings and fewer mail solicitations sent out in major markets.
Revenue from the U.S.-based special-interest magazines and Reader's Digest magazine were higher than last year, reflecting gains in both circulation and advertising.
Copyright (c) 1997 Dow Jones and Company, Inc.
KNIGHT RIDDER SELLS NEWSPAPERS
MIAMI -- Knight-Ridder Inc. said it agreed to sell three newspapers that it had previously put on the block -- the Boca Raton News, Florida; the Union-Recorder, in Milledgeville, Ga.; and the suburban Newberry Observer, in South Carolina -- to Community Newspaper Holdings Inc., Louisville, Ky. Terms weren't disclosed, but media giant Knight-Ridder said the transaction includes the transfer to Knight-Ridder of the Daily Sun in Warner Robins, Ga.; the Byron Gazette, a Georgia weekly, and a shopper, also in Georgia. The transaction is expected to close by Thanksgiving.
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS SIGNS JEWEL
HarperCollins was very busy this week and they topped off their activity by contributing to one of the major problems in the publishing industry. HarperCollins bid and won -for $2MM- a book of poetry and a memoir from Jewel, the 23-year-old photogenic folk singer whose debut album Pieces of You has been on the charts for two years and sold six million copies to date. Regardless, many analysts have bemoaned the tendency by publishers for overpaying for book rights for ‘media stars’ who’s celebrity it turns out is fleeting.
Jewel's poetry book, which had been shopped around last year and was rumored to have received offers at that time of up to $1.5 million, is now expected to be published in June, followed by a memoir (she’s 23!) in fall 1998.
ONLINE PUBLISHING NEWS:
BOOKWIRE OFFERS REDESIGN
BookWire -- www.bookwire.com -- Wednesday offered a redesign featuring daily news, original reviews and features, and a new "behind-the-scenes" column from industry insiders. FLAP, a daily column covering insider news and behind the scenes intrigue about the book business is part of the redesign. Other new original BookWire content includes Soapbox, a place where people in and around the book business can talk about everything from their favorite books to hot trends in book selling, and Publisher's Spotlight, a sponsored feature where publishers and authors put their titles in the spotlight, and readers can see the cover, read flap copy, excerpts, testimonials, and more.
BOOKPAGES - ANOTHER INTERNET BOOKSTORE
For busy executives, preparing for Christmas can often be a nightmare. New U.K. Internet bookstore Bookpages, however, is hoping to lend a helping hand. A recent addition to the bloody Internet book wars, Bookpages is looking to capture an audience by offering snazzy new services to its site. Top of the list are new features for hurried Christmas shoppers.
First, swing by Bookpages' gift-selector service. The Bookpages staff have sifted through their 1.2 million titles and put together a list of books for specific friends and relations. Need something quick for a nine-year-old niece? Bookpages suggests the Roald Dahl Treasury or the Dorling Kindersley World Atlas. Prices are reasonable: Because it can cut out overhead costs, Bookpages manages to offer most wares at a discount below traditional bookstores.
Buyers, for their part, also get a present. Hoping to attract more customers, Bookpages offers a loyalty program. Once registered, buyers receive one Bookpoint for every 20 pence spent. Members with more than 500 points can redeem them against Bookpages books. Christmas gift recommendations however, earn buyers 50 points a shot.
http://www.bookpages.co.uk/
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS GETS MYSTERY WEB SITE
Following a trend that is becoming increasingly familiar, HarperCollins has entered a co-marketing agreement with online mystery publisher Newfront of San Francisco to have advertising and HarperCollins content featured on The Online Mystery Network (http://www.mysterynet.com). “The HarperCollins Mystery Corner” will be incorporated into the Newfront site, and will highlight popular novelists Tony Hillerman, Virginia Lanier and others by providing exclusive peeks at first chapters. MysteryNet.com will also host banner advertising for the book publisher and run special book promotions.
