From a passionate editor who was surrounded by Ole Miss students at the close of her presentation to predictive analytics; from the history of human information to branded photo contests with million dollar publisher revenues, Day Two of the Act 5 Experience covered the world of magazine media with deep dives and remarkable relationships with readers in six distinct and informative presentations. And to cap it off- the annual excursion to Morgan Freeman’s Ground Zero Blues Club in Clarksdale, MS with the best live Delta Blues music we’ll ever hear!
William “Billy” Morris III (Chairman, Morris Communications):
• We’ve moved from information scarcity to information overload
• Infinite information has changed journalism, but not the value, goal, and importance
• Digital media have disrupted journalism in many ways, but also have improved it
• We’re competing in a very different kind of business
• Visit the same websites as your readers- how do you make your print product more valuable given their experiences?
• Try new things and don’t be afraid to fail and be willing to spend money on those new things
• Journalism needs to reward readers richly for their time and attention- or they won’t engage
• What matters now, more than ever, is trust (a marriage of truth and accuracy) in journalism
• Brevity is important online- can refer readers to more information
Vanessa Bush (Editor in Chief, Essence Magazine):
• Print is giving birth to countless abundant opportunities to engage with our audiences
• Provide fresh, vibrant, enriching experiences to them
• 1 in 3 Black women are readers of Essence, a higher penetration that almost any other print media to a group
• The power of Essence is strong emotional communication
• Essence offers strong multi-platform experiences with a total reach of 12.9 touchpoints
• Unique and honest treatments speak to the core audience of Black women; by offering empowerment, edge and escape- the editorial formula for Essence
• The Essence Festival is the biggest live event in the US- draws 550,000 people to New Orleans over 4th of July holiday
• But nothing is possible without print- the “mother ship”
• Greatest challenge is keeping up with pace of consistent change
• Essence online is a distillation of the magazine content
Note: Essence’s power and magic was overwhelmingly apparent in the crowd of enthusiastic and passionate Ole Miss students who surrounded Ms. Bush for 20 minutes after her presentation, a tribute to the remarkable connection between the reader and the magazine.
John Harrington (Publisher, The New Single Copy)
Malcolm Netburn (Chairman, CDS Global)
John Phelan (Executive Director Consumer Marketing, Rodale):
• In 2010 publishers realized the importance of moving from advertiser-centric to consumer centric business model
• By 2014, this move had not taken place- in fact, a higher % of revenue was derived from advertising while subs and newsstand value each dropped nearly 33% as a share of revenue compared to 2010 numbers
• Next Issue Media, the “Netflix” model of $9.99 unlimited replica editions of magazines, is having an impact of newsstand revenue (since print newsstand issues sell at full cover price)
• The center of the universe is the consumer- the individual who opens up the magazine, goes to the editorial, says “this has value to me, I need/want to know more”
• Predictive data is the connective tissue between an issue and its readership
• The distance between content and audience must narrow
• We don’t know how to measure success right now- digital tools and platforms are changing everything
• There are fundamental changes to our approach to the business itself
• We need to understand a lot more about our audiences
• If you deliver value you’ll make money
• For readers- create “loyalty-engenerating experiences”- they will become evangelists for you
• Question is not how many people read us, but how engaged with us they are
• We need to develop a collaborative, industry-wide approach to data about our readers
• We need to predict what our readers want- be proactive not responsive- it’s based on clues about you
• Think outside the box- predictive data can show us an expanding potential universe of customers, not a shrinking one
• Data should not “filter down” rather “filter up”
• We need to know more about how people behave
• Circulation goals are changing slowly, but circulation tools are changing faster
• Consumers are throwing information about themselves to you, challenge is mining that data
• Dedicated mobile editions of mags can spur growth – same content, different experience (not replica editions)
• Opportunities to come:
o Frictionless mobile ordering and payments
o Business to business selling of consumer publications
o More aggressive direct promotion of digital subs
o New content bundles that include mag subscriptions
• Mag companies are becoming brand companies
• Consumer Marketing Directors are inventing new ways to sell, to get orders on file, and are trying to stay in contact with the consumers, but direct mail has been scaled back
• Membership/Affinity model is growing (learn from the non-profit world) (e.g. Oprah’s “Circle of Friends”)
• For Rodale- 7 titles (large + small) had versions of the same business model- in future this may modify to some with more ad % revenue, some circ driven or membership model
• Justin Smith: “To succeed we must accept this state of confusion and embrace chaos”
Gil Brechtel (President, MagNet)
Joshua Gary (MagNet):
• There’s turmoil in the newsstand but there is predictability to be made from it
• Figure out what you can do to deflect “bad things”- we still have the opportunity to affect success
• The best indicator of success of content is on the newsstand
• Addressing sales: placement, promotion, price, and product- which means covers!
• MagNet tags elements of the cover to allow a deep dive to analyze success and failure
(what elements really affect sales- and what elements don’t seem to matter)
• 15% of magazines sold are now bookazines- starting to flood the market
Espen Tollefsen (CEO, Interpress, Norway):
• Books on tablets are less than 2% of book sales- there is no common platform, thus print book sales are still strong
• There have been many more new titles brought to market, but circ total is actually unchanged
• Circ #’s down 30% for 10 largest titles over the last 5 years
• Magazine market decline is coming faster- down 10% YTD 2014
• International titles decline as well as domestic titles
• #1 reason for large drop is not mobile- it’s a decline in “in-store” focus and distribution issues
• Also there is a decline in the customer base/shoppers
• There is too much turnover in store management- less focus on the magazine category and more focus on food and beverage
• Newspapers have started re-focusing on promoting the print product- e.g. car sweepstakes every month for print purchasers
• Norway did not suffer a financial recession, but had a “psychological” recession- led to questioning what to do with individuals’ money- resulted in more savings, less spending
• Biggest challenge is not print vs digital, but reading vs every other form of activity that consumer spends his time on
• Publishers need to attract and develop readers
Keith Bellows (EVP Editor in Chief, National Geographic Traveler and Travel Media):
• We’re still in the middle of the bridge between print and digital – still driving “dazed and confused”
• Nat Geo- not a media company- only 3 mags- rather it’s all about Nat Geo’s mission to teach people about the planet
• But Nat Geo still has the same challenges as other media companies
• The era of relying on subs and advertising to keep the company profitable is over
• Wants a “deep sign of engagement” from their consumers
• Job is to come up with “big concepts” that might involve print (or not)
o Tour of a Lifetime
o Photo Contest (generates over $1million in revenue)
o Digital Nomad
o City Makers (print, films, online)
• Also project with the US State Dept to raise % of US citizens with passports- currently 37%, trying to use social media to get kids to get passports
• Think beyond the page- Nat Geo stopped seeing itself as a magazine
• For Travel- the cycle is dream, plan, go, share
• Nat Geo Traveler is “the little engine that could”- need to take advantage of global resources, re-invent, be smart and strategic and take chances
• This is the most exciting time in media (even though we’re on a bridge to nowhere right now)
• Publishing was a pretty simple business 5-6 years ago- now you need someone who thinks in 3 dimensions- video, social media, photos, reporting from the field… it’s exploding
• Print needs digital to survive
• It is inevitable that print partners with advertisers
• People will pay a huge amount for something they really love
• “Smash the mirror”- looking into a rear-view mirror doesn’t help us move forward
• Traveler is a huge success, yet wake up every day feeling that they are behind the 8-ball, shift will continue to happen
• Change happens faster than ever- embrace it
• Listen more closely than ever to the customer- what, when, how, how often to consumer- bring them into the text- be partners
• Be flexible- yesterday’s rules are today’s barriers
• Be media and distribution agnostic- It’s content first, channels later
• Go back to school- but your employees may be your best teachers. The walls between young and old have completely broken down- learn from one another. Intuition is critical in an organization. Young people know this world, listen- then lead
• Even if you’re the boss- don’t be afraid to say you don’t know- go into discussions not knowing the answer
• Spend 30% of your time creating new content models and revenue streams
• Steal from the best- no matter what industry or source
• Experiment- don’t be afraid to fail. 60% success rate is incredibly good- need to do more with less
• Print is a piece of the puzzle- of the media pie.
• The stories are what drive media- not the pipeline- don’t lose sight of that
Michael Clinton- President, Marketing and Publishing Director of Hearst Magazines delivered the keynote opening address at the Magazine Innovation Center’s ACT 5 Experience in Oxford, Mississippi on Oct. 7, 2014. Click below to watch his entire presentation.
Editor’s Note: Last week I was speaking, interviewing and moderating at different types of conferences and seminars across three European countries. I started with the Czech Republic where I spoke at a Toray’s meeting, then Slovakia where I visited the Student Media Center of the Pan European University in Bratislava, a daily newspaper, a major magazine media house and last but not least, traveled to Cannes, France to speak and moderate the Forum day at the 59th Distripress Congress. In the next few blogs, I will be reporting from all three countries with interviews, views and observations from the global media world.
Today’s report is from Cannes, France and it is an attempt to summarize the collective wisdom of all who spoke or participated in the Forum Day of the 59th Distripress Congress.
The following is a list of everyone who spoke at the Forum Day (sans Mr. Magazine™) and all of the tidbits of combined wisdom brought together in one sitting:
• David Owen: Managing Director of Distripress
• Anne-Marie Couderc: Keynote Speaker, President of Presstalis, France
• Diane Kenwood, Woman’s Weekly, UK
• Franska Stuy, Libelle Magazine, The Netherlands
• Morten Wickstrom, VG, Norway
• Matt Bean, Editor Entertainment Weekly, USA
• Jim Bilton, Wessenden Marketing, UK
• Peter Preston, Guardian/Observer, UK
• Tom Fender, Independent retailing consultant, UK
• Christina Lucas, Marketforce, UK
• Jean-Christoph Fare, Naville, Switzerland
• Arlene Shepard, Vice President of Gateway Newsstands, Canada
And here we go, in no particular order:
1. There was a consensus that there is a need to rethink the entire press sector, which includes changing the publisher’s economic model, rethinking the publishing landscape, whether it’s newsstand sales, home delivery or subscriptions and redefine the roles of the distributors, wholesalers and retailers
2. Sales of newspapers and magazines are set to continue to fall
3. Publishers are capitalizing on core brands by investing in digital solutions
4. The economic model for digital publishing has yet to be defined, although there are already some online-only titles out there
5. Print and digital media must complement each other
6. As we grow in the digital era, we must use digital media solutions to boost print media sales on the newsstands and we must introduce cross-media research into the equation
7. Some of the challenges for the distributors include:
• digital publishing
• in the business of selling content, there must be a way to put a value on content
• print and digital are working together and publishers’ strategies should include making digital media a part of editorial content, grow the brand in both print and digital versions and promote across all networks
8. Digital is no longer a threat; it’s a key to success
9. People change as they grow older
10. Fewer retailers, less retail space
11. We have three options: actively accelerate the decline of print, passively accept it or re-engineer for a different business model
12. We must have a sense of ownership and friendship with the reader
13. Print titles are still very profitable; print does work
14. The biggest challenge that we face in our industry today is making sure our readers know what they’re seeing, whether it’s editorial or advertising
15. You have to love what you do; otherwise your content will not be passionate and filled with variety
16. Keep it simple and make it fun
17. You need to create passion points for your magazine, so your product can have better reach, better engagement and better distribution
18. We have to turn our thinking from a digital newsstand type of mentality to a broadcast mentality
19. The print magazine is still the flagship of the brand
20. No one wants to be on the cover of a website
21. The future of our industry is going to be more fragmented and fractured than ever before
22. Western Europe is the homeland of the magazine business: 41% of all magazine volume.
23. Overseas, the majority of the business is 73% retail, 20% subscription and 7% digital
24. We will see a lot of consolidation and instability in the wholesale magazine press distribution network
25. We have to invest in short-run digital printing to save on the shipping rates on magazines across borders
26. We are witnessing the beginning of the end of the “death of print” diatribe and we are starting to talk about the decline of print instead
27. Nobody knows the future, including Peter Preston
28. Movies did not kill the theater; if you need proof, just travel to London and Piccadilly Circus and see if you can a ticket
29. I will never read War and Peace on my iPhone
30. You cannot take content across platforms; each must have its own
31. Most of our ills are self-inflicted and self-generated
32. Here is a formula for disaster: cut the content, cut the paper, cut the weight, increase the price and then wonder why sales are in decline; less for more is not a winning formula
33. Even The New York Times is talking about the “majesty” of print
34. The print version of most brands is still much more important than the digital component
35. Youngsters will never read the words or have to decide between: print or digital
36. 80% of stores in Germany say it’s important to sell press products in their store, 72% in France and 72% in the U.K.
