Pandemic Publishing Roundtable – Shifting from deals to training, FIPP offers value to publishers

By Linda Ruth (Cross Posted at BoSacks.com)

Our Pandemic Publishing Roundtable—Bo Sacks, Samir Husni, Joe Berger, Sherin Pierce, Gemma Peckham, and me–welcomed James Hewes of FIPP to talk about the diversification of publishing strategies, the fate of events, and the roaring twenties, touching on Samir and Bo’s tendency to agree or disagree along the way. FIPP is global a trade association for companies, as James put it, “formerly known as magazine companies”. Founded in France in 1925, and seen as one of the world’s oldest and most prestigious membership associations, FIPP has grown over its century of existence to include media owners and content creators from around the world.  

Joe: How has the pandemic affected FIPP? 

James: Five years ago the main reason people joined FIPP was to do cross-border publishing deals. Leading up to the pandemic and accelerated in pandemic the shift has been to learning. We added new services, including a training business and a consulting business; for example, we just started a five-module course on digital subscriptions, which is free to members. We’re not for profit, and we add the commercial bit to keep costs down for members. The networking part is more bespoke, where we facilitate meetings and conversations cross borders. 

Joe: Several major publishing associations have closed down or merged with others. Why is that? 

James: It’s been a trend for years, that these associations are no longer supported by the industry. The member companies are changing, the needs of their members changing. Also so much of the critical legislative stuff that they used to do is now pan-national. There are some issues that still need addressing; for example, we should have more concerted effort in the regulation of the big tech companies. But the ability of publishing associations at the local level to have impact has dropped. It’s less about postal regulations today, and more about Facebook and Google. In some cases the associations have stayed relevant by narrowing their focus to legislative; in a way it’s a shame. Publishers have left their old homes, and in many cases haven’t found new ones.

 Bo: Agreed. It used to be that magazine business models were consistent company to company and across borders. Now no two magazines have same the business model. 

Joe: On the level of city and state magazines there still is a lot of similarity; but outside that, we do see many different approaches. 

Samir: The survival of our associations depends on the big media companies; and we’re seeing a lot of smaller independent publishers coming into the market. I just got 12 first editions from the UK. What is being done to include them? 

James: That’s an accurate observation. The boom in independent publishing is happening everywhere around the world. The legacy publishers are also starting to adopt the tactics of the independents—lower frequencies, higher prices, higher pagination, higher quality.  Which is great, it’s lifting the whole market. We work with the independents; we give them preferential rates; we help them learn. We put in place a paywall on the site, so instead of paying thousands of pounds to join smaller publishers can access it via the paywall to learn. Those publishers are still part of the FIPP family and we work with them and help them; we get them to speak at our events, to share their knowledge and successes. We involve them, but the fragmenting market makes it a good way for them to participate, through the site. 

Linda: A lot of the reason publishers have fallen away has to do with shrinking budgets. 

James: We’re focused on value. When people come to join, we need to find out what they’re looking to get out of it. We want people to get the most out of their membership. For example our digital subscription course is a valuable benefit to members. We’re trying to create as much value as we can for our members, show they can show a return on their investment. Value is the key, and the pandemic has focused that. 

Bo: The value of the FIPP conferences is extraordinary.  

From Top Left: Bo Sacks, Joe Berger, James Hewes of FIPP, Linda Ruth, Gemma Peckham, Sherin Pierce, Samir Husni.

James: We’re now doing the D to C summit, focusing on everything having to do with direct-to-consumer revenue. A big focus is putting together the agenda.  

Samir: Will you be going back to in-person events or sticking with online? 

James: We do plan to return to physical, but we’re being cautious. The states of lockdown and rates of vaccination vary greatly country to country. My biggest caution is that companies are not going to let people travel for longer than governments. When the big companies start to travel, we’ll feel more comfortable about moving back to physical. We have a conference coming up in October—we avoided your dates, Samir, we blocked them out, it will be earlier in the month than the ACT conference. We’re making it a hybrid event where people can zoom in if they want. We look forward to 2022 as a return to normality.  The pandemic has focused our attention on how we do events in the future. The big difference: it’s easier online than in person to produce an event and get great speakers. But networking in an online event just doesn’t work. We don’t try to replicate what we do physically. First thing we got rid of is streaming, with two or three events happening at the same time. Instead, we spread the event out over more time, and people don’t have to choose. We decided not to worry too much about individual ticket sales. Instead, we go to companies and offer one price for ALL employees attending. The marginal cost of additional people attending is zero, so we go from 500 people attending to 2000.