Newfront believes this alliance will be just the first of many as publishers realize how powerful Internet distribution can be for niche markets.
Cowles/Simba Media Daily 10/31/97
Copyright 1997 Cowles Business Media. All rights reserved.
SIMON & SCHUSTER RECOGNIZED FOR HAVING BEST COMMERCIAL WEB SITE
Technology Managers Forum has named Simon & Schuster's College NewsLink Web Site the "Best Vehicle For Conducting Commerce."
College NewsLink is a unique educational service that brings the leading newspapers of the world to the college campus via the World Wide Web. For the first time, these stories are organized by academic discipline and linked to other Web sites as well as to print information in textbooks. These links make Simon & Schuster's textbooks are current as today's newspaper. Topics in the news are linked to relevant university Web sites, textbooks, government sites,
political organizations, world leaders and more.
College Newslink is the first time a publisher has created an electronic product sold directly to colleges, and not through bookstores to students.
Recognition for the site was part of The Best Practice Awards, co-sponsored by PC Week and Technology Managers Forum International, a professional organization comprised of IT executives from large organizations. Technology Managers Forum is the only organization in the industry that has an awards program that is designed to establish Best Practices for IT Management
AMAZON MARCHES ON
Amazon.com reports another quarterly sales increase. For the third quarter that ended Sept. 30, 1997, sales were $37.9 million, a 36% increase over second-quarter sales and an 808% gain over the $4.2 million reported in the 1996 third quarter. For the first nine months of the year, Amazon reported sales of $81.7 million, it appears likely going into the Christmas buying season they could achieve full year sales of $120MM. For the first nine months of 1996, Amazon had sales of $7.3 million.
Net (Loss) income was higher than prior year periods reflecting increased marketing and sales expenses. For the quarter Amazon had a net loss of $8.5 million, compared to a loss of $2.4 million in the same quarter last year. The loss for the first nine months was $18.2 million, up from $3.5 million.
Amazon noted that cumulative customer accounts increased to over 940,000 by the end of September, compared to 610,000 at the close of June. Repeat customers represented 55% of sales in the period.
DID YOU KNOW:
There Are More Than 7 Million North American Children With Internet Accounts.
According to Teenage Research Unlimited (TRU), the percentage of teens who say that it is ``in'' to be on-line has jumped from 50 percent in 1994 to 74 percent in 1996 to 88 percent in 1997. It's now on par with dating and partying!
65%of all Book printing jobs are for less than 5,000 units.
18% all of New Yorkers are on line.
New Head Of Harpercollins Publishers
A.H. Belo Corp.: Net Income Declines 21% But Beats Analyst Forecast
Apple Begins Program To Support Position In Education Market
Reader's Digest Posts $56.4 Million Loss, Citing Weak Mailings
Knight Ridder Sells Newspapers
Harpercollins Signs Jewel
Bookwire Offers Redesign
Bookpages - Another Internet Bookstore
Harpercollins Gets Mystery Web Site
Simon & Schuster Recognized For Having Best Commercial Web Site
Amazon Marches On
RECENT NEWS:
NEW HEAD OF HARPERCOLLINS PUBLISHERS
News Corp. named Jane Friedman, one of the publishing industry's best-regarded executives, to lead HarperCollins Publishers, its troubled book publishing unit.
Ms. Friedman, currently a senior executive at Advance Publications Inc.'s Random House unit, will assume her new position next month. She will succeed Anthea Disney, who last month was elevated to the post of chairman of News America Publishing Group, a newly formed News Corp. unit that includes both HarperCollins and TV Guide magazine. Ms. Friedman will report to Ms. Disney.