37. People still want magazines and magazine destinations
38. Magazines in a lot of stores are still the number one sales and revenue generator
39. Retailers love new launches, such as Ricardo in Canada and Dr. Oz The Good Life in the United States
40. A mature magazine can benefit from a good promotion
41. Signposts in stores increase sales by 4.3%
42. We need to bring an entire category of magazines to life because we have smarter shoppers and we need to give them relevant offers
43. Offers that accompany magazines, such as a free bottle of water, will have a 20% positive swing
44. We have to have personalized marketing, tailored and targeted to a specific group of people
45. As we witness a one-third decline of the press volume, we have to find answers for how we counteract that declination
46. We are and we want to remain press retailers and we want to make money
47. We have to optimize the press and accelerate the diversification
48. We have to adapt to new market rules
49. There are more new magazines introduced worldwide
50. Magazines and newspapers are becoming parts of the brand, rather than the entire sum
51. The printed product is the cornerstone of the brand
52. With so many other extensions, such as events, digital, stores, shopping; the survival rate of new magazines is increasing
53. Humanizing the brand is essential for surviving
54. Retail stores must change with the times
55. We must promote print the same way we promote digital
56. Digital is no longer a seductive mistress; it’s a younger sister or brother to print
57. It’s no longer print versus digital, but print plus digital, plus events, plus stores, plus commerce
58. On all fronts, we have to be experience makers
59. We must have promotions; it’s the key to our survival. If we do not promote our products, no one will.
*****
If those of us who are passionate about the industry take these 59 points to heart and really try to implement and learn from them, the future of the media industry can start to reverberate with the hope it deserves for the masses it serves, because as Mr. Magazine™ eternally proclaims, “There is always hope.”
I hope to see you all again next year in Brussels for the 60th Annual Distripress Congress…and until then: go to a retail store, buy a newspaper and a magazine or two and enjoy!
Editor’s Note: Last week I was speaking, interviewing and moderating at different types of conferences and seminars across three European countries. I started with the Czech Republic where I spoke at a Toray’s meeting, then Slovakia where I visited the Student Media Center of the Pan European University in Bratislava, a daily newspaper, a major magazine media house and last but not least, traveled to Cannes, France to speak and moderate the Forum day at the 59th Distripress Congress. In the next few blogs, I will be reporting from all three countries with interviews, views and observations from the global media world.
Today, is my interview with Tomáš Bella, deputy editor in chief of SME daily newspaper in Bratislava, the capital city of Slovakia. SME is succeeding while others failed and is showing that the future of newspapers, both in print and digital, may be in long-form journalism.
But, first the sound-bites…
On SME and some of its recent changes: We are almost changing into a magazine. More and more often we are moving toward big topics, such as the one we did on the Ukraine.
On the future of the daily newspaper becoming a weekly on a daily basis: Maybe we will stop publishing daily, but will do six weeklies. What we are sure of is that long-form journalism is where we are clearly heading; sometimes we even have the first eight pages of the paper as one article.
On experimenting with SME’s paywall: We will probably spend all next year restructuring the entire paper around the business of paid content.
On whether he feels journalism is better or worse today because of the Internet: Right now, it seems as though we’re in chaos, but I think we will come out of this as better journalists.
On why most newspapers are still chasing numbers and clicks in the 21st century: I spent four years traveling the world trying to pursue publishers for the switching-to-paid content, but there are a lot of publishers who are set in their ways.
On what keeps him up at night: Well, I came back to journalism because it’s really extremely exciting. And the most interesting thing is we have exhausted all our bad options now; we have tried everything.
And now the lightly edited transcript of the Mr. Magazine™ interview with Tomáš Bella, Deputy Editor in Chief, SME Newspaper in Slovakia…
Samir Husni: Tell me about SME and some of the changes that are going on…
Tomáš Bella: We are almost changing into a magazine. More and more often we are moving toward big topics, such as the one we did on the Ukraine. Inside, there are eight pages just about the Ukraine, written by someone who is very, very knowledgeable.
Two years ago, our longest article would be one page long. Now we are doing 16-page articles.
Samir Husni: So you think that the future of the daily newspaper is a weekly on a daily basis?
Tomáš Bella: That is the strategy of Gazeta Wyborcza, the biggest Polish daily. They are probably the best daily in Eastern Europe, with a long tradition of fighting against communism. And their strategy is clearly building very strong supplements for each day; they have six strong supplements every day.
So maybe we will stop publishing daily, but will do six weeklies. What the Gazeta Wyborcza is definitely doing is building very strong magazines, not on print paper, but on glossy. And they have a lot of magazines for each day and they’re building a strong brand.
What we are sure of is that long-form journalism is where we are clearly heading; sometimes we even have the first eight pages of the paper as one article. And this would have been unimaginable a year ago. This is something we are doing as often as we can because we are depending more and more on the income from our readers,
I was reading this article, it was my colleague’s idea, but I thought who would want to read eight pages about the Ukraine. It’s a hard topic and it’s not something you would expect. And it actually broke our record in sales online recently. For whatever reason, the people were buying to learn about Internet politics in the Ukraine.
Samir Husni: You said they bought it online; which brings up your concept about slowly experimenting with the paywall…
Tomáš Bella: Yes, I was working with this newspaper for ten years and then I left and established Piano Media, the company that bought Press Plus. I worked there for four years and then I came back here. Currently, the income from paid content online has maybe doubled in the last eight months. So we are really heavily investing in paid online content and it’s the only income that’s going up, everything else is going down.
We will probably spend all next year restructuring the entire paper around the business of paid content. Also, we don’t believe that advertising is going to come back and we don’t think online advertising is going to save us, so we will have a year, maybe eighteen months to rethink all the departments, to rethink what we should and should not be doing when the new paradigm is in place and see what people are actually willing to pay for online.
With print, it’s a bit more complicated. The paper with the Ukrainian story costs 80 cents. Normally, the paper costs 55 cents, but when we have a topic like this we raise the price of the paper. So Monday it’s 55 cents, but on Friday it’s 80 cents…etc.
It doesn’t mean that we’ll sell more of the special papers, such as the one with the Ukraine story; it’s hard to sell more on those days, but we will also not sell less and we will make more money.
Samir Husni: Do you think journalism as a whole, forget about the platform, is in better shape today than yesterday or worse and has the Internet helped or hurt journalism?
Tomáš Bella: Right now, it seems as though we’re in chaos, but I think we will come out of this as better journalists. I see it in the paper, a lot of uncertainty, but it’s definitely going to get better. Three years ago when we would do something like send a journalist to the U.S. for two weeks to write a story, the business department would say you’re crazy, you’re just wasting your money.
And now when we can measure just how many people buy the article; we are seeing that exactly the same kind of articles that we want to write, ones that aren’t about sex, but about hard issues, are the ones that people are willing to pay for. So if you switch from those terrible 90s where the measurement of your reward was clicks; when you switch from the measurement of your world being clicks to people willing to pay for content, suddenly the interest of journalists and readers seems to be more aligned. They appreciate that content, because here is the guy who wrote the article, he is a Slovak, but he’s one of the few Slovaks who is an expert on the Ukraine.
So when readers see that this is forty years of creative thinking about the topic and that experience has been put into those pages, then they are willing to pay for it when they realize the quality of the work. So I think it’s much better for journalists to be doing a job like that where you know that readers appreciate the work and are willing to pay for it, along with the advertisers. But it will still be a little painful until we get through the transition phase.
Samir Husni: And as you move into this transition phase; why do you think newspapers are still doing the same thing, still chasing clicks and numbers?
Tomáš Bella: I spent four years traveling the world trying to pursue publishers for the switching-to-paid content, but there are a lot of publishers who are set in their ways. They are good people and they are producing good papers, but in no way are they prepared for the role they need to play. And for years at the conferences, everyone was telling them how to attract new readers through Facebook and Google and it became very important. But suddenly, it stopped working. Google and Facebook were making money, but not their papers.
So here in Slovakia when we started Piano Media and paid content, most of the publishers joined, but only two or three really understood that in three years they won’t be able to rely on advertising money because they will never win the fight with the Facebooks or the Googles for the price of advertisement; it’s just going to continue going down.
But this paper had a CEO and management that were wise enough to say that even if it is only small money in the beginning, we will keep investing into paid content because we think that it’s really important.
Samir Husni: My typical last question; what keeps you up at night?
Tomáš Bella: (Laughs) Well, I came back to journalism because it’s really extremely exciting. And the most interesting thing is we have exhausted all our bad options now; we have tried everything. We have tried cutting staff by 10 percent every year and many other things and we know where it leads.
So now it’s time to rethink everything; it’s time to say OK, do we really need a sports department or foreign news. It has gotten so bad that you can only dig yourself out with creative thinking and basically starting completely over from the beginning. And to me this is extremely interesting, so I came back here because I’m really curious how the paper is going to look in two years. I know with certainty it will not look like it looks today. And that’s really exciting.
And I believe this type of model is good for journalism. When people begin to pay for content and we can think about our reader instead of advertisers.
“Although I had my degree from Harvard Divinity School and had written many theological things, albeit not necessarily published; I’ve been a printer for 25 years. Printing is what I do and so I think the reason I chose print is because I personally would rather have a really nice magazine in my hand.” Patrick Butson
As the Founder and Publisher of Vapor Digest and Vapor Lives Magazines, Patrick Butson’s mission is to help the e-cigarette industry gain legitimacy by education and awareness. A graduate of Harvard Divinity School, the theologian – turned vaping visionary vows to set the record straight when it comes to vaping and the industry of e-cigs in general. He is convinced that vaping is the answer to many smokers’ prayers and that the part he plays in educating the public is divinely-inspired and validated.
I reached out to Patrick recently and we talked about his early days in divinity school, his calling to do something on a grand scale for God and his vision when it came to the print magazines he created, devoted to vaping and the e-cig industry. The conversation was sincere and open, revealing a man who truly and passionately believes in his magazines and his mission, but doesn’t discount the toll it has taken on his personal life.
So sit back and enjoy this most unique conversation with a man who is genuinely unique in his own way, set apart perhaps by a spirit that is made so by a predestined future – the Mr. Magazine™ interview with Patrick Butson, Founder and Publisher, Vapor Digest & Vapor Lives Magazines.
But first the sound-bites…
On why he started the vaping mission: To be honest with you, I don’t think that I’ve used the gifts that I’ve been given to their fullest potential.
On whether or not vaping has anything to do with his theological calling: Yes, it gave me this sense of calling again and I understand that sometimes when you’re looking for gold, everything you see is shiny.
On the two magazines; one trade, one lifestyle: My real intention when I started was to be more like the lifestyle magazines, but when I realized that what was needed was more of an investigative-type of magazine first, that’s why I did them both.
On the advertised emphasis of his theology degree: I did that because I believe it sets me a little apart, because what I do is try to focus on the vision of what it could be and let it lead me like the North Star.
On what’s in it for him: What’s in it for me most importantly is that I matter. I think that if I keep saying perceptive things and keep getting them right and keep giving out the information, along with the stories that people want to read, then I think I’ll have an influence.
On his ultimate goal for the magazines: My ultimate goal for Vapor Lives magazine would be for us to be a combination of Rolling Stone and Cigar Aficionado. I want it to be that important about a new social trend like Rolling Stone was.
On the major stumbling block that may prevent his goals: I think the main thing for me because I’m boot-strapping it and I don’t have the financing and the backing of some of the existing magazines that might want to get into the space.
On whether a year from now he sees himself surrounded by competitors and copycats: I do, yes I do. It’s already happening a bit. The tobacco industry’s trade publications have a couple of them that have combined with a vapor publication.
On why he decided on a print format for his magazines: Printing is what I do and so I think the reason I chose print is because I personally would rather have a really nice magazine in my hand.
On what keeps him up at night: The fact that in doing this, it’s taken a lot of work and a toll, not only on me physically, but it’s really taken a toll on my relationship with my family.
And now the lightly edited transcript of the Mr. Magazine™ interview with Patrick Butson, Founder and Publisher, Vapor Digest & Vapor Lives Magazines…
Samir Husni: After I read about all that you’re doing, it seems that you’re a one-man crusade. You’ve started the two magazines and the organization. You’re doing the testing and everything. Why?
