Mr. Magazine

Content In The Sky Has Never Looked Or Read Better

“Our particular niche, which is inflight magazines, bucks trends because more and more people are traveling each year, so in fact, where you might have a decline in newsstand titles, we’re actually getting more readers.” Michael Keating

The sky’s the limit, or so we’ve been told and in the case of Michael Keating and Ink, Keating’s company that is today’s global leader in travel media, this statement couldn’t be truer.

Michael is responsible for establishing new business relationships and partnerships with airlines and railways and began his career in radio and television, working for the BBC, ITV, Channel 4 and MTV. He went on to co-found Pacific, an independent television production company and co-founded Ink with Simon Leslie in 1994.

Today, with a staff of more than 400 people, Ink creates award-winning media and builds innovative technology to provide more than 100 differentiated products across airlines and rail partners.

I spoke with Michael recently about this pie-in-the-sky publishing empire of his and how the success of inflight magazines, from content to advertisement, is a positive outlook and statement to all print publishers. We talked about his beginnings, the present, and the future of Ink Global. Having just won the American Airlines contract recently; the company’s future certainly looks brighter than ever.

So sit back, fasten your seatbelts please, and get ready to enjoy the Mr. Magazine™ conversation with Michael Keating, CEO and Founder, Ink Global.

But first the sound-bites:

On the expansion of his print empire in a digital age: Our particular niche, which is inflight magazines, bucks trends because more and more people are traveling each year, so in fact, where you might have a decline in newsstand titles, we’re actually getting more readers.

On his strategy to continue the upward trend of inflight magazines: It’s true; you do have to vie for people’s attention, but just because someone may be watching a movie on their own device doesn’t mean they don’t read the magazines. You know, TV screens have always existed on the long-haul flights, so I don’t believe that people only do one thing.

On the significant differences between all the magazines Ink publishes: We never recycle the editorials; they’re really written for their own specific brand with that particular magazine’s audience in mind.

On the advertising outlook with inflight magazines: Our advertisers get a very good response; otherwise they wouldn’t keep coming back.

On expanding the presence of Ink Global in the United States: When we won American, part of the terms of the contract was to have a local presence in Dallas because their headquarters are here.

On his move from broadcast journalism to print: I went to Lebanon to do this news item and I met a gentleman who was starting a new airline called British Mediterranean Airways.

On the major stumbling block he’s had to face: Not every single magazine we’ve undertaken has been a success. In some instances, when we found it very difficult to sell advertising in a particular market, that was a big stumbling block.

On what keeps him up at night: What keeps me up at night is often what happens around a launch period. If you think about at the first of January we have to have American Way on the planes and we have to have Ronda and Excelente on the planes as well, launching three major titles in exactly the same week causes me a few sleepless nights.

And now the lightly edited transcript of the Mr. Magazine conversation with Michael Keating, CEO and Founder, Ink Global…

Samir Husni: I was recently on your website and I saw the new magazines that have been launched. In launching those titles what were you thinking about, simply trying to expand your print empire of travel-related titles in an age where everyone else is saying print is in decline?

Michael Keating: Our particular niche, which is inflight magazines, bucks trends because more and more people are traveling each year, so in fact, where you might have a decline in newsstand titles, we’re actually getting more readers. In the case of American Airlines, with the recent merger with U.S. Airways, their annual passenger numbers will reach around 200 million, so inflight readership is growing.

Samir Husni: We used to say that the inflight magazines were read by a captive audience, but now in a digital age, where people are bringing their iPads or their smartphones or tablets that is no longer apropos of the situation. So, what’s your strategy to continue this upward trend with inflight magazines?

Michael Keating: It’s true; you do have to vie for people’s attention, but just because someone may be watching a movie on their own device doesn’t mean they don’t read the magazines. TV screens have always existed on the long-haul flights, so I don’t believe that people only do one thing. They’ll get on a flight and have a nice meal, a glass of wine, read a book or a newspaper that they brought with them or watch a movie, but they’ll still pick up the magazine. We actually have a head of insight called Kevin Miller who is very experienced in doing research having worked for JC Decaux Airport,and we know that readership is exceptionally high.