Samir: Will we reach screen fatigue with these online events? 

James: We’ve reached screen fatigue. There’s a drop in levels of engagement because people are exhausted by screens. There’s a huge pent-up demand for in person. We’re not going to land wholly on one or the other; it’s going to be a balance of both.  

Bo: The only thing about fatigue is the feeling it wasn’t worth your time. In this virtual world, quality will survive, and it won’t create fatigue. In print the crap is falling away, what remains is quality. The same will be true online. 

Samir (laughing): There’s still a lot of crap in print! 

James: And we managed to get a half hour into the call before Bo and Samir started disagreeing. 

Bo: It’s a disservice to younger people to go wholly digital. It’s in person where you make great connections and friends for life. No one is ever going to make friends for life on a zoom call. 

Linda: With the possible exception of our Roundtable. 

Samir: Magazines companies moving to an emphasis on diversity and social justice. How is FIPP involved in that? 

James: It’s huge part of what we do now. We have a commitment to ensure our programming is gender balanced and balanced in terms of diversity. On the knowledge side we’re including diversity as a key part of our events. When we present industry trends to companies we talk about diversity. Big supporter of the BBC’s 50:50 project, which advocates creating a journalistic team as diverse as the communities about which they report. We see it as just as important as the other pillars of our industry, not as something separate and special. It’s the same with sustainability, which has to be central, not an afterthought.  If you ask companies that have successfully undergone transformation, the key was to have the right people and right culture, and you won’t have that without clear and explicit diversity goals.   

Joe: Tell us about the other arms of your organization, such as consulting 

James: Our consulting arm began last year. We were getting a lot of calls from people with questions. There was just a demand for more and better solutions. So we created a network of independent consultants who can help answer questions in a better way. The big consulting firms are bad at media companies. So we reached out to the people we know who work as independent consultants in the media to tap their skills and expertise.  As for training, that’s an extension of the people and culture piece. If you want to succeed you have to have the right skill set.  

Samir: What are some of the trends you are seeing?  

James: The idea that the pace of change is accelerating as a result of the year of restriction is actually true. Newsstand is in the pits, and many people are thinking it won’t come back. International circulation gone, and it too might not come back. On the flip side, print advertising is coming back moderately; and subscription sales are off the charts. In international markets, subscriptions have always been profitable, and now they’re becoming more profitable in the US as well. Digital subs are through the roof. People are reporting exponential increases in digital subs. Every magazine company I’ve spoken to is looking at paywalls for their content if they didn’t have them before. E commerce up massively; events have disappeared.   

Joe: Can you see events coming back? 

James: If I knew that I’d be a millionaire. If your business relies on your local businesses, if everything is contained geographically, that might survive. Cross border will be different. For example, we’ve always had a number of people from India at our events; that is unlikely to come back for another year. It would be a huge mistake for an events business to say: OK, the pandemic is over, let’s go back to what we were doing before. No one’s going back. We’ve got to start doing things differently. For companies, when a number goes off a P/L, such as travel and events, it’s hard to get back on again. 

Bo: And we’ve spent a year teaching companies how to work virtually. We’re not going to unlearn that. 

Samir: We have short institutional memories; we’re quick to forget.  

James: The 18 months after the pandemic ends will be the boom of all booms. 

Bo: The roaring 20s. James: But as for now, no one has more than 50% of their people fully vaccinated yet. We’re still a long way from that.

Pandemic Publishing Roundtable: David Atkins of Newsstand.co.uk – Newsstand Concierge

By Linda Ruth, cross posted on Bosacks.com

If you are unfamiliar with David Atkins and his business, newsstand.co.uk, he is almost certainly not unfamiliar with you. Newsstand.co.uk, the world’s largest print newsstand online, has over 4,000 magazines available with same day dispatch, worldwide. 

