Summary:
Petersen Publishing Opens Trading With Strong Day
Knight Ridder sells Dialog:
Reed Travel Launches Probe Into Circulation Overstatements
JOHN WILEY & SONS INC.: Announcing Wiley InterScience
Pearson Appoints Peter Jovanovich to Head Addison Wesley Longman
Anthea Disney named Chairman and CEO of News America Publishing Group
THOMSON Corp
Simon & Schuster
Digital Object Identifier (DOI)
Recent News:
Petersen Publishing Opens Trading With Strong Day:
(Folio: First Day) In its first day of trading as a public company, Petersen Publishing Co.'s stock
closed Thursday at $20.25 per share after opening at $17.50 and hitting a high of $20.625 on the
New York Stock Exchange.
The opening price was barely half the original filing price floated by Claeys Bahrenburg and his fellow investors, who purchased the Los Angeles-based consumer magazine publisher last year for $400 million-plus (Bahrenburg was a former president of Hearst Magazines.) Registration papers filed with the Securities and Exchange Commission underline the 78-title publisher's reliance on its three top publications: For the 12 months ended Dec. 31, 1996, the 1-million circulation Motor Trend, 1.8-million circulation Teen and 800,000-circulation Hot Rod, brought in $32.5 million, $25.8 million and $19.3 million respectively -- combining for 50.1% of Petersen's operating "contribution."
Knight Ridder sells Dialog:
(Media Daily) Knight-Ridder has agreed to sell its database unit, Knight-Ridder Information Inc. (KRII), to London business information publisher M.A.I.D. for $420 million. The sale, expected to be completed in November, would create the world's largest online information service.
KRII's final price tag turned out to be 15% lower than the $500M the unit had been expected to go for (MD, 8/25/97). "This is a business we did not want to lose, but in light of our recent acquisition of four newspapers from the Walt Disney Co., the sale is necessary," said Tony Ridder, chairman and CEO of Knight-Ridder Inc. The Disney newspaper deals had reportedly cost the company a total of $1.65 billion.
Reed Travel Launches Probe Into Circulation Overstatements:
(Folio: First Day) Reed Travel Group company announced that it had detected "irregularities" in RTG circulation statements -- overstatements to advertisers -- dating back to 1991 for its hotel and airline directories, and that this discovery has moved the company to begin "a full investigation."
LONDON (AP-Dow Jones)--Reed Elsevier PLC has appointed Freshfields to lead the team investigating the irregularities at Reed Travel Group. The company had said it discovered irregularities in circulation statements at its Reed Travel Group unit that affect some 500 million GBP ($800MM) in advertising revenues between 1991 and 1996. The Anglo/Dutch publishing company said it will make an unspecified charge against 1997 earnings to meet the cost of compensating advertisers in the affected Reed Travel Group publications.
It will also make a 'substantial' write down of intangible asset values at Reed Travel group.
ONline/New Media News:
JOHN WILEY & SONS INC.: Announcing Wiley InterScience:
(Wall Street Journal) New York, N.Y., September 9, 1997. Charles R. Ellis, President and Chief Executive Officer of John Wiley & Sons, Inc. (NYSE: JW.A and JW.B), the global publishing company, today announced the launch of Wiley InterScience, a service which will provide access to nearly all of the company's more than 400 scientific, technical, medical, and professional journals over the World Wide Web. Searchable contents listings, abstracts, and informative Web sites for the majority of Wiley's journal program, together with open access to the full-text electronic files of 50 journals, are scheduled to go online October 1 in the pilot phase of this initiative. Other journals will have full-text presentation phased in through 1997 and 1998. The company will continue to publish its journals in print as well, and is embarking on this electronic publishing initiative to augment its strengths in scientific, technical, and medical publishing.
Wiley has been collaborating with Zuno, a Mitsubishi Electric Company based in London and Boston, which developed the innovative software application Wiley has used to create Wiley InterScience. Zuno Digital Publisher (ZDP) is a component-based software system for organizing, managing, and publishing information and journals over the Web and gives publishers tools to create new and dynamic electronic products and services for their customers. ZDP is customizable, meaning Wiley has developed its own "look and feel" for the service and has implemented numerous business models for different types of customers and content.
Executive Changes:
Pearson Appoints Peter Jovanovich to Head Addison Wesley Longman:
Pearson plc, today announced the appointment of Peter Jovanovich as chairman and chief executive of Addison Wesley Longman, Pearson' s educational publishing business. He will succeed J. Larry Jones, who is stepping down from the post after 30 years with the company.
Since 1995, Mr. Jovanovich, 48, has been president of McGraw-Hill's Educational and Professional Publishing Group, which comprises all of the company's book publishing worldwide. Under his leadership the company has grown rapidly to become the largest school and college publisher in the world, with a 29% increase in operating profit in the second quarter of 1997.
Anthea Disney named Chairman and CEO of News America Publishing Group
New York, N.Y. -- September 23, 1997 News Corporation has formed a new U.S. publishing entity called News America Publishing Group that will combine HarperCollins Publishers and the Companys U.S. magazine and on-line publishing divisions and has promoted Anthea Disney as its Chairman and Chief Executive Officer, it was announced today by Rupert Murdoch, News Corporations Chairman & Chief Executive, and Peter Chernin, President & Chief Operating Officer.
Disney will oversee the Companys U.S. print and on-line publishing operations, including HarperCollins; TV Guide, the countrys highest circulation weekly magazine; the opinion-leading highly influential political magazine The Weekly Standard; the electronic publishing business including TV Guide Entertainment Network; and new business development in all of these areas.
THOMSON Corp. (Toronto) -- Richard Harrington, 50 years old, was named president and chief executive officer of this publishing and travel-services concern, three months ahead of schedule. Mr. Harrington was expected to assume the new positions Jan. 1, but the appointments were pushed ahead because of Mr. Harrington's success in the temporary position of chief operating officer, a job created in July specifically to groom him for the positions of president and chief executive. The job of chief operating officer no longer exists. Mr. Harrington, who has held several executive positions with Thomson since 1982, succeeds Michael Brown, 62, who becomes deputy chairman at Thomson. Mr. Brown will hold this new position jointly with John Tory, 67, through the end of December, when Mr. Tory will step down. Mr. Tory will remain on Thomson's board after Dec. 31.
Did You Know....
Simon & Schuster is the world's largest English-language, educational and computer book publisher, distributing products to more than 150 countries through an international 25,000-title catalogue handled by sales offices and subsidiaries in 43 countries. Simon & Schuster has international operations in Europe, Asia, Australia, South Africa and Latin America.
The Digital Object Identifier (DOI) is a digital 'License plate number' for intellectual material proposed by the Association of American Publishers. Use of this identifying number will help users track down who owns an item and access whatever further information the owner (publisher) would like to provide. Customers can them purchase the requested information on-line. The DOI consists of three parts:
1. Two part identifying number identifying the publisher and the document
2. An automated directory composed of a computer system that will accurately link an object, be it a book, picture, etc to whomever owns it
3. The databases maintained by the publisher that provide further information (meta data) for the user.
The goal is to create a global internet based system in which publishers and other owners of copyright(s) will regularly tag their peices of intellectual property with DOIs in the way that publishers now use ISBN numbers. The AAP will be presenting their recommendations on the proposed adoption of the DOI standard at the Frankfurt Book Fair in late October. Simon & Schuster among others are expected to trial these recommendations.
End of Newsletter.
Showing posts sorted by relevance for query disney publishing. Sort by date Show all posts
Showing posts sorted by relevance for query disney publishing. Sort by date Show all posts
Saturday, August 30, 1997
Sunday, May 21, 2006
The News:
Attorney General: Jail the Reporters!
Our Attorney General believes the courts have the right to prosecute reporters for publishing secret material and information. Speaking on This Week he indicated that it was a possibility but further stated that it was up to Congress - which is a bit of a cop-out since he's the one doing the indicting. This story is covered extensively.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/05/22/MNGHDIVTMH1.DTL
VNU: Under new Ownership.
It is no doubt a relief to the management and employees of VNU that the venture capital backed acquisition of the company has been completed. As the dust settles, it will become clearer how much of a distraction this has been to management over the past 12 months reflected in potential asset sales, management changes and potentially more acqusitions down the line. Having completed this very large buyout, it also raises a question whether other venture capital deals will be struck with some of the other large information and content business.
http://msnbc.msn.com/id/12901694/
Bertelsmann in Public Offering:
The date by which Bertelsmann will have to decide whether to proceed with the offering forced on them by their Belgium partner is approaching. My money is on it not happening. http://business.guardian.co.uk/story/0,,1780128,00.html
China and Electronic Content
An interesting although short story in the Shanghai Daily speaks of a rapid rise in the comfort level with online books and articles. Perhaps this is no real story; however, like the generation jumping that took place with mobile phones versus land line phones in developing nations like China could we be witness to a similar trend for publishing. Admittedly there has been a lot of traditional publishing in China for hundreds of years but it is the US and European content the population craves and this material may be available only in digital form thereby forgoing the print format. Link: http://www.shanghaidaily.com/art/2006/05/22/278690/More_bookworms_turn_to_Internet.htm
Duggan moving on From Disney:
Disney has appointed R. Russell Hampton as President of Disney Publishing. This is the licensing arm of Disney Publishing and doesn't impact Hyperion. http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID=2006-05-19T171913Z_01_N19429088_RTRIDST_0_INDUSTRY-MEDIA-DISNEY-DC.XML
BISG Annual Sales:
There are too many reports attempting to document the size of the US publishing marketplace. Last year, under the guidance of Jeff Abraham, BISG set out to take a new look at the manner in which data was compiled and the constituency represented in the sales data reported. The BISG reports had remained static for many years and it was about time that this revision was done. The results were extraordinary in that the surveys BISG compiled resulted in the addition of $8.0 billion to the generally accepted market value of the US publishing industry. The methodology stands up although there is some debate as to whether there is any double counting if the 'under the radar' numbers are added to the traditional sales numbers. This year BISG has combined what were essentially two reports last year into one. I believe BISG will continue to make progess in the next few subsequent reports that will address the remaining veracity issues and that we will end up with vastly more accurate data versus what has been available over the past several years.
http://www.bisg.org/publications/trends2006.html
Starling Laurence
Interesting article about the editor in chief of W W Norton. http://www.iht.com/articles/2006/05/18/features/novel.php
AMS hires Gary Rautenstrauch.