Of course, I would like to think it’s just for excellent high-quality editorial, but people also love looking at the route maps and there is certain essential information that’s also in the magazines. And with low-cost carriers, when they’re selling food or drink onboard, they’ll often put a lot of the menu information into the magazine as well.

Despite the fact that I would love to think that every single passenger is picking it up only because of the entertaining features, sometimes they want simply to know how much a cup of coffee is or a sandwich and they’ll pick it up.

But once the magazine is in people’s hands, of course then it’s the job of our creative teams to make sure that passengers engage with it. Once in their hands they’ll have a flip-through or want to read the features that are presented. And in some instances, destination guides, like an EasyJet magazine, for example, there are more than 30 pages of city information in the back, so some of that is practical information, like really good restaurants and bar advice. Those destination guides are written by locals who live in each city. We have over 130 freelance writers on the easyJet network who all reside in those cities so it really is good local information.

Samir Husni: One of the things I’ve noticed is that American Way is completely different than Ronda; Ronda is different than Excelente and the same with the other magazines that you publish. Tell me about Ink Global, which you’re celebrating the 21st year of starting the company and what’s your strategy of growth and your plan for conquering the travel market?

Michael Keating: Yes, the magazines are completely different for every single airline. The first thing that we have to do is consider that particular brand, and clearly even the way in which we approach writing about a city would be completely different. For example, we do the Eurostar, which is the premium train between London, Paris and Brussels. And it’s bilingual, English and French. So, if we were writing a story on Paris for the Eurostar magazine, where there is an awful lot of Parisians traveling on the train, clearly the story would be differently positioned than if writing for American Way. What Americans want to do when visiting Paris is quite different to a local.

Again that would be different to easyJet from Iberia, for example. What might Spanish passengers want to do in Paris? Everything is completely tailored for the audience. I have a dedicated editorial team for each publication, so with any contract we’ll go out and hire dedicated editors, art directors to only work on that magazine. It’s not a shared resource. We never recycle the editorials; they’re really written for their own specific brand with that particular magazine’s audience in mind.

Samir Husni: What about the advertising market? I heard an agency executive last month on our National Public Radio saying that she doesn’t see anyone coming to her offices and asking to advertise in print. What’s your reaction to such a statement?

Michael Keating: Our advertisers get a very good response; otherwise they wouldn’t keep coming back. You just have to look at the number of series advertisers, those that will take multiple issues or in some instances annual contracts with the magazine. They wouldn’t be spending the money if they weren’t getting a good response.

In fact, we had a real estate advertiser form Spain who had taken space in the EasyJet magazine and they got a better response from easyJet Traveller than the Sunday Times, a big national newspaper in the U.K.

Why, because the people who may actually want to buy a second home in Spain; they’re more likely to get a response from people who are actually flying on an airplane to Spain than someone sitting in their armchair at home. It’s putting the right message in front of the right people at the right time.

Samir Husni: I noticed that you’re opening offices in Dallas and Miami…

Michael Keating: Yes, I’m talking to you from our Dallas office now.

Samir Husni: Are you expanding the presence of Ink Global in the United States?

Michael Keating: The expansion has been very recent because we won the contract for American Airlines. We’ve had offices for the last six years in New York, in Dumbo, Brooklyn and Atlanta. Atlanta is a sales office and New York is editorial. We placed the editorial staff in New York because there is great creative talent in the city.

When we won American, part of the terms of the contract was to have a local presence in Dallas because their headquarters are here. And we had to take on some of the existing staff because American Airlines has been published in-house for the past 48 years. So, this is really quite a departure for them to outsource it. And part of the deal was that we would take on some of their existing staff and would supplement that staff base with some exciting new talent.

We decided to open in Miami because one of the American Airlines publications is called Nexos and is bi-lingual, Spanish and Portuguese. The whole South American market is hugely important to the airline, that’s why they have a Spanish and Portuguese publication. So we needed to have some Spanish-speaking staff and Miami is a great place to recruit

Samir Husni: In 1994 when you co-founded Ink Global, your background was in broadcast; if you can recall that moment where you and Simon Leslie decided to found Ink Global, what made you move from broadcast journalism to print?

