h1

Time Inc. Is “Ripping” Away The Past And Getting Ready For The Next 100 Years. An Exclusive Mr. Magazine™ One-Hour Conversation With Joe Ripp, CEO and Chairman, Time Inc.

September 12, 2014

“I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline. There’s always going to be room for someone to sit down with a magazine on a cozy afternoon and read a great magazine. That is always going to go on.” Joe Ripp

The first book I read when I arrived in the United States in 1978, as a graduate student, was Time Inc.: The Intimate History of a Publishing Enterprise by Robert T. Elson. Joe Ripp, current CEO of Time Inc. is reading the same book now. Not that he needs to, but it is a very good refresher history into the ins and outs of a company that was, is and always will be more than “just a magazine company.”

Joe Ripp – CEO & Chairman of the company, returned in September 2013. Joe started with Time Inc. in 1985 and spent many years involved in the digital aspects of the company, along with advertising and publishing. Mr. Ripp is quick to remind you that Henry Luce has created much more than magazines. From newsletters to newsreels, Luce used all the media platforms available to dispense the different content that was created by the folks at Time Inc.

So when people mention to Joe Ripp that Henry Luce would be turning in his grave with all the changes Time Inc. is making today, Mr. Ripp is quick to answer that Luce would be turning in his grave if we were not engaged in all these changes. “After all, Henry Luce was a multi-platform person himself and we ought to be.”

Samir Husni and Joe Ripp I reached out to Mr. Ripp on a recent trip to New York City and over a one hour conversation in his new executive office on the second floor of the Time-Life building (the former private dinning room for Anne Moore, Time Inc.’s former CEO) we discussed the power of the Time Inc. brand, the role of the Internet in today’s publishing world and where the future of the brand is heading for the next 100 years. His answers were open, honest and very informative. A man who believes the audience and how they want to consume their content always comes first; Joe Ripp knows Time Inc. and that audience just like a childhood friend. The bond between the man and the magazine is palpable.

So before you take some “time” to sit back and enjoy the Mr. Magazine™ one-hour conversation with Joe Ripp, click on the video below to watch the Mr. Magazine™ Minute with Joe Ripp and hear what the CEO of Time Inc. has to say about the many false perceptions surrounding the company.



Now for the sound-bites…

On how he plans to utilize the power of the brand to achieve even more success today and in the future: I come at it with a fundamental belief that there is real value in brands. Brands have always driven consumer interest, consumer affection; consumer purchasing power is created with brands, because brands convey to us a sense of trust, a sense of quality in what they are.

On why the publishing world didn’t follow the same business model as cable TV when it came to the Internet:
I have no idea why. I know that when the Internet first came out there were a lot of people dismissing it, a lot of people saying that it wasn’t going to work; some people called it a Black Hole, as I recall.

On Sports Illustrated’s continued success and creativeness:
They’ve been very inventive in thinking how else can I get high quality content and information to consumers of sports and maybe that’s the brand.

On whether mobile technology will be the future of the brand:
I don’t see mobile as the future, because it has its own problems, but I think there is more and more people who are going to access mobile and if you create the kind of great, quality content that people are looking to consume on mobile, they’ll come back to you and your brand.

joseph_ripp On whether today’s editors and publishers in the media world understand the value of data:
I would think that most of them don’t. I came from the big data industry, so I understand what’s going on with big data and I understand how data is really changing the way B to B sales work.

On millennials not getting their important content from the web: Right, because there is so much silliness on the web. The world is collectively wasting its time, people sharing just a bunch of things. But the reality is there is also important information that we produce and we think we’ve got great, quality content.

On whether Time Inc.’s print editions will ever disappear forever:
I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline.

On the role book-a-zines play in Time Inc.’s present and future:
Book-a-zines are very, very topical, they’re very high-priced as you know, and they’re very profitable for every publisher that does them with us.

On the most pleasant surprise he faced when he came back to the company:
The most pleasant surprise that faced me when I came back? That I’ve still got a great company, with great people, the talent is still here, that the enthusiasm for this company is stronger than ever.

On his biggest stumbling block:
The biggest stumbling block, quite frankly, is just can we change fast enough? I don’t think we’re moving fast enough. I’m impatient on that.

On what keeps him up at night:
The reality is that I work very, very hard and think about where this company is going. You worry about if you can move it fast enough with the decline so that the investors will leave the cash.

And now the lightly edited transcript of the Mr. Magazine™ conversation with Joe Ripp, CEO & Chairman, Time Inc.


Samir Husni: In a few years you’ll be celebrating 100 years of Time Inc. As you get ready to celebrate this momentous milestone, you have brands, they were magazines, but now they’re brands; how are you going to utilize the power of these brands to achieve even more success?

Joe Ripp: I come at it with a fundamental belief that there is real value in brands. Brands have always driven consumer interest, consumer affection; consumer purchasing power is created with brands, because brands convey to us a sense of trust, a sense of quality in what they are. And Time Inc.’s brands have always stood for quality, for trust, for respected journalism, for incredible information; whatever it is, our brands have stood for that. That’s why we can get $115 a year for People magazine, because it’s a good magazine with really good quality content.

I think what you’re going to see moving forward are those brands manifesting themselves in other places. When I came back to Time Inc., I was talking to Jeff Bewkes and he asked me: what do you think the company missed, this is before I even knew he was talking to me about a job. I told him when I left Time Inc. 14 years ago, the magazine had this ad campaign on the air, and it was very effective. It said: join the conversation, Time Magazine. When I was down at AOL a new technology was deployed for the first time in the history of the human race; the human race could now actually have a conversation about every topic they want to talk about and they could find groups of people who wanted to talk about that same topic.

Time Inc. didn’t join the conversation. It was still printed pages pushing out the opinions of its editors and it didn’t engage in a conversation with those audiences who now wanted to really talk about all those things that the magazine was covering. And had the magazine simply understood what it was, a subject matter expert that really had important things to say in that conversation and had embraced that conversation more readily, it probably would have been a lot more successful. But because of the AOL merger, because of Turner, because of a lot of things, Time Inc. was told no, don’t join the conversation, you’re still editors pushing things out.

And I think that’s the change; that’s the only thing the company missed and it’s not too late for that. We’ve been able to demonstrate when we started thinking about the conversation, for example, Time.com is doing very well right now. I had a group of millennials here, around 150 of them we had for interns, and some of them said, “My favorite website has become Time.com.” And they weren’t sucking up to me, it was private conversations. They just wanted me to know it had become their favorite.

There is no reason in the world why Time with its brilliant content can’t reach audiences in the way they want to consume their content. We just haven’t tried as hard as we should have in the past, because we had this sense that we were editors pushing out this one-sided conversation. That’s changed now. We’re now embracing those audiences and going after those crowds and making sure we’re a part of the dialogue going on out there.

When Rick (Stengel) put on the cover of Time Magazine Jamie Lynne Grumet breast-feeding her child, there were probably a billion conversations around the world about that cover, it was one of the most widely reported covers that we’ve ever done and I think it was on every TV show that week, every news program, but none of that conversation came back to us, because we didn’t have the technology or the outreach, but it fueled massive amounts of social conversation and sharing; yet none of it came back to us. Why? Why would we let that happen?