The Pandemic Roundtable—Joe Berger, Sherin Pierce, Gemma Peckham, Samir Husni, Bo Sacks, and me—welcomed him to our group to talk about his operation, the movement to print-on-demand, and the opportunities for publishers moving into online sales. David’s business began in 1898 as a family wholesaler business, JG Palmer. Changes in the industry, with the consequent losses of many independent wholesalers, led the company to reassess what the needs of the customer were, and how they could help. The result was the shift to online, beginning with subscriptions and moving to single copies in 2011. Today, their online strategy enables publishers to get their publications into the hands of the reader through internet sales and online orders as economically and as quickly as possible. Through their concierge service, they are able to offer publications to readers based on their area of interest. 

Joe: When did your shift to online take place? 

David:  We stopped being a wholesaler in 2006, dabbled with projects for Tesco’s and national newspaper publishers and started concentrating on online sales in 2009. We started working with independent publishers in 2015. It’s been a nice journey. We get our copies from the wholesalers, various distributors and directly from the publishers themselves. We sell either subs or single copy at the same price point, it’s the same thing to us with the only difference being the frequency of the purchase. We’ve gone from 100% subs to, today, about 50/50. It’s slowly tilting to single copy. Maybe 10% of customers will buy more than 1 copy and we have some voracious customers. 

Joe: How different is your warehouse setup now from when you were a retail tieline? 

David: Very different. We had a huge packing machine, unique on the planet, that packed into boxes for 4,000 retailers, in every day, out every day. Now we have endless shelving! It’s tricky for staff working with packing lists with 65 different issues rather than the one. It’s an investment in equipment, an ongoing process but still a mainly manual one. 

All under one roof and ready to ship!

Bo: You have a great site–functional, easy to use, one-click purchase; it’s a brilliant setup. 

David: Thank you Bo! I’m really all about function over form; but we want to make sure the process is as smooth as possible. Of course there are always improvements to make to the website but we tend to place more importance on the service that the image, there’s always work to be done in either direction. 

Samir: How did your business change with the pandemic? 

David: It’s had its plusses and minuses. The pandemic initially strengthened our sales, which were spiked to two to three times greater year over year. At the same time, it led to other companies, both at home and abroad, focusing on online, so we needed to work harder to maintain our share of market. On the other hand, more people also have discovered they can buy single print copies online. Internally, there are all the challenges of keeping the people on site (in the warehouse) happy, as well as helping others to transition to working from home. It’s not easy and I am keen to get everyone back into the office soon. General anxiety in the population reflects in how people interact with customer service; in our case, emails into customer service went up 400% and not all of them were pleasant. 

Sherin: We’ve all had to up our game. Amazon set the standard for delivery. Publishers need to learn to keep up with that. We have to turn everything around in a day or two. The pandemic has taught us to be faster, smarter leaner and deliver to our customers so they keep coming back. 

David: You’re right about that; we went big on getting copies to the customer tomorrow. The rest of the industry was still going with 10-12 weeks. You can get a refrigerator tomorrow but have to wait 3 months for a magazine; it doesn’t make sense. We’ve been busy changing that. Joe: What are you seeing in terms of new launches? 

David: Quite a lot in the indie market, with what feels like weekly launches. Literature titles are very popular. 

Gemma: I launched a book magazine, Oh! Reader, in 2020. 

Joe: The phrase “crazy brave” comes to mind. 

David: Great! Crafts are also popular; we sell a lot of UK craft magazines in the US and a lot of US craft magazines here. 

Gemma: In the US it’s very difficult to sell single copies online. 

David: We do work with some US publishers, and also export publications to the US. 

Sherin: shipping to every country has different rules. You have to work back from on sale because it takes different lengths of time for each country. Copies are stickered. You have to learn about each individual country. And the cost of shipping is very high. 

Pandemic Publishing Roundtable – from top left: Samir Husni, Joe Berger, Bo Sacks, David Atkins, Linda Ruth, Gemma Peckham, Sherin Pierce.

David: Print-on-demand might help with that at some point. It would be good to hear from US publishers keen to experiment with UK distribution via POD. 