Michael Keating: Michael Keating: What actually happened was there was a very good friend of mine who was Lebanese and his father worked in tourism in Lebanon. After the Civil War tourism was on its knees in the country and I was working for a TV news show called “London Tonight” and his father offered us free tickets to bring a TV news crew over to Beirut to do what I call an “And Finally” story on “Londoners are Booking Package Holidays to Lebanon Once Again.” It was an unusual idea at that time given that what people had been seeing about Lebanon on the news for many, many years was bombs and bullets. So, the idea of going there on vacation was almost laughable at the time.

I went to Lebanon to do this news item and I met a gentleman who was starting a new airline called British Mediterranean Airways. They started with one plane and one route, which was London to Beirut. He was there and he said, “Oh, you know about television; I’m going to need someone to do my inflight entertainment.”

We had a discussion and sure enough, I starting licensing movies and producing some audio/visual content for the airline. I knew Simon Leslie at the time because I was doing some writing for him, and I said to him “There is this start-up airline that I’m doing the inflight entertainment for and they need a magazine. Shall we go into business together? And that was the start of Ink Global. Such humble beginnings from a bar in Beirut!” A city obviously close to your heart.

Samir Husni: Indeed. You just took the words out of my mouth, being originally from Lebanon. (Laughs) That’s a perfect story for me.

Michael Keating: And then the airline expanded. It started operating to Amman, Damascus and Alexandria and the commercial director of that airline went on to be the commercial director of Branson’s then-European operation, Virgin Express. He called me and asked, “Do you want to do this Belgium-based airline, Virgin Express?” And I said, yes, please. So, I got that one as well.

And then we also did the magazine for an African airline called Alliance Air which doesn’t exist anymore. That was an alliance between the governments of South Africa, Uganda, Rwanda and Tanzania. So, you can probably take a guess why that airline doesn’t exist anymore.

So, we did Alliance Air, picked up easyJet and just kept adding more and more airlines. I really like the vertical. There is an argument that if you’re doing well in a particular field, then keep going and replicate success. Travel has always been a passion and being able to turn that into a career, has been a joy. The way we carved up the workload was that I focused on the creative side of the business and Simon Leslie would look after advertising sales.

Samir Husni: One thing that I’m interested in knowing is what was the major stumbling block? Your story can’t be all one success after the other; what was your major stumbling block and how did you overcome it?

Michael Keating: Not every single magazine we’ve undertaken has been a success. In some instances, when we found it very difficult to sell advertising in a particular market. Many people probably have the idea that airlines take out a nice, big, fat checkbook and pay us a huge amount of money to produce these publications. The reality is different in that they have to be 100% funded through advertising. That’s why I also think that the quality of the editorial and the design has dramatically changed over the decades in the sense that a long time ago the airlines would pay and these publications were completely created by a marketing department. They weren’t particularly commercial and they may not have been so nicely designed.

These days they have to be as good as or even better than newsstand-quality publications because the advertisers demand it. It’s also what passengers expect.

Samir Husni: From the magazines that I’ve seen it’s really great work, both editorially and in the design. My typical last question; what keeps Michael up at night, besides the time difference now?

Michael Keating: Michael Keating: (Laughs) That is often the problem with running a global operation because you literally can be chatting with one of the offices at all times of the day and night.

But what keeps me up at night is often what happens around a launch period. If you think that on the first of January American Way, Ronda and Excelente, all had to launch on the same day, that caused a a few sleepless nights. But I was delighted with the results.

I think in the case of Ronda and Excelente, the team has produced something that’s really quite different and it’s a great accolade to them; the fact that they’ve created something very unique. Especially with Excelente, as it’s not like any other inflight magazine that I’ve ever seen before. I think there are some really clever ideas in there.

Samir Husni: Thank you.

“With all the troubles on the newsstands, 2014 proved to be a great year for new magazines. In fact 234 new magazines published with a regular frequency, putting this year’s numbers at 21% more titles then 2013.” Samir “Mr. Magazine™” Husni.