HarperCollins has had a variety of problems in recent months. In August, the company said it would take a $270 million charge -- the biggest in the history of book publishing -- to cover write-downs for losses on author advances and unsold books as well as other restructuring costs. Some of News Corp.'s major investors have encouraged Rupert Murdoch to unload the unit, and there have been repeated rumors that he might do so, unsettling the publisher's employees. Ms. Friedman went to Los Angeles to meet with Mr. Murdoch in late September, and she says she came away believing that "he is in it for the long term." She also said HarperCollins's difficulties didn't cause her to hesitate joining the publisher. "They have had some tough knocks," Ms. Friedman said. "But I believe the company has turned the corner, and it now has a pretty clean slate."
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
A.H. BELO CORP.: NET INCOME DECLINES 21% BUT BEATS ANALYST FORECAST
A.H. Belo Corp. said third-quarter net income decreased 21% to $15 million, or 24 cents a share, from $18.9 million, or 42 cents a share, in the year-earlier period. Earnings per-share were affected by the issuance of about 25 million common shares, related to an acquisition. The Dallas television and newspaper concern said sales increased 58% to $319.1 million. The company also said a 51% revenue increase in its newspaper publishing division, combined with strong advertising demand in all of its broadcasting markets, contributed to the earnings results. A survey of analysts by First Call had estimated Belo would report net of 18 cents a share.
Copyright (c) 1997 Dow Jones and Company, Inc.
Received via NewsEDGE from Desktop Data, Inc.: 10/29/97 02:22:31
APPLE BEGINS PROGRAM TO SUPPORT POSITION IN EDUCATION MARKET
Apple Computer Inc., seeking to shore up its sagging U.S. education stronghold, has launched a special promotion to credit schools with 10% of the purchase price of computers bought by students' parents.
Under the "Power of 10" program, which began Oct. 15 and is to run through Jan. 31, the schools will be able to use those credits towards purchase of their new Apple computers. The program was conceived by Apple interim Chief Executive Officer Steve Jobs, and is designed to strengthen the company's presence in a market that has been beset by competitors allied around the industry's dominant standard of Microsoft Corp. software and Intel Corp. microprocessors.
Under the promotion's terms, parents can buy directly from Apple any of 10 computer models, including some which previously had been offered only to schools. They can then designate the 10% credit to the K-12 school of their choice. If a school receives 10 of those credits, it can apply those to a free computer.
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
READER'S DIGEST POSTS $56.4 MILLION LOSS, CITING WEAK MAILINGS
Reader's Digest Association Inc. reported a loss of $56.4 million, or 53 cents a share, for the fiscal first quarter, reflecting weak customer response to mailings and costs related to a corporate realignment of operations.
The loss for the quarter ended Sept. 30 compares with year-earlier net income of $34.6 million, or 32 cents a share. Revenue fell 13% to $561 million from $644 million. The latest results included a pretax charge of $70 million, or 49 cents a share, reflecting severance costs for staff reductions in Europe, the U.S. and at the corporate level, as well as a discontinuation of certain businesses.
The results reflected increased spending in product development and direct-marketing operations, the company said. George V. Grune, chairman and chief executive, said revenue in the quarter reflected lower customer response to company mailings and fewer mail solicitations sent out in major markets.
Revenue from the U.S.-based special-interest magazines and Reader's Digest magazine were higher than last year, reflecting gains in both circulation and advertising.
Copyright (c) 1997 Dow Jones and Company, Inc.
KNIGHT RIDDER SELLS NEWSPAPERS
MIAMI -- Knight-Ridder Inc. said it agreed to sell three newspapers that it had previously put on the block -- the Boca Raton News, Florida; the Union-Recorder, in Milledgeville, Ga.; and the suburban Newberry Observer, in South Carolina -- to Community Newspaper Holdings Inc., Louisville, Ky. Terms weren't disclosed, but media giant Knight-Ridder said the transaction includes the transfer to Knight-Ridder of the Daily Sun in Warner Robins, Ga.; the Byron Gazette, a Georgia weekly, and a shopper, also in Georgia. The transaction is expected to close by Thanksgiving.
