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  • BoSacks Speaks Out: Disruption and Leadership during a Pandemic

    BoSacks Speaks Out: Disruption and Leadership during a Pandemic

    The world is facing a moment that seems to be of historic proportions. It is an oddity of biblical timing, something akin to a comet strike, an ice age, rising seas, and an invasion of aliens all happening simultaneously. Those are the hypotheticals. In reality, we have a global pandemic, an economic collapse, global warming, unrest in the streets, and the disruption of the entire global infrastructure. Disruption has become an old and overused expression, but it so clearly establishes and defines the moment. Nothing is as it was, nor are we likely to reestablish our old norms. Sure, life and business will go on. We may not have had an alien invasion, but we have had comet strikes, ice ages, rising seas, pandemics, and massive flooding before, and we are still here.
     
    Included in the massive global disruption is its effect on the publishing community. Supply chains are challenged, print ads are drying up, retail is stressed, large printers are in bankruptcies, magazines are closing, and work routines and methodologies are forever changed.  

     

    And yet as an industry, we plow on and adapt to the new business order. In times of crisis, the criteria to succeed is with above-average leadership. That includes your own personal leadership as well as your managements.

     
    As reported by Jeanette McMurtry in Publishing Executive – "Historically, the companies that succeed through tumultuous and uncertain times are those with leaders who have a common characteristic associated with a growth mindset: psychological resilience."
     
    She goes on to say that "Wikipedia describes psychological resilience as follows:
     
    "The ability to mentally or emotionally cope with a crisis or return to pre-crisis status quickly. ... Psychological resilience exists when people develop psychological and behavioral capabilities that allow them to remain calm during crises/chaos and to move on from the incident without long-term negative consequences."
     
    I thought I would gather a few examples of this psychological resilience leadership in today's media marketplace. Consider this the outline of a pep talk.
     
    Let's start with MediaPost's report by Sara Guaglione titled Hearst Magazines To Invest In Larger Formats, More Editorial Pages In Print. Sara reports: Hearst Magazines announced a multimillion-dollar investment to "enhance the quality" of its print products. The magazines will have larger formats, higher-quality paper and improved editorial ratios. 
     
    "Magazines are a tactile experience, and quality production is important to our readers, our creators and the marketplace," stated Hearst Magazines Chief Content Officer Kate Lewis.
     
    The initiative is called Premium Print…
     
    Sara concludes the report with the following: " ‘We (Hearst) are experimenting and making great strides by activating our digital channels to sell products, including print and digital subscriptions,’ stated Hearst Magazines acting president Debi Chirichella.”
     
    "Our strategy to invest in digital growth while maintaining the strength, differentiation and high quality of our print products, along with this new investment, paves the path to our future," she added.
     
    Thank you, Hearst, for this display of resilient leadership. For years, I have stated that as an industry, we need to collectively change the formula and move print in the public mind from a commodity to a luxury product. For too many years, we have decreased paperweight and diminished the size of our print publications and appearance. I applaud this move towards better quality products, in essence, products worth paying for.
     
    I think this is a good time to mention a very interesting saying my mother had: "Rich or poor, it’s good to have money." Hearst can afford this lunge to increased quality, but it is a move worth thinking about for any titles depending on your circumstances, finances, and long-term goals.
     
    Along with Hearst, here is what Jeffrey Goldberg, Editor-in-Chief, The Atlantic has to say on the subject of quality:
     
    "I've been arguing for a long time that we will be saved as an institution by bearing down on quality, quality, quality. Just do the most deeply reported, beautifully written, carefully edited, fact-checked, copyedited, and beautifully designed stories — and the reader will come. They want to be supportive, and they want access. And it turns out to be true. Thank God for it."
     
    It turns out that The Atlantic has amassed over 300,000 paying subscribers in a year, "by bearing down on quality, quality, quality".

     

    Another thought on leadership came from Wolfgang Blau, President, International and Chief Operating Officer, Condé Nast, who delivered the opening keynote address at the virtual 43rd FIPP World Media Congress. He said:
     
    "To build the media company of the future we have to ask what is the dream, what is the purpose and mission of a media company and journalists today – and where the trajectory of change that we have seen is heading," he said.
     