Samir Husni: If that cover had been digital-only; do you think it would have generated as much buzz?

Joe Ripp: No, if it wasn’t TIME Magazine it wouldn’t have generated that much buzz. If it would have been Gawker or BuzzFeed, any of those other guys out there, it wouldn’t have generated that kind of controversy. It was Time Magazine and the respect that the brand has that allowed it to generate that kind of controversy and covered that subject in an important way. It was the brand that created that.

Samir Husni: So what went wrong? When I look back into the history of Time Inc., you founded HBO…

Joe Ripp: When I first started, we put the money into it, $20 million.

Samir Husni: And you went to the utility companies and said, “You wire this home, they’ll pay you $9 and we’ll split the money.” Why didn’t we follow the same model with the Internet?

Joe Ripp: I have no idea why. I know that when the Internet first came out there were a lot of people dismissing it, a lot of people saying that it wasn’t going to work; some people called it a Black Hole, as I recall. (Laughs)

The reality is that the Internet fundamentally changed the way we all consume content and get information. It may fundamentally change the way democracy works in the future, who knows? None of us know if the Internet is a good thing. The founding fathers created the Senate and the House. The Senate was supposed to protect us from crowds, so the crowds couldn’t do all the nutty things that crowds sometimes do. Well the nuts can all find themselves on the Internet. So the Internet can be a very powerful force for good, like in education, because it brings the world’s libraries to the rest of the world, but it can also be a very powerful force for evil, because all the nuts can find each other. So I don’t think the story of the Internet has been written yet.

But I do think that Time Inc. can play a very active role in the Internet with the digitization of assets and content and our ability to reach consumers. We have right now 83 million unique’s and it’s going up rapidly. We’re redoing all of our websites. When I came in, quite frankly, all of the websites were pretty awful. They didn’t have a lot of video content. You couldn’t share or comment on the stories; you couldn’t do all of the things that you’re supposed to be able to do.

You look at our iPad edition; what is it? It’s a PDF version of our magazine. Why would you take that device with all of its wonderful features and technology and do a PDF version?

So if you got TIME Magazine right now, I think you’d see a lot more singing and dancing and a lot more video on the iPad edition. What we’re trying to do is utilize the devices, utilize the way people want to consume our content and reach them and it’s one of the reasons we have a big video initiative going one. We’re producing thousands and thousands of videos now in this organization and that’s going to go up even more dramatically next year because video is an important component of the way we tell stories and people want to consume video. They want to see it on their phones and sit at the airport and watch them.

Samir Husni: In your interview last week, you mentioned that you want the company to look at SI as the guiding light of the video…

Joe Ripp: I wouldn’t call them the guiding light because then they’ll get their heads too expanded. (Laughs) What I want to look at them and say is I wish more of my company was like you, because they’ve been in a scrappy, competitive environment for years with ESPN. Sports are all over television, it’s one of the biggest things on television. Advertisers love it because it’s safe, reliable content; you don’t have to worry about anything when you advertise on an NFL football game. And I think it’s a great opportunity for growth. SI, because they’ve been scrappy, has done a lot of work creating new products and services, newsletters, new websites; the SI Swimsuit Issue has become a major business by itself; they’re doing an awful lot to promote the brand and expand the audience that they’re reaching. You know, we just got into FanNation and we did the 120 sports deal with the leagues, created two minutes of sports clips, about 8 hours a day of that and it was distributed on cell phones.

They’ve been very inventive in thinking how else can I get high quality content and information to consumers of sports and maybe that’s the brand. Extra mustard goes out and you don’t really know that’s SI, it’s just a newsletter. Then MMQB from Peter King, which is a newsletter that goes out from him, very widely read. What we’re doing is saying we’ve got this great content, how else can we find audiences for it, how else can we distribute it and advertisers are willing to promote it with us.

Samir Husni: One thing I’ve always said is we have two competitors out there: time (not the magazine) and attention span. And when we read and see that 50% of people in Europe, and I just saw the statistics today, access the web through their mobile phones and cell phones, rather than the desktops or laptops; do you think the future of the brand is going to be in mobile technology?

Joe Ripp: I think it’s a problem for everyone, because people are asking, how can I track it; the amount of tracking going on right now is enormous. Everybody is tracking everyone’s behaviors, but on the mobile market it makes it a lot harder to track behaviors and the results of advertising.

In addition, you have to be a lot more creative about it, because how many times have you looked at an ad on your mobile phone? Not so often, right? So you have to be more creative. I don’t see mobile as the future, because it has its own problems, but I think there is more and more people who are going to access mobile and if you create the kind of great, quality content that people are looking to consume on mobile, they’ll come back to your brand on websites, on printed editions, newsletters and whatever else.

I think mobile becomes just another form of distribution, but what people haven’t developed yet is what’s the real monetization formula for mobile. That’s a little harder; because advertisers can’t get the specific kind of information they think they’re getting at websites.

The reality is that we’re working very hard right now to find a chief data officer, because I believe that we have this huge data base, we track 150 million U.S. adults, we have billions of interactions a year with people; there’s a way for us to monetize that in ways that others have. One of the reasons that Facebook is doing so well is because of the data that they provide back to advertisers. I think that data can be an important component of what we can help advertisers to see: that we can be just as effective for them, so I think you’ll see a lot more of that coming.

And mobile can be data-sourced, data-collection efforts, so you can understand what’s going on. There are ways that once you tag people, if you tag it right, you can get a sense of generally where a person went, here or there, so you can get a lot more information for advertisers.

Samir Husni: Do you think our current crop of editors and publishers in the magazine industry as a whole, not necessarily just at Time Inc., have an understanding of how valuable that data is?

Joe Ripp: I would think that most of them don’t. I came from the big data industry, so I understand what’s going on with big data and I understand how data is really changing the way B to B sales work. It’s certainly changing the way B to C sales is working. And I think there’s a huge opportunity for us in the data play.

Part of the problem that we have is we’re considered non-measured media. The reality is most of the stuff being measured is silliness. There’s a lot of click-fraud going on. I call it click-bait, but there’s another term that people call it. We write a catchy headline and it doesn’t mean anything, billions of people show up to look at the headline and that’s all they do, they show the headline. They’re not really engaging in the content, not really looking and there’s seems to be, as I was quoted at the last conference, there seems to be a bubble going on, there’s a traffic bubble. There’s an evaluation bubble in traffic. Suddenly, anyone who has traffic seems to be worth hundreds of millions of dollars, even if they haven’t figured out to monetize it yet.

And there is a lot of traffic being generated by creating traffic traps that look at this and you’ll share it and throw it around ten times; you didn’t do anything with it.

The reality is that we’ve got really good content to engage in. I think we’ve got really good opportunities to engage people more wisely and I think that at the end of the day good content will prevail. I certainly hope that our kids don’t get raised on 10 ways to feed your gerbil. There’s a real opportunity to give them good quality content and information about serious issues, because there are serious issues in this world. And there’s a place for serious dialogue, for good, quality entertainment, for great information about how-to and there’s a place for that.