Patrick Butson: I wrote in my book why. To be honest with you, I don’t think that I’ve used the gifts that I’ve been given to their fullest potential. When I was a young man, for some reason, I really always thought that God was going to do something special through me and I was somehow going to be inspirational or something; I don’t know exactly, but I found myself at Harvard Divinity School which confirmed that I was being led in that direction. And then I got married and when my wife and I got pregnant, I kind of panicked or got nervous; I’m not sure how to explain it perfectly, it was like me having this nebulous calling to do something great was fine for me as a single man. Although my wife was pretty cool with it, but I didn’t think it was fair for a child being brought into this world to have such an unsure future.
So I felt I had to make a choice. I could go get a real job and make some money or I could continue on this path of not knowing, but feeling like I was going in the right direction. And I guess all these years later, I kind of regret that I had to make a choice and realize now that I could have done both. I could have lived a more inspiring life and meant more to more people and found a way to take care of my family like many other people have done.
Yes, a lot of the reason why I’m doing this is that I regret not taking a more adventurous path and when I saw the first person vape, I just knew instantly that it was very special and had the potential to really change a lot of lives. So I began to follow that. Something that could give me that feeling again that I mattered.
Samir Husni: Do you think being the theologian that you are the whole idea of vaping has anything to do with your calling? Correct me if I’m wrong, but I don’t think you smoked before…
Patrick Butson: No, I didn’t smoke. And yes, it gave me this sense of calling again and I understand that sometimes when you’re looking for gold, everything you see is shiny. And if it’s something you want to follow, it could be fool’s gold and I might just be seeing what I want to see, but the vision and the perception I have of what vaping can become just energizes me and makes me want to do this.
Samir Husni: Almost at the same time you started two magazines, one for trade and one for the lifestyle.
Patrick Butson: In general, I got involved with it because I was excited. And when I started vaping I assumed there would be a magazine about it. I’m not a smoker per se, but once in a while I like a celebratory cigar and if I ever wanted to know what might be a good cigar, I’d go to Cigar Aficionado or if I wanted to know what’s a good craft beer, I’d go to the craft beer ratings, but when I did that for vaping I realized how you almost have to ask two questions.
Let’s say that you want to try a new honey-whiskey that Jack Daniels has come out with and you read the reviews and tried to get a sense of whether you’d like the flavor; all you really have to ask yourself is would I like it or not. You never have to ask yourself if the whiskey is safe, but that’s not true with the vaping landscape. It’s a very Wild, Wild West out there; you don’t know who you can trust, because people can make things sometimes look too good to be true. A person may have a friend who is a web designer and he could make that company look like a pharmaceutical giant. So that’s part of the reason why I did this too.
My real intention when I started was to be more like the lifestyle magazines, but when I realized that what was needed was more of an investigative-type of magazine first, that’s why I did them both.
Samir Husni: Why the emphasis on being a Harvard theologian – turned visionary? Everywhere I see your name that is very prominently written. Why?
Patrick Butson: I did that because I believe it sets me a little apart, because what I do is try to focus on the vision of what it could be and let it lead me like the North Star. But as I was trying to get people to listen to me and help me, they said don’t undersell or be embarrassed that you’ve got a theology degree and it’s true, so why not say it. I guess that’s part of why and it’s quite a unique thing to have. And it lets people know that I’m probably coming from a different angle than most.
Samir Husni: What’s in all of this for you?
Patrick Butson: What’s in it for me most importantly is that I matter. I think that if I keep saying perceptive things and keep getting them right and keep giving out the information, along with the stories that people want to read, then I think I’ll have an influence. That’s mainly what’s in it for me.
But I also realize that I need to monetize my efforts so that I can keep doing it and I’ve done not as well as I’d hoped, but I think I’m on my way. I have advertisers. If you have a copy, you’ll see several paid advertisements.
Samir Husni: What is your ultimate goal? Where do you see the magazines a year from now?
Patrick Butson: My ultimate goal for Vapor Lives magazine would be for us to be a combination of Rolling Stone and Cigar Aficionado. I want it to be that important about a new social trend like Rolling Stone was. It also gives the trustworthy ratings like Cigar Aficionado does. That would be my goal for that magazine. And it would be sold in Barnes & Noble and counters as you go through supermarkets. I’d love it to be a magazine like that and have that type of presence and clarity.
And I would like for the trade magazine to be the official source of the industry and the news magazine of the industry. That would be my two goals.
Samir Husni: And what do you think will be the major stumbling block that might prevent those goals from happening and how will you overcome that?
Patrick Butson: I think the main thing for me because I’m boot-strapping it and I don’t have the financing and the backing of some of the existing magazines that might want to get into the space. They would have the funds and the people and the pipelines to overwhelm me with financial might, so that’s obviously a concern.
I’m glad I was the first, but I don’t think I’ll always be the biggest, that’s not important to me. But as long as I always have my niche and my certain specialness, then I think I will have accomplished what I wanted to accomplish.
Samir Husni: There’s a saying in our business: there are the groundbreakers, the copycats and then there are the cheap imitators. And being a groundbreaker; do you think that a year from now you’re going to be surrounded by competitors and copycats?
Patrick Butson: I do, yes I do. It’s already happening a bit. The tobacco industry’s trade publications have a couple of them that have combined with a vapor publication. On the lifestyle side there’s several already out, with more coming every day. I think the thing that’s going to make or break the vaping lifestyle magazines would be the one that has maybe a celebrity on their cover first. And I don’t know any celebrities.
So I think that a publishing firm that already has celebrities on their roster and lined up would be the first to have one on the cover actually vaping, making them similar to how Cigar Aficionado now always has a famous person on their cover smoking a cigar. And I would think that would really establish that lifestyle magazine for vaping to have a high-end star on their cover; I believe they would definitely take the lead.
Samir Husni: There have been so many things that you have done digitally and we do live in a digital age; what made you decide on print for your magazines?
Patrick Butson: Although I had my degree from Harvard Divinity School and had written many theological things, albeit not necessarily published; I’ve been a printer for 25 years. Printing is what I do and so I think the reason I chose print is because I personally would rather have a really nice magazine in my hand. If you see my magazines, you’ll note that they’re on really high-quality paper, highly varnished, nice binding; they just look good. And that’s important to me. I really wanted it to be something that a consumer would want to hold in their hands and read.
Samir Husni: And now I see that you’re coming out with a book?
Patrick Butson: Yes, I sent you a copy.
Samir Husni: Yes, I’m looking at it now. It’s not only a showcase for the vapor industry, but it’s also a coffee table-type book.
Patrick Butson: Very much so. That was my plan from the beginning, to make it a coffee table book, mainly because I want people to flip through it. Also because I kind of did it backwards; I figured out how big I wanted it and how I wanted it to feel and look and I went to the bookbinder and he told me I needed 144 pages and I thought it’s going to be hard for me to fill 144 pages; I’m going to need a lot of pictures. (Laughs)
Another reason that I decided to do it that way is because I want people to read it. I’m going to be giving many of them away, mailing them out to people in the industry. It’s one of those things where I want you to look at it; I designed it where each page has its own integrity, its own little story. Where people may want to only look at one page, but you can learn something from that particular story.
Samir Husni: So what’s next for Patrick?
Patrick Butson: Well, I’m still operating in the red, so I’m hoping to start breaking even soon. That would be a great goal to reach. And I just want to keep doing it and doing it well. And I hope it becomes this thing in the industry where I’m one of the people that everyone looks to for hope. Right now, vaping and e-cigs, the essence of them are filled with controversy and anxiety, who’s right and who’s wrong, and I’m trying to just send a more positive message and if I can continue to do that, I will be happy. And I hope people in the industry will allow this technology to become the gift to mankind that I feel it was meant to be.
Samir Husni: As you’re talking, I realize how many hats you have worn and still wear: printer, theologian, visionary and missionary for the industry now?
Patrick Butson: Maybe, maybe so. Missionary, I’ve never thought of it in those terms, but you’re right. I think you’re right, because that’s what I’d like to do. That would be fine with me.
Samir Husni: My typical last question; what keeps you up at night?
Patrick Butson: The fact that in doing this, it’s taken a lot of work and a toll, not only on me physically, but it’s really taken a toll on my relationship with my family. It’s just one of these things where I’m not sure if it’s worth it. And that’s what keeps me up at night; is this effort, which has caused a lot of stress for me and my family with the traveling, because I go to all of these vape shows and I’m tired when I get home and I don’t spend as much time with my family; is it all worth it? Are all the sacrifices my family has had to put up with, worth it? They didn’t volunteer for this, after all, I volunteered them for it and that’s what bothers me and keeps me up at night.
“I’m fully behind magazines and magazines have lived through television, they have lived through radio and they’ll live through the Internet, but we have to adapt and make our magazines a little bit easier to read, such as with smaller stories.” Jeff Greif
Celebrities, vineyards, distilleries, libations and having fun responsibly; these are the main attributes of Chilled Magazine and the many components that make up the brand. Jeff Greif, whose past experience in the magazine media industry includes working at Marie Claire, Vogue, GQ and just a host of prestigious and illustrious titles, is now the publisher of the trade magazine that proudly resembles its consumer counterpart.
I recently spoke with Jeff about Chilled and its interesting subscription model, the magazine’s 360° approach to publishing – using print, digital and events to promote and propel the brand and the unique feature of a celebrity cover each and every issue. The conversation was definitely enlightening and should “raise the spirits” of anyone who has heard gloom and doom preached just one time too many regarding the future of print and its place within today’s publishing wheel.
So sit back, grab your drink of choice and enjoy “Chilling’” with Mr. Magazine™ and Jeff Greif, Publisher, Chilled Magazine.
But first the sound-bites… On the magazine’s tagline “Raise Your Spirits” and the DNA of Chilled: We re-launched the magazine three years ago and we took that tagline on when we launched the magazine and it’s sort of a play on words because it’s a spirits magazine and all the other spirits magazines are very, very serious and very responsible, as they should be. But we wanted to have fun, because at the end of the day when you’re drinking spirits you’re having fun. We wanted to be responsible, but on a lighter note.
On the story behind a subscription model that delivers immediately, instead of in 4 to 6 weeks: Well we’re a small magazine, so we have great customer service on our backend.
On the biggest stumbling block he’s faced at Chilled: We’re getting a lot of great feedback with our readership and we’re on a great trajectory. So there hasn’t been a stumbling block.
On the Chilled brand having such a complete 360° publishing model: Everything that we do is 360; we have a magazine, a tablet version, a website and we do events for clients because in the spirits industry events are very important.
On the fun and lighter side of Chilled, compared to other spirits magazines: We always have the celebrities as an overarching theme and that’s what makes us different and we try to get the celebrities involved in every part of the magazine, so that’s kind of our gift wrap, if you will.
On whether the crash of 2008 changed his thinking regarding magazine publishing: No, it didn’t. I’m fully behind magazines and magazines have lived through television, they have lived radio and they’ll live through the Internet, but we have to adapt and make our magazines a little bit easier to read, such as with smaller stories.
On whether the magazine’s glass is half-full or half-empty: I think our future still remains very positive. People are still very interested in the magazine; I think we’re doing something different in the marketplace and I think that they like the way that we work.
On what keeps him up at night: Not having enough time during the day and just trying to do everything we have to do.
And now the lightly edited transcript of the Mr. Magazine™ interview with Jeff Greif, Publisher, Chilled Magazine…
Samir Husni: In this day and age when you have a tagline that reads “Raise Your Spirits” it’s a much-needed sentiment for the entire industry. Tell me a little more about Chilled Magazine and why you want to raise spirits.
Jeff Greif: Chilled Magazine has been really great. We re-launched the magazine three years ago and we took that tagline on when we launched the magazine and it’s sort of a play on words because it’s a spirits magazine and all the other spirits magazines are very, very serious and very responsible, as they should be. But we wanted to have fun, because at the end of the day when you’re drinking spirits you’re having fun. We wanted to be responsible, but on a lighter note. That’s why we always have a celebrity on the cover and why we always do very positive editorial.
Samir Husni: One of the things that I’ve noticed is that you have almost a completely different approach when it comes to your subscription model. If I subscribe to your magazine you will send me the current issue immediately, I don’t have to wait 4 to 6 weeks. If I subscribe for two or three years, you will send me a box of Liquid Ice energy drink and four back issues immediately. Is that in response to some experience you had in the industry with someone asking why do I have to wait 4 to 6 weeks to get my magazine? What’s the story behind the subscription model?