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS SIGNS JEWEL
HarperCollins was very busy this week and they topped off their activity by contributing to one of the major problems in the publishing industry. HarperCollins bid and won -for $2MM- a book of poetry and a memoir from Jewel, the 23-year-old photogenic folk singer whose debut album Pieces of You has been on the charts for two years and sold six million copies to date. Regardless, many analysts have bemoaned the tendency by publishers for overpaying for book rights for ‘media stars’ who’s celebrity it turns out is fleeting.
Jewel's poetry book, which had been shopped around last year and was rumored to have received offers at that time of up to $1.5 million, is now expected to be published in June, followed by a memoir (she’s 23!) in fall 1998.
ONLINE PUBLISHING NEWS:
BOOKWIRE OFFERS REDESIGN
BookWire -- www.bookwire.com -- Wednesday offered a redesign featuring daily news, original reviews and features, and a new "behind-the-scenes" column from industry insiders. FLAP, a daily column covering insider news and behind the scenes intrigue about the book business is part of the redesign. Other new original BookWire content includes Soapbox, a place where people in and around the book business can talk about everything from their favorite books to hot trends in book selling, and Publisher's Spotlight, a sponsored feature where publishers and authors put their titles in the spotlight, and readers can see the cover, read flap copy, excerpts, testimonials, and more.
BOOKPAGES - ANOTHER INTERNET BOOKSTORE
For busy executives, preparing for Christmas can often be a nightmare. New U.K. Internet bookstore Bookpages, however, is hoping to lend a helping hand. A recent addition to the bloody Internet book wars, Bookpages is looking to capture an audience by offering snazzy new services to its site. Top of the list are new features for hurried Christmas shoppers.
First, swing by Bookpages' gift-selector service. The Bookpages staff have sifted through their 1.2 million titles and put together a list of books for specific friends and relations. Need something quick for a nine-year-old niece? Bookpages suggests the Roald Dahl Treasury or the Dorling Kindersley World Atlas. Prices are reasonable: Because it can cut out overhead costs, Bookpages manages to offer most wares at a discount below traditional bookstores.
Buyers, for their part, also get a present. Hoping to attract more customers, Bookpages offers a loyalty program. Once registered, buyers receive one Bookpoint for every 20 pence spent. Members with more than 500 points can redeem them against Bookpages books. Christmas gift recommendations however, earn buyers 50 points a shot.
http://www.bookpages.co.uk/
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS GETS MYSTERY WEB SITE
Following a trend that is becoming increasingly familiar, HarperCollins has entered a co-marketing agreement with online mystery publisher Newfront of San Francisco to have advertising and HarperCollins content featured on The Online Mystery Network (http://www.mysterynet.com). “The HarperCollins Mystery Corner” will be incorporated into the Newfront site, and will highlight popular novelists Tony Hillerman, Virginia Lanier and others by providing exclusive peeks at first chapters. MysteryNet.com will also host banner advertising for the book publisher and run special book promotions.
Newfront believes this alliance will be just the first of many as publishers realize how powerful Internet distribution can be for niche markets.
Cowles/Simba Media Daily 10/31/97
Copyright 1997 Cowles Business Media. All rights reserved.
SIMON & SCHUSTER RECOGNIZED FOR HAVING BEST COMMERCIAL WEB SITE
Technology Managers Forum has named Simon & Schuster's College NewsLink Web Site the "Best Vehicle For Conducting Commerce."
College NewsLink is a unique educational service that brings the leading newspapers of the world to the college campus via the World Wide Web. For the first time, these stories are organized by academic discipline and linked to other Web sites as well as to print information in textbooks. These links make Simon & Schuster's textbooks are current as today's newspaper. Topics in the news are linked to relevant university Web sites, textbooks, government sites,
political organizations, world leaders and more.
College Newslink is the first time a publisher has created an electronic product sold directly to colleges, and not through bookstores to students.