Samir Husni: There was a study just released this morning by the Pew Research Institute about millennials aged 16-28. One of the things that they discovered is that a big chunk of that age group spends a lot of their time on digital devices, but a hefty number of them said if they really need something serious or important they don’t find it on the Internet. And this was a higher number than our generation.

Joe Ripp: Right, because there is so much silliness on the web. The world is collectively wasting its time, people sharing just a bunch of things. But the reality is there is also important information that we produce and we think we’ve got great, quality content. I firmly believe that there is a role for quality journalism, for quality content and quality information going forward and will be forevermore.

Where it’s distributed, what form it takes, how people consume it; that will all change and it’s morphing over time. I began my career when HBO started out and we all got five channels for free; now look at what we have. Look at the transformation that will occur in cable going forward. What’s going on with the cable mergers? They’re all deathly afraid of over-the-top video. They’re realizing that cable companies created these pipes into the home that they can’t control anymore.

In the beginning when it all rolled out, if you remember, these full-service networks; the cable guys all thought they’d control that. That they would be in charge and everyone would pay a toll to come over that. The Internet said no, no, no, that’s free. Now the cable guy has this pipe into the home and it’s actually dislocating them, because fewer millennials are getting cable television. Fewer of them are watching television on TV, they’re watching it over-the-top with Netflix and Amazon Extend Video and some of the stuff that we’re producing and will produce going forward.

So that whole eco-system of cable is changing and that’s why you’ve got these marketers going on, because people are all looking at the morphing technology like over-the-top video. I look at it and say that it’s pretty exciting for us.

It used to be if I tried to get a cable channel going, I’d have to pay a couple hundred million dollars to some cable guys to allow me to get one station for them. Now, quite frankly, I can create all sorts of channels and content that gets distributed to consumers and I don’t have to pay anybody any toll. And that’s kind of an interesting opportunity for us. Those days have changed. It used to be that the cable guys were in charge of video distribution, they’ve lost that. Over-the-top video is now the next rage, everyone is talking about it.

Samir Husni: A lot of my students they wait until the end of the season…

Joe Ripp: And then they watch it all at once.

Samir Husni: Yes, all at once.

Joe Ripp: They can watch the entire season in a day.

Samir Husni: Yes.

Joe Ripp: That’s very common right now. And that’s actually troubling the Comcast’s of the world and the other cable companies. They’re looking at this and asking what does all of this mean? In part, the merger. If you look at some of the disclosures of the cable companies, none of their disconnects have gone down. They’re still seeing disconnects, because the millennials aren’t getting cable. They’re getting a broadband connection and they’re calling it a day. They’re getting Hulu, Netflix or whatever they want, whenever they want to watch it and they’re binge-watching. So they’re very, very different and we’re all trying to adjust to this. This is the first time we’ve ever really had a true digital generation becoming adults. And they’re going to change the way they do everything and a lot that goes on in the world. The way they think, act, share, talk; they’re just different.

Samir Husni: Yet, they still love magazines, as is evident by your newest magazines that were launched in the last 20 years, InStyle, People StyleWatch or Real Simple; these magazines are still printing their biggest issues ever.

Joe Ripp: Yes, InStyle just did over 700 pages.

Samir Husni: Exactly. And I know that People is really the cash cow of the company; will we ever see those print editions disappear completely, including InStyle?

Joe Ripp: I’ve been very clear; I think print is around for the next 25 years. Print will be around for a long time. It’s in a slow decline. There’s always going to be room for someone to sit down with a magazine on a cozy afternoon and read a great magazine. That is always going to go on.

But print is in a slow decline and will continue to shrink. And I believe that is going to happen. And even if it doesn’t; I still have to plan for that. As I’ve said, I’m going to plan for it anyway, because I think for too long people were saying that that wasn’t going to happen; we’ll find a way to turn it around. I say that we’re going to do everything that we can to stabilize those trends; we’ll invest in our core businesses to stabilize them and make sure they decline at the slowest rate possible, but I have to believe as an organization that we’ve got to focus on the fact that it is going to continue.

And if we do that; we’ll plan for that future and not deny it. But if it does plateau out a little bit, that’s fine too. Because then we’ll be in much better shape. But I have to keep making sure that this organization says, yes, that will change. Therefore let’s get into more digital, more video, more experiential; let’s think about new digital magazines we can launch, new ways of reaching consumers, more newsletters, etc. How else can we reach consumers.

Samir Husni: What role do the book-a-zines play? Time Inc. has around seven book-a-zines per week. You’re doing it for National Geographic, the American Bible Society; you’re doing it for your own brands.

Joe Ripp: We have a lot of other publishers too talking to us about doing more of it, so it’s actually doing quite well. Book-a-zines are very, very topical, they’re very high-priced as you know, and they’re very profitable for every publisher that does them with us. We have 280,000 pockets in supermarkets and newsstands around the United States where we sell book-a-zines. They’re highly profitable for the retailers and they’re highly profitable for the publishers. And as you can see; we can turn them out on a dime.

When Robin Williams killed himself, we had no advance warning of that. We had three book-a-zines out in 3 or 4 days, in the marketplace and on the shelves. We can turn that out pretty quickly because we have really good people who can do that. They have the distribution vehicles to get it out there.

Samir Husni: The problems on the newsstand did not impact that?

Joe Ripp: No, that’s a great, growing strong business for us. And that business continues to prosper.

Samir Husni: Even after we lost Source Interlink and others?

Joe Ripp: We’re actually back up now to 100% distribution since Source Interlink; we’ve recovered fully from that. When that whole thing happened we went into action really quickly and we’re fully recovered as far as we can tell.

Samir Husni: What’s the next big thing from Time Inc.?

Joe Ripp: If I told you that, I’d have to kill you. (Laughs)

Samir Husni: I won’t ask you why you don’t take the company private…

Joe Ripp: I don’t plan on taking the company private. I think that we’re just finding the public markets. We’ve got a great stable base of shareholders, people who are very interested in the story, who we are talking to very, very publicly and often about where we’re going and what we’re raising. I’m very happy with the capital structure we have; we’re not debt-laden. If you look at what we came out with, $185 million cash, 1.4 in debt and the cash will be up even further by the time you get to the third quarter. We’re in a pretty good position.

But I think that we’re in a great position; I wanted to make sure that we had the right capital structure. If I go private I’ve got to borrow out the wazoo. Lever the company up strongly and then the company loses its ability to grow.

Because a private equity transaction is usually not, for the company this size, about the best thing; it’s about stripping it and taking the values out and monetizing. They all want to get in and out in five years. So, you could have done that transaction with Time Inc. and you could have probably made a lot of money, stripped into little pieces.

The reality is this company needed to be saved and I came back to do that, not strip it. And I think by investing in this company we’re going to find the right way to grow the business and to employ the resources that it generates. It has rich cash flow; I have access to every CMO in America, I have a data base of 150 million U.S. individuals, I’ve got one of the best direct marketing operations in the United States, I have 2000 of the best content producers in the States and I have incredible brands, many of which have been around for over forty years, with one for 165 years. And I have a great company; why can’t I do things with that? Stripping that and layering that up with debt is not a good idea.