Jeff Greif: Well we’re a small magazine, so we have great customer service on our backend. When you subscribe to Condè Nast or a big magazine, everything is going through a third party fulfillment house that’s very big and carrying a lot of big magazines; we deal with a small, independent backend, so we’re able to sort of customize everything and give really great customer service.
Samir Husni: Since joining the magazine, what has been the biggest stumbling block for you during the re-launch and in making sure that Chilled gets the opportunity to raise as many spirits as possible?
Jeff Greif: This is one of the most amazing magazines that I have ever worked on; it’s grown consistently every year and we’re getting a lot of great feedback with our readership and we’re on a great trajectory. So there hasn’t been a stumbling block.
I think that at some point we’ll reach that maturity level and that’s when we’ll probably see a few stumbles along the road.
Samir Husni: I receive a lot of your emails, so I see that there is even more than the magazine…
Jeff Greif: Everything that we do is 360; we have a magazine, a tablet version, a website and we do events for clients because in the spirits industry events are very important. And we also work with our advertisers to help get their messages out through editorials, product-shots and through drink recipes. So everything we do is 360 and we also have email blasts; we have 20,000 opt-in subscribers for our email blasts.
Samir Husni: Compared to all the other spirits magazines and alcohol magazines; you mentioned that you always have a celebrity on the cover and always have some positive spin and you also have fun with the magazine. Tell me more about that DNA that you adapted for Chilled.
Jeff Greif: Our magazine is divided into three parts. We always have the celebrities as an overarching theme and that’s what makes us different and we try to get the celebrities involved in every part of the magazine, so that’s kind of our gift wrap, if you will.
The meat of the magazine is new products, so we try to work with our advertisers and non-advertisers to tell our readers what is new and innovative that’s coming out.
The second part of our book is about the people that make the industry happen and I think a lot of our competitors are following on the bandwagon on this. I think there were a lot of pictures of parties from other magazines and we wanted to do something where we tell our readers what other people are doing, how they are successful in the industry, so we do stories about bartenders, brand managers, presidents; people who make the spirits industry happen.
And then the editorial well is about the spirits themselves; it’s the story behind the distilleries, a story about a particular brand, and again, it’s about celebrities. A lot of celebrities own brands; such as George Clooney owns a particular brand or Kathie Lee Gifford owns a vineyard and that’s always interesting. So that’s our “gift wrap” on top of everything else and that makes it fun.
Samir Husni: In 2008, when the economy busted and technology burst onto the scene; did that in any way change your thinking about magazine publishing?
Jeff Greif: No, it didn’t. I’m fully behind magazines and magazines have lived through television, they have lived radio and they’ll live through the Internet, but we have to adapt and make our magazines a little bit easier to read, such as with smaller stories. But I think people still want the visual product. I also think everyone needs to be a 360 company.
We’re doing an original edit for our website and we have a tablet edition, but our magazine is thriving.
Samir Husni: Is print still your major source of revenue or is it the events; what’s your balance in that area?
Jeff Greif: Print is still our number one source.
Samir Husni: For Chilled is the glass half-full or half-empty; what’s the future?
Jeff Greif: I think our future still remains very positive. People are still very interested in the magazine; I think we’re doing something different in the marketplace and I think that they like the way that we work. This year we broke a few accounts and next year they’re not going to be supporting the trade spirits market, but they still want to figure out a way to work with us because we’re adaptable. We listen to what our client’s needs are and we don’t try to sell them something; we try to help them grow their business.
Samir Husni: Tell me a little more about that adaptability and the DNA that makes you continue to tick and click with the consumer.
Jeff Greif: I think again it’s the product that we offer, it’s a great product. I came from Condè Nast and Hearst before I started with Chilled and those are consumer magazines, and I think that we made Chilled look beautiful; we have glossy pages, spreads in the front of the book, we look like a consumer magazine, so even though we’re a trade magazine, the brands love it because there is a luxury perception about it.
They also can get in the magazine, people like the brand managers and the brand presidents, so they feel good about the magazine and I think that’s why we’re doing so well.
Samir Husni: Anything you’d like to add?
Jeff Greif: Just that we’re very excited about the publicity that is going to surround the October issue. It will have a triple cover and this will be our first “spectacular” cover such as this and I believe it’s really going to take us to the next level.
Samir Husni: My typical last question; what keeps you up at night?
Jeff Greif: (Laughs) Not having enough time during the day and just trying to do everything we have to do. We’re a small team and we wear many hats and I love what I’m doing so I’m always staying up to think of more ideas.
The Magazine Innovation Center’s ACT 5 (Amplify, Clarify and Testify) Experience is less than three weeks away. This year the theme is “The Future of Digital Begins With Print.” With 46 magazine and magazine media executives slated to speak at the Experience, the ACT 5 Experience is shaping up to be the best one yet.
Samir “Mr. Magazine™” Husni, the director of the Magazine Innovation Center at The University of Mississippi taped a welcoming message to the folks attending the Experience Oct. 7 to 10.
“I absolutely think that the social conscience of Marie Claire is as important today as it was 20 years ago. And I believe that has a great deal to do with our present success.” Anne Fulenwider
Passionate, hard-working and definitely driven when it comes to the success of Marie Claire, Editor-in-Chief, Anne Fulenwider has been in the magazine business for over 20 years and has certainly learned what it takes to head a major brand. From Vanity Fair to Brides, she has worked closely with some of the top editors in the industry before becoming editor-in-chief of Marie Claire. A perfect fit with the magazine that since its inception helped coin the phrase “fashion with a conscience.”
On a recent trip to New York, and in the midst of her busy Fashion Week schedule, Anne was able to carve out some time for me after hours to speak with her about the 20th Anniversary issue, print plus digital and what it takes to achieve the success she has known in the world of magazine media. We met in her office on the 34th floor of the Hearst Tower and the conversation was filled with laughter and great information as her passion for the brand illuminated the discussion and proved that she knew just exactly what the right formula for Marie Claire’s future should be.
So sit back and enjoy the Mr. Magazine™ conversation with a woman who has worked hard and passionately to rise in the ranks of magazine media…Editor-in-Chief, Anne Fulenwider, Marie Claire.
But first the sound-bites:
On the role a socially-conscious fashion magazine such as Marie Claire plays in today’s marketplace: I absolutely think that the social conscience of Marie Claire is as important today as it was 20 years ago. And I believe that has a great deal to do with our present success.
On whether we’re seeing more social issues today in print or in digital: I think the role of social media is important because we feel enabled and empowered to do something and they are more able to participate in the conversation and to make a difference.
On her most pleasant experience since coming to work at Marie Claire: When I was first offered the editor’s job at Marie Claire I was ecstatic because it is honestly my favorite magazine, as a reader I can say that.
On some of the stumbling blocks that she has faced: The stumbling block for me immediately was that I had only been at my current job, the one I was in at the time, for less than a year.
On any feelings of jealousy or competition with other brands that are in the same building as Marie Claire, such as Elle or Harper’s Bazaar: I believe the fashion space is a highly-competitive space and I feel competitive with all the fashion magazines. And certainly, we’re always competing for cover stars.
On why she chooses print when she curls up to read at home: If I’m going to enjoy a magazine right now, for the most part, I read it in print.
On any advice she would give someone just starting out in the industry, with the ultimate goal of being the next editor-in-chief: To become the next magazine editor, I think that they should maybe do what I did: I worked really hard, kept my head up and looked for opportunities, talked to as many people as possible.
On what the industry has done wrong since the 2008 crash of the economy and the rise of digital: I think we as an industry adapted too slowly to the tablet. When a new technology arrives on the scene no one really knows what to make of it at first or how the consumer is going to embrace it.
On what keeps her up at night: But really what keeps me up at night is this flash I sometimes get in the middle of the night that I’ve forgotten to a write thank you note to a designer for sending me flowers or I’ve forgotten to sign my son up for karate; it’s really about the keeping-the-whole-life-together type of thing.
And now the lightly edited transcript of the Mr. Magazine interview with Anne Fulenwider, Editor-in-Chief, Marie Claire…
Samir Husni: I was consulting for John Mack Carter when Hearst launched Marie Claire in 1994. I referred to Marie Claire back then as the “fashion magazine with a conscience”. Now, 20 years later, with your biggest issue ever; do you think the social aspect of being “a magazine with a conscience” plays any role in the success of a fashion magazine today or is it strictly about the fashion?
Anne Fulenwider: I absolutely think that the social conscience of Marie Claire is as important today as it was 20 years ago. And I believe that has a great deal to do with our present success. More now than ever before, young women are very engaged in the social issues of the day, partly because of social media and the Internet. They’re more aware of what’s going on in the world and more able to make a difference and engage in those social issues today.
So, in our 20th anniversary issue for September, we celebrated 20 women who are changing the world. And some of those women are celebrities, but some are a different type of celebrity. Tammy Tibbetts, for example, is the founder of She’s The First.org, and it is an organization dedicated to helping women become the first in their family to go to college.
Women like Tammy, in this country and around the world, were able to find an issue they were passionate about, study it and then do something about it often through social media. I think that this is very relevant to today’s graduating class of college seniors and to women who are thinking about what they want to do with their lives.
Samir Husni: Are you seeing more of that in print media or are we depending on all the social media for those issues?
Anne Fulenwider: I think the role of social media is important because we feel enabled and empowered to do something and they are more able to participate in the conversation and to make a difference.
I’m certainly seeing print media, as far as women’s magazines, doing something related to women’s issues. And I’m seeing this in the advertising campaigns as well; all types of media are paying attention to women and what matters to them, but Marie Claire has been addressing this for all of its life.
Samir Husni: Every editor that comes to a magazine experiences pleasant moments and those that become more of a challenge. When you were first offered the job at Marie Claire; can you tell me the most pleasant thing that happened and also some of the stumbling blocks you encountered?
Anne Fulenwider: When I was first offered the editor’s job at Marie Claire I was ecstatic because it is honestly my favorite magazine, as a reader I can say that. It’s something that I can identify with because of its mix of fashion, beauty, social issues and its journalistic approach as well all of the things that make a women’s magazine great.
The stumbling block for me immediately was that I had only been at my current job, the one I was in at the time, for less than a year. That was really a stumbling block for me because I was enjoying the job that I had and I didn’t think that I had finished it and I had just hired a whole group of women, mostly women, a few men, that I had encouraged to join me in this adventure of evolving that brand, which was Bride’s Magazine.
So, I really had to think about it from that point of view. That being said, timing is never perfect in life and I went home and talked to my husband and he was very helpful. He said, “The head coach job only comes around once in a while and you have to think about the brands where you would really want to be in charge.” And he knew there were really only three or four places that I would want to be head of. In the end, I just had to make the leap.
Samir Husni: We are no longer talking about magazines in our industry; everyone now refers to them as brands, so the magazine becomes one of the many items or products in the brand. How do you view Marie Claire? The magazine has a worldwide presence, of course, but does that really matters for the American audience? What role does this brand now play in the marketplace?
Anne Fulenwider: First I would say that I think the American audience, our reader, is interested in the fact that we have a global presence. I think that the Marie Claire reader does have a global view of the world. I believe that the print magazine will always be one of our core businesses and products. If you hadn’t just spent time with him, I’d try to steal this phrase, but Michael Clinton was just recently interviewed about what he calls print magazines: bricks and mortar businesses.
But our audience is also incredibly engaged on their mobile phones, on the web and on their social media voice. So, I think of print and digital working side by side, complementing each other and all of them being very valuable to our reader because she’s reading the magazine. I love to read magazines too; I crawl into bed and read one after the other in print and then when I’m traveling I read my iPad. And people are the same, so the reader is engaging with the brand in many different ways throughout her day and her life.
But it’s important that the Marie Claire voice, sensibility and point of view is communicated in the appropriate form for each media, so that when we’re speaking to you on Twitter, we’re catering our message to Twitter. When we’re speaking to you on your phone and showing you a Marie Claire story on your phone it has to be short, visual and popping up one after the other.
I believe print will always be central and a major part of the brand, but digital is becoming more and more important.
Samir Husni: Do you ever envision a day where there will be no printed edition of Marie Claire?
Anne Fulenwider: No.
Samir Husni: How about all the brand extensions from print? You have Marie Claire @ Work, Marie Claire @ Play and you’re introducing women to football – NFL…
Anne Fulenwider: (Laughs) I have a new brand extension that we’re introducing in the October issue that is very exciting and another big part of women’s lives. What about the other extensions?