First ever Mr. Magazine™ interview with Mr. MagazIne™[/caption] As we usher in a new year, the numbers are in and the totals look phenomenal. In customary Mr. Magazine™ style, new titles are lovingly collected and meticulously counted in order to bring the most accurate set of numbers of available new magazines to the world of magazine media and people interested in the industry.

Striving throughout the year to locate as many new magazine titles that are attainable through my extensive travels, I bring to the table some of the best reasons in the world for our industry to look forward to a very bright future. And while my endeavors aren’t a mystery to anyone that is familiar with Mr. Magazine™; I felt an interview with the man himself was necessary to clarify a few of the rules and regulations that lead up to the annual year-end publishing of the new launch numbers.

And who better to interview Mr. Magazine™ than Mr. Magazine™ himself. Why not? 2015 is a brand new year and we journalists are nothing if not innovative and willing to cultivate new ideas for the New Year.

Up first, the numbers for 2014 and the comparisons to its predecessor, 2013, and in the words of the inimitable Frank Sinatra: It was a very good year…

The Numbers of New Magazines

2014 by the numbers: There were a total of 855 new magazines published in 2014. The new crop of magazines was divided into 234 magazines with an intended frequency and 621 specials, annuals and book-a-zines.

2013 by the numbers: There were a total of 838 new magazines published in 2013. The new crop of magazines was divided into 185 magazines with an intended frequency and 653 specials, annuals and book-a-zines.

The total number of magazines published in 2014 with a frequency represents an increase of 49 titles which is an increase of 21% in the number of new titles compared to those published in 2013. The total number of specials and book-a-zines decreased by 32 titles.

By the categories: The top ten categories among the magazines published with a regular frequency in 2014 are:

The interview with Samir “Mr. Magazine™” Husni as it appeared in the New York Post.

o Special Interest Publications: 39 – Examples: Raw Bike, CiderCraft and Vapor Lives

o Metro and Regional: 19 – Examples: Old Port, Sugar & Rice Magazine and Makena Magazine

o Pop Culture: 19 – Examples: Reserved Magazine, Churn and East on Pop

o Crafts and Hobbies: 15 – Examples: Knit Purl, Mollie Makes (U.S. Edition) and Hoop-la

o Children’s: 10 – Examples: Peppa Pig, Bible Fun for Children and Animal Tales

o Sports: 9 – Examples: All Things Sports, Maroon and Chicago Football

o Art and Antiques: 9 – Examples: Acrylic Artist, Artists & Makers and Art on Cuba

o Fashion: 7 – Examples: Porter, Eyelash and No Tofu

o Gay and Lesbian: 7 – Examples: Lei, Winq. and Men Addicted

o Health and Wellness: 7 – Examples: Mantra, Naturally, Danny Seo and Dr. Oz The Good Life

And now the Mr. Magazine™ exclusive interview with Mr. Magazine™… please enjoy!

The Story Behind the Numbers

Samir Husni: How do you know that you have every new magazine?
Mr. Magazine™: I don’t… these numbers are for the titles that I was able to acquire and have in my possession. I only include in the numbers the magazines that I have physical copies of. I am sure there are some local and regional magazines that I did not find or acquire. Also, when I hear about a new magazine that is not available on the newsstands, I do not include it in the count. For example, the new travel magazine Pineapple was published in Dec. but I do not yet have a physical copy of the magazine, so it is not included in the numbers. So, needless to say my numbers are the minimum number of magazines published.

SH: What magazines are included in your numbers?
MM: First and foremost my definition of a magazine is a printed product. It must be a print entity to be included in the numbers. The numbers are then divided between those magazines that are published with the intention to appear four or more times on the stands, and those that are specials or a one time publication. All the magazines included in my numbers are distributed on the nation’s newsstands with a U.S. bipad and UPC code.

SH: Where can we find a list of all the magazines?
MM: I publish a monthly update on my http://www.launchmonitor.wordpress.com blog where the cover of each and every new title I acquire is presented.