I recall a personal call from Philip Blackwell to tell me he had hired Gary to run their US operation based in Oregon - that was in November and things change fast. Gary is now the 'safe pair' of hands to get AMS back on the right track.
http://phx.corporate-ir.net/phoenix.zhtml?c=69436&p=irol-newsArticle&ID=856454&highlight=
Starbucks and Books:
Author tours and promotions, in store sales and events and of course coffee. What could be better? Will thier own publishing program be far behind? http://www.nytimes.com/2006/05/16/books/16read.html?_r=1&oref=slogin
Attorney General: Jail the Reporters!
Our Attorney General believes the courts have the right to prosecute reporters for publishing secret material and information. Speaking on This Week he indicated that it was a possibility but further stated that it was up to Congress - which is a bit of a cop-out since he's the one doing the indicting. This story is covered extensively.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/05/22/MNGHDIVTMH1.DTL
VNU: Under new Ownership.
It is no doubt a relief to the management and employees of VNU that the venture capital backed acquisition of the company has been completed. As the dust settles, it will become clearer how much of a distraction this has been to management over the past 12 months reflected in potential asset sales, management changes and potentially more acqusitions down the line. Having completed this very large buyout, it also raises a question whether other venture capital deals will be struck with some of the other large information and content business.
http://msnbc.msn.com/id/12901694/
Bertelsmann in Public Offering:
The date by which Bertelsmann will have to decide whether to proceed with the offering forced on them by their Belgium partner is approaching. My money is on it not happening. http://business.guardian.co.uk/story/0,,1780128,00.html
China and Electronic Content
An interesting although short story in the Shanghai Daily speaks of a rapid rise in the comfort level with online books and articles. Perhaps this is no real story; however, like the generation jumping that took place with mobile phones versus land line phones in developing nations like China could we be witness to a similar trend for publishing. Admittedly there has been a lot of traditional publishing in China for hundreds of years but it is the US and European content the population craves and this material may be available only in digital form thereby forgoing the print format. Link: http://www.shanghaidaily.com/art/2006/05/22/278690/More_bookworms_turn_to_Internet.htm
Duggan moving on From Disney:
Disney has appointed R. Russell Hampton as President of Disney Publishing. This is the licensing arm of Disney Publishing and doesn't impact Hyperion. http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID=2006-05-19T171913Z_01_N19429088_RTRIDST_0_INDUSTRY-MEDIA-DISNEY-DC.XML
BISG Annual Sales:
There are too many reports attempting to document the size of the US publishing marketplace. Last year, under the guidance of Jeff Abraham, BISG set out to take a new look at the manner in which data was compiled and the constituency represented in the sales data reported. The BISG reports had remained static for many years and it was about time that this revision was done. The results were extraordinary in that the surveys BISG compiled resulted in the addition of $8.0 billion to the generally accepted market value of the US publishing industry. The methodology stands up although there is some debate as to whether there is any double counting if the 'under the radar' numbers are added to the traditional sales numbers. This year BISG has combined what were essentially two reports last year into one. I believe BISG will continue to make progess in the next few subsequent reports that will address the remaining veracity issues and that we will end up with vastly more accurate data versus what has been available over the past several years.
http://www.bisg.org/publications/trends2006.html
Starling Laurence
Interesting article about the editor in chief of W W Norton. http://www.iht.com/articles/2006/05/18/features/novel.php
AMS hires Gary Rautenstrauch.
I recall a personal call from Philip Blackwell to tell me he had hired Gary to run their US operation based in Oregon - that was in November and things change fast. Gary is now the 'safe pair' of hands to get AMS back on the right track.
http://phx.corporate-ir.net/phoenix.zhtml?c=69436&p=irol-newsArticle&ID=856454&highlight=
Starbucks and Books:
Author tours and promotions, in store sales and events and of course coffee. What could be better? Will thier own publishing program be far behind? http://www.nytimes.com/2006/05/16/books/16read.html?_r=1&oref=slogin
Friday, November 07, 1997
11/7/97: MacmillanUK, Primedia, Reuters, Amazon.com
Summary:
Macmillan, Ltd (UK) name new CEO:
Newspaper Circulation Figures Down
Outlook for Contract (Magazine) Publishing
Expectations for Professional Publishing
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
Another Celebrity Book Bites (the Dust)
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations
The Mouth Strikes…TED TURNER
Reuters and Chutzpah:
Amazon.com biggest Penguin Customer
Publish Your Own Book
Golden Books and Disney Licensing
Leading Online News Delivery Services Merge as NewsEdge
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Technology Brief: Easing of Indian Internet Rules
Recent News:
Macmillan, Ltd (UK) name new CEO:
RICHARD CHARKIN, former chief executive of Reed International Books, is to return to mainstream publishing as chief executive of Macmillan, Ltd. Mr Charkin, who will be responsible for all Macmillan companies apart from St. Martin's Press and Macmillan Magazines, succeeds Nicholas Byam Shaw, who is 64 and has worked at Macmillan for 34 years. Mr Byam Shaw will act as deputy chairman of the company and Mr Charkin and John Sargent, chief executive of St. Martin's Press and Ray Barker, managing director of Macmillan Magazines, will report to him. Dieter von Holtzbrinck, of Holtzbrinck, the privately-owned German publishers that bought Macmillan two and a half years ago, will become chairman of Macmillan. (The London Times)
Newspaper Circulation Figures Down:
Circulation figures released on Monday show Sunday sales dropping at many of the biggest Sunday papers. Five of the top eight Sunday editions showed declines according to ABC figures -three of them, The Washington Post, NY Daily News and The Chicago Tribune showed large declines. The Daily News sold 80,000 fewer newspapers for the prior six months than in the year before. Sunday circulation is important to newspapers because a Sunday paper reaps about three times the advertising revenue of a weekday paper. The Daily News, which has the country's sixth-largest weekday circulation, attributed the drop in Sunday readership to a price increase in April, to $1.50 from $1. (Editor and Publisher)
Outlook for Contract (Magazine) Publishing:
USA Today reported on the rise in the number of "lifestyle" magazines with "splashy graphics" that are sponsored by companies like Mercedes-Benz (Momentum) or Philip Morris (Unlimited) Land Rover (LandRover Journal). According to USA Today, "These magazines are a booming business for mainstream publishers. Magazine Publishers of America estimates that contract publishing generates more than $1.3 billion in annual revenue for publishers. There are some ethical issues as these corporate magazines increasingly look like independent magazines. Also, the report says, "Media watchdogs grumble about cozy relations between marketers and publishers." (USA Today, 12B, Nov. 1997)
Expectations for Professional Publishing:
The latest media industry mega-deal between Dutch giant Wolters Kluwer and Reed Elsevier, two of the leading publishers in legal, medical, scientific/technical and business markets, is another sign of strength in one of the segments of the publishing industry showing growth in 1997. Sales of professional books, journals, newsletters and online data are projected to grow 6.3 percent to $11.28 billion in 1997, according to Publishing for Professional Markets: 1997-98: Review, Trends and Forecast, the latest research report from Cowles/Simba Information.
Trade book markets are projected to remain flat this year. The industry reached an estimated $10.62 billion in 1996, up 6 percent from 1995, according to the report. Thomson Corp. was the leading professional publisher, with worldwide sales from professional information at an estimated $3.39 billion in 1996. Legal publishing remains the largest segment of the professional publishing industry, with revenues projected to reach $4.24 billion in 1997, up 5.9 percent from 1996. According to the report, books, online and newsletter/looseleaf are the leading delivery methods for legal information and Thomson is the leading legal publisher-at least until the Reed Elsevier/Wolters Kluwer merger is completed early next year. Scientific/technical is the second largest segment of the industry, followed by medical and business. Journals represent the largest medium for sci/tech information, while books account for the largest portion of medical information sales.
Online and books dominate the business segment. Books are the leading overall medium for professional information, accounting for $4.23 billion, or 37.5 percent of all sales in 1997. Thomson Corp., which generated $725 million in professional book revenues and Times Mirror, which generated $530.4 million, were the leading publishers of professional books in 1996. Journals represented the second-largest segment of the professional publishing industry, followed by online, newsletters/looseleafs, directories and "other" media, which includes some CD-ROM revenues and revenues from miscellaneous media, such as audio and video. The professional publishing industry is projected to grow 6 percent in 1998, 5.8 percent in 1999 and 5.9 percent in 2000, according to the report.