Recognition for the site was part of The Best Practice Awards, co-sponsored by PC Week and Technology Managers Forum International, a professional organization comprised of IT executives from large organizations. Technology Managers Forum is the only organization in the industry that has an awards program that is designed to establish Best Practices for IT Management
AMAZON MARCHES ON
Amazon.com reports another quarterly sales increase. For the third quarter that ended Sept. 30, 1997, sales were $37.9 million, a 36% increase over second-quarter sales and an 808% gain over the $4.2 million reported in the 1996 third quarter. For the first nine months of the year, Amazon reported sales of $81.7 million, it appears likely going into the Christmas buying season they could achieve full year sales of $120MM. For the first nine months of 1996, Amazon had sales of $7.3 million.
Net (Loss) income was higher than prior year periods reflecting increased marketing and sales expenses. For the quarter Amazon had a net loss of $8.5 million, compared to a loss of $2.4 million in the same quarter last year. The loss for the first nine months was $18.2 million, up from $3.5 million.
Amazon noted that cumulative customer accounts increased to over 940,000 by the end of September, compared to 610,000 at the close of June. Repeat customers represented 55% of sales in the period.
DID YOU KNOW:
There Are More Than 7 Million North American Children With Internet Accounts.
According to Teenage Research Unlimited (TRU), the percentage of teens who say that it is ``in'' to be on-line has jumped from 50 percent in 1994 to 74 percent in 1996 to 88 percent in 1997. It's now on par with dating and partying!
65%of all Book printing jobs are for less than 5,000 units.
18% all of New Yorkers are on line.
Wednesday, October 15, 1997
10/15/97: ReedElsevier, Bertelsmann, Readers Digest, WoltersKluwer,
Summary:
Reed Elsevier to Acquire Wolters Kluwe
Bertelsmann Reports Earnings
Yet Another Afternoon Newspaper Bites the Dust
Readers Digest Problems Continue
L.A. Daily News on the Selling Block
NYT Sells More Magazines
Britannica Online to Offer Free Content
International Data Corporation Reports Exploding Internet Activity
Breakthrough Will Bring Internet to The Home via Power Wires
School text books
Recent News:
Reed Elsevier to Acquire Wolters Kluwer
Reed and Wolters Kluwer announced Tuesday that they would merge creating an $8.1Bill global publisher concentrating on professional and trade journal publishing. Reed owns Lexis-Nexis, Reed Travel Group (including OAG) and is the largest worldwide publisher of academic journals. Wolters Kluwer dominates legal and tax publishing in Europe and is based in the Netherlands. In 1996 Reed Elsevier reported sales and income of $5.42Bill and $1.2Bill and Wolters Kluwer reported sales and net income of $2.7Bill and $429MM. Analysts suggest the combined company will be in a strong position to share the costs of moving to electronic publishing away from paper.
Bertelsmann Reports Earnings:
Sales increased year on year to $12.8Bill (4.2% increase) and net income was $582MM. Bertelsmann is the third of the large media firms after Time Warner and Disney but is much less geared - debt represents less that 5% of turnover versus TM and Disney of 97% and 62% respectively. Books (WW) constituted $4.1Bill in sales and were the second largest group after Music. Of this amount the US represented (only) $1Bill in sales. According to reports Bertelsmann is actively looking for a publishing acquisition in the US. (A number of companies have been mentioned and John Wileys chairman recently sent an internal memo to employees stating that Wiley was definitely not for sale). Due to their deal with AOL, Bertelsmann are the European on-line leader - they have a 50-50 partnership with AOL.
Yet Another Afternoon Newspaper Bites the Dust:
E.W. Scripps recently announced that it has been forced to discontinue a local afternoon newspaper The El Paso Herald-Post due to rapidly decreasing sales. Scripps publishes the Herald-Post, whose last edition goes out Saturday, in cooperation with Gannett Co., which owns the related daily The El Paso Times, and leads promotion and distribution for both newspapers. The El Paso Times will not be affected by this decision.