    "We may be calling this the new normal, but the only thing that is new and normal now is that change of all kinds, in all areas of our business, is accelerating. The good news is that humans are incredibly adaptable and inventive, and if you look at the history of some of the world's long-established media companies, many of them have made it through much, much greater challenges."
     
    To paraphrase my friend Andy Kowl: Many people think a leader sees the future. The truth is simpler: leaders see around corners and through obstacles.
     
    With all the multiple disruptions happening in today's marketplace, there is absolutely no room for complacency and nostalgic dogma. You and your company have to rethink the unthinkable. You have to challenge all your assumptions and see through the obstacles.
     
    As Sun Tzu said, "In the midst of chaos, there is also opportunity." Hearst is taking the challenge. The Atlantic is changing the rules. And you should do the same. This advice is for the personal you and the collective us. We are all increasingly living through a new period of experimentation, innovation, and entrepreneurism that the world has never seen before.
     
    To endure and prosper, your business environment must contain constant reinvention. It is a chaotic time where if you don't replace your current businesses, someone else will do it for you. 
     

    BoSacks
    Posted September 27, 2020
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  • Publishing Pandamic Roundtabe with UK Publisher Jim Bilton PART TWO

    Publishing Pandamic Roundtabe with UK Publisher Jim Bilton PART TWO

    BoSacks Speaks Out:  This is part two of our Publishing Pandamic Roundtable with 
    Joe Berger, Samir Husni, Bo Sacks, Gemma Peckham, and Sherin Pierce and was joined by Jim Bilton.
     
    Jim Bilton is the Managing Director of Wessenden Marketing. Jim puts together a comprehensive monthly newsletter about the media supply chain with analysis of ongoing trends and observations. He has offered our readers a free issue, and I suggest you get one to see what is happening in the UK. I assure you you will walk away better informed with useful information you can use here domestically in the US. Just drop Jim a line at   info@wessenden.com 
     
    Part Two 

    Jim Bilton: Our UK supply chain comes in for a lot of criticism because it's perceived to be a messy fudge that nobody really controls it.  There is an old adage - there's half a link to many in our supply chain - but it's knowing which bit to take out. But that fudge has created a funny stability.  We are midway between France and Germany who have really structured supply chains, where publishers have a legal right to distribute. And the Wild West of America,  where you flipped and you flipped on your wholesale structure, your retail terms and pay-on-scan all at the same time and handed over control to the retailer.  So, why have UK publishers been so scared of SBT?  Is it because of the USA.  Your complete package of absolute madenss all came together at once.  So, what the UK has been trying to do is to find non EPOS based ways to reduce shrink and to try and streamline in-store processes in a more collaborative way. But we've got the added complication of newspapers and magazines going through the same chain. And they've got totally different dynamics.

    One of the issues - because absolutely everything is on the table now during the pandemic - one of the big issues is whether to unstitch newspapers and magazines. Again, we're different in the UK. We have a very strong national newspaper market which is obviously based on 7 day a week deliveries – magazines are 6 days per week.  So, there are things we can do in the UK, like daily sales based replenishment of magazines, which we can do because magazines piggyback on the national newspapers. Which the national newspapers hate!

    The national newspapers are a fairly aggressive bunch in everything that they do - editorially, circulation wise, everything.  And they've got a different system in two ways.  Firstly, they negotiate terms direct with retail.  Secondly, they are on a per copy handling fee, not on a percentage of cover price. They made that flick years ago. Magazine publishers are still on a percentage of cover price and they hide behind wholesale. So whenever retail comes and says we want to move off of 25 percent, magazines say that’s nothing to do with us. It's those nasty wholesalers who set terms. You've got to negotiate with them.

    So, you've got two products that are completely different in their pulse rates.  National newspapers clearly just go straight in, straight out, whereas magazines are about copy allocation, about storage, about ring-fencing copy for sales based replenishment and so on.  Yet the fear is that if you pull the two apart, they'll be a massive explosion. And there are economies of scale of both going through the same network,  So one of the Plan B's - or perhaps it's Plan C! - for the national newspapers, is that they deliver direct from their regional print sites to retail, and in some locations, direct to the consumer.

    Sherin Pierce: They come right from the printer?

    Jim Bilton: That’s one possible model for the future.