Samir Husni: Any of them spinning off on their own to become separate magazines?
Anne Fulenwider: Yes, I would love that. In fact, there are certain venues, for example, Marie Claire at work, separate booklet, Marie Claire at play, separate booklet or digital editions and absolutely, I would love it if they became more. I really have a great idea for “at work” for example, in which the digital edition of that could be distributed on its own. And we are always innovating, in terms of where we can put our product and where we can put the catered message and the specific sections and spinoffs. So, yes, that is very much a part of our plan.
Samir Husni: You’re a part of a major brand media company, Hearst, and you have two other competitors in the same building: Harper’s Bazaar and Elle. Do you ever feel any sense of competition or jealousy?
Anne Fulenwider: On a personal level, I get along very well with Robbie and Glenda, I see them in the building and I’m always happy to see them at shows. I think they have great magazines. I believe the fashion space is a highly-competitive space and I feel competitive with all the fashion magazines. And certainly, we’re always competing for cover stars. Plus, I’m a very competitive person; I played three varsity sports in high school and I think that’s healthy. I think it’s healthy for the marketplace and helps you make the best product and I think complacency is never good.
I don’t feel more competitive with magazines in the building than I do with others outside of the building. I just have pride in Hearst and what we’re achieving in this space right now.
Samir Husni: Almost with no exception all the fashion magazines in September have seen their largest issues ever; what do you attribute that to?
Anne Fulenwider: Do you mean at Hearst?
Samir Husni: At Hearst and your competitors. InStyle had its largest issue; People StyleWatch had its largest ever…
Anne Fulenwider: I think the fashion industry is very healthy and is enthusiastic about what we’re all doing in magazine media. I believe the fashion designers and companies love to see their beautiful ad campaigns and designs photographed by some of the most fantastic fashion photographers in the world, in the magazines. There is no better place to see those beautiful pictures than in large format print on paper. By the way, I also think it looks fantastic on the iPad in large format digital. We’ve felt greatly supported by our partners and I think they’re doing very well.
Samir Husni: For anyone who doubts the future of print; I carry around the Fashion Box filled with three magazines. It’s 9 lbs. of ink on paper for $13. (Laughs)
Anne Fulenwider: (Laughs) I take two of them home and just lift them up at night, try to do a couple of reps and that’s my workout. (Laughs again)
Samir Husni: You mentioned that when you were at home and in bed, you read in print. Why?
Anne Fulenwider: I’m omnivorous; I love magazines and I love to read. I read The Sunday Times in print as well. But I also read lots on my phone and on my tablet; I read a lot of news on my phone on the way into work when I take the subway. So I do a lot of reading on my phone and on my tablet. But if I’m going to enjoy a magazine right now, for the most part, I read it in print. I read home magazines, fashion and news magazines; I read a lot.
Samir Husni: Other than Marie Claire; what’s a magazine that you feel you can lose yourself in or have an experience with when you’re just sitting and having a glass of wine and enjoying reading?
Anne Fulenwider: The World of Interiors and The Atlantic; two completely different experiences. One is more visual and one is more about the issues that I care about.
Samir Husni: Being the editor-in-chief of a women’s fashion magazine with a lot of social interaction; what advice would you offer someone entering this field? What can you tell them that might prepare them to become the next editor-in-chief?
Anne Fulenwider: That’s a really good question. I think that they should read magazines, of course, if they don’t already. And I’m sure they’re all really adept at social media. They should focus on just exactly what it is they love about whatever it is they’re reading. I love speaking to young people and to students who are still in college and I tell them all to do what they love and to pursue it with ferocity.
To become the next magazine editor, I think that they should maybe do what I did: I worked really hard, kept my head up and looked for opportunities, talked to as many people as possible. They really need to become knowledgeable about the industry, read the business news, read the trades and pay close attention. Try to be as useful as possible to whomever they’re working for.
One of the most important things is to become incredibly adaptable, because this business is changing so fast. Someone asked me the other day, “How has the magazine industry changed since you got to New York?” (Laughs) I said that I didn’t have email at my first job; there were computers, but no email. It’s completely changed over my 20 + years in the industry. And that’s exciting to me, because you always have to embrace change and the velocity in which it changes. You have to be able to innovate and take charge of the future and look forward to change.
Samir Husni: Do you think we’re doing ourselves an injustice by trying to replicate our success in print on digital devices? Or do you think we need to leap toward digital and be even more creative with it?
Anne Fulenwider: We are no longer trying to replicate the print experience on digital devices. The minute the iPad came out or all these digital devices, the trick should have been to see how the reader and the user interacts with them and likes to play with them.
We need to delight and surprise them in the voice, mood and point of view that is Marie Claire. And I always think of Marie Claire as really a point of view, a way of viewing and experiencing the world and seeing the fashion shows or reacting to news about women of the world. So I don’t think about it as just the print magazine and we need to be duplicating that digitally, I think of it as this is Marie Claire and a Marie Claire reaction.
So this can be translated into a game or a photo-shoot; we could take photographs and leak them online; so I certainly don’t think we should just be replicating things. I don’t think, for example, we should just put the contents of our magazine on the website, which we don’t do; we create unique content for the website. The unifying theme is the Marie Claire point of view and the Marie Claire voice and style of images.
Samir Husni: If someone asked you to humanize the magazine; if I gave you a magic wand and you struck Marie Claire and a human being popped out, can you define that person who is going to engage all these women in that conversation?
Anne Fulenwider: It’s me. (Laughs)
Samir Husni: Perfect. (Laughs) So when you look at the magazine industry as a whole, and you’ve seen quite a few changes during your tenure; what do you feel was the biggest mistake the industry committed as we are seeing all these rapid changes?
Anne Fulenwider: I think we as an industry adapted too slowly to the tablet. When a new technology arrives on the scene no one really knows what to make of it at first or how the consumer is going to embrace it. No one really knew Twitter was going to end up being a news delivery system, for example. With the advent of the tablet, we as an industry thought the right move was either to replicate the print product or to add a whole bunch of bells and whistles that readers were not necessarily interested in.
But, we know now that that’s not the right tactic—it’s not how people want to interact with a tablet. Mostly, they want to watch TV shows and play games. The answer for every platform we publish on is to create a product that suits the medium. For mobile we have to create a product that fits with our reader’s behavior there.
Samir Husni: My typical last question; what keeps you up at night?
Anne Fulenwider: Honestly? I have always been a very good sleeper, but sometimes we have a feature in the magazine about women’s issues, such as women in refugee camps, I don’t want to get too heavy here, but a feature that bothers me and I’ll think, we’re doing a story on that, but what else can we do.
But really what keeps me up at night is this flash I sometimes get in the middle of the night that I’ve forgotten to a write thank you note to a designer for sending me flowers or I’ve forgotten to sign my son up for karate; it’s really about the keeping-the-whole-life-together type of thing. It’s more about the full, busy life and less about the real things I should probably be worried about.
Samir Husni: Thank you.
“I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline. There’s always going to be room for someone to sit down with a magazine on a cozy afternoon and read a great magazine. That is always going to go on.” Joe Ripp
The first book I read when I arrived in the United States in 1978, as a graduate student, was Time Inc.: The Intimate History of a Publishing Enterprise by Robert T. Elson. Joe Ripp, current CEO of Time Inc. is reading the same book now. Not that he needs to, but it is a very good refresher history into the ins and outs of a company that was, is and always will be more than “just a magazine company.”
Joe Ripp – CEO & Chairman of the company, returned in September 2013. Joe started with Time Inc. in 1985 and spent many years involved in the digital aspects of the company, along with advertising and publishing. Mr. Ripp is quick to remind you that Henry Luce has created much more than magazines. From newsletters to newsreels, Luce used all the media platforms available to dispense the different content that was created by the folks at Time Inc.
So when people mention to Joe Ripp that Henry Luce would be turning in his grave with all the changes Time Inc. is making today, Mr. Ripp is quick to answer that Luce would be turning in his grave if we were not engaged in all these changes. “After all, Henry Luce was a multi-platform person himself and we ought to be.”
I reached out to Mr. Ripp on a recent trip to New York City and over a one hour conversation in his new executive office on the second floor of the Time-Life building (the former private dinning room for Anne Moore, Time Inc.’s former CEO) we discussed the power of the Time Inc. brand, the role of the Internet in today’s publishing world and where the future of the brand is heading for the next 100 years. His answers were open, honest and very informative. A man who believes the audience and how they want to consume their content always comes first; Joe Ripp knows Time Inc. and that audience just like a childhood friend. The bond between the man and the magazine is palpable.
So before you take some “time” to sit back and enjoy the Mr. Magazine™ one-hour conversation with Joe Ripp, click on the video below to watch the Mr. Magazine™ Minute with Joe Ripp and hear what the CEO of Time Inc. has to say about the many false perceptions surrounding the company.
Now for the sound-bites…
On how he plans to utilize the power of the brand to achieve even more success today and in the future: I come at it with a fundamental belief that there is real value in brands. Brands have always driven consumer interest, consumer affection; consumer purchasing power is created with brands, because brands convey to us a sense of trust, a sense of quality in what they are.
On why the publishing world didn’t follow the same business model as cable TV when it came to the Internet: I have no idea why. I know that when the Internet first came out there were a lot of people dismissing it, a lot of people saying that it wasn’t going to work; some people called it a Black Hole, as I recall.
On Sports Illustrated’s continued success and creativeness: They’ve been very inventive in thinking how else can I get high quality content and information to consumers of sports and maybe that’s the brand.
On whether mobile technology will be the future of the brand: I don’t see mobile as the future, because it has its own problems, but I think there is more and more people who are going to access mobile and if you create the kind of great, quality content that people are looking to consume on mobile, they’ll come back to you and your brand. On whether today’s editors and publishers in the media world understand the value of data: I would think that most of them don’t. I came from the big data industry, so I understand what’s going on with big data and I understand how data is really changing the way B to B sales work.
On millennials not getting their important content from the web: Right, because there is so much silliness on the web. The world is collectively wasting its time, people sharing just a bunch of things. But the reality is there is also important information that we produce and we think we’ve got great, quality content.
On whether Time Inc.’s print editions will ever disappear forever: I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline.
On the role book-a-zines play in Time Inc.’s present and future: Book-a-zines are very, very topical, they’re very high-priced as you know, and they’re very profitable for every publisher that does them with us.
On the most pleasant surprise he faced when he came back to the company: The most pleasant surprise that faced me when I came back? That I’ve still got a great company, with great people, the talent is still here, that the enthusiasm for this company is stronger than ever.
On his biggest stumbling block: The biggest stumbling block, quite frankly, is just can we change fast enough? I don’t think we’re moving fast enough. I’m impatient on that.
On what keeps him up at night: The reality is that I work very, very hard and think about where this company is going. You worry about if you can move it fast enough with the decline so that the investors will leave the cash.
And now the lightly edited transcript of the Mr. Magazine™ conversation with Joe Ripp, CEO & Chairman, Time Inc.
Samir Husni: In a few years you’ll be celebrating 100 years of Time Inc. As you get ready to celebrate this momentous milestone, you have brands, they were magazines, but now they’re brands; how are you going to utilize the power of these brands to achieve even more success?
Joe Ripp: I come at it with a fundamental belief that there is real value in brands. Brands have always driven consumer interest, consumer affection; consumer purchasing power is created with brands, because brands convey to us a sense of trust, a sense of quality in what they are. And Time Inc.’s brands have always stood for quality, for trust, for respected journalism, for incredible information; whatever it is, our brands have stood for that. That’s why we can get $115 a year for People magazine, because it’s a good magazine with really good quality content.
I think what you’re going to see moving forward are those brands manifesting themselves in other places. When I came back to Time Inc., I was talking to Jeff Bewkes and he asked me: what do you think the company missed, this is before I even knew he was talking to me about a job. I told him when I left Time Inc. 14 years ago, the magazine had this ad campaign on the air, and it was very effective. It said: join the conversation, Time Magazine. When I was down at AOL a new technology was deployed for the first time in the history of the human race; the human race could now actually have a conversation about every topic they want to talk about and they could find groups of people who wanted to talk about that same topic.
Time Inc. didn’t join the conversation. It was still printed pages pushing out the opinions of its editors and it didn’t engage in a conversation with those audiences who now wanted to really talk about all those things that the magazine was covering. And had the magazine simply understood what it was, a subject matter expert that really had important things to say in that conversation and had embraced that conversation more readily, it probably would have been a lot more successful. But because of the AOL merger, because of Turner, because of a lot of things, Time Inc. was told no, don’t join the conversation, you’re still editors pushing things out.