One of the things I was very focused on when I came back was making sure that we did not get burdened by debt on the way out the door, because I did not want to operate in that company. Once you start tripping over covenants, you lose your ability to invest in your future, because you’re always paying the piper.

Samir Husni: What was the most pleasant surprise that faced you when you came back?

Joe Ripp: The most pleasant surprise that faced me when I came back? That I’ve still got a great company, with great people, the talent is still here, that the enthusiasm for this company is stronger than ever. I have more people talking to me about how great Time Inc. is and that it needs to be saved. People respect and love the brand more and more and come up to me and say I love People or TIME or I’m a Fortune person.

The passion that we generate among the people who know us is incredible. So the most pleasant thing, despite all the years of being beat up and under-invested in and stripped of its cash; you’ve got a company that everyone still loves. And everyone wants to be successful. That’s been actually the most surprising part.

Samir Husni: And the biggest stumbling block?

Joe Ripp: The biggest stumbling block, quite frankly, is just can we change fast enough? I don’t think we’re moving fast enough. I’m impatient on that. And yet, when I look back everyone tells me that we’ve made a whole lot of changes in a year. But it’s just not fast enough. We have to keep on going and stop clinging to the past and wishing that it was like it was before. I wish it was like it was. When I left here we were having a great run. We had 8 straight years of solid growth. So I wish it was like that again too, but it’s not. So what? So what, it’s not.

The reality is I’m impatient about the pace of change and I think that impatience is what’s making us grow faster. And what I really want is to encourage my own organization; if I can teach a $3.4 million operation to think like a start-up, to have the paranoia of a start-up, to have the paranoia of a private equity shop, trying to figure out the value; we’d be in great shape.

Everyone is thinking about how do we grow, what can we do, what new ideas do we have…the problem right now is I probably have more great ideas than I have the time or the people to do them. But I’d rather have that problem, whereas before people did tell me, you should just leave that thing, you probably can’t grow it, and so you should just leave it.

Samir Husni: I hear that people are just waiting in the wings to see if Joe Ripp is going to sell the Southern Progress part or when is he going to sell Sunset so they can jump in and buy it.

Joe Ripp: They’ll be waiting for a while. (Laughs) Everyone is thinking about what pieces they want; they all want to carve out my empire. It’s what I’ve always said, and others warn me that I shouldn’t say this; if someone asked would you ever sell Southern Progress? I always said if someone walks in with a billion dollar check, it’s theirs. No problem, I will sell it.

When I was the CFO of Time Inc. and Time Warner, I asked the question every year in our budget meetings; are you worth more to someone else than you are to me? And if so, why? And if so, what would they do that I can’t do? And why aren’t we doing it?

And if it turned out that we really can’t do it, you really are worth a lot more to someone else; I should probably sell you to them, because we should be generating value. We should be generating value, because if we do we’ll get the funds to invest and create more value, create new businesses.

My biggest problem right now is I’m a brand new entrant into the marketplace; we’ve only been out a couple of months; Wall Street has been behind us, we’ve raised over $4 billion in cash, between debt and equity, it’s all there, but they’re saying where are you going with this business. Can you generate returns for me? If I don’t generate returns for them, people will say, oh, that’s pandering to Wall Street; I don’t own this company, the shareholders do. And if we don’t generate good returns for them, that they get excited about our growth prospects, they’re going to want their money back. So they’re going to say to me, you know all that cash flow you got. The $300 million cash flow that you have at the end of the year? I want that back. I want bigger dividends and buy-backs; I don’t want you to have it, because you don’t seem to know what to do with it.

I have to find a way to reinvest in this business. It’s been starved for cash for years. I think it has great opportunity for growth and the only way I get to keep their money is by proving to them that this management team, this company is wise enough to invest it and provide growth that they will get excited about. That’s how I get the money and that’s how capitalism works. I know that very clearly and I have to demonstrate very clearly what I can do with it. And if I can do that, then I get to keep the cash to invest back into this company.

Samir Husni: I love what you said once, “Show me a single person who would not like to work for Time Inc.”…

Joe Ripp: You know when I became the CEO some people called me up and said, “Why did you do that? That’s crazy.” And I said, really; it’s crazy to be the CEO of Time Inc.? It’s the greatest honor of my life. This is a great company and it has really defined my life. It’s one of the best institutions that I can imagine in journalism and in media. Look what it did; it created cable television. It used to be you couldn’t do anything in Pennsylvania because the mountain got in the way. When it launched HBO, cable television became an entertainment medium and then we wired the country as a result of that.

Before cable became entertainment it was just something for signals. This company has done incredibly great things and it has the opportunity to keep doing that.

I think it’s a great company and it needs to be successful. And I think that we have the greatest shot in the industry to pull it off. It’s just a matter of how fast you can get ahead of the secular trends. And it’s a fun job. Trying to sort through this problem, it’s complicated and there have been lots of opinions, as I’m sure, you’ve read in the press. (Laughs) Lots of opinions of what we’re doing right or wrong. But quite frankly, I’ve just learned not to listen to those things, because if I’m trying to do the right thing; I don’t really care what a couple of pundits on the side have to say. We have got to make the right decisions and we have got to find a way to make this company great again. And we’re going to do that, we’re going to make some changes and as I keep telling everyone, if we make a mistake, we’ll do the other thing. Just stop worrying about the mistakes. The company, I think, was paralyzed by: it may not work. Who cares? It definitely will not work if you don’t try.

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

Joe Ripp: I sleep very well. I think about this company; I come in every morning on most days between 6:00 a.m. and 7. I try not to do dinners because I’m too fat. (Laughs)

The reality is that I work very, very hard and think about where this company is going. You worry about if you can move it fast enough with the decline so that the investors will leave the cash. And that’s what I’ve been working toward; trying to make sure the capital structure is right, trying to make sure the investment base is correct, make sure that we’re talking to them correctly, because I have to make sure that the investment base goes along with us. I don’t own this company, the investors do.

We have to make sure that we’re generating the right kind of story and we’re attracting the right kind of talent to make it work, so far, so good. But we’re only one year into the marriage, right? We’re attracting really great talent; we just brought in Mark Ellis, who was practically the head of sales for Yahoo. He was really a great hire for us.

We just brought in a new editor for Fortune magazine and its doing great. We’ve got really good people saying, “There is something going on and I’d like to work there.” And the more we can bring in great talent with different kinds of experiences, who can contribute to what we’re doing and believe in our brands and what we can do, then we should be just fine.

Samir Husni: Thank you.

h1

A Different Kind of Storytelling: Dan Brewster’s New Adventure From Magazine Publishing to DARA’s World of Ecommerce, Global Artisans and Digital Dreams. The Mr. Magazine™ Interview

September 9, 2014

“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.

DARA 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…

dan brewster


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.