Samir: the day will come when we will print on demand at home. 

David: We are about to launch a POD printer. I’m very excited about it. We’ll be able to go to publishers and distribute their publication without the shipping costs and delays. We’ll have more to say in a few weeks, when we’re up and running with it. It’s still going to be expensive for now. Joe: Now. Five years from now, maybe not. 

Samir: Fifteen years ago I spend $10,000 on a laser printer. Today they sell for $49. 

David: We’re starting with the saddle stitched titles. The high quality perfect bound magazines will come later. 

Bo: The quality of POD printers can be outstanding. 

Sherin: Having online points of distribution has got to be good. It’s something we’d like to see grow with the Almanac. 

Joe: If the publisher is being paid. I see publications on Amazon that appear to be coming out of someone’s return room and being sold on Amazon stores with no remuneration to the publisher. There are a couple of online newsstands here but they don’t seem to have much traction. I feel the best people to set up effective online magazine sales would be the wholesalers. They have the warehouses; they have the magazines. What they don’t seem to have as yet is the technology. 

David: We’d like to be involved with that (not Amazon) – we’re involved in a few conversations in various locations. Crucially, we have software that can maintain the product. Bo called that out; but in many cases, the importance of effective software is vastly underestimated in this industry. 

Bo: It was the first thing I noticed about your site.

Samir: The US postal service is undependable, and worsened by pandemic; this is a factor that makes selling online single copies difficult. And postage rates are unbelievable. 

David: In the UK as well; it’s shocking how many copies were lost in the mail during the worst of the pandemic here; and since we replace copies no question for all our customers and publisher partners, it’s cost us a good bit this last year. 

Samir: We did a study and found that people buying mags on the newsstand really just the one or two issues. They don’t want the others, even if the entire year is offered at the same price. 

David: Yes precisely, we’ve tried to upsell single copies to lower-priced subs, but it hasn’t happened. People are less interested in moving over. They want next day delivery of the magazine they want and the issue they want. Many people just don’t want to commit to a subscription. They don’t want any commitment whatsoever. It’s a wholly different group than the subscribers. 

Joe: What do you see in the coming years? 

David: We’d like to work with international wholesalers to help them launch their online businesses; we want to move into becoming an industry knowledge and information base as we have more experience than anyone in what we do.  And we want to keep doing what we’re doing, trying to improve, and getting as many magazines out as we can. We’re also getting ready to shout about it a bit more – we’re not very good at that so watch this space.

Pandemic Publishing Roundtable – With Lizanne Barber of Distripress

By Linda Ruth


We Will Once More Meet Face to Face

Our Pandemic Roundtable, comprising Joe Berger, Bo Sacks, Gemma Peckham, Samir Husni, Sherin Pierce, and me, started one year ago and is, amazingly, going stronger than ever. Recently we hosted Lizanne Barber, Managing Director for Distripress, the international association of distributors, publishers, and associated press industry supply chain service providers. Distripress’ mission is, as it has always been, to connect its international members in the world of publishing. It started almost seventy years ago, and has grown to, today, 200 members from 50 countries around the world. Many members have joined historically to take part in the Congress, where every fall they have had the opportunity to meet up with industry colleagues from the world’s markets. For decades the Congress served as the one way that people could meet up with their international colleagues and discuss their international business—and still is often the only time people meet their international partners face to face.  

Linda: I first attended Distripress in Toronto in 1988. The next year, when I went back, I was astonished that people remembered me from the year before; I was new to the industry, and it seemed no one in the US remembered me from meeting to meeting. Going back year after year, I came to feel a real connection with these people, even though we only saw each other a few days once a year. 

Lizanne: Yes, it’s all about building connections, and it really is a community. My first Congress was in Monte Carlo, and I had the same experience. Once you’re in Distripress you are in its community forever. Last year was the first year Congress couldn’t take place. Meetings by Zoom have been fantastic, but we’re all looking forward to meeting face to face again.  

Joe: As the new Managing Director, tell us about your mission at Distripress. 