And I think that’s the change; that’s the only thing the company missed and it’s not too late for that. We’ve been able to demonstrate when we started thinking about the conversation, for example, Time.com is doing very well right now. I had a group of millennials here, around 150 of them we had for interns, and some of them said, “My favorite website has become Time.com.” And they weren’t sucking up to me, it was private conversations. They just wanted me to know it had become their favorite.
There is no reason in the world why Time with its brilliant content can’t reach audiences in the way they want to consume their content. We just haven’t tried as hard as we should have in the past, because we had this sense that we were editors pushing out this one-sided conversation. That’s changed now. We’re now embracing those audiences and going after those crowds and making sure we’re a part of the dialogue going on out there.
When Rick (Stengel) put on the cover of Time Magazine Jamie Lynne Grumet breast-feeding her child, there were probably a billion conversations around the world about that cover, it was one of the most widely reported covers that we’ve ever done and I think it was on every TV show that week, every news program, but none of that conversation came back to us, because we didn’t have the technology or the outreach, but it fueled massive amounts of social conversation and sharing; yet none of it came back to us. Why? Why would we let that happen?
Samir Husni: If that cover had been digital-only; do you think it would have generated as much buzz?
Joe Ripp: No, if it wasn’t TIME Magazine it wouldn’t have generated that much buzz. If it would have been Gawker or BuzzFeed, any of those other guys out there, it wouldn’t have generated that kind of controversy. It was Time Magazine and the respect that the brand has that allowed it to generate that kind of controversy and covered that subject in an important way. It was the brand that created that.
Samir Husni: So what went wrong? When I look back into the history of Time Inc., you founded HBO…
Joe Ripp: When I first started, we put the money into it, $20 million.
Samir Husni: And you went to the utility companies and said, “You wire this home, they’ll pay you $9 and we’ll split the money.” Why didn’t we follow the same model with the Internet?
Joe Ripp: I have no idea why. I know that when the Internet first came out there were a lot of people dismissing it, a lot of people saying that it wasn’t going to work; some people called it a Black Hole, as I recall. (Laughs)
The reality is that the Internet fundamentally changed the way we all consume content and get information. It may fundamentally change the way democracy works in the future, who knows? None of us know if the Internet is a good thing. The founding fathers created the Senate and the House. The Senate was supposed to protect us from crowds, so the crowds couldn’t do all the nutty things that crowds sometimes do. Well the nuts can all find themselves on the Internet. So the Internet can be a very powerful force for good, like in education, because it brings the world’s libraries to the rest of the world, but it can also be a very powerful force for evil, because all the nuts can find each other. So I don’t think the story of the Internet has been written yet.
But I do think that Time Inc. can play a very active role in the Internet with the digitization of assets and content and our ability to reach consumers. We have right now 83 million unique’s and it’s going up rapidly. We’re redoing all of our websites. When I came in, quite frankly, all of the websites were pretty awful. They didn’t have a lot of video content. You couldn’t share or comment on the stories; you couldn’t do all of the things that you’re supposed to be able to do.
You look at our iPad edition; what is it? It’s a PDF version of our magazine. Why would you take that device with all of its wonderful features and technology and do a PDF version?
So if you got TIME Magazine right now, I think you’d see a lot more singing and dancing and a lot more video on the iPad edition. What we’re trying to do is utilize the devices, utilize the way people want to consume our content and reach them and it’s one of the reasons we have a big video initiative going one. We’re producing thousands and thousands of videos now in this organization and that’s going to go up even more dramatically next year because video is an important component of the way we tell stories and people want to consume video. They want to see it on their phones and sit at the airport and watch them.
Samir Husni: In your interview last week, you mentioned that you want the company to look at SI as the guiding light of the video…
Joe Ripp: I wouldn’t call them the guiding light because then they’ll get their heads too expanded. (Laughs) What I want to look at them and say is I wish more of my company was like you, because they’ve been in a scrappy, competitive environment for years with ESPN. Sports are all over television, it’s one of the biggest things on television. Advertisers love it because it’s safe, reliable content; you don’t have to worry about anything when you advertise on an NFL football game. And I think it’s a great opportunity for growth. SI, because they’ve been scrappy, has done a lot of work creating new products and services, newsletters, new websites; the SI Swimsuit Issue has become a major business by itself; they’re doing an awful lot to promote the brand and expand the audience that they’re reaching. You know, we just got into FanNation and we did the 120 sports deal with the leagues, created two minutes of sports clips, about 8 hours a day of that and it was distributed on cell phones.
They’ve been very inventive in thinking how else can I get high quality content and information to consumers of sports and maybe that’s the brand. Extra mustard goes out and you don’t really know that’s SI, it’s just a newsletter. Then MMQB from Peter King, which is a newsletter that goes out from him, very widely read. What we’re doing is saying we’ve got this great content, how else can we find audiences for it, how else can we distribute it and advertisers are willing to promote it with us.
Samir Husni: One thing I’ve always said is we have two competitors out there: time (not the magazine) and attention span. And when we read and see that 50% of people in Europe, and I just saw the statistics today, access the web through their mobile phones and cell phones, rather than the desktops or laptops; do you think the future of the brand is going to be in mobile technology?
Joe Ripp: I think it’s a problem for everyone, because people are asking, how can I track it; the amount of tracking going on right now is enormous. Everybody is tracking everyone’s behaviors, but on the mobile market it makes it a lot harder to track behaviors and the results of advertising.
In addition, you have to be a lot more creative about it, because how many times have you looked at an ad on your mobile phone? Not so often, right? So you have to be more creative. I don’t see mobile as the future, because it has its own problems, but I think there is more and more people who are going to access mobile and if you create the kind of great, quality content that people are looking to consume on mobile, they’ll come back to your brand on websites, on printed editions, newsletters and whatever else.
I think mobile becomes just another form of distribution, but what people haven’t developed yet is what’s the real monetization formula for mobile. That’s a little harder; because advertisers can’t get the specific kind of information they think they’re getting at websites.
The reality is that we’re working very hard right now to find a chief data officer, because I believe that we have this huge data base, we track 150 million U.S. adults, we have billions of interactions a year with people; there’s a way for us to monetize that in ways that others have. One of the reasons that Facebook is doing so well is because of the data that they provide back to advertisers. I think that data can be an important component of what we can help advertisers to see: that we can be just as effective for them, so I think you’ll see a lot more of that coming.
And mobile can be data-sourced, data-collection efforts, so you can understand what’s going on. There are ways that once you tag people, if you tag it right, you can get a sense of generally where a person went, here or there, so you can get a lot more information for advertisers.
Samir Husni: Do you think our current crop of editors and publishers in the magazine industry as a whole, not necessarily just at Time Inc., have an understanding of how valuable that data is?
Joe Ripp: I would think that most of them don’t. I came from the big data industry, so I understand what’s going on with big data and I understand how data is really changing the way B to B sales work. It’s certainly changing the way B to C sales is working. And I think there’s a huge opportunity for us in the data play.
Part of the problem that we have is we’re considered non-measured media. The reality is most of the stuff being measured is silliness. There’s a lot of click-fraud going on. I call it click-bait, but there’s another term that people call it. We write a catchy headline and it doesn’t mean anything, billions of people show up to look at the headline and that’s all they do, they show the headline. They’re not really engaging in the content, not really looking and there’s seems to be, as I was quoted at the last conference, there seems to be a bubble going on, there’s a traffic bubble. There’s an evaluation bubble in traffic. Suddenly, anyone who has traffic seems to be worth hundreds of millions of dollars, even if they haven’t figured out to monetize it yet.
And there is a lot of traffic being generated by creating traffic traps that look at this and you’ll share it and throw it around ten times; you didn’t do anything with it.
The reality is that we’ve got really good content to engage in. I think we’ve got really good opportunities to engage people more wisely and I think that at the end of the day good content will prevail. I certainly hope that our kids don’t get raised on 10 ways to feed your gerbil. There’s a real opportunity to give them good quality content and information about serious issues, because there are serious issues in this world. And there’s a place for serious dialogue, for good, quality entertainment, for great information about how-to and there’s a place for that.
Samir Husni: There was a study just released this morning by the Pew Research Institute about millennials aged 16-28. One of the things that they discovered is that a big chunk of that age group spends a lot of their time on digital devices, but a hefty number of them said if they really need something serious or important they don’t find it on the Internet. And this was a higher number than our generation.
Joe Ripp: Right, because there is so much silliness on the web. The world is collectively wasting its time, people sharing just a bunch of things. But the reality is there is also important information that we produce and we think we’ve got great, quality content. I firmly believe that there is a role for quality journalism, for quality content and quality information going forward and will be forevermore.
Where it’s distributed, what form it takes, how people consume it; that will all change and it’s morphing over time. I began my career when HBO started out and we all got five channels for free; now look at what we have. Look at the transformation that will occur in cable going forward. What’s going on with the cable mergers? They’re all deathly afraid of over-the-top video. They’re realizing that cable companies created these pipes into the home that they can’t control anymore.
In the beginning when it all rolled out, if you remember, these full-service networks; the cable guys all thought they’d control that. That they would be in charge and everyone would pay a toll to come over that. The Internet said no, no, no, that’s free. Now the cable guy has this pipe into the home and it’s actually dislocating them, because fewer millennials are getting cable television. Fewer of them are watching television on TV, they’re watching it over-the-top with Netflix and Amazon Extend Video and some of the stuff that we’re producing and will produce going forward.
So that whole eco-system of cable is changing and that’s why you’ve got these marketers going on, because people are all looking at the morphing technology like over-the-top video. I look at it and say that it’s pretty exciting for us.
It used to be if I tried to get a cable channel going, I’d have to pay a couple hundred million dollars to some cable guys to allow me to get one station for them. Now, quite frankly, I can create all sorts of channels and content that gets distributed to consumers and I don’t have to pay anybody any toll. And that’s kind of an interesting opportunity for us. Those days have changed. It used to be that the cable guys were in charge of video distribution, they’ve lost that. Over-the-top video is now the next rage, everyone is talking about it.
Samir Husni: A lot of my students they wait until the end of the season…
Joe Ripp: And then they watch it all at once.
Samir Husni: Yes, all at once.
Joe Ripp: They can watch the entire season in a day.
Samir Husni: Yes.
Joe Ripp: That’s very common right now. And that’s actually troubling the Comcast’s of the world and the other cable companies. They’re looking at this and asking what does all of this mean? In part, the merger. If you look at some of the disclosures of the cable companies, none of their disconnects have gone down. They’re still seeing disconnects, because the millennials aren’t getting cable. They’re getting a broadband connection and they’re calling it a day. They’re getting Hulu, Netflix or whatever they want, whenever they want to watch it and they’re binge-watching. So they’re very, very different and we’re all trying to adjust to this. This is the first time we’ve ever really had a true digital generation becoming adults. And they’re going to change the way they do everything and a lot that goes on in the world. The way they think, act, share, talk; they’re just different.
Samir Husni: Yet, they still love magazines, as is evident by your newest magazines that were launched in the last 20 years, InStyle, People StyleWatch or Real Simple; these magazines are still printing their biggest issues ever.
Joe Ripp: Yes, InStyle just did over 700 pages.
Samir Husni: Exactly. And I know that People is really the cash cow of the company; will we ever see those print editions disappear completely, including InStyle?
Joe Ripp: I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline. There’s always going to be room for someone to sit down with a magazine on a cozy afternoon and read a great magazine. That is always going to go on.
But print is in a slow decline and will continue to shrink. And I believe that is going to happen. And even if it doesn’t; I still have to plan for that. As I’ve said, I’m going to plan for it anyway, because I think for too long people were saying that that wasn’t going to happen; we’ll find a way to turn it around. I say that we’re going to do everything that we can to stabilize those trends; we’ll invest in our core businesses to stabilize them and make sure they decline at the slowest rate possible, but I have to believe as an organization that we’ve got to focus on the fact that it is going to continue.
And if we do that; we’ll plan for that future and not deny it. But if it does plateau out a little bit, that’s fine too. Because then we’ll be in much better shape. But I have to keep making sure that this organization says, yes, that will change. Therefore let’s get into more digital, more video, more experiential; let’s think about new digital magazines we can launch, new ways of reaching consumers, more newsletters, etc. How else can we reach consumers.