IMG_2034bw_939c500a-a670-417e-9cb8-c2913ccef799 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.

h1

Analytics Cannot Design A Magazine Cover, But It Sure Can Provide Key Predictive Insights. A Mr. Magazine™ MagNet Exclusive

September 8, 2014

Editor’s Note: In this continuing Mr. Magazine™ MagNet exclusive research on the role of analytics and data in single copy sales for magazines, MagNet’s Luke Magerko continues to share with Mr. Magazine™ audience the role of cover tagging and what could happen in predictive analytics. Luke is not sharing the results yet, since he plans to share them with the Mr. Magazine™ audience in Mississippi during the ACT 5 Experience Oct. 7 to 10.

MagNetLogo This week we focus on how marketing and text analytics can provide key predictive insights for editors when designing a cover. Luke Magerko will walk us through high-level analytics concepts and how it will increase newsstand sales.

ANALYTICS CANNOT DESIGN A COVER!
I could not agree more, Samir, and this is the most important point: ANALYSIS IS DESIGNED TO HELP THE EXPERTS (THE EDITORS) MAKE INFORMED DECISIONS ON COVER TREATMENTS. THAT IS ALL!

THERE ARE DOZENS OF NEWSSTAND CONSULTANTS CLAIMING THEY KNOW WHAT WORKS ON A COVER. WHAT MAKES THIS DIFFERENT?

I spent the better part of 15 years looking at cover treatments and I can tell you there are few general trends that work on all on magazine covers. Each publishing group has a different vernacular for cover treatments (we will call each component of a cover an “attribute”). Let’s look in more detail at the four steps from our last interview:

Let the editors play with covers – MagNet designed a Cover Analyzer to encourage an editor to peruse both their covers and competitive ones. This is an example from a couple years ago. This People Magazine cover is from early 2012. You can see sales based on scan data and various comparative sales results (prior year, 13 week average, etc.). This information is a very important ingredient in exploratory data analysis we discussed last time.

Samir Article 140908 Image I

I IDENTIFY MANY ATTRIBUTES TO THE COVERS, BE IT THE MAIN BLURB, THE CELEBRITY CHOICE AND SO ON. HOW DO YOU KNOW WHAT TO LOOK AT?
As I said last time, editors have questions and analysts should answer those first. The editor has an intuitive sense what worked (or did not work) on the cover. If those ideas can be quantified, then that is the foundation of the cover analysis.

SO YOUR ANALYSIS IS LESS ABOUT WHAT YOU THINK OR GENERALIZED TRENDS AND MORE ABOUT CONFIRMING AN EDITOR’S INTUITION.

Absolutely! Editors know nuances on their covers and can identify what they were trying to accomplish. This insight deeply affects what should be analyzed. The analyst/newsstand consultant’s opinion of what succeeded and what missed the mark is wholly irrelevant to the cover analytics process.

FINALLY YOU MENTIONED THE CONCEPT OF COVER “TAGGING.” HOW DOES THAT WORK?

In my first class at Northwestern University’s Master Program in Predictive Analytics, we were taught that preparing the data and ensuring acceptance will comprise over 90% of the time needed to complete an analytics project.
This is where cover tagging comes in: the art director or editor must sit down and walk an analyst through each attribute of the cover to ensure the analyst is correctly identifying attributes. I highlighted the word acceptance because there would be nothing worse than running a cover analysis only to have the editors say, “we do not think of the cover like that!”

CAN YOU SHOW US AN EXAMPLE?

Let’s look at the same cover above:
We tagged over 500 celebrity covers on what we believe is important. DISCLAIMER: THIS WAS DONE TO TEST A STATISTICAL MODEL NOT TO PROVIDE CONCLUSIVE RESULTS. EDITORS MAKE DECISIONS ON WHAT WILL BE TAGGED.
Some of our attributes include:
• Cover logo color
• Background color
• Main celebrity name
• Main celebrity gender
• Main celebrity media platform
• Main Blurb Theme
• Main Blurb Grammar
• Main Blurb Attitude
• Main blurb word count
• Main logo obstruction
• Total Images on the cover
The effort is simple: look at a cover and determine each attribute.

Samir Article 140908 Image II


THIS SEEMS LIKE A LOT OF EFFORT! WHAT KINDS OF RESULTS WILL YOU GET FROM THE ANALYSIS?

Once we have tagged the covers and run analytic tests, the editor/marketing department will learn:
• Which attributes are statistically “significant:” An editor might learn a brightly colored promotional starburst is not statistically significant and can be added or removed at their discretion.

• The percentage of sales affected by the “significant attributes: Once the significant attributes are identified, MagNet can inform the publisher what percentage of sales came from all those statistically significant attributes.

• How much each of the statistically significant attributes matter individually: An editor will know whether the gender of the celebrity is statistically significant and also how the gender will affect sales. In statistical terms, we call this “lift.”

• And yes, there is a predictive model: MagNet WILL NOT be able to provide an exact sales forecasting number per issue but can provide a solid trend line and an expected results based upon the predictions.


DO YOU HAVE ANY RESULTS YOU WOULD BE WILLING TO SHARE TODAY?

No, Josh Gary and I will walk your audience through an exclusive sneak peek of the cover analytics modeling tool at the ACT 5 Experience, October 8 at 11:30am at the Magazine Innovation Center in Oxford, MS.

I LOOK FORWARD TO SHOWING YOU HOW THIS ALL WORKS. IF YOU ARE AN EDITOR, I IMPLORE YOU TO JOIN US AT THE ACT 5 EXPERIENCE IN OXFORD, MISSISSIPPI OCTOBER 7 – OCTOBER 10. TO REGISTER CLICK HERE AND TO SEE THE AGENDA CLICK HERE.


THANK YOU.

h1

More Than A Magazine: Celebrating 40 Years Of “High Times” – The Mr. Magazine™ Interview With Mary McEvoy, Publisher – High Times Magazine

September 7, 2014

“High Times is not a magazine; it has always been a cause from the beginning. It was founded by Tom King Forcade, who was part of the Underground Press Syndicate. His goal from the very beginning was the legalization of marijuana and this was 40 years ago.” Mary McEvoy

high times-1 From the underground of the 70s to the openness of today’s legalized marijuana in many states; High Times magazine has been there as an advocate and a champion for the legalization of marijuana.

Its founder, Thomas King Forcade, was a member of the Underground Press Syndicate in the 70s and started the magazine in 1974. It became a huge success. But the 80s saw a crackdown on any kind of drug use (marijuana included) and the magazine reached its lowest point ever.

The magazine is privately owned and run by a group of shareholders who, due to the nature of the topic, rarely if ever, give interviews to the media about the magazine’s financials, distribution or numbers. However, I was able to reach the magazine’s publisher, Mary McEvoy. Ms. McEvoy, a former newsstands consultant, ascended the ranks at High Times to reach the top position as publisher of the magazine.

I met Mary years ago during several Periodical and Book Association of America (PBAA) retail conferences. She is an extremely energetic woman dedicated to the magazine business, first as a newsstand consultant and now as publisher of High Times magazine.