The legal segment is forecast to remain the largest and books will continue to be the leading medium for professional information over the next three years. However, online is forecast to surpass journals as the second-largest medium by 1999. Publishing for Professional Markets, 1997-98 includes an overall ranking of worldwide revenues for leading professional publishers, rankings for the leading publishers in each of the four industry segments-legal, scientific/technical, medical and business, as well as rankings of leading publishers by each major professional publishing medium-books, journals, directories, newsletters/looseleafs and online. In addition, the report provides revenue forecasts through 2000 for each of the four market segments and each major medium and detailed profiles for 34 leading professional and university press publishers. The report costs and can be obtained by calling Bill MacRae at Cowles Simba, or by e-mail at bill_macrae@simbanet.com. Business Editors STAMFORD, CT--(BUSINESS WIRE)--Nov. 3, 1997--
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy:
NEW YORK, Oct. 30 /PRNewswire/ -- K-III Communications Corporation (NYSE: KCC), today reported that third quarter sales and EBITDA from continuing operations each increased 15.5% setting new records. The parent company of such prime media brands as Seventeen, Soap Opera Digest, Weekly Reader, Channel One, Ward's Automotive and The World Almanac, also reaffirmed its growth strategy: focus on its fastest growing businesses, complete certain divestitures and change the Company's name to PRIMEDIA. This quarter, the Company begins presenting results from continuing operations which exclude businesses that have been, or will be, divested. "The continuing operations results show our true earnings power," said William Reilly, chairman and chief executive officer. "As just one measure, EBITDA margins were more than two percentage points higher in the nine-month period when the divestitures are removed." Results from Continuing Operations (Excluding businesses divested in or held for sale)
($ millions) 3Q97 % Change 3Q96 9 mos %Change 9 mos 96
Sales $305.7 15.5% $264.8 $884.9 16.1% $762.0
EBITDA $63.4 15.5% $54.9 $192.3 15.1% $167.0
Margin 20.7% 20.7% 21.7% 21.9%
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
NEW YORK, Oct. 22 /PRNewswire/ -- William F. Reilly, chairman and CEO of K-III Communications (NYSE: KCC) announced today that Charles Siegel, 51, has been named to the newly created post of chief operating officer for its consumer magazine division. Siegel has held several general management positions at K-III, Simon & Schuster, and Macmillan Publishing Company. Most recently Siegel has been president and CEO of K-III's Newbridge Communications. He will manage the team responsible for the 24 consumer magazines in the K-III Consumer Magazine stable. K-III's consumer magazines include New York, Chicago, Seventeen, Automobile, American Baby, Modern Bride, Soap Opera Digest and Soap Opera Weekly. Siegel will report to K-III chairman and CEO Reilly until a replacement is named for the late Harry McQuillen who was president of the K-III Media Group. A search for a President of the K-III Media Group is still underway. learning and workplace learning), and information (consumer directories and business directories).
Another Celebrity Book Bites (the Dust):
Now you can get Paula Barbieri's book at a steep discount--$9.95, instead of the $23.95 list price. And in plenty of time for stocking stuffing. Barbieri's "The Other Woman," a memoir of her relationship with O.J. Simpson, arrived to a thunderous ho-hum recently, despite a $3-million advance that had been paid to the former model by a confident Little, Brown and Co. Rather than have to take back thousands and thousands of unsold copies, the publisher is offering booksellers a credit on each book sold, allowing them to slash the price. In the business, it's known as "remaindering a book in place"--a polite description for a book that is fizzling. Cowles Business Media
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations ---- By John Lippman:
Rupert Murdoch's News Corp. posted a better-than-expected 9.5% profit increase for its fiscal first quarter, citing a robust U.S. television-advertising market, and sounded an upbeat note about the current quarter ending Dec. 31. But per-share results fell, reflecting an increase in shares outstanding at the acquisitive Australian company. And pretax operating profit fell 43% at the Filmed Entertainment unit, as the Fox film and TV studio faced a tough comparison with a year-earlier quarter fattened by megahit "Independence Day." For the first quarter, ended Sept. 30, Australia-based News Corp. reported that net income rose 9.5% to US$243 million, or 26 cents an American depository receipt, from $222 million, or 27 cents an ADR, a year earlier. Revenue for the quarter increased 16% to $2.9 billion while cash flow -- earnings before interest, taxes, depreciation and amortization -- for the media giant rose 23% to $436 million. Operating profit before special items was up 7% to $240 million. The Wall Street Journal via Dow Jones
The Mouth Strikes…
TED TURNER, the founder of Cable News Network, yesterday reignited the personal feud with Rupert Murdoch by once again likening the chairman of The News Corporation to Hitler. Mr Turner, in London with his wife, Jane Fonda, was challenged yesterday by William Shawcross, author of an unauthorised biography of Mr Murdoch, whether it was true that he had likened the News Corp chairman to Hitler at a lunch on Monday. "I didn't use that word," said Mr Turner, who added that he had instead likened Mr Murdoch to "the former leader of the Third Reich". Mr Shawcross asked the American media mogul, who is now a vice-president of Time Warner, whether it was "appropriate for a businessman like you who pretends and purports to be working for the benefit of mankind to compare a competitor to Hitler?" "If the shoe fits, wear it," replied Mr Turner, who was in turn accused of a "stupid and cheap shot" by Mr Shawcross. Raymond Snoddy - London Times
Reuters and Chutzpah:
REUTERS, the online information company, is to charge many of its institutional clients for correcting the millennium bug that threatens to paralyze its equipment in the year 2000. The company, which yesterday detailed its approach to the problem, said that clients who need their computers changed overnight or at the weekend could be sent a bill for the privilege. The move marks a distinct break from the industry norm, where companies usually agree that their customers should not be asked to pay for the supplier's failure to plan for the date change. Raymond Snoddy - The London Times.
Amazon.com biggest Penguin Customer:
THE Penguin Group, the publisher owned by Pearson, yesterday said that Amazon.com, the Internet bookstore, may soon be Penguin's largest customer. Michael Lynton, Penguin chairman and chief executive, said that Amazon bought $1 million of books from Penguin last year. This year's total looked likely to be $10 million, and the growth rate was 40 per cent a quarter. Mr Lynton said: "If this current growth continues in the next two to three years, they will probably be our largest customer." More than 90 per cent of Penguin's US backlist sales come from Amazon. The enormous Internet backlist sales, Mr Lynton said, "could be of huge importance to us".
Golden Books and Disney Licensing:
Disney Licensing Deal Will Cost Golden Books At Least $47.7M (Simba/Book Publishing Report) Golden Books Family Entertainment will pay the Walt Disney Co. at least $47.7 million in royalties over the next four years for its recently extended licensing agreement, according to a document the company filed recently with the Securities and Exchange Commission. Golden Books has agreed to pay at least $7.4 million for the period between Jan. 1 and Sept. 30, 1998, then $11.7 million in the second, $13.3 million in the third and $15.3 million in the fourth year of the agreement, the document said. Cowles Business Media
Reed Elsevier Seeking Content Acquisitions:
Calling content "the crown jewel," Dutch multimedia publisher Reed-Elsevier said it is considering snapping up new content partners. Chatting with executives at a Financial Times publishing conference, Reed-Elsevier chairman Nigel Stapleton countered rumors that his firm was on the hunt to buy a software firm, saying "the thing that we're most looking to acquire is more and more content." Reed-Elsevier will be going through a little consolidation itself should its prospective merger with Amsterdam-based publishing giant Wolters Kluwer NV go through. The London Times.
Online Publishing:
Publish Your Own Book:
Nov. 3, 1997-- 1stBooks Champions Aspiring Authors, Bypassing "Gatekeepers" and makes it possible for authors to "publish" their work and still retain full legal ownership and rights. For less than $500, they will digitize an author's book and publish it on the Web, along with a "digital book jacket." This "virtual cover" offers the prospective reader much the same information as a traditional book jacket: a cover design or illustration, a summary of the book and a biographical sketch of the author. There is even a free two or three page excerpt from the text itself, for the potential buyer who might like to leaf through a few virtual pages before making a purchase. "A typical book in the library can be purchased and downloaded for $5.95 to $9.95, less than the cost of most paperbacks. A few highly technical books are offered for as much as $25.00. As hardbacks, they would probably cost $50 or more," The buyer can download the book electronically, and typically is offered a choice of formats. For authors who have gone the subsidized publishing route, the site also offers the opportunity of selling traditional bound copies of their books. The site also offers authors full-service accounting and record keeping, as well as detailed marketing, customer tracking and prospect-to-sale ratio information. And authors receive a commission or royalty of 40% of the selling price, less any credit card fees, on each "book" sold.
Leading Online News Delivery Services Merge as NewsEdge:
Established electronic news aggregators Desktop Data Inc. and Individual Inc., both of Burlington, MA, are merging companies and services in a stock swap deal to be closed in first-quarter 1998. The new company will be titled NewsEDGE Corp. -- named after the flagship news delivery service of Desktop Data -- and headed by Desktop Data founder and CEO Donald L. McLagan. Combined, the companies drew $75 million in revenues during the year ending Sept. 30, 1997 -- a 35% growth from the year prior.
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Dow Jones & Co. said The Wall Street Journal Interactive Edition has attracted more than 150,000 paid subscribers just over a year after it began charging for access to its site on the World Wide Web. The Interactive Journal has the largest circulation of any paid-subscription site on the Web and is among the top sites for generating advertising revenue on the Internet, according to Thomas Baker, business director of the Interactive Journal.
Technology Brief: Easing of Indian Internet Rules:
The Indian government said it has lifted all restrictions on the number of private Internet-service providers allowed to operate in the state-controlled Internet market and on the fees they charge subscribers. The companies, however, will still have to obtain government licenses to operate. The government said the aim of the move is to bring Internet connections to as many as two million Indians within two or three years, from 40,000 now. Until now, the state-run Videsh Sanchar Nigam Ltd. has controlled Internet access in New Delhi, Bombay, Calcutta, Madras, Bangalore and Pune, while the Department of Telecommunications provided access in the rest of the country. AP-Dow Jones The Asian Wall Street Journal via Dow Jones
Macmillan, Ltd (UK) name new CEO:
Newspaper Circulation Figures Down
Outlook for Contract (Magazine) Publishing
Expectations for Professional Publishing
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
Another Celebrity Book Bites (the Dust)
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations
The Mouth Strikes…TED TURNER
Reuters and Chutzpah:
Amazon.com biggest Penguin Customer
Publish Your Own Book
Golden Books and Disney Licensing
Leading Online News Delivery Services Merge as NewsEdge
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Technology Brief: Easing of Indian Internet Rules
Recent News:
Macmillan, Ltd (UK) name new CEO:
RICHARD CHARKIN, former chief executive of Reed International Books, is to return to mainstream publishing as chief executive of Macmillan, Ltd. Mr Charkin, who will be responsible for all Macmillan companies apart from St. Martin's Press and Macmillan Magazines, succeeds Nicholas Byam Shaw, who is 64 and has worked at Macmillan for 34 years. Mr Byam Shaw will act as deputy chairman of the company and Mr Charkin and John Sargent, chief executive of St. Martin's Press and Ray Barker, managing director of Macmillan Magazines, will report to him. Dieter von Holtzbrinck, of Holtzbrinck, the privately-owned German publishers that bought Macmillan two and a half years ago, will become chairman of Macmillan. (The London Times)
Newspaper Circulation Figures Down:
Circulation figures released on Monday show Sunday sales dropping at many of the biggest Sunday papers. Five of the top eight Sunday editions showed declines according to ABC figures -three of them, The Washington Post, NY Daily News and The Chicago Tribune showed large declines. The Daily News sold 80,000 fewer newspapers for the prior six months than in the year before. Sunday circulation is important to newspapers because a Sunday paper reaps about three times the advertising revenue of a weekday paper. The Daily News, which has the country's sixth-largest weekday circulation, attributed the drop in Sunday readership to a price increase in April, to $1.50 from $1. (Editor and Publisher)
Outlook for Contract (Magazine) Publishing:
USA Today reported on the rise in the number of "lifestyle" magazines with "splashy graphics" that are sponsored by companies like Mercedes-Benz (Momentum) or Philip Morris (Unlimited) Land Rover (LandRover Journal). According to USA Today, "These magazines are a booming business for mainstream publishers. Magazine Publishers of America estimates that contract publishing generates more than $1.3 billion in annual revenue for publishers. There are some ethical issues as these corporate magazines increasingly look like independent magazines. Also, the report says, "Media watchdogs grumble about cozy relations between marketers and publishers." (USA Today, 12B, Nov. 1997)
Expectations for Professional Publishing:
The latest media industry mega-deal between Dutch giant Wolters Kluwer and Reed Elsevier, two of the leading publishers in legal, medical, scientific/technical and business markets, is another sign of strength in one of the segments of the publishing industry showing growth in 1997. Sales of professional books, journals, newsletters and online data are projected to grow 6.3 percent to $11.28 billion in 1997, according to Publishing for Professional Markets: 1997-98: Review, Trends and Forecast, the latest research report from Cowles/Simba Information.