Samir Husni: What role do the book-a-zines play? Time Inc. has around seven book-a-zines per week. You’re doing it for National Geographic, the American Bible Society; you’re doing it for your own brands.
Joe Ripp: We have a lot of other publishers too talking to us about doing more of it, so it’s actually doing quite well. Book-a-zines are very, very topical, they’re very high-priced as you know, and they’re very profitable for every publisher that does them with us. We have 280,000 pockets in supermarkets and newsstands around the United States where we sell book-a-zines. They’re highly profitable for the retailers and they’re highly profitable for the publishers. And as you can see; we can turn them out on a dime.
When Robin Williams killed himself, we had no advance warning of that. We had three book-a-zines out in 3 or 4 days, in the marketplace and on the shelves. We can turn that out pretty quickly because we have really good people who can do that. They have the distribution vehicles to get it out there.
Samir Husni: The problems on the newsstand did not impact that?
Joe Ripp: No, that’s a great, growing strong business for us. And that business continues to prosper.
Samir Husni: Even after we lost Source Interlink and others?
Joe Ripp: We’re actually back up now to 100% distribution since Source Interlink; we’ve recovered fully from that. When that whole thing happened we went into action really quickly and we’re fully recovered as far as we can tell.
Samir Husni: What’s the next big thing from Time Inc.?
Joe Ripp: If I told you that, I’d have to kill you. (Laughs)
Samir Husni: I won’t ask you why you don’t take the company private…
Joe Ripp: I don’t plan on taking the company private. I think that we’re just finding the public markets. We’ve got a great stable base of shareholders, people who are very interested in the story, who we are talking to very, very publicly and often about where we’re going and what we’re raising. I’m very happy with the capital structure we have; we’re not debt-laden. If you look at what we came out with, $185 million cash, 1.4 in debt and the cash will be up even further by the time you get to the third quarter. We’re in a pretty good position.
But I think that we’re in a great position; I wanted to make sure that we had the right capital structure. If I go private I’ve got to borrow out the wazoo. Lever the company up strongly and then the company loses its ability to grow.
Because a private equity transaction is usually not, for the company this size, about the best thing; it’s about stripping it and taking the values out and monetizing. They all want to get in and out in five years. So, you could have done that transaction with Time Inc. and you could have probably made a lot of money, stripped into little pieces.
The reality is this company needed to be saved and I came back to do that, not strip it. And I think by investing in this company we’re going to find the right way to grow the business and to employ the resources that it generates. It has rich cash flow; I have access to every CMO in America, I have a data base of 150 million U.S. individuals, I’ve got one of the best direct marketing operations in the United States, I have 2000 of the best content producers in the States and I have incredible brands, many of which have been around for over forty years, with one for 165 years. And I have a great company; why can’t I do things with that? Stripping that and layering that up with debt is not a good idea.
One of the things I was very focused on when I came back was making sure that we did not get burdened by debt on the way out the door, because I did not want to operate in that company. Once you start tripping over covenants, you lose your ability to invest in your future, because you’re always paying the piper.
Samir Husni: What was the most pleasant surprise that faced you when you came back?
Joe Ripp: The most pleasant surprise that faced me when I came back? That I’ve still got a great company, with great people, the talent is still here, that the enthusiasm for this company is stronger than ever. I have more people talking to me about how great Time Inc. is and that it needs to be saved. People respect and love the brand more and more and come up to me and say I love People or TIME or I’m a Fortune person.
The passion that we generate among the people who know us is incredible. So the most pleasant thing, despite all the years of being beat up and under-invested in and stripped of its cash; you’ve got a company that everyone still loves. And everyone wants to be successful. That’s been actually the most surprising part.
Samir Husni: And the biggest stumbling block?
Joe Ripp: The biggest stumbling block, quite frankly, is just can we change fast enough? I don’t think we’re moving fast enough. I’m impatient on that. And yet, when I look back everyone tells me that we’ve made a whole lot of changes in a year. But it’s just not fast enough. We have to keep on going and stop clinging to the past and wishing that it was like it was before. I wish it was like it was. When I left here we were having a great run. We had 8 straight years of solid growth. So I wish it was like that again too, but it’s not. So what? So what, it’s not.
The reality is I’m impatient about the pace of change and I think that impatience is what’s making us grow faster. And what I really want is to encourage my own organization; if I can teach a $3.4 million operation to think like a start-up, to have the paranoia of a start-up, to have the paranoia of a private equity shop, trying to figure out the value; we’d be in great shape.
Everyone is thinking about how do we grow, what can we do, what new ideas do we have…the problem right now is I probably have more great ideas than I have the time or the people to do them. But I’d rather have that problem, whereas before people did tell me, you should just leave that thing, you probably can’t grow it, and so you should just leave it.
Samir Husni: I hear that people are just waiting in the wings to see if Joe Ripp is going to sell the Southern Progress part or when is he going to sell Sunset so they can jump in and buy it.
Joe Ripp: They’ll be waiting for a while. (Laughs) Everyone is thinking about what pieces they want; they all want to carve out my empire. It’s what I’ve always said, and others warn me that I shouldn’t say this; if someone asked would you ever sell Southern Progress? I always said if someone walks in with a billion dollar check, it’s theirs. No problem, I will sell it.
When I was the CFO of Time Inc. and Time Warner, I asked the question every year in our budget meetings; are you worth more to someone else than you are to me? And if so, why? And if so, what would they do that I can’t do? And why aren’t we doing it?
And if it turned out that we really can’t do it, you really are worth a lot more to someone else; I should probably sell you to them, because we should be generating value. We should be generating value, because if we do we’ll get the funds to invest and create more value, create new businesses.
My biggest problem right now is I’m a brand new entrant into the marketplace; we’ve only been out a couple of months; Wall Street has been behind us, we’ve raised over $4 billion in cash, between debt and equity, it’s all there, but they’re saying where are you going with this business. Can you generate returns for me? If I don’t generate returns for them, people will say, oh, that’s pandering to Wall Street; I don’t own this company, the shareholders do. And if we don’t generate good returns for them, that they get excited about our growth prospects, they’re going to want their money back. So they’re going to say to me, you know all that cash flow you got. The $300 million cash flow that you have at the end of the year? I want that back. I want bigger dividends and buy-backs; I don’t want you to have it, because you don’t seem to know what to do with it.
I have to find a way to reinvest in this business. It’s been starved for cash for years. I think it has great opportunity for growth and the only way I get to keep their money is by proving to them that this management team, this company is wise enough to invest it and provide growth that they will get excited about. That’s how I get the money and that’s how capitalism works. I know that very clearly and I have to demonstrate very clearly what I can do with it. And if I can do that, then I get to keep the cash to invest back into this company.
Samir Husni: I love what you said once, “Show me a single person who would not like to work for Time Inc.”…
Joe Ripp: You know when I became the CEO some people called me up and said, “Why did you do that? That’s crazy.” And I said, really; it’s crazy to be the CEO of Time Inc.? It’s the greatest honor of my life. This is a great company and it has really defined my life. It’s one of the best institutions that I can imagine in journalism and in media. Look what it did; it created cable television. It used to be you couldn’t do anything in Pennsylvania because the mountain got in the way. When it launched HBO, cable television became an entertainment medium and then we wired the country as a result of that.
Before cable became entertainment it was just something for signals. This company has done incredibly great things and it has the opportunity to keep doing that.
I think it’s a great company and it needs to be successful. And I think that we have the greatest shot in the industry to pull it off. It’s just a matter of how fast you can get ahead of the secular trends. And it’s a fun job. Trying to sort through this problem, it’s complicated and there have been lots of opinions, as I’m sure, you’ve read in the press. (Laughs) Lots of opinions of what we’re doing right or wrong. But quite frankly, I’ve just learned not to listen to those things, because if I’m trying to do the right thing; I don’t really care what a couple of pundits on the side have to say. We have got to make the right decisions and we have got to find a way to make this company great again. And we’re going to do that, we’re going to make some changes and as I keep telling everyone, if we make a mistake, we’ll do the other thing. Just stop worrying about the mistakes. The company, I think, was paralyzed by: it may not work. Who cares? It definitely will not work if you don’t try.
Samir Husni: My typical last question; what keeps you up at night?
Joe Ripp: I sleep very well. I think about this company; I come in every morning on most days between 6:00 a.m. and 7. I try not to do dinners because I’m too fat. (Laughs)
The reality is that I work very, very hard and think about where this company is going. You worry about if you can move it fast enough with the decline so that the investors will leave the cash. And that’s what I’ve been working toward; trying to make sure the capital structure is right, trying to make sure the investment base is correct, make sure that we’re talking to them correctly, because I have to make sure that the investment base goes along with us. I don’t own this company, the investors do.
We have to make sure that we’re generating the right kind of story and we’re attracting the right kind of talent to make it work, so far, so good. But we’re only one year into the marriage, right? We’re attracting really great talent; we just brought in Mark Ellis, who was practically the head of sales for Yahoo. He was really a great hire for us.
We just brought in a new editor for Fortune magazine and its doing great. We’ve got really good people saying, “There is something going on and I’d like to work there.” And the more we can bring in great talent with different kinds of experiences, who can contribute to what we’re doing and believe in our brands and what we can do, then we should be just fine.
“I think that it would be Pollyannaish to say that print will never disappear. I do think that someday print will not be around, but I’ll have to say that it’s much farther into the future than many of us were talking about four years ago. And I don’t see it coming in the near future at all. Print is stronger than ever.” Bob Cohn
Legacy media surviving in this digital age? Not only surviving, but thriving? It must be a dream in the sleep-induced mind of some forgotten print publisher of the 80s. And if you believe that answer, then Mr. Magazine™ will now be known as Mr. Digital™…and you know that isn’t happening.
The Atlantic, first founded in 1857, is beating the odds and doing something fairly unheard of in print magazine media today: they’re increasing newsstand sales and making money from digital. While that may be hard to believe, it is nonetheless true.
I recently spoke to Bob Cohn, Co-President and COO of The Atlantic about the impossibilities or opportunities of being an innovator when your product is as old as time; his answers may surprise and perplex you, but definitely will enlighten you as to how the 157-year-old media company is jumping hurdles against the rest of the competition and proving that legacy media can be much more than a mere throwback to days-gone-by.
So sit back, relax and enjoy the Mr. Magazine™ conversation with The Atlantic’s Bob Cohn… I promise you won’t be disappointed.
But first, the sound-bites… On The Atlantic’s “secret sauce” of success: I think it’s a combination of having a great brand and a great legacy that we understand internally and that our readers understand and then being willing to be nimble and entrepreneurial and experiment with that legacy and those attributes.
On whether The Atlantic is an innovator or a renovator: I think we can control for the things that oftentimes stifle innovation in a legacy company, but we can benefit from the things that create a nucleus and a core sense of what you are that you get from a legacy company.
On what he attributes the magazine’s single cope sales increase to: The first is improved design, one that has been improving over the last few years. Darhil Crooks, who is the creative director, has taken our covers to a much more successful level than they were in the past.
On how he sees the print plus digital integration: I think one other reason that our newsstand is up is our overall brand is bigger because of our digital success. That might make a consumer stop one second longer at the newsstand.
On whether he can envision a day when The Atlantic will not have a print component: I think that it would be Pollyannaish to say that print will never disappear. I do think that someday print will not be around, but I’ll have to say that it’s much farther into the future than many of us were talking about four years ago.
On the first thing that comes to his mind when he hears of a magazine killing its print product: When I hear about magazines folding, I think it’s always a shame that they’re folding their print editions, but you know someday all magazines may no longer have print editions, including The Atlantic. But as I said, no time that I can foresee.
On his advice to other publishers about any pitfalls they can avoid in this digital age: There are a lot of pitfalls for all of us to worry about. One thing I think we’re worried about at The Atlantic as we look forward is the fast-moving shift to mobile.
On what keeps him up at night: Things that are out of my control, but are kind of existential to our world, like what if there’s an advertising industry collapse?
And now the lightly edited transcript of my conversation with Bob Cohn, Co-Founder and Chief Operating Office, The Atlantic…
Samir Husni: You’re making money from digital and you’re increasing your newsstand sales. Things are looking good on both print and digital sides; what are you doing at The Atlantic that no one else in the industry has discovered? What’s your secret sauce?