Lizanne: Irreplaceable as the Congress is, I want to look at Distripress and make sure we’re offering connections throughout the year, and not just that once in the fall. I’m surveying our members and looking for touchpoints, finding out more about their businesses, about how they have been managing in the pandemic and how they are structuring their businesses coming out of it. So far, I’ve spoken to over 75 members. 

Joe: And what have you discovered? 

From Top Left: Linda Ruth, PSCS; Joe Berger, JBA; Samir Husni, MIC/Ole Miss; Lizanne Barber, Distripress; Bo Sacks, PMG; Sherin Pierce, Yankee Publishing; Gemma Peckham, Executive Media GroupMagazine

Lizanne: The main reason they are members is the connection with the community that we offer. And as we emerge post-COVID, we will continue to organise the Distripress Congress event, and look for more ways of strengthening those connections, and adding touchpoints, all year long. This year we plan for the Congress to be a smaller event, because there will be parts of the world where people still won’t be able to travel. But in the US for example, we’re finding that people are willing to travel again. That’s fantastic for our community.   People are willing – and wanting –  to meet up again face to face. So we’re planning a two-day conference in Zurich this fall, with a half-day forum of industry presentations and a day and a half of face to face meetings. For those who cannot attend we will be offering a virtual meeting platform a few weeks later and the opportunity to view and listen to the half day Forum presentations on the Distripress website, which will be available to all members. The planned – and widely anticipated-  larger Congress in Estoril has been moved to 2022 when we plan to welcome all members back in full force. People are really excited about the opportunity to meet again. It’s great to have virtual meetings, but face to face is a different level of connection. So many things can happen, so much can happen serendipitously, in person as opposed to over Zoom. 

Bo: Humans like to mingle. You can’t mingle on zoom. You can talk but not mingle. 

Samir: Keep Oct 26-28 open; that’s when ACT is taking place at the School of Journalism at the University of Mississippi. I’d hate for my attendees to miss out on Distripress. 

Lizanne: Yes, we’ll make sure we don’t conflict! 

Bo: The plans and procedure you’re describing is a brilliant synopsis of a competent association. 

Lizanne: We are also starting a bi-monthly newsletter for our members, to bring positive news stories to the community. The first one will feature a Q&A with the two French national distributors – a market that has seen a lot of change in the last 12 months and our members will want to read about what is happening. Plus we’ve got a Distripress half day virtual forum planned for the 9th of June, with industry leaders presenting information on global trends, a retail perspective from Barnes & Noble and Lagardere Travel North Asia, plus a case study from Mediahuis a Belgian news publisher on their diversification in e-commerce, and an overview from CMG on the effect of covid on the US market.   

Joe: From the 75+ publishers you’ve spoken to, is there a single thread you could pull on, something that everybody seems to be thinking about? 

Lizanne: for publishers it’s ecommerce; everyone’s looking to develop this revenue stream, here in the US and all over the world. For distributors, the focus is more on exploring the expansion of potential new product lines. A sustainability note runs throughout. The exciting role that Distripress plays, is that we can put people together who are working on the exact same projects in different countries. They can share learnings, make swifter progress, avoid mistakes. 

Joe: Retail sales have consolidated dramatically in the US. Have you seen that happening elsewhere?

Lizanne: Absolutely, along with other universal challenges. Many markets have seen the loss of travel channel sales, which has had an impact on sales. But there are also green shoots coming through in different territories, places where sales are looking up and some surprising successes.  

Joe: For publishers, the choices of whom to work with are increasingly limited. 

Lizanne: This is a common theme across most – if not all –  territories. Most have only one main distributor, certainly for international press and even for domestic. The slow down in print sales you see in the US is reflected to differing extents globally. This drives the determination of the distributors to diversify to pick up efficiencies of sale that are needed.  

Joe: What kind of successes have you seen? 

Lizanne: Australia is doing well—it hasn’t been hit as badly by COVID, and the distribution route is direct to retail, as opposed to through the additional layer of wholesalers, and all key outlets have remained open. The distributor has introduced toys, board games, and other products to run alongside press to retail outlets. They have around 1800 retailers on board with their new program and 6000 SKUs (non-press). It’s called Market Hub; you can look it up online. Board games for example have had appeal during lockdown —and they are universally appealing and easy to pack. 