Trade book markets are projected to remain flat this year. The industry reached an estimated $10.62 billion in 1996, up 6 percent from 1995, according to the report. Thomson Corp. was the leading professional publisher, with worldwide sales from professional information at an estimated $3.39 billion in 1996. Legal publishing remains the largest segment of the professional publishing industry, with revenues projected to reach $4.24 billion in 1997, up 5.9 percent from 1996. According to the report, books, online and newsletter/looseleaf are the leading delivery methods for legal information and Thomson is the leading legal publisher-at least until the Reed Elsevier/Wolters Kluwer merger is completed early next year. Scientific/technical is the second largest segment of the industry, followed by medical and business. Journals represent the largest medium for sci/tech information, while books account for the largest portion of medical information sales.
Online and books dominate the business segment. Books are the leading overall medium for professional information, accounting for $4.23 billion, or 37.5 percent of all sales in 1997. Thomson Corp., which generated $725 million in professional book revenues and Times Mirror, which generated $530.4 million, were the leading publishers of professional books in 1996. Journals represented the second-largest segment of the professional publishing industry, followed by online, newsletters/looseleafs, directories and "other" media, which includes some CD-ROM revenues and revenues from miscellaneous media, such as audio and video. The professional publishing industry is projected to grow 6 percent in 1998, 5.8 percent in 1999 and 5.9 percent in 2000, according to the report.
The legal segment is forecast to remain the largest and books will continue to be the leading medium for professional information over the next three years. However, online is forecast to surpass journals as the second-largest medium by 1999. Publishing for Professional Markets, 1997-98 includes an overall ranking of worldwide revenues for leading professional publishers, rankings for the leading publishers in each of the four industry segments-legal, scientific/technical, medical and business, as well as rankings of leading publishers by each major professional publishing medium-books, journals, directories, newsletters/looseleafs and online. In addition, the report provides revenue forecasts through 2000 for each of the four market segments and each major medium and detailed profiles for 34 leading professional and university press publishers. The report costs and can be obtained by calling Bill MacRae at Cowles Simba, or by e-mail at bill_macrae@simbanet.com. Business Editors STAMFORD, CT--(BUSINESS WIRE)--Nov. 3, 1997--
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy:
NEW YORK, Oct. 30 /PRNewswire/ -- K-III Communications Corporation (NYSE: KCC), today reported that third quarter sales and EBITDA from continuing operations each increased 15.5% setting new records. The parent company of such prime media brands as Seventeen, Soap Opera Digest, Weekly Reader, Channel One, Ward's Automotive and The World Almanac, also reaffirmed its growth strategy: focus on its fastest growing businesses, complete certain divestitures and change the Company's name to PRIMEDIA. This quarter, the Company begins presenting results from continuing operations which exclude businesses that have been, or will be, divested. "The continuing operations results show our true earnings power," said William Reilly, chairman and chief executive officer. "As just one measure, EBITDA margins were more than two percentage points higher in the nine-month period when the divestitures are removed." Results from Continuing Operations (Excluding businesses divested in or held for sale)
($ millions) 3Q97 % Change 3Q96 9 mos %Change 9 mos 96
Sales $305.7 15.5% $264.8 $884.9 16.1% $762.0
EBITDA $63.4 15.5% $54.9 $192.3 15.1% $167.0
Margin 20.7% 20.7% 21.7% 21.9%
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
NEW YORK, Oct. 22 /PRNewswire/ -- William F. Reilly, chairman and CEO of K-III Communications (NYSE: KCC) announced today that Charles Siegel, 51, has been named to the newly created post of chief operating officer for its consumer magazine division. Siegel has held several general management positions at K-III, Simon & Schuster, and Macmillan Publishing Company. Most recently Siegel has been president and CEO of K-III's Newbridge Communications. He will manage the team responsible for the 24 consumer magazines in the K-III Consumer Magazine stable. K-III's consumer magazines include New York, Chicago, Seventeen, Automobile, American Baby, Modern Bride, Soap Opera Digest and Soap Opera Weekly. Siegel will report to K-III chairman and CEO Reilly until a replacement is named for the late Harry McQuillen who was president of the K-III Media Group. A search for a President of the K-III Media Group is still underway. learning and workplace learning), and information (consumer directories and business directories).
Another Celebrity Book Bites (the Dust):
Now you can get Paula Barbieri's book at a steep discount--$9.95, instead of the $23.95 list price. And in plenty of time for stocking stuffing. Barbieri's "The Other Woman," a memoir of her relationship with O.J. Simpson, arrived to a thunderous ho-hum recently, despite a $3-million advance that had been paid to the former model by a confident Little, Brown and Co. Rather than have to take back thousands and thousands of unsold copies, the publisher is offering booksellers a credit on each book sold, allowing them to slash the price. In the business, it's known as "remaindering a book in place"--a polite description for a book that is fizzling. Cowles Business Media
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations ---- By John Lippman:
Rupert Murdoch's News Corp. posted a better-than-expected 9.5% profit increase for its fiscal first quarter, citing a robust U.S. television-advertising market, and sounded an upbeat note about the current quarter ending Dec. 31. But per-share results fell, reflecting an increase in shares outstanding at the acquisitive Australian company. And pretax operating profit fell 43% at the Filmed Entertainment unit, as the Fox film and TV studio faced a tough comparison with a year-earlier quarter fattened by megahit "Independence Day." For the first quarter, ended Sept. 30, Australia-based News Corp. reported that net income rose 9.5% to US$243 million, or 26 cents an American depository receipt, from $222 million, or 27 cents an ADR, a year earlier. Revenue for the quarter increased 16% to $2.9 billion while cash flow -- earnings before interest, taxes, depreciation and amortization -- for the media giant rose 23% to $436 million. Operating profit before special items was up 7% to $240 million. The Wall Street Journal via Dow Jones
The Mouth Strikes…
TED TURNER, the founder of Cable News Network, yesterday reignited the personal feud with Rupert Murdoch by once again likening the chairman of The News Corporation to Hitler. Mr Turner, in London with his wife, Jane Fonda, was challenged yesterday by William Shawcross, author of an unauthorised biography of Mr Murdoch, whether it was true that he had likened the News Corp chairman to Hitler at a lunch on Monday. "I didn't use that word," said Mr Turner, who added that he had instead likened Mr Murdoch to "the former leader of the Third Reich". Mr Shawcross asked the American media mogul, who is now a vice-president of Time Warner, whether it was "appropriate for a businessman like you who pretends and purports to be working for the benefit of mankind to compare a competitor to Hitler?" "If the shoe fits, wear it," replied Mr Turner, who was in turn accused of a "stupid and cheap shot" by Mr Shawcross. Raymond Snoddy - London Times
Reuters and Chutzpah:
REUTERS, the online information company, is to charge many of its institutional clients for correcting the millennium bug that threatens to paralyze its equipment in the year 2000. The company, which yesterday detailed its approach to the problem, said that clients who need their computers changed overnight or at the weekend could be sent a bill for the privilege. The move marks a distinct break from the industry norm, where companies usually agree that their customers should not be asked to pay for the supplier's failure to plan for the date change. Raymond Snoddy - The London Times.
Amazon.com biggest Penguin Customer:
THE Penguin Group, the publisher owned by Pearson, yesterday said that Amazon.com, the Internet bookstore, may soon be Penguin's largest customer. Michael Lynton, Penguin chairman and chief executive, said that Amazon bought $1 million of books from Penguin last year. This year's total looked likely to be $10 million, and the growth rate was 40 per cent a quarter. Mr Lynton said: "If this current growth continues in the next two to three years, they will probably be our largest customer." More than 90 per cent of Penguin's US backlist sales come from Amazon. The enormous Internet backlist sales, Mr Lynton said, "could be of huge importance to us".
Golden Books and Disney Licensing:
Disney Licensing Deal Will Cost Golden Books At Least $47.7M (Simba/Book Publishing Report) Golden Books Family Entertainment will pay the Walt Disney Co. at least $47.7 million in royalties over the next four years for its recently extended licensing agreement, according to a document the company filed recently with the Securities and Exchange Commission. Golden Books has agreed to pay at least $7.4 million for the period between Jan. 1 and Sept. 30, 1998, then $11.7 million in the second, $13.3 million in the third and $15.3 million in the fourth year of the agreement, the document said. Cowles Business Media
Reed Elsevier Seeking Content Acquisitions:
Calling content "the crown jewel," Dutch multimedia publisher Reed-Elsevier said it is considering snapping up new content partners. Chatting with executives at a Financial Times publishing conference, Reed-Elsevier chairman Nigel Stapleton countered rumors that his firm was on the hunt to buy a software firm, saying "the thing that we're most looking to acquire is more and more content." Reed-Elsevier will be going through a little consolidation itself should its prospective merger with Amsterdam-based publishing giant Wolters Kluwer NV go through. The London Times.