    Sherin Pierce: Magazines still come through the wholesaler then?

    Jim Bilton: Currently yes.  Both newspapers and magazines currently go through the same wholesale network. There are a number of hub-and-spoke houses so there are smaller magazine-only houses and there are big hubs that handle newspapers. So, it's a funny mix. News UK has always been the most disruptive newspaper publisher and they do direct-to-retail through their own operation in London, at a loss everybody assumes. But if News UK got together with one of the other big newspaper groups and they shared their print sites around the country - that's one of their options, to pack, label and deliver straight from a satellite printer direct into retail.

    Joe Berger: Who owns the magazine wholesale companies in the U.K.? Does it have anything to do with the magazine publishers or retailers or just independent companies?

    Jim Bilton: They’re independent companies.  And there are only two companies left – Smiths and Menzies.  Which has pros and cons in all sorts of ways.  Being a wholesaler is not a growth business that you’d mortgage your house to get into.  So, there has been some talk about publishers buying out or supporting the two wholesalers in order to preserve a robust route to market.

    Samir Husni: Aren’t the U.K. newspapers, the national ones, becoming more like magazines in terms of their style, their coverage, their writing and the analysis? It feels like whenever I get my hands on a copy, I am reading a magazine rather than something that tells me what happened yesterday.  I always give the example of the UK newspapers as how the future of newspapers should be. It's more like a magazine on a daily or weekly basis.

    Jim Bilton: There is a view that weekly is the ideal print frequency.  Sunday was always our big weekly read day.  Yet Saturday has become the new Sunday. Sunday, which had all the big supplements, has now shifted to Saturday. And Saturday is a stronger day of sales than Sunday. So, all the big supplements and big reads come out over the weekend. And if you look at the individual days during the week, there are some really weak days. Interestingly, the Financial Times is one newspaper that has some very high peaks and troughs in sales during the week. You wonder whether it could go digital-only on, say, two days a week, which some of the American regionals have done?

    Samir Husni: Not a single newspaper that has kept its frequency is doing good. People are in that habit, they don't want to think about it. Do I have a paper today or not? Especially if they were used to a daily paper. But my other question is what's happening with Condé Nast and all the other media companies? I see it was the Me Too movement this year, then Black Lives Matter after Covid. Any of that taking place in the U.K. or are we the only ones?

    Jim Bilton: Yes.  These are big issues in the UK too.  Perhaps not as extreme as in the USA.  Remember that we are very British and tend not to go around shooting people too much.  So, these are big issues.  But to be honest, for media companies the really big issue is working from home. That's the massive change for publishing companies in where and how they operate.  Lots of people do not want to go back to working in an office every day.  Particularly in a big city like London.  The reality is how do I get into the office? Where am I going to sit when I get there?  Will I have to queue for the toilets? Are they going to be gender-specific toilets or not?  It’s these practical pragmatic issues that are on people’s minds at the moment.   CLICK HERE FOR THE FULL ARTICLE

    BoSacks
    Posted July 02, 2020
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  • Publishing Pandamic Roundtabe with UK Publisher Jim Bilton Part ONE

    Publishing Pandamic Roundtabe with UK Publisher Jim Bilton Part ONE

    BoSacks Speaks Out:  Two weeks ago our Publishing Pandamic Roundtabe of Joe Berger, Samir Husni, Bo Sacks, Gemma Peckham, and Sherin Pierce was joined by Jim Bilton. Jim Bilton is the Managing Director of Wessenden Marketing. Jim’s knowledge of the UK and the European media supply chain is amazingly complete and thorough. This is admittingly a long but interesting and worthwhile conversation that I have broken up into two parts.  Jim puts together a comprehensive monthly newsletter about the media supply chain with analysis of ongoing trends and observations. He has offered our readers a free issue, and I suggest you get one to see what is happening in the UK. I assure you you will walk away better informed with useful information you can use here domestically in the US. Just drop Jim a line at   info@wessenden.com 

    Bo Sacks: Jim, did I read correctly in your last newsletter that the Travel sector was down 91 percent?