Today High Times is celebrating 40 years of publishing. The magazine persevered in the hard times and McEvoy is very proud of its continued and much-revived success. With the ever-growing legalization of the plant, due in large part to its medicinal properties, High Times is seeing the magazine’s mission looming closer than ever before: the complete legalization of marijuana.

My conversation with Mary, who was in Seattle, WA to attend one of the major events High Times organizes, The Cannabis Cup, covered a wide range of topics from the current status of High Times to its past and future. It was a lively discussion about the magazine’s longevity and its mission, the positive effects the High Times events and the Cannabis Cup Awards have had on the magazine and how she views the future of the title and the cannabis world in general. I think you’ll find her answers “highly” informative and entertaining.

So, sit back and relax (and I leave it up to you to decide how) and enjoy the Mr. Magazine™ interview with Mary McEvoy – Publisher, High Times and you may find out some things about cannabis you never knew.

But first the sound-bites…

mary mcevoy

On whether the magazine’s circulation is more newsstand or subscription: We’ve always been predominantly newsstand. All of our subscriber copies are in an opaque polybag that we send to subscribers, because it’s a privacy issue.

On the secret of the magazine’s longevity: I think because it’s not a magazine; it has always been a cause from the beginning.

On the cultural differences of High Times compared to other magazines she has worked for: This is a tremendously entrepreneurial community that I work with here. It’s a very small company; fewer than 30 people do everything. We put out the magazine, work on and contribute to the website and we also put on events now.

On the future of High Times: Events for one thing because they’re huge. We started these four years ago with one event in San Francisco and we really didn’t know what to expect. When we opened the doors we had a line that went out across the parking lot, down the street and started up the ramp to the Bay Bridge.

On her biggest stumbling block:
I think our only stumbling block is our resources right now. We are in a most explosive mode now and we do need to reevaluate how we can capitalize on everything we have coming to us.

On her most pleasant moment with the magazine:
My most pleasant moment right now that I can think of is on Sunday nights when we give out our Cannabis Cup Awards.

On how “high” she sees High Times in five years: I see five years from now, maybe another ten states going legal and our events becoming, in every one of these legalized states – well, we’re going to have an Events Division for the company.

On what keeps her up at night:
What keeps me up at night are the 40,000 people that showed up at the door in Denver last year. And that’s happening at almost every single one of our events. How do we address the huge interest in our company at this point in time, either through events or through all the opportunities that are coming our way?

And now the lightly edited Mr. Magazine™ interview with Mary McEvoy, Publisher, High Times…

Samir Husni: Recently I read that there were 32 million people in the United States who actually use marijuana, by hook or by crook.

Mary McEvoy: There are no real numbers at this point, we have numbers that we throw around and that’s probably a number that reflects the people who smoke it on a social basis.

Samir Husni: Well, from that audience; how big is the reach of High Times?

Mary McEvoy: Let me preface this by apologizing. I’m not going to be able to give you any kind of circulation information or financial information. I can tell you certain things about increased page count and increased ad counts, but because we’re a private company and our shareholders are our management, there are certain things I can’t talk about. We have no rate base; we’re not audited. Our advertisers are very happy just with their response; they don’t need to know what the numbers are. So we’ve never released that information.

Samir Husni: Do you have more newsstand circulation or subscription?

Mary McEvoy: We’ve always been predominantly newsstand. All of our subscriber copies are in an opaque polybag that we send to subscribers, because it’s a privacy issue. Nobody wants their High Times coming to their house fully exposed for Mom or the mailman or the landlord to see. We’ve always been about privacy. Newsstands, they just maybe want to pay cash, not put it on a credit card. But that’s the kind of world that we’ve always lived in.

Right now my biggest disappointment in all this is the newsstand, because we were primarily a newsstand-driven company. And because of what’s happening on the newsstand, particularly when you hear of the ones closing down, it’s disappointing. Bookstores though are huge for us, convenience stores are huge and when we lost the stores we lost, many 7-11’s picked us up, many Mom & Pop’s and many small chains. The Bob’s Stores and the large supermarkets are not where we are. It’s a struggle every single month to try and hold onto the copies that we have out there now.


Samir Husni: You’re celebrating 40 years of publishing, which is a milestone in the history of magazines; what do you think is the secret of your success?

Mary McEvoy: I think because it’s not a magazine; it has always been a cause from the beginning. It was founded by Tom King Forcade, who was part of the Underground Press Syndicate. His goal from the very beginning was the legalization of marijuana and this was 40 years ago.

The magazine is one of the greatest proponents in the world for the legalization of marijuana in good times and bad times. It was an exciting time in the 70s because things were definitely turning around and then when the Reagan administration came in and Nancy Reagan’s “Just Say No” campaign was in full swing, again we had to go underground.

But because the mission has never changed, it’s always been about the plant; it’s about legalization, cultivation and it’s about the cannabis culture. And none of that has changed.

As I said, it’s a cause that we’ve been fighting for now for 40 years and everything that we do is based on getting marijuana legalized.

Samir Husni: Do you see that as the reason for survival of the magazine, that because you are more of a cause the magazine was able to survive through thick and thin?

Mary McEvoy: Absolutely. Because what happened in the past; we’ve had the Federal Government actually come in and this was in the early 80s, and they went after all of our advertisers. We were down to a point where we were afraid we weren’t going to be able to even open the doors anymore.

But just like any passion, and this is a passion that the ownership of the company had and still have, we’re not going to take money, we’re not going to eat; basically our lives and our whole passion is going to be about keeping the cause going. And that’s what the magazine is all about.

Samir Husni: You’ve worked at other magazines; how is the (no pun intended) culture different at High Times?

high_times_co_13 Mary McEvoy: This is a tremendously entrepreneurial community that I work with here. It’s a very small company; fewer than 30 people do everything. We put out the magazine, work on and contribute to the website and we also put on events now. We have six of our Cannabis Cup events this year. We do everything, so when you come in as the weekend director; you wind up as the publisher.

Our production people are our registration people right now at our events. Everybody wears a different hat. You learn the entire business when you come to High Times. You’re not just in the production, art or editorial departments. A small group has to wear many hats and it’s not just a situation where you used to write for the print magazine and now you have to write for the website; you also now have to be part of the competition at our Cup. You have to do seminars at our Cup. It’s exhausting and exhilarating at the same time working for this company and it’s been 10 years now.

Samir Husni: Congratulations on the 40th anniversary edition; it is one hefty issue. How many ad pages do you have in this commemorative issue?

Mary McEvoy: Ninety ad pages. It’s 160 pages and 90 of them are ads. It’s the first time we’ve done a book-a-zine. We’re very excited about it. We worked long and hard. We increased the paper stock; when I turn the page, I keep thinking that I’ve got two pages between my fingers. It’s just double the normal paper weight. And it’s just our love for the magazine that motivates us and we’re so excited to be doing something like this.

Samir Husni: What is the future for High Times?

Mary McEvoy: Well, the events for one thing because they’re huge. We started these four years ago with one event in San Francisco and we really didn’t know what to expect. When we opened the doors we had a line that went out across the parking lot, down the street and started up the ramp to the Bay Bridge. The police came in and actually said you have got to stop letting people in, it’s a fire hazard.