Sherin: Are there any markets where publishers and distributors are successfully collaborating to get magazines online or included in the retailers’ click-to-curb programs? 

Lizanne: I am aware of exploration into this area in several countries – for the same reasons as the US. Customers shifted to online sales from supermarkets and magazines have been under-represented. The technical aspect with frequency of product change is a challenge. 

Sherin: As customers are going to stores less frequently, we need to find new ways of getting our publications into their hands. 

Samir: Have you seen US publishers not so interested in shipping overseas as previously? 

Lizanne: We did see an initial reluctance to commit to supplies at the start of the pandemic. Australia in particular was looking for copies, because some of their supply was reduced, but the immediate impact, was seeing efficiencies improve. Publishers are more open now to putting copies back, but every country is in a different position.   Holland closed press retailers, and we won’t know how that damaged consumer purchase pattern long term till it opens up again. Every country is unique. Now, for the first time, by looking at the sales that held throughout the pandemic, markets can identify how much of the sales of imported publications go to the domestic purchaser as opposed to travelers. This data reveals the stable base sale. For travel sales, time will tell how quickly that segment of sales will return. 

Bo: Each country has re-trained its consumers differently, but overall we have set new buying and reading patterns. And it’s not all bad—in fact, in many cases it’s quite positive. Subscriptions are up, for example. How much of that will be maintained? 

Joe: Part of maintaining that growth in subscription sales lies in reigniting newsstand, and it’s up to publishers to do that. Are Distripress members talking about how to get people back to retail to look for magazines? 

Bo: Addictive content is the best lure. 

Lizanne: My discussions haven’t focused on that area. I am hearing more about how different companies are adapting generally. That might include how to set up office space, the new hybrid work options; companies are looking at how they might restructure, coming out of COVID, to keep doing what they’re doing in a strong way but take on board the learnings form the last year.  

Joe: Do you see any good as having come out of COVID? 

Lizanne: For one thing, we’re having video calls like this. There is more contact between members outside of the Congress, and that’s great. It’s enabled me to connect members, because I am aware of the similar journeys different members are on and where a conversation might be interesting.  

Bo: Like our roundtable. 

Samir: People are sick of screens. That’s why subscriptions are going up, board games moving, and so on. People need an alternative to screens.  

Bo: Samir tracks launches, and domestically we’re seeing a spike. What do you see worldwide? 

Lizanne: There have been over 50 in the UK so far this year; so yes, quite a bit of activity. Also I am aware of two French publications which have launched off the back of celebrity TV personalities.  

Joe: From big publishers mostly, or smaller publishers as well? 

Lizanne: Definitely smaller ones too, with quite a few niche premium products: knitting, crafts, transgender, very nice, rich product. 

Joe: Bo has said that one of the consequences of the pandemic is that the speed of change will all happen quicker. Is that something you see? 

Lizanne: Absolutely correct. Including in the field of sustainability. I expect the accelerated speed of change will continue apace till we see what the world is going to look like after the pandemic. There has been acceleration in change in every part of the supply chain and we are going to have to figure out how to keep up with it. 

We Have Always Been at War with East Asia…And the Newsstand Has Always Been, Um, Challenging?

If I had made an entry in my diary every time someone told me in all seriousness that the single copy sales business was: Terrible, horrible, corrupt, inefficient, outdated, out of touch, wasteful, mobbed up, operated like the mafia, doomed, too busy ripping off publishers, retailers, wholesalers, consumers – to do a good job, that we should all be in jail for taking advantage of publishers…

… Then I would have a memoir considerably larger than a Brandon Sanderson novel.

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That’s a mighty big book! (Source: BrandonSanderson.com

 

Nothing New Under the Sun

There is a verse in Ecclesiastes that says, “There is nothing new under the sun.” King Solomon wasn’t being a cranky old cynic when he wrote this. He was talking about the cycles of nature in life, not the rat race of the 21stcentury world. But while the complaints about the newsstand business are often the same year after year, the simple truth is that today’s newsstand sales business is not your fathers’ newsstand business. Or mine. And my father was in the newsstand business.

