Can layoffs and shuttering magazines save publishers?
Published: Wednesday, November 12, 2008
 -BETHDon't expect to see people like Time Inc CEO Ann Moore, Conde Nast's Si Newhouse, Wenner's Jann Wenner, American Media's David Pecker, Hearst's Cathy Black, Niche Media's Jason Binn or any other heads of magazine publishing companies head to Washington to beg for a bailout. Unfortunately for these CEO's the only way around keeping their companies from sinking is to think about how many people to let go, how many magazines to kill, who they can merge with or all of the above. Then again those are pretty much your options if you're not a Wall Street firm. Sure some of these over paid magazine execs can take a pay cut to show their employees that they're hurting too, but we all know that would be a patronizing move being that all the individuals mentioned above and some not mentioned are millionaires. This year alone, we have seen magazine's folded or cut down in shocking numbers. Magazine industry employees haven't felt more unstable. So what are these hurting magazine publishers to do? Canceling the Holiday party like Hearst did is understandable, but it does nothing for moral and it magnifies the reality. What are these poor publishing execs to do? Would merging with a competitor help? Perhaps in the looooong run it would on the cost saving end, but a merger of two magazine powerhouses will no doubt lead to bigger layoffs and probably would end in a crumpled ball of fire due to a clash of nuclear egos. Another option is to continue to fold magazines targeting almost identical audiences into one another. Wait. But that too would lead to layoffs. Companies like Time Inc and American Media have divisions they can look to spin off to raise cash to keep their business from towing the line of failure. But then they will burn through that cash in no time, and who if anyone really wants to by any business wrapped in a troubled industry like magazine publishing right now anyway? Some publishers have resorted to cutting the small things employees appreciate, like free water & coffee, though some employees won't miss especially the coffee because come on, who drinks office brewed coffee? So what is a publishing company to do? Will we see a major magazine publisher go under, selling off its brands for pennies? Labels: AMI, ANN_MOORE, CathyBlack, CondeNast, CondeNET, DavePecker, Hearst, JannWenner, JASON_BINN, Magazine, MEDIA_AND_THE_ECONOMY, NICHE_MEDIA, SiNewhouse, TimeInc, WennerMedia |
Niche Media ruled by Jason Binn, will reportedly take over Philadelphia Style. This ads to Binn's stable of other titles like Hamptons Magazine, Gotham and others. Now of course with every acquisition comes the question, will heads roll?