From there, every year it’s grown. The one we’re doing in Seattle now, every year we have to find a new venue because we outgrow the one from the year before. Next year we anticipate doing eight events. We think there is going to be more legalization, Oregon – so we’ll go there and Alaska. We’re talking about Jamaica; the Jamaican government actually contacted us and they’d like to expand their tourism during their off-season. So, we’re thinking about Jamaica in May, which I wouldn’t mind so much. This is what happened in Amsterdam 27 years ago. We started the Cup 27 years ago in November when it was their off-season. And we’re still growing there too.

We started a growth fund because people were coming to us and asking how do I get in on the ground floor? They were saying, I have money to invest. Also our advertisers were asking how they could get to that next level because they had products that they felt were going to soar and people would really want them. So, we decided to put the two of those together and we started this growth fund.

Samir Husni: And the purpose of the growth fund is?

Mary McEvoy: To put cannabis entrepreneurs together with cannabis investors. We’re calling it the High Times growth fund. The fund has been written about in Time and Forbes did something on us too. People are saying, “Wow! High Times is really getting involved.” We’re not under the radar anymore. Suddenly, and this has only happened in the last 18 to 24 months, people now see us as a genuine entré into a community that is now legitimate.

Samir Husni: And what has been your biggest stumbling block?

Mary McEvoy: I think our only stumbling block is our resources right now. We are in a most explosive mode now and we do need to reevaluate how we can capitalize on everything we have coming to us. Licensing opportunities are coming our way today that we’ve never had before; we’re expanding our advertising so we have to look internally to determine how we expand to capitalize on all these opportunities. I think that’s really something that we’re seriously looking at right now.

Samir Husni: And what has been your most pleasant surprise or moment in the years you’ve been at High Times?

Mary McEvoy: My most pleasant moment right now that I can think of is on Sunday nights when we have our Cannabis Cup Awards. It’s like an Oscar but it’s an actual cup. We award these Cups to five categories: the best Indica, the best Hybrid, best edible, best Sativa and best Non-Solvent Hash. When these people get up on the stage they practically have tears in their eyes and they’re saying, “This is my business and I couldn’t tell my mother about it before. Now she puts the Cup on the mantle.” And when they say, High Times you did this for us, you brought us out of the closet, all the hard work we do to put all of these Cups together is worth it. I literally get chills when I hear people get up on the stage and say thank you High Times for changing my world.

And when you get a Cup, suddenly your strain, your seeds become – well, it’s like the Good Housekeeping Seal of Approval. Suddenly, you can market these as a High Times winner and it’s huge. It’s like Consumer Reports just put you on the top ten list.

Samir Husni: Again, no pun intended, but how high do you see High Times five years from now?

Mary McEvoy: (Laughs) I see five years from now, maybe another ten states going legal and our events becoming, in every one of these legalized states – well, we’re going to have an Events Division for the company and we’ll probably be close to twice the size we are today.

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

Mary McEvoy: What keeps me up at night are the 40,000 people that showed up at the door in Denver last year. And that’s happening at almost every single one of our events. How do we address the huge interest in our company at this point in time, either through events or through all the opportunities that are coming our way? What’s the smartest way to capitalize on these eighteen months of recognition that is happening to us?

We literally had 40,000 people at this event last April in Denver because Colorado is a big legal state. And again, we’re a small company and we need to capture everything that we can think of to make sure this isn’t just our fifteen minutes of fame. We need this to drive us into the future now and ten years from now.

Samir Husni: Thank you.

h1

Book-a-Zines: Saving Print or Adding to the Problem… A Mr. Magazine™ Musing…

September 4, 2014

ROBIN1-2ROBIN2-3ROBIN3-4 There is no question that niche publishing is one answer to the print world’s prayers. From magazines that delve into goat farming to ones that highlight the advantages of an eco-friendly lifestyle, targeting the audience and its interests is paramount in today’s digital times for ink on paper. Audience first was, is and always will be the main secret ingredient of the magazine publishing’s recipe for success.

But is the magazine media industry going too far with the prices and repetitiveness of special issues and book-a-zines, which often come from the same publisher?

For example, the tragic death of Robin Williams initiated not one niche title about the comedic genius, but three from the leader in the market of book-a-zines Time Home Entertainment.

• LIFE – Remembering Robin Williams – $13.99
• People Tribute Commemorative Edition – $14.99
• TIME – Robin Williams 1951-2014 – $14.99

As you can see, each one of the magazines is extremely similar in both price and title, but what about the content?

The TIME issue is of course, the newsier one with stories about his depression and extraordinary life.

The People Tribute shows his Hollywood side, offering content about his roles and the many co-stars and actors he influenced or knew.

The LIFE remembrance is, as it should be, filled with fantastic photographs and wonderfully informative tidbits and captions that frame the pictures quite well.

The quality here is not the issue, nor is the ingenuity of the publisher, using three different platform titles to showcase the actor’s life and death.

The question that remains is whether the magazine industry is flooding the newsstands with titles that not only confuse their audience by being very similar, but also delves too deeply into their pocketbooks to pay for them?

TV Guide - the beatlesTV Guide - ElvisNeil Young-8 This month saw other tribute titles such as:

Rolling Stone’s Special Neil Young Edition – $12.99
TV Guide’s Remembering Elvis – $9.99
TV Guide’s The Beatles Special Edition – $9.99
People – Happy Birthday, Prince George – $12.99

The two TV Guide specials are both from Topix Media Lab, The Neil Young from Rolling Stone’s series of special collector’s editions, and of course, Happy Birthday to the little Prince is from Time Home Entertainment.

Prince George-5 Each month we welcome these new and informative specials and book-a-zines and as consumers, we have now come to expect them. In fact more than two thirds of all new titles arriving at the nation’s stands are book-a-zines.

But as publishers continue to raise the prices of these niche products and duplicate them across platforms, what may be at stake here is the customer’s loyalty and admiration for the product and the publisher. Resources for the audience are not boundless, no matter the success of these targeted titles and never underestimate the intelligence or savvy when it comes to the buying public.

Something to think about…

h1

Awesome Numbers For August: 72 New Titles – 20 Promising Frequency

September 2, 2014

As summer winds down and we get ready for fall – new titles for the month of August were strong – 72 total, 20 with frequency and 52 specials.

I have always said that magazines are reflectors of our society and the titles for the month of August proved no exception to that statement – illuminating the history of the month with a tribute title for Elvis and of course, the tragic death of Robin Williams. From People to Life to Rolling Stone, magazines honored the comedic genius. The covers of these timely issues were amazing and the content extremely well-written, proving once again that magazines mirror our sadness and happiness as a whole and all that happens within.