    Jim Bilton: Actually it is 97 percent. WHSmith's Travel division only kept shops open at hospitals.  Everything else worldwide, they closed down. They're beginning to open back up again and their High Street operation is also starting to come back. The health of WHSmith is a big deal for UK publishers – they account for around 14% of total magazine sales.  But their whole business model has been turned upside down by the pandemic.  A year ago, they were being praised for their smart strategy – investing in Travel, which has included some big acquisitions in the USA, and squeezing costs out of their declining High Street operation.  Now everything has flipped.  The High Street is the main way of keeping cash flowing through the business until Travel can come back on stream.  They were just in the wrong place at the wrong time.

    Joe Berger: Is this an example? This also showed up on my LinkedIn feed today. Weirdly enough, Hudson Retail just opened up two new stands in LaGuardia at Terminal B. I would guess, seeing as how there's nobody around, it's pretty easy for them to do all the work. This is a store called Madison Avenue Market, and it does have a fairly good size mainline rack and a fairly good availability of paperback books. But the rest of the store, as you can see, is just full of every other kind of tchotchke in the universe. This is another look at the Madison Avenue Market. And again, notice in a traditional Hudson retail store, this area around here will be covered with magazines. That's gone. Here's the outside of the Madison Ave. Market.

    Bo Sacks: So, the reason they may be there at all is that the terminal is newly opened. They may have been legally committed to be there and open rather than actually wanting to be there and open?

    Joe Berger: Probably. I would imagine that's the case. So, anyway, that's life here in the States with with us Zoom neophytes and all of the weirdness with our with our wholesale system.

    Jim Bilton: Have you had a hard lock down over the same kind of period that we had? It was week 13 that we started.

    Sherin Pierce:Yes, I think maybe in New York it was early.

    Joe Berger: You might have a week or two earlier than here in Chicago. But I believe it was that New York locked down on a weekend. And Monday morning, our governor here in Illinois said, OK, everybody, stop it.

    Sherin Pierce: In New England, we locked down on March 27.

    Gemma Peckham: The last day open was March 17, which I think was a Thursday. And then we took Friday off and we haven't been back since.

    Jim Bilton: And in the U.K., any shop that sells newspapers is classified as an essential retailer, selling an essential service - news.  Magazines have ridden on the back of that.  As a result, we lost only about 10% of our retail universe at the peak of lock-down.  Yet that’s just the number of outlets, irrespective of their size.  A chunk of that 10% included some big multiples – the biggest being WHSmith.  The nightmare scenario is that WHSmith never fully comes back on stream again.

    Bo Sacks: Italy declared any place that sells publications as essential.

    Joe Berger: Well, not here in the States.

    The other questions that I've been finding fascinating, and I put it in our pre-meeting notes, was, we're obviously very interested in the parent company of Barnes & Noble and how things look for Waterstones. And does this company that's now invested in B&N have the financial wherewithal to bring this chain back to life and make it a better Publishing corporate citizen?

    Jim Bilton: Waterstones is a actually a very small magazine stockist. It has a very limited range. Not all their stores have got magazines.  So, they're a bit of an irrelevance in our magazine business. But they seem to be doing the same kind of thing as B&N, which is to self-heal the print products. They go into the storeroom. They don't go straight back on the shelf. And the Waterstones’ outlets generally are a lot smaller than B&N. So, they're not reorganizing in a fundamental way as they don’t have that much space to play with.  Coming back to WHSmith, space is their issue too.  In their High Street business, they’ve been squeezing more and more margin out of their shops.  They shove the gondolas closer together.  The gondolas go up in height.  Some of their smaller shops are really horrible places to shop in - claustrophobic.  All this makes socially-distanced shopping a real challenge for them.

    Bo Sacks: Is that a new situation or did it exist before Covid?

    Jim Bilton: Oh, no, they've been doing it for years. They've been squeezing all the time. They've been performing the absolute impossible. As their top line has gone down and down and down, they still manage to squeeze more and more profits.  Their High Street trading profit margins are now well into the double digits, which is a staggering achievement! Their star category is now stationary – high margin and taking up more space in-store.  Their book range is tightly edited – with a focus on best sellers and  travel and juvenile.  Yet it’s newspapers and magazines that they’re still known for.