Online Publishing:
Publish Your Own Book:
Nov. 3, 1997-- 1stBooks Champions Aspiring Authors, Bypassing "Gatekeepers" and makes it possible for authors to "publish" their work and still retain full legal ownership and rights. For less than $500, they will digitize an author's book and publish it on the Web, along with a "digital book jacket." This "virtual cover" offers the prospective reader much the same information as a traditional book jacket: a cover design or illustration, a summary of the book and a biographical sketch of the author. There is even a free two or three page excerpt from the text itself, for the potential buyer who might like to leaf through a few virtual pages before making a purchase. "A typical book in the library can be purchased and downloaded for $5.95 to $9.95, less than the cost of most paperbacks. A few highly technical books are offered for as much as $25.00. As hardbacks, they would probably cost $50 or more," The buyer can download the book electronically, and typically is offered a choice of formats. For authors who have gone the subsidized publishing route, the site also offers the opportunity of selling traditional bound copies of their books. The site also offers authors full-service accounting and record keeping, as well as detailed marketing, customer tracking and prospect-to-sale ratio information. And authors receive a commission or royalty of 40% of the selling price, less any credit card fees, on each "book" sold.
Leading Online News Delivery Services Merge as NewsEdge:
Established electronic news aggregators Desktop Data Inc. and Individual Inc., both of Burlington, MA, are merging companies and services in a stock swap deal to be closed in first-quarter 1998. The new company will be titled NewsEDGE Corp. -- named after the flagship news delivery service of Desktop Data -- and headed by Desktop Data founder and CEO Donald L. McLagan. Combined, the companies drew $75 million in revenues during the year ending Sept. 30, 1997 -- a 35% growth from the year prior.
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Dow Jones & Co. said The Wall Street Journal Interactive Edition has attracted more than 150,000 paid subscribers just over a year after it began charging for access to its site on the World Wide Web. The Interactive Journal has the largest circulation of any paid-subscription site on the Web and is among the top sites for generating advertising revenue on the Internet, according to Thomas Baker, business director of the Interactive Journal.
Technology Brief: Easing of Indian Internet Rules:
The Indian government said it has lifted all restrictions on the number of private Internet-service providers allowed to operate in the state-controlled Internet market and on the fees they charge subscribers. The companies, however, will still have to obtain government licenses to operate. The government said the aim of the move is to bring Internet connections to as many as two million Indians within two or three years, from 40,000 now. Until now, the state-run Videsh Sanchar Nigam Ltd. has controlled Internet access in New Delhi, Bombay, Calcutta, Madras, Bangalore and Pune, while the Department of Telecommunications provided access in the rest of the country. AP-Dow Jones The Asian Wall Street Journal via Dow Jones
Friday, November 21, 1997
11/21/97: Primedia, McClatchy, John Wiley, Dow Jones
Summary:
Mcclatchy Purchases Cowles Media Company
Primedia (Kiii) Acquires Publisher
Wiley And Dow Jones Form Publishing Alliance
Dow Jones To Ax 400 Workers
Don’t You Wish Your Last Name Were Murdoch?
Macromedia Purchases New Jersey Newspapers
Dow Jones Board Votes To Sell Markets Unit
Springer Chairman Plans To Step Down
Dow Jones To Acquire Rest Of IDD Enterprises L.P
NOT SO RECENT NEWS
MCCLATCHY PURCHASES COWLES MEDIA COMPANY (Inadvertently left out last week)
McClatchy Newspapers, Inc. (NYSE: MNI) and Cowles Media Company (CMC), announced today an agreement for McClatchy to acquire Cowles, publisher of the Star Tribune in the Twin Cities of Minneapolis/St. Paul, in a transaction valued at $1.4 billion, including the assumption of approximately $90 million in existing Cowles debt. The merger creates the eighth-largest newspaper company in the nation based on daily and Sunday circulation.
The Star Tribune is the leading newspaper in Minnesota with circulation of 387,000 daily and 673,000 on Sunday. It ranks as the 16th largest daily and the 12th largest Sunday newspaper in the country. The Star Tribune's daily circulation is nearly twice that of its primary competitor in the Twin Cities market, the 15th largest in the country. On Sunday, its circulation is two and one half times larger than its competitor and its penetration is the highest among two-paper markets in the United States.
In addition to the Star Tribune, Cowles operates three other business units which McClatchy expects to sell as soon as possible, using the proceeds to reduce debt. The other business units are: Cowles Business Media, Inc., a publisher of specialized business magazines and information services; Cowles Enthusiast Media, Inc., a publisher of 27 special-interest consumer magazines and related books and products; and Cowles Creative Publishing, Inc., a specialty publisher, distributor and direct marketer of books, videos and interactive media for the home arts, home improvement and outdoor markets.
McClatchy Newspapers, Inc., headquartered in Sacramento, California, currently publishes 10 daily and 13 non-daily newspapers located in western coastal states and North and South Carolina. The company reported 1996 revenues of $624 million and had daily circulation of 972,600 and Sunday circulation of 1,175,100. McClatchy's newspapers include, among others, The Sacramento Bee, The News and Observer (Raleigh, NC), The Fresno (CA) Bee, The News Tribune (Tacoma, WA) and the Anchorage Daily News. McClatchy also owns and operates other media-related businesses, including Nando.net, a national online publishing operation and The Newspaper Network, a national newspaper marketing company.
PRNewswire
RECENT NEWS
PRIMEDIA (KIII) ACQUIRES PUBLISHER
Primedia Inc., formerly K-III Communications said that its technical and trade division, Interec Publishing, has acquired Cardinal Business Media, whose magazines include Mix, which covers the professional recording industry; Electronic Musician, which covers computer-generated music production; and Recording Industry Sourcebook, a music industry directory. Also included in the deal are Cardinal's Club Industry News and its related trade shows for owners and operators of commercial health and fitness facilities. Excluding the latest acquisitions, Overland Park, KS-based Interec publishes 17 entertainment and business communications titles including Pool and Spa News, Broadcast Engineering, Millimeter, Video Systems and Telephony. Interec also puts on trade shows. In total, Interec, one of the largest trade publishers in the U.S., publishes 72 magazines, supplements, newsletters and show dailies throughout the world.
PRNewswire
WILEY AND DOW JONES FORM PUBLISHING ALLIANCE
Bonnie Lieberman, Senior Vice President and General Manager of the College Division of John Wiley & Sons, Inc. today announced an agreement with Dow Jones Interactive Publishing, a division of Dow Jones & Company, to develop the Wiley Business Extra program, featuring content from Dow Jones and The Wall Street Journal Interactive Edition, as part of Wiley's print and online college-level business textbook offerings. The Wiley Business Extra program is being created to enhance the student learning experience and offer professors a new level of support resources to strengthen the business curriculum. "We're very excited to be working with Dow Jones to further our long-standing strategic objective to help students to learn and teachers to teach. The Wiley Business Extra program does this by offering students greater insight into their studies through access to Dow Jones publications and articles, including The Wall Street Journal Interactive Edition, and by providing pedagogical tools to help them understand how to use this wealth of information," said Ms. Lieberman.
Wiley Business Extra will deliver the full-text of a selected number of Dow Jones stories, focusing on the topic, industry, or special area of interest relevant to the Wiley textbooks. Dow Jones will scan The Wall Street Journal Interactive Edition and other Dow Jones newswires for stories that match a profile established for the Wiley texts. Stories matching the profile will then be posted on the Business Extra electronic news folder hosted at Wiley's Web site, http://www.wiley.com, along with discussion questions for classroom assignments. Divided into sub-sections, the folder will contain a separate area for each text associated with the program. Wiley will publish a paperback book called The On-Line Business Survival Guide that shows students how to use The Wall Street Journal Interactive Edition, research business problems on the Web, and use the news folder. The customized guide will be available for purchase as a stand-alone or as a supplement to nine Wiley finance accounting, management, and information management textbooks.
(John Wiley)
DOW JONES TO AX 400 WORKERS
Serious Losses at Financial Info Unit As many as 400 workers will be cut from the 4,000-strong staff of Dow Jones Markets, the financial information division of Dow Jones & Co., previously known as Telerate. Reports issued today indicated that Dow Jones & Co., publisher of the Wall Street Journal, would also be announcing its first annual loss since it went public in 1963. That loss is predicted to be as high as $600 million. Dow Jones Market delivers breaking business news and financial information to investors and financial analysts through a proprietary desk terminal network. Reuters and Bloomberg provide competing services. Wall Street analysts had previously speculated that Dow Jones would sell the troubled financial information unit. Today the publishing company said it was reviewing the struggling unit's operations and studying alternative strategies. (See Below)
WSJ
DON’T YOU WISH YOUR LAST NAME WERE MURDOCH?
News America Publishing Group has announced the formation of News America Digital Publishing. The new division will consolidate the Group’s electronic publishing operations, including the TV Guide Entertainment Network (TVGEN); Fox News On-line; Fox Sports On-line; News Internet Services, an internet solutions provider; Kesmai, a multi-player games company; and the Advanced Media Group which focuses on business development and strategic planning. The announcement was made today by Anthea Disney, Chairman and Chief Executive Officer of News America Publishing Group, a division of News Corporation. James Murdoch, formerly News Corporation Vice-President for New Media, has been named President of News America Digital Publishing, reporting to Disney.
(News Corp)
MACROMEDIA PURCHASES NEW JERSEY NEWSPAPERS
Macromedia Inc., parent company of The Record, is purchasing the daily North Jersey Herald & News and 11 weekly newspapers that serve parts of five New Jersey counties. Jonathan Markey, president of the Hackensack-based Record, said Thursday that the Herald & News and the group of weeklies would continue to operate independently, although some administrative functions of the two daily papers may be combined in the future. "We plan to continue to operate the newspaper as the Herald & News, hopefully forever and certainly for as long as it works as expected and continues to provide value," Markey said.