SH: How long have you been tracking the new magazines?
MM: It started as a hobby in Lebanon at a very young age. I used to buy every new magazine and every possible issue afterward of the new magazine. When I arrived in the United States in 1978 to pursue my graduate studies, I immediately knew that on a student’s budget I couldn’t buy every issue of every magazine, so I opted for collecting only first editions. In 1985, I published my first Guide to the new magazines, and since then I never stopped.

Of course, now with a little better budget than I had as a student, I can buy more magazines and I can add to my collection of more than 30,000 new titles that I currently own.

SH: Magazines are becoming more and more expensive. How much do you spend on magazines annually?
MM: You know people think that I must receive my magazines for free and I do receive a lot of them gratis. But in addition to the free magazines, I still manage to spend close to $28,000 a year buying magazines… Well, at least those numbers reflect the magazines that I have receipts for…

SH: Besides being your hobby turned profession, why do you do this?
MM: Well, I am a firm believer in print and the power of print. I know we live in a digital age and all the digital gadgets that I own (plenty of them) are a testament to that. Yet, I also believe that there is something unique about print and its power and how it relates to human beings… As long as we have human beings we are going to have print.

SH: What’s next for Mr. Magazine™?
MM: Well, putting my money where my mouth is, I am working on a new book/event that will celebrate the 30 most notable launches of the last 30 years. Some of those new magazines that were launched in the last 30 years have added life and longevity to the magazine and magazine media industry. It is yet more evidence that any industry that does not give birth is a dying industry. The magazine industry, with all its problems, is NOT a dying industry. New magazines are the life’s blood of the industry and this new book and event will celebrate those 30 titles and their stories of beating the odds and thriving in a digital age.

I also finished a new book with two of my colleagues that will be published this summer. The book, Audience First, covers all the media and aims to introduce new theories and practices for both professionals and students of the news media industry.

And of course, I will continue nourishing my hobby of buying, receiving and reading magazines… let the good life continue.

Happy New Year to all. Keep on magazine reading…

SH: Thank you. Same to all.

Editor’s Note: The numbers of new magazines were released exclusively in the New York Post in Keith Kelly’s Media Ink column yesterday, Dec. 31, 2014. Click here to read Keith’s column on the 2014 Magazine Boom.

“The business model for what we’re doing is not entirely dissimilar from the magazine business model except we’re doing ecommerce instead of selling advertising. Customer acquisition, customer conversion rate and average order value are going to be the three critical leverage points on the revenue side.” Dan Brewster

With a background steeped in magazines and magazine publishing, Dan Brewster is certainly no stranger to storytelling and content. Having been the president-CEO of Gruner & Jahr USA Publishing and publishing president of American Express Publishing Corporation, the man knows a thing or two about what it takes to put out a product and make it work.

His newest venture, a website called DARA Artisans, dedicated to sharing the handmade work of incredible craftspeople worldwide, is beautifully done and connects artisans with a global marketplace where their work can be appreciated and sold throughout the world. The website’s name comes from his lovely wife, Dara, co-founder of the site, and coincidentally translates globally into many different words that reflect the project’s deeper mission: preserving ancestral designs and crafts that can enrich today’s world as well as mirror generations of art before they’re lost to time.

I recently spoke with Dan about this artfully done and very well-received website and about his thoughts and opinions on the magazine media world in general. The conversation was rich with thoughtful insights and lighthearted banter.

So, sit back and enjoy the Mr. Magazine™ conversation with Dan Brewster and be prepared to be enlightened and entertained.

But first the sound-bites…

On switching from one type of storytelling in the magazine world to the art of DARA: I decided to embark on a new course when the light bulb went off in my head and it was something that combined my passion for storytelling, travel and for wonderfully handmade goods from around the world. That was the evolution.

On where the name came from: DARA is coincidentally my wife’s name. And we did retain a branding agency to develop alternatives and they said we can’t come up with a better name.

On whether DARA will ever morph into a print product: It’s a possibility. We’re certainly going to look at multi-platforms, which I think is probably the future for most brands.

On his major stumbling block with the new venture: Customer acquisition, customer conversion rate and average order value are going to be the three critical leverage points on the revenue side.