    They're also into electronic items - peripherals, headphones, earbuds - that they're plonking in the front of the store and they're playing around with other things too. They'll do limited ranges until they sell out. They sell umbrellas. They push chocolate in your face at the tilI.  I remember a few years ago when they started down this route, one of their store managers told me that when he started, he’d joined a quality retail operation: “Now it’s turning into Woolworths”  CLICK HERE FOR THE FULL ARTICLE

    BoSacks
    Posted July 02, 2020
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  • Pandemic Publishing Roundtable – with Jane Friedman, Publisher, Professor, Lecturer, & author of The Business of Being a Writer

    Pandemic Publishing Roundtable – with Jane Friedman, Publisher, Professor, Lecturer, & author of The Business of Being a Writer

    By Linda Ruth

    This week, to talk about the effect of the Pandemic on books, Jane Friedman, author of The Business of Being a Writer, joined the Pandemic Roundtable—Joe Berger, Samir Husni, Bo Sacks, Gemma Peckham, Sherin Pierce, and me.

    Jane began by talking about how surprisingly resilient book sales have turned out to be. Compared to early 2019, 2020 sales are only down half a percent year over year. But bookstores themselves aren’t seeing the same resiliency. Sales in bookstores were down 33% in March, with more sales happening online, on Amazon, in Target and Walmart, and in other accounts that are not exclusively books.

    In the same time period, dollars declined a bit more than units. This reflected the increased purchase of juvenile fiction and nonfiction; this category has a lower price point. The sales of ebooks as opposed to print also lowered the overall dollar volume. But that too has stabilized.

    Joe: What percentage of book sales come from the independents?

    Jane: That’s around 5%. These stores are still important in terms of their influence, they are courted by publishers and seen as tastemakers, but they’ve been hit hard, with overall sales down by a third so far. The migration of book sales online has been a challenge for independent bookstores.

    Sherin: Our book distributor is asking for delayed billing for the independents to help them get back on their feet.

    Joe: Hasn’t there been an increase in the number of independent bookstores, though? It’s one of the bits of good news we hear.

    Jane: That’s misleading, in the sense that they’ve been tracking more types of stores as part of the category—used books, antiquarians, the Half-Price chain. So numbers of indies are up, but it doesn’t mean they’re robust.One huge happy story is the initiative James Patterson launched for indie bookstores, donating $500,000 to keep them going.

    BoSacks: Have prices of books come down as a result of market conditions?

    Jane: It would make sense in this environment. The big 5 have lowered some ebook prices but they haven’t promoted the discounts well, so it isn’t as widely known as it should be. Also, as a temporary measure, when the Pandemic hit, they cut the price on library licenses and made it easier for libraries to acquire digital materials.  

    Sherin: The library market is complicated—the big publishers are shortsighted in not marketing to them in a systematic way. It would help educate our population, elevate everyone in an affordable way.

    BoSacks: What genres are doing well currently?

    Jane: That’s morphed as the months have passed—originally it was children’s education, then it shifted to entertaining, cooking, baking. Anything in home, DIY, gardening, cooking, home repair—it all has taken off in April and May. Adult fiction was initially depressed but has now returned to normal with an emphasis on escapist fiction, like crime/thrillers.

    Joe: So people like me reading pandemic/dystopian fiction are outliers.

    Jane: Well, there was an upsurge in titles like Camus’ The Plague. Also classics have spiked—people are taking advantage of this time to finally read all of Ulysses.

    Gemma: Anti-racism books have been selling out.

    Jane: Yes, that’s correct, 15 of the top 20 on Amazon. An image has gone viral of all the books you’re supposed to read, and people are buying them.

    Joe: What is the feeling about the new management of Barnes and Noble?

    Jane: There is so much hope. People want the chain to continue. They’ve had 4 or 5 CEOs in 5 years. James Daunt is a respected figure in the bookstore world, although there is some criticism of how much Waterstones [in the UK] pays employees. No one knows how the chain will recover.       

    FOR THE COMPLETE ARTICLE CLICK HERE

    Linda Ruth
    Posted June 06, 2020
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  • Protecting the Newsstand Channel - A Modest Plan (Part 1)

    Protecting the Newsstand Channel - A Modest Plan (Part 1)

    The original intent of the recent newsstand articles that John Harrington and I did, at Bosacks' insistent urging, was to inspire a vigorous discussion about the often misunderstood process of selling magazines at retail. In that regard we hit a nerve - the response has been hefty and spirited. Thank you to everyone that joined the discussion.