In August, the media giant Gannett Co. announced that it would purchase the Asbury Park Press and the Home News & Tribune. All the papers being purchased by Macromedia are part of North Jersey Newspapers Co., a subsidiary of William Dean Singleton's Denver-based Media News Group. Ten other weeklies operated by North Jersey Newspapers Co. in Union and Warren counties will be kept by Media News. Markey would not disclose the price of the purchase. A newspaper industry analyst, however, estimated the price at $40 million to $50 million, although the total may be lower because the deal does not include real estate or the Herald & News' out-of-date presses.
John Morton, president of a Maryland consulting firm that analyzes media companies, said it is no surprise that Singleton was willing to part with the Herald & News. Singleton's sale of North Jersey Newspapers comes just weeks after Garden State Newspapers, another of his companies, announced that it would purchase the Press-Telegram of Long Beach, Calif., from Knight-Ridder Inc. "He's trying to `cluster' his papers, and if this is the last one in northern New Jersey, I suspect it's something he was planning to sell for some time," Morton said. Morton said that if the Herald & News were the only paper in its market, it might fetch as much as $1,400 per reader, or roughly $75 million. Because the North Jersey market is a competitive one, however, the purchase price most likely is considerably smaller.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 03:37:2
DOW JONES BOARD VOTES TO SELL MARKETS UNIT
Dow Jones & Co.'s (DJ) board voted Thursday to put its Dow Jones Markets unit up for sale, The New York Times reported Friday, citing a person close to Dow Jones. On Wednesday, the company said Dow Jones Markets will focus on competitive strengths in content and its workstation product line, while continuing to examine all alternatives. The company also said it will cut the unit's staff by 200 to 300 by early 1998, while scaling back the investment program for Dow Jones Markets. Dow Jones added that it plans a "sizable" fourth-quarter charge, reflecting a write-down of goodwill, severance and other costs. According to the Times, the person close to Dow Jones said an analysis of Dow Jones Markets is expected to be prepared and completed in about three weeks and will then be available to prospective buyers. The Times said possible buyers include Bloomberg LP (X.BBG); Reuters Holdings PLC (RTRSY); Thomson Corp. (T.TOC); and Welsh, Carson, Anderson & Stowe, the investment company that owns Bridge News.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 02:28:35
SPRINGER CHAIRMAN PLANS TO STEP DOWN
Axel Springer Verlag AG Chairman Juergen Richter will step down from his position at the end of the year, the company said. The German media group said that "after events of the last few weeks and publicized disparagements against (Richter), continuation of his contract cannot occur." Mr. Richter will continue performing all functions of chairman until Dec. 31, Springer said. In recent weeks, various German newspapers have speculated that Mr. Richter would be asked to step down, due to disagreements over his management style. Springer didn't say who would replace Mr. Richter, and company officials weren't immediately available to comment.
Axel Springer Verlag AG is a major German publishing and broadcasting group. Its principal operations are in newspapers, including the country's top-circulation tabloid "Bild" and daily newspaper "Die Welt." Springer also has magazine and television operations.
Copyright (c) 1997 Dow Jones and Company, Inc.
DOW JONES TO ACQUIRE REST OF IDD ENTERPRISES L.P.
Dow Jones & Co. said it plans to acquire the roughly 30% it doesn't already own of IDD Enterprises L.P. and sell parts of the financial-publishing, software and on-line services concern. Terms weren't disclosed. Dow Jones said it also plans to restructure IDD as part of a continuing program to shed noncore businesses. Under the restructuring plan, Dow Jones said it sold IDD's publishing operations, including magazines Investment Dealer's Digest and Mergers & Acquisitions Journal, to Securities Data Publishing, a unit of Thomson Corp. Dow Jones said it agreed to sell IDD's retail investment-services operations to a management group led by Leonard W. Hirschfeld, currently senior vice president with IDD. Mr. Hirschfeld will leave IDD to head the new business. The major remaining IDD asset to be kept by Dow Jones is Tradeline, a market information database used by investment banks and financial-services and information companies. In addition to IDD, Dow Jones publishes The Wall Street Journal, The Wall Street Journal Interactive Edition, Barron's magazine, electronic business information services including Dow Jones Markets and the Dow Jones Newswires, and the Ottaway group of community newspapers. Dow Jones also produces business television programming.
Copyright (c) 1997 Dow Jones and Company, Inc.
Mcclatchy Purchases Cowles Media Company
Primedia (Kiii) Acquires Publisher
Wiley And Dow Jones Form Publishing Alliance
Dow Jones To Ax 400 Workers
Don’t You Wish Your Last Name Were Murdoch?
Macromedia Purchases New Jersey Newspapers
Dow Jones Board Votes To Sell Markets Unit
Springer Chairman Plans To Step Down
Dow Jones To Acquire Rest Of IDD Enterprises L.P
NOT SO RECENT NEWS
MCCLATCHY PURCHASES COWLES MEDIA COMPANY (Inadvertently left out last week)
McClatchy Newspapers, Inc. (NYSE: MNI) and Cowles Media Company (CMC), announced today an agreement for McClatchy to acquire Cowles, publisher of the Star Tribune in the Twin Cities of Minneapolis/St. Paul, in a transaction valued at $1.4 billion, including the assumption of approximately $90 million in existing Cowles debt. The merger creates the eighth-largest newspaper company in the nation based on daily and Sunday circulation.
The Star Tribune is the leading newspaper in Minnesota with circulation of 387,000 daily and 673,000 on Sunday. It ranks as the 16th largest daily and the 12th largest Sunday newspaper in the country. The Star Tribune's daily circulation is nearly twice that of its primary competitor in the Twin Cities market, the 15th largest in the country. On Sunday, its circulation is two and one half times larger than its competitor and its penetration is the highest among two-paper markets in the United States.
In addition to the Star Tribune, Cowles operates three other business units which McClatchy expects to sell as soon as possible, using the proceeds to reduce debt. The other business units are: Cowles Business Media, Inc., a publisher of specialized business magazines and information services; Cowles Enthusiast Media, Inc., a publisher of 27 special-interest consumer magazines and related books and products; and Cowles Creative Publishing, Inc., a specialty publisher, distributor and direct marketer of books, videos and interactive media for the home arts, home improvement and outdoor markets.
McClatchy Newspapers, Inc., headquartered in Sacramento, California, currently publishes 10 daily and 13 non-daily newspapers located in western coastal states and North and South Carolina. The company reported 1996 revenues of $624 million and had daily circulation of 972,600 and Sunday circulation of 1,175,100. McClatchy's newspapers include, among others, The Sacramento Bee, The News and Observer (Raleigh, NC), The Fresno (CA) Bee, The News Tribune (Tacoma, WA) and the Anchorage Daily News. McClatchy also owns and operates other media-related businesses, including Nando.net, a national online publishing operation and The Newspaper Network, a national newspaper marketing company.
PRNewswire
RECENT NEWS
PRIMEDIA (KIII) ACQUIRES PUBLISHER
Primedia Inc., formerly K-III Communications said that its technical and trade division, Interec Publishing, has acquired Cardinal Business Media, whose magazines include Mix, which covers the professional recording industry; Electronic Musician, which covers computer-generated music production; and Recording Industry Sourcebook, a music industry directory. Also included in the deal are Cardinal's Club Industry News and its related trade shows for owners and operators of commercial health and fitness facilities. Excluding the latest acquisitions, Overland Park, KS-based Interec publishes 17 entertainment and business communications titles including Pool and Spa News, Broadcast Engineering, Millimeter, Video Systems and Telephony. Interec also puts on trade shows. In total, Interec, one of the largest trade publishers in the U.S., publishes 72 magazines, supplements, newsletters and show dailies throughout the world.
PRNewswire
WILEY AND DOW JONES FORM PUBLISHING ALLIANCE
Bonnie Lieberman, Senior Vice President and General Manager of the College Division of John Wiley & Sons, Inc. today announced an agreement with Dow Jones Interactive Publishing, a division of Dow Jones & Company, to develop the Wiley Business Extra program, featuring content from Dow Jones and The Wall Street Journal Interactive Edition, as part of Wiley's print and online college-level business textbook offerings. The Wiley Business Extra program is being created to enhance the student learning experience and offer professors a new level of support resources to strengthen the business curriculum. "We're very excited to be working with Dow Jones to further our long-standing strategic objective to help students to learn and teachers to teach. The Wiley Business Extra program does this by offering students greater insight into their studies through access to Dow Jones publications and articles, including The Wall Street Journal Interactive Edition, and by providing pedagogical tools to help them understand how to use this wealth of information," said Ms. Lieberman.
Wiley Business Extra will deliver the full-text of a selected number of Dow Jones stories, focusing on the topic, industry, or special area of interest relevant to the Wiley textbooks. Dow Jones will scan The Wall Street Journal Interactive Edition and other Dow Jones newswires for stories that match a profile established for the Wiley texts. Stories matching the profile will then be posted on the Business Extra electronic news folder hosted at Wiley's Web site, http://www.wiley.com, along with discussion questions for classroom assignments. Divided into sub-sections, the folder will contain a separate area for each text associated with the program. Wiley will publish a paperback book called The On-Line Business Survival Guide that shows students how to use The Wall Street Journal Interactive Edition, research business problems on the Web, and use the news folder. The customized guide will be available for purchase as a stand-alone or as a supplement to nine Wiley finance accounting, management, and information management textbooks.
(John Wiley)
DOW JONES TO AX 400 WORKERS
Serious Losses at Financial Info Unit As many as 400 workers will be cut from the 4,000-strong staff of Dow Jones Markets, the financial information division of Dow Jones & Co., previously known as Telerate. Reports issued today indicated that Dow Jones & Co., publisher of the Wall Street Journal, would also be announcing its first annual loss since it went public in 1963. That loss is predicted to be as high as $600 million. Dow Jones Market delivers breaking business news and financial information to investors and financial analysts through a proprietary desk terminal network. Reuters and Bloomberg provide competing services. Wall Street analysts had previously speculated that Dow Jones would sell the troubled financial information unit. Today the publishing company said it was reviewing the struggling unit's operations and studying alternative strategies. (See Below)
WSJ
DON’T YOU WISH YOUR LAST NAME WERE MURDOCH?