On how he plans to overcome that stumbling block: We’ve taken pages out of many case studies. We began developing our social media platform several months ago. We now have unique visitors from over 100 countries.

On whether the timing of the website’s launch was good or bad: You know, I really don’t make judgments according to timing, never have. Certainly the investment philosophy of our business helped.

On how he would grade the magazine industry as a whole today: Well, I don’t know how to grade it. I think that the magazine model for the future is going to have to be multi-platform.

On where he sees DARA three years from now: Three years from now; I can send you the executive summary of our business plan, but I see us actively involved with 500 or more artisans from around the world.

On what keeps him up at night: Well, I did anticipate that you might ask that. (Laughs) What keeps me up at night is my obligation to the constituencies that I serve.

And now the lightly edited transcript of the Mr. Magazine™ conversation with Dan Brewster, Founder, DARA Artisans…

Samir Husni: Tell me a little bit about this move from one type of storytelling and publishing to another type.

Dan Brewster: Certainly the essence of what I’ve done most of my business life is storytelling. And after I left the magazine publishing business I ran a small privately-held investment firm that I had started a number of years earlier. And I just got less and less interested in that business. Even though several people had come to me, including private equity firms with the opportunity to reenter the publishing business, the change was so imminent and the future so unclear that I didn’t want to take that step.

I remember having a long conversation with Rob Garrett, who ran an investment firm, and he asked me to try and peer into the future of media and I said, Rob, it’s going to be the intersection of data and content. And how that’s going to manifest itself exactly, I don’t know. But I wrote a paper about it back in 2003. And we had done data regression modeling at American Express going back to 1993.

So, I decided to embark on a new course when the light bulb went off in my head and it was something that combined my passion for storytelling, travel and for wonderfully handmade goods from around the world. That was the evolution.

Samir Husni: And where did the name DARA come from?

Dan Brewster: Well, DARA is coincidentally my wife’s name. And we did retain a branding agency to develop alternatives and they said we can’t come up with a better name because interestingly DARA translates into Khmer, Gaelic, Arabic, Hebrew and a number of other languages and typically means strength, hope, wisdom, integrity; all the things that we wanted to express in this adventure.

Samir Husni: Although it may seem quite a departure from publishing and magazines, looking at the website and the ideas and stories on it, somehow it feels as though you’re flipping through the pages of an actual magazine. Are we going to see a Dara in print?

Dan Brewster: It’s a possibility. We’re certainly going to look at multi-platforms, which I think is probably the future for most brands. And we began this with the intention of creating a magazine-like feel, combined with ecommerce. And that was very deliberate. In fact, our graphic designer, who had worked with me at American Express and Travel+Leisure back in the 90s, had run a studio in Venice for 11 years. I called her and five days later she was here and she hasn’t missed a day of work since. And that’s been over a year ago. We really wanted to create that sensibility, the mix of content, commerce and community.

Samir Husni: And what do you think is going to be your major stumbling block?

Dan Brewster: The business model for what we’re doing is not entirely dissimilar from the magazine business model except we’re doing ecommerce instead of selling advertising. Customer acquisition, customer conversion rate and average order value are going to be the three critical leverage points on the revenue side.

Samir Husni: How do you plan to overcome that?

Dan Brewster: We’ve taken pages out of many case studies. We began developing our social media platform several months ago. We now have unique visitors from over 100 countries. We have a dedicated staff sending our messages out through email newsletters, Facebook, Twitter, Tumblr, Pinterest and we have also talked to Carolyn Everson, who is the chief revenue officer at Facebook about using their analytics, as well as Google analytics, to find look-a-likes and as soon as we have a sufficient customer base we will have our own in-house regression modeling capabilities.

Samir Husni: Let me shift gears just a little bit; I looked at the website and its offerings and what really grabbed my attention is your picture with your wife in front of the Aleppo Castle. And your story, what you wrote about it; it was right before the so called Arab spring. As our global village becomes closer and closer, instead of hearing good news, we’re hearing more and more bad news. So do you think it’s the best of times or the worst of times to launch DARA? (Picture above: Dara and Dan Brewster in Aleppo with Adam (left), a Syrian artisan, before the war broke out. Reposted with permission from DARA’s website).