Cowles Business Media: MediaCentral 10/7/97
Readers Digest Problems Continue:
The Reader's Digest Association Inc. recently said that it expects to report a loss of $.05 to $.10 per share for its fiscal 1998 first quarter ended Sept. 30, lower than analysts' estimates. Reader's Digest also expects lower than expected revenues. The publisher cited lower than anticipated expected response to promotional mailings in most major markets. The financial report, to be released on Oct. 29, will include non-recurring charges of approximately $70 million. In the fourth quarter ended June 19, the company reported a net loss of $22.8 million or $.22 per share.
Cowles Business Media: MediaCentral 10/7/97
L.A. Daily News on the Selling Block:
Reuters reported that the merger and acquisition firm Dirks, Van Essen & Associates of Santa Fe, NM, has been retained to handle the sale of The Los Angeles Daily News which was acquired in 1985 for $176 million from the Tribune Co. Observers expect the sale can fetch as much as $200 million to $250 million.
The daily has a circulation of 203,000 weekdays and 218,000 on Sundays. Prospective buyers include Rupert Murdoch's News Corp., Denver Post parent MediaNews Group, Orange County Register parent Freedom Communications and Toronto-based publisher Thomson Corp.
Cowles Business Media: MediaDaily 10/6/97
NYT Sells More Magazines:
The New York Times Co. will sell six sports magazines to Miller Publishing. The titles involved are Tennis, Tennis Buyer's Guide, Cruising World, Sailing World, Snow Country and Snow Country Business. The transaction is expected to be completed by year end. The Los Angeles-based purchaser is a partnership between private equity investment firm of Freeman Spogli & Co. Inc. and Robert L. Miller, the group's president and a former Time Inc. executive.
On-line/New Media News:
Britannica Online to Offer Free Content
Encyclopedia Britannica Inc., whose core online product is subscription-based Web service Britannica Online, launched the latest in its series of Spotlights, its free quarterly Web sites dedicated to a particular, timely topic. In honor of the Nobel awards this month, the Nobel Prize Web site http://www.nobel.eb.com) illuminates in text and multimedia clips of past winners and the innovations and efforts singled out to receive the world's most prestigious awards.
Through the free in-depth coverage of historical and current issues, EB hopes to lure subscribers to Britannica Online (http://www.eb.com), which presently claims 10,000 users. The big deterrent, company research found, was the relatively high cost for Web-based material, for which until just weeks ago an annual subscription cost $150 or $12.50 per month. In response on On Sept. 15, the service slashed its prices to $8.50 per month and has seen subscription rates rise by 10%.
Cowles Business Media: MediaCentral 10/7/97
International Data Corporation Reports Exploding Internet Activity:
Research presented at the recent Internet 98 Conference in Burlingame, Calif. by IDC, a Framingham, Mass. Based market research firm, indicates there are currently 53.2MM Internet users worldwide with 44.2MM of those using the World Wide Web. (About 9MM people use e-mail but not the Web.)
At the current rate of growth, IDC projects that there will be 60MM Internet users and 50MM World Wide Web users by Dec. 31 which represents an increase of more than 26MM Internet users and 22.4MM World Wide Web users since 1996.
According to the study more than $10Bil in goods and services are expected to be purchased on the WWW by the end of 1997. IDC estimated that 2/3 of this amount was generated by corporations using the Internet as an effective method for ordering and paying for products and services. (Companies like Cisco Systems and GE use the internet extensively for this purpose). There may be close to 1MM Internet transactions occurring each day on the Internet. (www.idc.com for more information).
Breakthrough Will Bring Internet to The Home via Power Wires:
The London Times reported recently that two companies, Northern Telecom and Norweb Communications, have found the "holy grail" of telecommunications the ability to send vast amounts of data along power lines without its being distorted by interference. In future, every home in the country (UK) could be connected to the Internet in this way, providing increasing competition for telephone companies, especially BT.