News America Publishing Group has announced the formation of News America Digital Publishing. The new division will consolidate the Group’s electronic publishing operations, including the TV Guide Entertainment Network (TVGEN); Fox News On-line; Fox Sports On-line; News Internet Services, an internet solutions provider; Kesmai, a multi-player games company; and the Advanced Media Group which focuses on business development and strategic planning. The announcement was made today by Anthea Disney, Chairman and Chief Executive Officer of News America Publishing Group, a division of News Corporation. James Murdoch, formerly News Corporation Vice-President for New Media, has been named President of News America Digital Publishing, reporting to Disney.
(News Corp)
MACROMEDIA PURCHASES NEW JERSEY NEWSPAPERS
Macromedia Inc., parent company of The Record, is purchasing the daily North Jersey Herald & News and 11 weekly newspapers that serve parts of five New Jersey counties. Jonathan Markey, president of the Hackensack-based Record, said Thursday that the Herald & News and the group of weeklies would continue to operate independently, although some administrative functions of the two daily papers may be combined in the future. "We plan to continue to operate the newspaper as the Herald & News, hopefully forever and certainly for as long as it works as expected and continues to provide value," Markey said.
In August, the media giant Gannett Co. announced that it would purchase the Asbury Park Press and the Home News & Tribune. All the papers being purchased by Macromedia are part of North Jersey Newspapers Co., a subsidiary of William Dean Singleton's Denver-based Media News Group. Ten other weeklies operated by North Jersey Newspapers Co. in Union and Warren counties will be kept by Media News. Markey would not disclose the price of the purchase. A newspaper industry analyst, however, estimated the price at $40 million to $50 million, although the total may be lower because the deal does not include real estate or the Herald & News' out-of-date presses.
John Morton, president of a Maryland consulting firm that analyzes media companies, said it is no surprise that Singleton was willing to part with the Herald & News. Singleton's sale of North Jersey Newspapers comes just weeks after Garden State Newspapers, another of his companies, announced that it would purchase the Press-Telegram of Long Beach, Calif., from Knight-Ridder Inc. "He's trying to `cluster' his papers, and if this is the last one in northern New Jersey, I suspect it's something he was planning to sell for some time," Morton said. Morton said that if the Herald & News were the only paper in its market, it might fetch as much as $1,400 per reader, or roughly $75 million. Because the North Jersey market is a competitive one, however, the purchase price most likely is considerably smaller.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 03:37:2
DOW JONES BOARD VOTES TO SELL MARKETS UNIT
Dow Jones & Co.'s (DJ) board voted Thursday to put its Dow Jones Markets unit up for sale, The New York Times reported Friday, citing a person close to Dow Jones. On Wednesday, the company said Dow Jones Markets will focus on competitive strengths in content and its workstation product line, while continuing to examine all alternatives. The company also said it will cut the unit's staff by 200 to 300 by early 1998, while scaling back the investment program for Dow Jones Markets. Dow Jones added that it plans a "sizable" fourth-quarter charge, reflecting a write-down of goodwill, severance and other costs. According to the Times, the person close to Dow Jones said an analysis of Dow Jones Markets is expected to be prepared and completed in about three weeks and will then be available to prospective buyers. The Times said possible buyers include Bloomberg LP (X.BBG); Reuters Holdings PLC (RTRSY); Thomson Corp. (T.TOC); and Welsh, Carson, Anderson & Stowe, the investment company that owns Bridge News.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 02:28:35
SPRINGER CHAIRMAN PLANS TO STEP DOWN
Axel Springer Verlag AG Chairman Juergen Richter will step down from his position at the end of the year, the company said. The German media group said that "after events of the last few weeks and publicized disparagements against (Richter), continuation of his contract cannot occur." Mr. Richter will continue performing all functions of chairman until Dec. 31, Springer said. In recent weeks, various German newspapers have speculated that Mr. Richter would be asked to step down, due to disagreements over his management style. Springer didn't say who would replace Mr. Richter, and company officials weren't immediately available to comment.
Axel Springer Verlag AG is a major German publishing and broadcasting group. Its principal operations are in newspapers, including the country's top-circulation tabloid "Bild" and daily newspaper "Die Welt." Springer also has magazine and television operations.
Copyright (c) 1997 Dow Jones and Company, Inc.
DOW JONES TO ACQUIRE REST OF IDD ENTERPRISES L.P.
Dow Jones & Co. said it plans to acquire the roughly 30% it doesn't already own of IDD Enterprises L.P. and sell parts of the financial-publishing, software and on-line services concern. Terms weren't disclosed. Dow Jones said it also plans to restructure IDD as part of a continuing program to shed noncore businesses. Under the restructuring plan, Dow Jones said it sold IDD's publishing operations, including magazines Investment Dealer's Digest and Mergers & Acquisitions Journal, to Securities Data Publishing, a unit of Thomson Corp. Dow Jones said it agreed to sell IDD's retail investment-services operations to a management group led by Leonard W. Hirschfeld, currently senior vice president with IDD. Mr. Hirschfeld will leave IDD to head the new business. The major remaining IDD asset to be kept by Dow Jones is Tradeline, a market information database used by investment banks and financial-services and information companies. In addition to IDD, Dow Jones publishes The Wall Street Journal, The Wall Street Journal Interactive Edition, Barron's magazine, electronic business information services including Dow Jones Markets and the Dow Jones Newswires, and the Ottaway group of community newspapers. Dow Jones also produces business television programming.
Copyright (c) 1997 Dow Jones and Company, Inc.
Friday, January 15, 2010
Brands to Publish - Repost
It's Friday which means another regurgitation from several years back. This one originally published on January 13, 2007:
Nancy Drew has always held a fascination for me, not because I clamor for a good girlie mystery but because of how The Nancy Drew series evolved. Established by Edward Stratemeyer, The Drew books were written by a number of ‘house’ writers (Mildred Benson) and the books were never dependent upon one author for their success. While the publisher of the titles was little recognized, the Drew series grew to become a strong branded product line and, as such, represents a model today's publishers may want to emulate. Corporate branding exercises little impact in the publishing world: We all know this and, while some publishers have tried to create brand strength (i.e., Paramount Publishing), success has been sparse and probably – in truth - not aggressively sought after.
There are exceptions. I used to start my Intro to Publishing courses at Price Waterhouse by asking the group to name a publisher. I stopped doing this when a partner once popped up and said HARLEQUIN! While some consumers might be able to identify Harlequin or Hungry Minds or Fodors, they would be hard-pressed to cite HarperCollins or Simon & Schuster with any relevance. Consumers have little emotive connection with publishing trademarks (a fundamental facet of brand awareness) and publishers are unlikely to ever achieve this connection with consumers. So, in an age in which the author transcends the publisher (Patterson, Grisham, Ludlum, Courtnay) what is a publisher to do? Investing in a branding campaign would be expensive and ultimately pointless, but embarking on a strategy similar to that which produced the Drew books might be more constructive.
My extrapolation of the Drew example led me to wonder why publishers don’t establish their own character-based brands. More publishers will do what Nelson has done and drop imprints, but will they also start to develop their own character-based franchises? Clearly, it is hard to ‘bottle’ what makes John Grisham a popular writer, but there are examples where existing characters have been extended in new ways. For example, there is a cottage industry of TV soap-opera lovers who create stories, novelizations and back-stories for the characters that appear in the TV soap operas. George Macdonald Frasier took a minor character out of Tom Brown’s School Days and created The Flashman series of satirical historical novels. The book packager Alloy Entertainment (which got caught up in a plagiarism charge last year) also operates a Nancy Drew model. There must be many others.
Publishers don’t have to look far to see how powerful character-based publishing could be. The comic book industry has been doing this for 50 years. In this industry the corporate brands (Marvel, DC Comics, etc.) have benefited from some of the reflected brand indentity that characters such as Superman, Spiderman, Aquaman and others have created in the minds and behavior of consumers. In book publishing, the opportunities to create character franchises are there for the asking. James Patterson has embarked on developing an author/character franchise and, if publishers were smart, they would be thinking about creating contracts that gave them the ability to broadly leverage the characters that authors create. This would include (with the author's permission) ghost-written books and stories of both the main characters and development of derivative story lines out of the books (as in the Flashman example). The opportunity to expand the content output and publish to a ‘template’ would generate higher revenues for publisher and author, stable consistent output and content consumers could enjoy.
The above scenario still accords some level of risk for publishers that the ‘powerful’ author may go off on his or her own. Given the examples in the music industry of late, some have suggested that major authors will do what Radiohead has done and walk away from the traditional publishing model. Some may, but it will hardly be an avalanche and this threat is no worse for a publisher than losing an established author to a rival house. The bigger question is how publishers can maintain a consistent funnel of marketable branded content. I believe publishers should be attempting to develop their own proprietary content franchises by building character properties in the same way the Nancy Drew series was created. There are several ways to develop this: Firstly, publishers can simply buy out an authors work so that they own it in total and can leverage it anyway they want. Secondly, they can license characters from other media: Who wouldn’t want to read a hard-boiled procedural featuring Law & Order’s Lennie Brisco, for example? As publishers begin to travel down this road, they could evolve into character based enterprises similar to Disney and Marvel. This, in turn, would make them less susceptible to the whims of authors and the corresponding limitations of their contracts.
Harpercollins is owned by NewsCorp which owns Fox. Assume that Fox owns the character "Dr. House"; why don’t you see a series of House mysteries written to a formula by ‘house’ (sorry) authors whose job it is to churn these out every two weeks? And there is no need to limit the books to Dr House; any of the characters in the show should be fair game. Publishers who focus on their publishing brands have things backwards: They should see things from the consumer's point of view and that view is more than likely focused on either an author or a character. Build the product pipeline up with a character based publishing approach and the publisher may grow in the ascendancy.