Last month industry guru and prophet Bo Sacks released two opinion pieces in his newsletter. One from former Ziff-Davis circulator Baird Davis and another from former consultant and industry leader John Harrington. Take a moment and check them out.

Both articles point out things that are very clear about the newsstand:

  • Sales are down dramatically
  • Sales for leading AAM audited titles are down even more
  • Retailers are cutting back on available space at the newsstand
  • There is continued consolidation at retail, wholesale and national distributor levels

I worked for Baird when I consulted for Ziff-Davis in its earlier print life. He is a good person and not someone I think of as gloomy or full of doom. In fact, I remember him as hard working and rather clear eyed. He succinctly points out the tremendous losses we have seen at the newsstand, especially with larger AAM audited titles. There is no denying the fact that a business that was generating about $5 billion in retail sales before the big crash in 2008 is now generating less than $2 billion. Harrington, who is also on the list of good people, is the former president of the Council for Periodical Distributors of America and a retired consultant. He points out that different participants in newsstand distribution have very different goals when it comes to profitability.

But We Knew This Already, Didn’t We?

Are industry leaders going to get together and “solve” the problem of the newsstand? Probably not because there are still too many competitors vying for space on the publishing side*. Moreover, all publishers, small, medium and large have a lot of other things to focus their attention on these days. Finally, it doesn’t seem like anything will happen without the seal of approval from the major wholesaler, TNG, or the largest national distributor, CoMag.

Captain Optimist Arrives

Earlier this week, fellow consultant John Morthanos tossed a bit of fuel on the fire in an opinion piece in response to Baird’s op-ed on Bo Sacks.  John makes the case that we should look beyond AAM numbers (I heartily agree). He cites the remarkable change in title rankings at chains like Barnes & Noble and Books A Million where traditional top ranked AAM audited titles (Think Cosmopolitan or House and Garden) have been supplanted with recent launches like Magnolia Journal.

He’s right. And as someone who is addicted to publishing stats, I’m endlessly fascinated by the report. But is that the point?

Single copy sales, the sales of print magazines at retail are down. Dramatically.

And,

Retail and wholesale consolidation has reduced a publisher’s ability to be profitable at the newsstand.

And,

If a segment of your business is not as profitable as it once was, and there is little chance of it returning to the same level of profitability, you tend to cut back your participation level and focus your attention on the parts of your business where you see opportunity.

It’s true that new titles continue to be launched on the newsstand. Some, like Magnolia Journal, Pioneer Woman, and the Centennial Media SIPs sell incredibly well. However, they don’t make up for the tremendous losses we see from former market leaders. How often can we rely on high level brand awareness to create winners at the newsstand?

New Industry Leaders

Let’s be realistic. Chains like Barnes & Noble and Books A Million are walled gardens. Their customers are actively looking for something to read – something in print. The B&N newsstand is well run and managed by a terrific magazine oriented staff. So is Books A Million. But that doesn’t mean we ignore the troubling signs that chains like Barnes & Noble have publicly experienced over the past few years.

Captain Skeptical?

It would be nice to think that every time a retailer chops a mainline in half or cuts 15 pockets from a check out that our wholesalers, national distributors and publisher quarterbacks rush in with the latest study from MBR and walk out with even more space. Half of it allocated to new, up and coming indie titles.

Maybe that does happen, sometimes. There are a lot of great people in our business and they do work hard to promote the category and maintain our space and viability.

But facts are facts and we’ve lost space. Despite some very visible, exciting and promising bright spots, sales are down overall.

From where I stand (I have a standing desk these days), these battles will continue to be hard-fought. We will never get away from the fact that store traffic is down. We have to acknowledge that there are a lot of distractions fighting for the public’s attention and money these days. Those of us who work in newsstand have to fight even harder to get the attention of the managers of magazine companies and the affiliated partners in the distribution chain because we are now a part of the magazine “media” business.

So, what to do? That’s easy.

Work hard. Vie for attention. Create your own promotions. Check your data. Prove your worth. Cooperate with others in the distribution chain.

Can you be both an optimist and a skeptic?

Yep.

*I am very much in favor of competition. Just in case you were wondering.