    Now that the discussion has begun in earnest I want to offer some more grist to the dialogue mill. In this note I'll present a rough-hewn plan for protecting the embattled newsstand channel. It combines ideas gained from recent reader feedback with those based on my own experience as a circulator and long time newsstand observer.

    Publishers Troubling "Blind Eye" Approach

    There have been many attempts at newsstand channel reform and continuous warnings, twice a year from me, of the dangers that lay ahead for the channel. All of this to no avail. The reform efforts never came to fruition and the warnings have fallen on the deaf ears of publishers.

    What appears to have happened is publishers adopted a fait accompli attitude toward the newsstand; seemingly content to live with decreasing sales and higher newsstand service costs. This doesn't mean, however, that publishers weren't acutely aware of the adverse economic effects of - declining sales, reduced efficiency, increased processing costs and less service from national distributors and wholesalers. They knew there was a problem, but, as always, they seemed perplexed about what to do. 

    In retrospect it's become obvious that publishers seriously underestimated the effect of the dynamic changes occurring to the channel infrastructure. In 2009 major wholesaler Anderson News dropped out of the business. In 2014 mega-wholesaler Source Interlink followed suit saying the business wasn't profitable and hadn't been for a long time. These two wholesalers at one time represented nearly 50% of the magazine retail distribution volume. A total meltdown was averted in 2014 when The News Group (TNG), with support from Hudson News*, scooped up the Source Interlink leavings. In doing so they "won" the long brutal wholesaling war of attrition.

     *It should be noted that Hudson News remains in the magazine wholesaling business, but in a non-competitive manner with TNG. 

    The result - TNG emerges at the top of the newsstand wholesaling heap, controlling 75% to 80% of the magazine wholesaling volume.  Click here for the complete article

    by Baird Davis
    Posted May 16, 2018
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  • BoSacks Speaks Out: On The Survival of Magazines, Paper And Printing

    BoSacks Speaks Out: On The Survival of Magazines, Paper And Printing

    There was a time when you couldn't pick up a media trade journal and not have almost half the conversation about the paper industry. At the same time magazine manufacturing costs for print titles (there was no other option) were approximately 60% of the cost of doing business.  In today's marketplace there is very little "talk" about paper, the one and only substrate for printed magazines, although we as an industry do have lots of dialog about "what is a magazine" or "how long magazines will be around."   

    As a case in point, I had a very challenging conversation - one of many - while on my trip cross country. My friend who is in our business took the position that magazines won't be around much longer. It is possible, even probable, that he was testing my opinions and was taking a contrary position just for fun. Nonetheless it was an exciting conversation. He showed me charts and graphs about our industry that were steeper in the negative than Mount Everest. I pointed out that those charts are an aggregate of everyone and, although they might be interesting, averages contain both winners and losers. There has always been death and destruction in the magazine business, but there have also always been winners, and I believe we need to focus on the winners. CLICK HERE FOR THE FULL ARTICLE

    Posted July 21, 2016
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  • BoSacks Speaks Out: On Mary Meeker's 2016 Internet Trends Report Vs Print

    BoSacks Speaks Out: On Mary Meeker's 2016 Internet Trends Report Vs Print

    Every year I look forward to Mary Meeker's annual Internet Trends report. I suppose it's just a thing us futurists like to do for fun. For me trend analysis is a key factor in making decisions both large and small, and I'm always looking for the repeating patterns in life and in business. The report is always filled with fascinating data and, of course, trend analysis. One of the prized slides that I have closely tracked is the % of Time Spent with Media Vs the % of Advertising Spending in that particular media. Now as much as I like this report and I think it has important and meaningful data, I am not completely convinced that some of the conclusions in this particular slide are correct. 

    Here is what I mean, print now gets only 4% of time spent with any media.  Mary Meeker's conclusion is that there is/should be an equivalent amount of ad spend to the amount of time spent with that media. There may, in fact, be some sort of correlation between the two data points, but I think the type of media in question should also be considered. The experiences of media to media are in fact very different.  Print is not like radio and radio is not like TV and for sure print is not like digital. 