Obviously, authors are a critical component to a publishing house’s viability but as distribution flattens, barriers to entry drop and generally the industry changes. Publishers need to reassess their content-acquisition strategies to ensure they have access to revenue-producing assets that will remain with them for an extended period of time. Perhaps the Drew model will become more widespread.
Nancy Drew has always held a fascination for me, not because I clamor for a good girlie mystery but because of how The Nancy Drew series evolved. Established by Edward Stratemeyer, The Drew books were written by a number of ‘house’ writers (Mildred Benson) and the books were never dependent upon one author for their success. While the publisher of the titles was little recognized, the Drew series grew to become a strong branded product line and, as such, represents a model today's publishers may want to emulate. Corporate branding exercises little impact in the publishing world: We all know this and, while some publishers have tried to create brand strength (i.e., Paramount Publishing), success has been sparse and probably – in truth - not aggressively sought after.
There are exceptions. I used to start my Intro to Publishing courses at Price Waterhouse by asking the group to name a publisher. I stopped doing this when a partner once popped up and said HARLEQUIN! While some consumers might be able to identify Harlequin or Hungry Minds or Fodors, they would be hard-pressed to cite HarperCollins or Simon & Schuster with any relevance. Consumers have little emotive connection with publishing trademarks (a fundamental facet of brand awareness) and publishers are unlikely to ever achieve this connection with consumers. So, in an age in which the author transcends the publisher (Patterson, Grisham, Ludlum, Courtnay) what is a publisher to do? Investing in a branding campaign would be expensive and ultimately pointless, but embarking on a strategy similar to that which produced the Drew books might be more constructive.
My extrapolation of the Drew example led me to wonder why publishers don’t establish their own character-based brands. More publishers will do what Nelson has done and drop imprints, but will they also start to develop their own character-based franchises? Clearly, it is hard to ‘bottle’ what makes John Grisham a popular writer, but there are examples where existing characters have been extended in new ways. For example, there is a cottage industry of TV soap-opera lovers who create stories, novelizations and back-stories for the characters that appear in the TV soap operas. George Macdonald Frasier took a minor character out of Tom Brown’s School Days and created The Flashman series of satirical historical novels. The book packager Alloy Entertainment (which got caught up in a plagiarism charge last year) also operates a Nancy Drew model. There must be many others.
Publishers don’t have to look far to see how powerful character-based publishing could be. The comic book industry has been doing this for 50 years. In this industry the corporate brands (Marvel, DC Comics, etc.) have benefited from some of the reflected brand indentity that characters such as Superman, Spiderman, Aquaman and others have created in the minds and behavior of consumers. In book publishing, the opportunities to create character franchises are there for the asking. James Patterson has embarked on developing an author/character franchise and, if publishers were smart, they would be thinking about creating contracts that gave them the ability to broadly leverage the characters that authors create. This would include (with the author's permission) ghost-written books and stories of both the main characters and development of derivative story lines out of the books (as in the Flashman example). The opportunity to expand the content output and publish to a ‘template’ would generate higher revenues for publisher and author, stable consistent output and content consumers could enjoy.
The above scenario still accords some level of risk for publishers that the ‘powerful’ author may go off on his or her own. Given the examples in the music industry of late, some have suggested that major authors will do what Radiohead has done and walk away from the traditional publishing model. Some may, but it will hardly be an avalanche and this threat is no worse for a publisher than losing an established author to a rival house. The bigger question is how publishers can maintain a consistent funnel of marketable branded content. I believe publishers should be attempting to develop their own proprietary content franchises by building character properties in the same way the Nancy Drew series was created. There are several ways to develop this: Firstly, publishers can simply buy out an authors work so that they own it in total and can leverage it anyway they want. Secondly, they can license characters from other media: Who wouldn’t want to read a hard-boiled procedural featuring Law & Order’s Lennie Brisco, for example? As publishers begin to travel down this road, they could evolve into character based enterprises similar to Disney and Marvel. This, in turn, would make them less susceptible to the whims of authors and the corresponding limitations of their contracts.
Harpercollins is owned by NewsCorp which owns Fox. Assume that Fox owns the character "Dr. House"; why don’t you see a series of House mysteries written to a formula by ‘house’ (sorry) authors whose job it is to churn these out every two weeks? And there is no need to limit the books to Dr House; any of the characters in the show should be fair game. Publishers who focus on their publishing brands have things backwards: They should see things from the consumer's point of view and that view is more than likely focused on either an author or a character. Build the product pipeline up with a character based publishing approach and the publisher may grow in the ascendancy.
Obviously, authors are a critical component to a publishing house’s viability but as distribution flattens, barriers to entry drop and generally the industry changes. Publishers need to reassess their content-acquisition strategies to ensure they have access to revenue-producing assets that will remain with them for an extended period of time. Perhaps the Drew model will become more widespread.
Friday, December 17, 2010
Repost: Predictions 2010: Cloudy With A Chance of Alarm
As we greeted the New Year in 2009, we knew we were in for it economically and, as I suggested in my prediction post this time last year, one of the most obvious assumptions was that things would get worse before they got better. Contrary to expectations, publishing may have come out a winner in spite of the steady litany of bad news on the magazine, newspaper and television fronts that percolated all year. While recognizing the economic challenges in store for us back in 2009, I also suggested a resurrection of sorts could be had as businesses began to accommodate the fundamental changes that were taking place in the industry as they executed their business plans. Sadly, there have been few bright spots in media during 2009, and after having taken the pulse of views on the near-term future in publishing by speaking to a number of senior publishing executives, my belief is we will not see any appreciable improvements during 2010. While some of their collective views can be attributed to ‘hedging,’ external trends support the lack of optimism whether they be reductions in education funding and library budgets or the increasing reliance on “blockbuster” authors or pricing issues.
Many of the macro trends that I have noted in years past remain prevalent and in some cases have accelerated. For example,
- Educational publishers appear to be increasing – rather than decreasing – their investment in electronic media and more importantly, are beginning to think of their electronic products as distinctly different from their print precursors. In particular, educational publishers have started to talk meaningfully about “databases” and “subscriptions.”
- Newspapers – particularly NewsCorp – have been particularly active in attempting to build paid content models which support the separation of ad-based and subscription-based models. Newspapers aside, even trade publishers – notably Disney - are beginning to experiment in interesting ways with paid subscription models.
Prognostication being the point of this post, there are some newer macro changes I see that will define the publishing and media space more and more over the next three to five years and it will be interesting to see how these develop.
- Firstly, 2009 was the ‘year of the eBook’ as new devices seemed to launch each week. But the eBook, as we understand it today, only has three more years to run. By the end of 2010, we will be focused on the ‘cloud’ as the implications of the Google Editions product become clearer. This accelerated migration away from a physical good – even with an eBook, the title was ‘physically’ downloaded – will challenge our notion of ‘ownership’, rewrite business rules and provide the first true ‘strata’ for communities (or social networks) to develop around content.
The Apple iSlab (iSlate, iTablet, iEtc) will become a key driver in this development as the company becomes the first consumer electronics maker to apply their design expertise to multi-content delivery. (I don’t count SONY because they got it completely wrong). - A closely related (but somewhat tangential) development will be the realization by publishers that the library market could become a threat to their business models as mobile and remote access is aggressively marketed by companies such as Serial Solutions and EBSCO. Currently, these products are not specifically related to trade and academic titles; however, the implications for all published product will become clearer as patrons’ ease of access to ‘free’ content grows and as the resolution services improve.
Remote access to information products by library patrons is obviously not new, but applied to mobile computing it will change many things about the library model. This trend coupled with the ‘cloud’ concept above, will require an industry-wide re-think of the library business model. - There are hints that the silo-ing of content that has been endemic to information and education for many years could become a trend in trade as well. Examples remain sparse, though Harlequin and Tor are routinely cited as exemplars of this trend.
Subject-specific concentrations of content in trade will become a more broadly viable model; but simply concentrating content is not enough. Trade publishers will begin to license or commission ancillary content that adds a transactional element to their offering (not exclusively in a monetary sense). In effect, this additional content will provide a reason for consumers to return periodically to the site for free reference, news or dictionary content. Thus, this content will complement the subject-specific content that publishers generate themselves. As each segment develops, the ancillary content will also become core content to the publisher and may eventually be produced by them (although, initially, the content may be licensed). Over time other services will be built within each subject silo, and this maturity will replicate the product development seen in information publishing over the past ten years as those businesses established subject specific franchises around topics such as business news, tax and legal information.
- Certain segments (financial, legal and tax information and education, for example) continue to be challenged and any business that relies on the library market will face a very difficult time. Funding will be worse in the coming year (fiscal 2011) making retention, renewals and price increases problematic. By the end of this year, we could see some consolidation in the information media space.
- We will see the return of an old model of collaboration between magazines and traditional publishers as magazines look for ready-made content. Witness the return of the serial and short story to the pages of periodicals as their publishers look for low-cost content for their plodding (but suddenly more aggressive) migration to electronic delivery. In turn, electronic magazines will offer publishers a more effective, targeted and supportive mode of marketing than publishers have seen in years.
- 2010 will be a year of warfare: Publishers against retailers, wholesalers against retailers, retailers against retailers, publishers against consumers. It may be nasty, brutish and short, but will any of them truly understand the stakes? (See macro trend number one).
- Finally, we will see consolidation of at least two major trade houses. This is likely to precipitate another combination by year end. An outsider company (not a current trade publisher) may make a major move into the trade market.
- Last year, I predicted that out-of-work journalists would become ‘content producers’ and we have seen that develop as companies like Demand Media and Associated Content build market share. I see this trend accelerating during 2010. As magazines migrate to platform models, they become 24/7 publishing operations with a significantly increased demand for content far beyond their capabilities. Where they will succeed is in curating content for their specific audiences; however, much of this content will be produced for them, rather than by them in the traditional manner. In effect, magazines will outsource editorial.
- And in sports, Manchester United will retain their Premier League title, winning on goal difference over Arsenal; Barcelona will win the Champions League; and England will win the deciding fourth Ashes test in Melbourne in December.
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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