Dan Brewster: You know, I really don’t make judgments according to timing, never have. Certainly the investment philosophy of our business helped. We never attempted to time the markets; it’s an unusually perilous exercise. (Laughs) It’s something that no one can forecast. Fortune Magazine I believe was launched shortly after The Depression, if not during. Very, very difficult to make any judgments on that basis, certainly it’s the best of times in terms of technology evolving.

Samir Husni: I know you mentioned that you don’t want to get involved in the publishing industry again, but will we ever see Dan Brewster back in magazine media ventures?

Dan Brewster: What I was trying to say earlier is that at the time when I left Gruner+Jahr, I didn’t want to run another strictly publishing business. But do I believe that Dara can migrate into various print vehicles, a magazine being one option? Probably, with controlled circulation and a catalog would be another option.

Samir Husni: As an outsider now with all the experience, having been there and done that; if someone asked you to give a report card on the magazine media today, what grade would we get? A, B, C, D or is it an F?

Dan Brewster: Well, I don’t know how to grade it. When I was chair of the MPA in the 90s, I remember giving a speech saying that we’ve seen fairly steady quarterly profit growth at every major magazine publisher for about a decade now and what we’re overlooking is that growth has come from increased advertising revenue and spending. But if you look at the consumer economics, they have loaded over that period of time. The cost of acquiring a subscriber has gone up even though our ability to identify prospects has improved. And we’re at an artificially low price point for our revenues to drive advertising volume, and newsstand is dissipating. This is going to become a problem the moment we hit an advertising recession, we’re going to get caught in a whipsaw where the consumer economics are going to rapidly erode and the advertising revenue will follow. And that has certainly turned out to be the case.

So, I think that the pure magazine publishing model with very few exceptions, highly-targeted special interest magazines, controlled circulation luxury magazines and some other exceptions, enthusiast publications is certainly an exception; I think that the magazine model for the future is going to have to be multi-platform.

Samir Husni: If you look at the speeches and the talks from the 90s, everybody was forecasting something similar to what happened in 2008, once the economy collapsed everyone was saying that we need to be more consumer-centric. Do you think it happened or do you see that the magazine publishing model in the United States is still not consumer-centric, but rather advertising-centric today in 2014?

Dan Brewster: Well, if I go back to the early 80s I recall an editor at TIME magazine saying, we don’t edit the magazine for what people want to know, we edit the magazine for what they should know. And TIME magazine’s profits went steadily down. (Laughs) I think that we need to be much more responsive to consumer needs and tastes. The 80s and early 90s philosophy of cramming circulation down people’s throats in order to collect advertising revenue is obviously not a model that’s going to continue working.

And by consumer-sensitive, I think that one of the things that the technology age has given us is the adaptability to identify customer prospects much better than before and to deliver to them much more precisely exactly what they want.

Samir Husni: Where do you see DARA three years from now?

Dan Brewster: Three years from now; I can send you the executive summary of our business plan, but I see us actively involved with 500 or more artisans from around the world. I see the business model beginning to shift from our taking inventory in order to control the brand to one where we have relationships that enable artisans to drop ship from various parts of the globe. I envision the brand as being a very strong brand with multiple platforms, possibly including even retail.

We are going to be the most effective consumer-direct, high-end product company out there.

Samir Husni: Just drawing on your rich background in magazines and media publishing and all the other business models you’ve worked with; is there anything that if you had the opportunity to redo or not do you can identify?

Dan Brewster: Of course I can, but I prefer not to. (Laughs)

Samir Husni: My typical last question; what keeps you up at night?

Dan Brewster: Well, I did anticipate that you might ask that. (Laughs) What keeps me up at night is my obligation to the constituencies that I serve and those constituencies are my investors and future investors, our staff, which is extraordinarily talented and committed to this project for both its likely business success, but also the sense of purpose that’s associated with it. And to the world of artisans who are carrying on ancestral traditions that are not as appreciated as I think they will become.

Samir Husni: Thank you.