Norweb intends to offer a commercial trial to 2,000 homes in the North West next spring. The two companies said yesterday that their service could offer an Internet connection 20 to 30 times faster than commonly available through today's telephone modems and that the cost would be lower by up to 50 per cent.
BT said last night it did not believe its business would be effected. Strong content, BT said, was the key to success on the Internet.
Did You Know....
Texas, facing the potential cost of $1.6Bill for school text books over the next six years is reviewing the possibility of buying laptop computers with CD ROM drives as an alternative to printed texts. The cost of acquiring texts for the 2000-2001 (two year period) is expected to roughly double what the cost was for 1996-1997 ($360MM vs. $600MM). Trials are currently underway in some MA school districts using computers rather than texts and information via inter/intranet is transmitted to each laptop via infra-red nodes in the ceiling of each classroom. Naturally, the computers are designed to be pretty hardy.
Reed Elsevier to Acquire Wolters Kluwe
Bertelsmann Reports Earnings
Yet Another Afternoon Newspaper Bites the Dust
Readers Digest Problems Continue
L.A. Daily News on the Selling Block
NYT Sells More Magazines
Britannica Online to Offer Free Content
International Data Corporation Reports Exploding Internet Activity
Breakthrough Will Bring Internet to The Home via Power Wires
School text books
Recent News:
Reed Elsevier to Acquire Wolters Kluwer
Reed and Wolters Kluwer announced Tuesday that they would merge creating an $8.1Bill global publisher concentrating on professional and trade journal publishing. Reed owns Lexis-Nexis, Reed Travel Group (including OAG) and is the largest worldwide publisher of academic journals. Wolters Kluwer dominates legal and tax publishing in Europe and is based in the Netherlands. In 1996 Reed Elsevier reported sales and income of $5.42Bill and $1.2Bill and Wolters Kluwer reported sales and net income of $2.7Bill and $429MM. Analysts suggest the combined company will be in a strong position to share the costs of moving to electronic publishing away from paper.
Bertelsmann Reports Earnings:
Sales increased year on year to $12.8Bill (4.2% increase) and net income was $582MM. Bertelsmann is the third of the large media firms after Time Warner and Disney but is much less geared - debt represents less that 5% of turnover versus TM and Disney of 97% and 62% respectively. Books (WW) constituted $4.1Bill in sales and were the second largest group after Music. Of this amount the US represented (only) $1Bill in sales. According to reports Bertelsmann is actively looking for a publishing acquisition in the US. (A number of companies have been mentioned and John Wileys chairman recently sent an internal memo to employees stating that Wiley was definitely not for sale). Due to their deal with AOL, Bertelsmann are the European on-line leader - they have a 50-50 partnership with AOL.
Yet Another Afternoon Newspaper Bites the Dust:
E.W. Scripps recently announced that it has been forced to discontinue a local afternoon newspaper The El Paso Herald-Post due to rapidly decreasing sales. Scripps publishes the Herald-Post, whose last edition goes out Saturday, in cooperation with Gannett Co., which owns the related daily The El Paso Times, and leads promotion and distribution for both newspapers. The El Paso Times will not be affected by this decision.
Cowles Business Media: MediaCentral 10/7/97
Readers Digest Problems Continue:
The Reader's Digest Association Inc. recently said that it expects to report a loss of $.05 to $.10 per share for its fiscal 1998 first quarter ended Sept. 30, lower than analysts' estimates. Reader's Digest also expects lower than expected revenues. The publisher cited lower than anticipated expected response to promotional mailings in most major markets. The financial report, to be released on Oct. 29, will include non-recurring charges of approximately $70 million. In the fourth quarter ended June 19, the company reported a net loss of $22.8 million or $.22 per share.
Cowles Business Media: MediaCentral 10/7/97
L.A. Daily News on the Selling Block:
Reuters reported that the merger and acquisition firm Dirks, Van Essen & Associates of Santa Fe, NM, has been retained to handle the sale of The Los Angeles Daily News which was acquired in 1985 for $176 million from the Tribune Co. Observers expect the sale can fetch as much as $200 million to $250 million.