Bob Cohn: I think we are having a good run, but I would never say that there is no one else in the industry who hasn’t figured this out too. But I think it’s a combination of having a great brand and a great legacy that we understand internally and that our readers understand and then being willing to be nimble and entrepreneurial and experiment with that legacy and those attributes.
So we have something that has worked for 150 years and we know who we are and what we do and then we’re willing to take that model and be flexible with it. And take it in directions our predecessors may not have gone.
Samir Husni: But some people will say that because you are legacy media, because you are 150 years old, it becomes harder for you to become an innovator rather than a renovator. Are you innovating or renovating?
Bob Cohn: I think there are pluses and minuses. The minus of having 157 years of history is that you can’t be anything that you want and there are some structures already in place, because you’re not starting from scratch. And you’re not dealing with millions of dollars in VC money; those things separate a legacy brand from something that is much newer.
On the other hand, as I said, we know who we are and what our mission is and we know what we want to be without reinventing the editorial mission of the brand.
And the other things that sometimes stifle innovation, which we can control, is we can be purposefully nimble and innovative. We’re still a small company, even though we’re old. So we’re not caught up in the baggage of multiple hierarchies, public company problems…etc. I think we can control for the things that oftentimes stifle innovation in a legacy company, but we can benefit from the things that create a nucleus and a core sense of what you are that you get from a legacy company.
Samir Husni: What do you attribute your increase in single copy sales to? The majority of the magazines are seeing declines. But in the last six months the numbers were very good for The Atlantic. What’s going on?
Bob Cohn: We saw a 28% increase in newsstand single copy sales in the first half of the year. I think the industry was down almost 12%, so that was a very strong performance. I really attribute that to two main things with our magazine team. The first is improved design, one that has been improving over the last few years. Darhil Crooks, who is the creative director, has taken our covers to a much more successful level than they were in the past. And that’s a big part of winning the newsstand, making people stop and pick up the magazine and take a look at it. We have two things going for us on that score: our name and what the cover looks like. And then we hope that once you have it in your hand, we’ll be a compelling buy because the content is so interesting.
And the second thing that I think has been part of our newsstand success and this is obvious to all magazine publishers, and it was obvious to me in my previous magazine lives, is the fact that we have 12 issues a year and we need 12 compelling cover topics and 12 compelling cover images to use those 12 chances to capture a national conversation and you can’t waste any of those. Well actually, we have ten because we do two double issues.
Being cognizant of our opportunity there and the responsibility that we can’t waste any of those chances, I think has led to better covers, better topics and better execution of those covers in the last few years and that’s really helped us to improve sales.
Samir Husni: Is print driving the digital traffic or is digital driving print? How are you maneuvering that integration of print plus digital?
Bob Cohn: I think it’s symbiotic. I should have added to the previous question; I think one other reason that our newsstand is up is our overall brand is bigger because of our digital success. That might make a consumer stop one second longer at the newsstand. Because we just have a bigger brand presence than we’ve ever had before, mostly in the back of our recent digital success and I think that has spilled over to print and helped our newsstand.
Of course, it has gone the other direction very often; the power of The Atlantic in print drives our digital success in a couple of ways. First, the actual print stories which we post to the website do very well. The cover story outperforms most other stories in most months, not all stories, but most, and the magazine stories as a group, there aren’t very many of them relative to the number of stories we post every single day; we post more stories in a day to atlantic.com than the monthly magazine creates. So there are so many more digital stories, but the magazine pieces tend to outperform. That doesn’t really drive a ton of traffic except the one or two that may go viral, especially a cover story, but it is proof that the magazine stories can do very well in a digital environment.
But beyond that, I think that we approach this as two separate products with a common brand. We actually have three products; the print product, digital product and the live event product. And those are all tied to a core brand, but they express themselves very differently.
Then there’s the importance of our event business as the third leg of our stool, because it really is a vital component. It’s another thing that makes us a little different from other magazines. Our event business isn’t just a brand gimmick; we don’t do just a couple of events to promote our brand. It’s actually an important part of our business and it counts for about 20% of our revenue. We have a big staff; we have 30 people who work at our events. So I think that it’s another thing that makes us unique. We just finished the Aspen Ideas Festival that we co-hosted with the Aspen Institute. That was our last big event. We do more than 100 events per year.
The next big thing we have coming up is CityLab, which is an event we’re doing this year in Los Angeles and we do that with Bloomberg Philanthropies and The Aspen Institute. We have about 30 mayors from around the world and 300-400 guests. And it’s really an expansion our citylab.com, which is a third of our three websites at The Atlantic. So this will bring in politicians, city managers, city leaders, academics, commercial real estate people and infrastructure experts to talk about the issues that are most salient to the global urban environment right now.
Samir Husni: Do you ever envision a day where the print product will disappear and The Atlantic will be digital and event products only?
Bob Cohn: I think that it would be Pollyannaish to say that print will never disappear. I do think that someday print will not be around, but I’ll have to say that it’s much farther into the future than many of us were talking about four years ago. And I don’t see it coming in the near future at all. Print is stronger than ever. We just talked about the newsstands. Our overall circulation is the same as it’s been for ten years and the quality of that circulation is better than ever. We’re doing better at the newsstands than we’ve ever done and ad sales, which we budgeted this time last year to have roughly a 10% decline, and that’s print ad sales, we’re way up in digital; we’re going to end up this year flat on print ad sales, which I think we’ll outperform the market.
Samir Husni: Most folks that I speak with at media companies are telling me that they’re making very little from digital. What about The Atlantic?
Bob Cohn: Just as a data point, our overall ad sales, print and digital for the first time became majority digital in November 2011. That’s when the lines crossed and we did more digital ad sales than print ad sales and that was almost three years ago. This year in 2014 our overall ad number will be about 70 % digital and 30% print. This doesn’t include events which is a different model. Digital ad sales as a percent of total revenue will be not quite a third, maybe 30%.
Samir Husni: So 70% revenue from advertising is equivalent to 30% of the total revenue?
Bob Cohn: Yes. You have to remember that obviously a huge driver in the print revenue, in addition to the ad sales, is the circulation number and we don’t have that corollary in digital hardly at all; we do a little digital circulation through the app, iPad, Nook and Amazon and the Kindle, but for the most part there is a big chunk of revenue coming in from print circ and that’s just not a factor in our digital circulation.
Samir Husni: Let me move a little bit to the industry in general; when you hear of a magazine killing its print edition or folding it, what’s the first thing that comes to your mind? Is it the medium or the content or simply the relevancy of that publication?
Bob Cohn: I would have to look at frequency. I think weeklies have a harder time because you’re stuck between. I think monthlies are in the best position; a well-executed monthly magazine can have a longer shelf life, if you will, than other magazines and the bi-monthly even more because you are liberated by definition from the news cycle. I’ve worked at a couple of different monthlies, for years on the editorial side and you’re consigned to produce stories three, four or five months out, so you can’t be part of a news cycle, therefore you’re not competing with digital in a way that the news magazines are. I spent 10 years at Newsweek and we tried to be very, very timely in those pre-Internet days and I think that’s why weeklies have had a harder time.
So when I hear about magazines folding, I think it’s always a shame that they’re folding their print editions, but you know someday all magazines may no longer have print editions, including The Atlantic. But as I said, no time that I can foresee. But if and when that day comes and the audience tells us, not that they don’t like The Atlantic, but that they want to consume our content in other ways, it’ll be OK.
And what we’ve done in the last five or ten years is work very hard to make sure that we’re producing Atlantic-quality content in whatever format our readers want to consume it in, whether it’s on the web, in video, in live space, in print or on tablets. And if the day comes when print is no longer economical, I still think we’ll be fine, because we’ll be meeting our audience’s demands in other platforms.
Samir Husni: You’re one of the few in our industry who moved from the editorial side to assume the position of co- president and chief operating officer of a media company. Most people who reach that position come from the advertising side. Do you think it makes a big difference in today’s media marketplace assuming that leadership position from an editorial lader rather than an advertising one and if yes, why?
Bob Cohn: I don’t think it makes a big difference necessarily whether you come through the edit side or the business side. You just have to be willing to understand the entire kind of 360 degree picture and you have to be comfortable across the broad landscape of all the issues that we face. There’s really no way to be an editorial leader and not be deeply exposed to business issues, business imperatives and business opportunities. Both in my time at Wired and my time running Atlantic digital editorial – those were both editorial jobs and I had those for the last 12 or 13 years, so I received a lot of business experience as anybody in those jobs had to, kind of the modern media landscape.
So I don’t feel it’s as if I have plucked from an ink-stained print world or edit world and gone into business. There is a lot about editorial leadership that requires business savvy.
On the other hand, there are still a ton of new things and a steep learning curve which has been exciting and somewhat daunting. But in the end, in terms of who would make a better leader, I think it’s more about the person than what they’ve done in their previous job.
Samir Husni: Any pitfalls you can advise other presidents and CEO’s to avoid in this digital age?
Bob Cohn: For me it’s been important to not be the guy who was the editor and became the co-president and COO. I fully embraced the business side of publishing. It’s important that revenue teams have someone to work with who is fully committed to their success. So in coming from the edit side, it’s been important to think of myself and train myself to be the business guy and not just fall back onto my previous experience.
There are a lot of pitfalls for all of us to worry about. One thing I think we’re worried about at The Atlantic as we look forward is the fast-moving shift to mobile. We’ve been pretty successful in making the transition from a pen-centric world to a digital-centric world over the last five to seven years, in terms of content, in terms of revenue and in terms of overall environment and culture of the brand.
The thing for us to worry about is that we continue to make the shift to a mobile environment because half of our traffic, half of our audience, half of our monthly visitors are coming to us from a mobile platform and we want to make sure that we know how to monetize that or we can’t continue to do our journalism.
Samir Husni: And that’s probably the challenge that faces everyone in the magazine marketplace now. It was just a few years ago we were talking digital and web and now we’re talking mobile and who knows what the next five years will bring. How can you prepare for that? As a leader in a media company; how can you prepare your staff for that and an unknown future?
Bob Cohn: The trepidation I have about mobile coming in and being such a big part of our business is offset by the fact that we did make the transition from print to the web, not a full transition, print is still very important, but we did move into the digital world and what we know is Atlantic content can find an audience and find a big audience in the digital space. There’s no reason to think that we can’t do that same thing in mobile or any new platform that comes up in the next five to ten years. It’s the power of the content that we create and the brand that we have and the trick is to just be sure that you’re optimizing that content for whatever platform it’s going on, both in terms of the way you present it and all the backend technology and development that you do with it.
But I’m bullish on our future, even when mobile is the dominant delivery platform and even when there is some new platform that comes in and edges out mobile because I think what we know is The Atlantic has staying power. If, and this is the second part of your question, if first content is king, then our content will work on whatever platform gets thrown at us. And it only works if you’re entrepreneurial and are willing to throw away things that don’t work and you can’t be dogmatic about how you want to deliver your content or what your consumers want, if you really listen to your readers and viewers.
The thing that you can be dogmatic about is what your brand stands for, that you have integrity and that you are committed to maintaining what it is that people love about The Atlantic. But I don’t think that you can be dogmatic about anything else.
Samir Husni: When you go home and you want to read something, other than The Atlantic; what do you read in your leisure time and do you consume it on a tablet, on a mobile phone, or in print?
Bob Cohn: Mostly I find myself into social media and then I’m quickly reading everything that’s good on the Internet, whether it’s The New York Times or other magazines or niche websites. Just following what my Twitter feed is telling me. I still read a bunch of magazines in print and I still read books. They’re not as thick as they used to be (Laughs).
Samir Husni: My typical last question; what keeps you up at night?
Bob Cohn: Two sets of things: things that are out of my control, but are kind of existential to our world, like what if there’s an advertising industry collapse? Of course, I read that 2015 is supposed to be the best year for advertising led by digital, which would be good for us if that forecast turns out to be true.
But if there’s a huge collapse that’s the kind of thing I worry about because so much of our revenue is based on advertising. But I can’t really control that. You spend a lot of time worrying about things you can’t control like the Facebook algorithm which is an important driver of audience. Our content works very well on Facebook and people like to share stuff from The Atlantic. But a little tweak here or there and you never know what will happen. That’s an important part of our audience and the size of our audience is important in our business.
Those are things that I can’t control and they worry me. The other things that we can control, such as can we continue to create the kind of culture here that is innovative and can make changes and can follow wherever we need to go.
And I guess you end up worrying about individual decisions within that, but I don’t actually worry about that within the big picture, because I think we have that.
Samir Husni: Thank you.