Cathie Black, President Hearst Magazines; Jane Friedman, CEO, OpenRoad Integrated Media; Evan Schnittman, VP Global Business Development, Oxford University Press, Moderator
Cathie Black: starting advertising campaign about how important magazines are to counter the relentless death knell publicity about magazines. Very tough 18 months, don’t have a consumer problem, have an advertising problem. But looks like a good first half and advertising starting to come back. All magazines working on a multi-platform basis now. Magazine company is a “diversified” magazine company today. Becoming an advertising agency themselves. Consumers starting to buy magazines again. Raised magazine prices on newsstand, but increased size of the publications also. Every one of her magazines has a website. In 08, 40% of profits came from overseas editions. Magazine industry will be smaller in 10 years. Will never see another 2007 advertising revenue again. Now charging for some of the services that they used to offer to advertisers. 5 years from now: digital advertising revenue today is pennies on the dollar. Devices: don’t want to be in the device business. Consortium created with 5 publishing companies to try to avoid the mistakes the newspaper industry made – give it away for free. Consortium will try to work out issues for the future. The content created for one device may not work on another device. Zinio is worth looking out.
Jane Friedman: in an absolute revolution in books. Changing for the better as book publishers never know who the ultimate consumer was. No data, no statistics, the publishing business had nothing. Need to publish for the consumer and so had to understand what the consumer wanted and this was unheard of in the industry. Strong believer in the backlist. Physical books will always be around. But what is changing is how people read when they want to read. It is the golden age of marketing because of the internet. Founded a digital publishing company. Four layer company: author branded backlist; publishing partnerships, be the marketing arm of other publishers; publish original digital books with PoD capability; self-publishing and will curate and if a books is ready for prime time will allow authors to buy into their marketing platform. In 10 years book industry will be smaller, with smaller players, and more profitable. Bigger is not better right now. One good thing about epublishing is that it is agile and can cut something with no hassle if it isn’t working. Today and editor must also be a marketer and can’t just sit with a blue pencil any more. Using a no advance model for new works, but business model very favorable for author – 50/50 split and pay right away with no reserves. 5 years from now: growth is accelerating and 40% of revenue will come from the “e” side. Publishing companies will be successful but will have to consolidate. Sees an opportunity for advertising in books in the new digital space. Advertisers coming to them to find new ways of spending advertising money. Digital arena is a learning experience every day. Kindle hegemony will gradually be eroded away. Kindle will have a touch device and present Kindle will be a dinosaur in a year. iPad is brilliant, waiting for it because need color and will allow them to do children’s books. Too early to tell if the iPad is a viable reading device. Need to get device prices down.