The daily has a circulation of 203,000 weekdays and 218,000 on Sundays. Prospective buyers include Rupert Murdoch's News Corp., Denver Post parent MediaNews Group, Orange County Register parent Freedom Communications and Toronto-based publisher Thomson Corp.
Cowles Business Media: MediaDaily 10/6/97
NYT Sells More Magazines:
The New York Times Co. will sell six sports magazines to Miller Publishing. The titles involved are Tennis, Tennis Buyer's Guide, Cruising World, Sailing World, Snow Country and Snow Country Business. The transaction is expected to be completed by year end. The Los Angeles-based purchaser is a partnership between private equity investment firm of Freeman Spogli & Co. Inc. and Robert L. Miller, the group's president and a former Time Inc. executive.
On-line/New Media News:
Britannica Online to Offer Free Content
Encyclopedia Britannica Inc., whose core online product is subscription-based Web service Britannica Online, launched the latest in its series of Spotlights, its free quarterly Web sites dedicated to a particular, timely topic. In honor of the Nobel awards this month, the Nobel Prize Web site http://www.nobel.eb.com) illuminates in text and multimedia clips of past winners and the innovations and efforts singled out to receive the world's most prestigious awards.
Through the free in-depth coverage of historical and current issues, EB hopes to lure subscribers to Britannica Online (http://www.eb.com), which presently claims 10,000 users. The big deterrent, company research found, was the relatively high cost for Web-based material, for which until just weeks ago an annual subscription cost $150 or $12.50 per month. In response on On Sept. 15, the service slashed its prices to $8.50 per month and has seen subscription rates rise by 10%.
Cowles Business Media: MediaCentral 10/7/97
International Data Corporation Reports Exploding Internet Activity:
Research presented at the recent Internet 98 Conference in Burlingame, Calif. by IDC, a Framingham, Mass. Based market research firm, indicates there are currently 53.2MM Internet users worldwide with 44.2MM of those using the World Wide Web. (About 9MM people use e-mail but not the Web.)
At the current rate of growth, IDC projects that there will be 60MM Internet users and 50MM World Wide Web users by Dec. 31 which represents an increase of more than 26MM Internet users and 22.4MM World Wide Web users since 1996.
According to the study more than $10Bil in goods and services are expected to be purchased on the WWW by the end of 1997. IDC estimated that 2/3 of this amount was generated by corporations using the Internet as an effective method for ordering and paying for products and services. (Companies like Cisco Systems and GE use the internet extensively for this purpose). There may be close to 1MM Internet transactions occurring each day on the Internet. (www.idc.com for more information).
Breakthrough Will Bring Internet to The Home via Power Wires:
The London Times reported recently that two companies, Northern Telecom and Norweb Communications, have found the "holy grail" of telecommunications the ability to send vast amounts of data along power lines without its being distorted by interference. In future, every home in the country (UK) could be connected to the Internet in this way, providing increasing competition for telephone companies, especially BT.
Norweb intends to offer a commercial trial to 2,000 homes in the North West next spring. The two companies said yesterday that their service could offer an Internet connection 20 to 30 times faster than commonly available through today's telephone modems and that the cost would be lower by up to 50 per cent.
BT said last night it did not believe its business would be effected. Strong content, BT said, was the key to success on the Internet.
Did You Know....
Texas, facing the potential cost of $1.6Bill for school text books over the next six years is reviewing the possibility of buying laptop computers with CD ROM drives as an alternative to printed texts. The cost of acquiring texts for the 2000-2001 (two year period) is expected to roughly double what the cost was for 1996-1997 ($360MM vs. $600MM). Trials are currently underway in some MA school districts using computers rather than texts and information via inter/intranet is transmitted to each laptop via infra-red nodes in the ceiling of each classroom. Naturally, the computers are designed to be pretty hardy.
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