    This is not the whining observation of a bibliophile, but rather an experienced media professional who has tracked the industry for over 4.5 decades.  It's my conclusion that the amount of attention/time spent doesn't necessarily mean that ad spending should be an identical % number. How does one measure the quality and richness of time spent? Where is that chart?  CLICK HERE FOR THE FULL ARTICLE

    by Bob Sacks
    Posted July 21, 2016
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  • Bosacks Speaks Out: On Newsstand, Rate Base and the Magazine Industry

    Bosacks Speaks Out: On Newsstand, Rate Base and the Magazine Industry

    We are at an interesting crossroads in the magazine industry. Not all business plans are, if you will pardon the expression, on the same page.

    There is a large set of business focused on the of selling of magazines on the newsstand. There are thousands of people and hundreds of businesses dedicated to the shipping, selling, coordinating, and returning of magazines in the retail supply chain. Their salaries depend on the success of the newsstand.

    It is a complex process that thousands have devoted their careers to. In this mix not only are the newsstand organizations, the supply subgroups, but also actual magazines that live and die on the newsstand alone as their main source of revenue.

     Then there is another group.  I affectionately call them the Olympians. The Hearst's, The Conde` Nast's, Time Inc, and the Meredith's. They, too, sell magazines on the newsstand. But their business model is no longer, as it once was, contingent on that part of the industry. They have their own business plans that from the outset weren't about protecting or sustaining the newsstand business. CLICK HERE FOR THE FULL ARTICLE

     

    by Bob Sacks
    Posted July 21, 2016
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  • BoSacks Speaks Out: On PRIMEX and the Proven Haptic Power of Print

    BoSacks Speaks Out: On PRIMEX and the Proven Haptic Power of Print

    Leo F. Buscaglia (1924 -1998) was a teacher at the University of Southern California in the late 1960s when one of his students committed suicide. This so greatly affected Professor Buscaglia that, in his pursuit for meaning of the sad event, he formed a non-credit class titled Love 1A. As you might expect, there were no grades for Love 1A, because how could you possibly fail someone in this class on that subject?

    He became a cheerleader for Life, and he was most closely associated with the topic of love and human relationships, emphasizing the value of positive human touch, especially hugs. He once said, "Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around."

    You might ask, what this has to do with media and especially my review of the PRIMEX Conference held in New York City two weeks ago? Well, it was the professor who came to my mind when my good friend Daniel Dejan, who is the Print & Creative Manager of Sappi Fine Papers, opened the event.  I know a world full of nice and wonderful people, but I'd have to rack my brains to find a man or woman with more glowing love for life and humans and the pure joy of creativity. I know Daniel quite well, so it was no surprise that his presentation that day was "The Haptic Brain/Haptic Brand and the Neuroscience of Touch." And, as Professor Buscaglia said, "... too often we underestimate the power of a touch..." 

    by Bob Sacks
    Posted April 15, 2016
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  • BoSacks Speaks Out: Impact on Hearst-Condé Nast Venture to Merge Back-Office Ops

    BoSacks Speaks Out: Impact on Hearst-Condé Nast Venture to Merge Back-Office Ops

    Here is my take on PubWorx LLC, the joint venture to combine circulation, procurement and production functions by Condé Nast and Hearst Magazines. Distilled down to their lowest common denominator production departments are about great efficiency and superior quality, probably in that order, but variable depending on the particular organization. The skills include shrewd procurement and a great proficiency in manufacturing and distribution. On the other hand, circulation is still less a science and more akin to alchemy, but many circulator's will no doubt dispute that concept.  

    The conjoining of the two companies makes perfect efficient sense to me. Again with a probable dispute by some professionals who read this, production departments just make interchangeable widgets. We put ink or pixels in the exact right place and fling them hither and yon around the globe. It doesn't really matter if we are making one widget or a hundred. Our job is to coordinate at the most reasonable price with the best possible quality in that price range, and "ship" on time and with great regularity.

    The production process is agnostic to content. We don't really care what it is and so can combine and ship an unlimited number of disparate titles from unlimited companies.  As Archimedes sort of said, Give me a production staff smart enough and a fulcrum on which to place it, and I shall move the world.

    by Bob Sacks
    Posted February 15, 2016
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