So I hope you enjoy the August launches…up first our frequency:

01 TechnologistBlack & GreyCycloCrossEQL - weddingsEQL - weddingsFour Food MagazineIntercourseKate-1La Petite - the little onesLaterLEI-2Maroon MagazineMega Truck-1Nashville LIfestyles - At HomePopular NoiseRealRed & Blue - OIe MIss FootballRemindSteelheader's journalThe Intentional QuarterlyWake Forest 27587

And now our specials:
5sos-1250 Scariest Movies-9Best of Fine Wood Working - HandtoolsBest One Dish Recipes-20Christmas-11Cleaning-17Complete Guide to the Woodlot-21Cook's illustrated - cooking freshcrochet scene-13Crochet WorldCuisine Holiday-16Discovery - SnakesDwellEat CleanEnchanted KnitsEnquirer-4epicurious italy-18Flight Journal - WWII CorsairGlamour - Special Edition Beauty How TosGreat Empires-3Great Garden Design-15handbags-14How to grow and preserve your own food-22LIfe - Dream DestinationsLIFE Robin-7Marily and Diana - sex lies & murderNational Geographic - Best of EuropeNeil Young-23New York HealthNewsweek - Destiny video game collector's editionPC Gamer - minecraftPeople - Hollywood at HomePeople - Prince George 1st bdayPeople - style watchPEOPLE Country MusicPeople Robin-6Rebel Rodz presents - RatzRolling Stone Robin-8Scientific AmericanSeeing is believing-10Sports Illustrated Swimsuit ExtraSunset - worlds best campingSunset Weekend TripsTatoo FlashThe Animal Mind-19TIME for kidsTime LIfe - inside the mind of a criminalTIME Robin Williams-5TV Guide - ElvisTV Guide - the beatlesUSA Today Back 2 SchoolWeight Watchers-2

h1

Digital Dominance For $150 : Ed Young’s Big Plan for Magazine Media. The Mr. Magazine™ Interview With the Founder of MagMaker Editions and Co-Founder of The Source Magazine…

August 31, 2014

“It’s not print or digital, and I can’t reinforce this enough; it’s print and digital. And MagMaker Editions is something that will allow the publishers to really enhance their print and digital offerings in a way that makes sense for the consumer.” Ed Young

magmaker

Determined to bridge the gap between print and digital, Ed Young is bringing “Digital Dominance” to publishers for $150. Young is co-founder of The Source, the powerful magazine that covered hip-hop, politics and culture like no other publication in the last two-plus decades. More recently Mr. Young is one of the three entrepreneurial forces behind a new concept in publishing: MagMaker Editions. This new entity aims to lay the stepping-stones for that all-important bridge between print and digital. MagMaker is ready to launch after the Labor Day holiday.

With MagMaker, Young offers publishers a space to provide the digital component of their product to the consumer – for only $150. Definitely a reasonably priced deal and one that he hopes publishers won’t be able to turn down.

ed young I spoke with Ed recently and the discussion was lively, vivid and totally entertaining, revolving around his past, present and future, with heavy emphasis on the future of his newest venture, MagMaker Editions. He admits with his educational background (he graduated from Harvard) most people feel he strayed entirely off course, first with The Source and then other entrepreneurial endeavors and now with his latest venture, MagMaker, but he couldn’t be more pleased with his successes and he plans even bigger things with his newest effort.

So sit back and enjoy the Mr. Magazine™ interview with Ed Young and be prepared to smile, laugh, but most importantly to be informed on how the publishing world is about to encounter digital dominance on a shoestring.

But first the sound-bites…


On the birth of MagMaker Editions:
MagMaker Editions has grown out of my company. I have three partners. The four of us actually have a very interesting perspective and one that I believe informs us about what the consumer is really looking for from the digital world and magazines and magazine’s place in that space.

On publishers’ ability to start making money from digital:
I think that we’re on the verge of a real renaissance in the publishing industry. And we’re providing the tools that are going to allow the magazine publishers that really understand that to address the vast audience that’s out there for them, because that’s the beauty of digital.

On why he believes MagMaker Editions will be successful:
If I can provide the tools at a price-point that isn’t prohibitive, such as the digital dominance for a $150 tagline, I can give them the tools that allow them to have the apps in the marketplace, the apps that are their brands in the marketplace.

On some of his major stumbling blocks:
One of the things that comes up all the time with the bigger publishers is if they see something new they want to know what the ROI is on the new and innovative product. But the tech guys will teach you if it’s new and innovative you can’t tell what the ROI is.

On what keeps him up at night: What keeps me up at night is the fact that I love magazines, that I think they are a truly vital part of our country, our democratic ideals. The integral part of our information dissemination, which makes this country great is somewhat in jeopardy and that keeps me up.

And now the lightly edited Mr. Magazine™ conversation with MagMaker Editions’ founder Ed Young.

Samir Husni: You’re beginning this new venture: MagMaker Editions. And you’re a magmaker yourself. Unlike all the other Harvard graduates, having their eyes either on the White House or CEO of a major financial institution, you and three of your colleagues launched the hip-hop magazine, The Source. After that you did many other non publishing related things. Now you’re back into magazine making. Can you tell me a little about this new venture, MagMaker Editions that you’re embarking on?

Ed Young: MagMaker Editions has grown out of my company. I have three partners. One is from the advertising space (working in advertising at The New York Times), another from the newspaper space (being one of the founders of waiting room subscription services) and the other was at NeXT Computer, Steve Jobs’ company.

So we come from industries that are servicing the publishing industry or technology, with my experience being as a publisher. The four of us actually have a very interesting perspective and one that I believe informs us about what the consumer is really looking for from the digital world and magazines and magazine’s place in that space.

Originally we started producing custom digital magazine apps for publishers. And we found success with that, however we realized very early on that the advertiser support for that would probably not be sustainable because you really need to produce digital magazines in a way that is a commoditized pricing product, not in a way that is custom. Custom worked for special-sponsored publications, much the same as magazines do when they publish special issues. That makes sense for that, but that’s a unique product.

But for your regular magazine publishing the real thing that you’re trying to do with digital is to deliver your magazine content to your consumer in a way that is conducive to their environment, how they want it and when they want it. And if that’s the case you have to think how do I make a product digitally that I can produce in an economical manner. Because advertisers have been trained not to pay for the digital product if it’s just your regular magazine and so what we did was created MagMaker Editions which is an entire platform that allows publishers to easily output apps for their own custom-branded apps and that’s a very important thing. So it’s their brand, their app on the iTunes App Store, Google Play App Store, Amazon App Store and as a web viewer. That way they’re able to reach the entire market and satisfy the consumer by delivering to them a digital magazine in a way that is, I think, very satisfying for the end-user, the reader.

Samir Husni: So far no one has been able to find a way to make money from digital, very little money anyway…

Ed Young: Very little money, this is true. But there are two things going into that, I think; the lack of discovery in the existing app stores, or the lack of ease in discovering existing app stores and the fact that the products that have been available to go digital have been expensive.

We’re offering our product and I want to coin the phrase: digital dominance for $150. We’ve really worked hard to make a product that we can get out that is, in our opinion, the best-of-breed for digital magazines, in terms of user interface and user experience. People really like reading off of our apps, and when I say “our” apps, I want to reinforce it’s the magazine brand’s app. When people get it they know that it is that magazine. It’s not coming in an individual story manner or something like that, where the brand itself is being diminished and it’s just about a story.

That is something that, coming from the magazine business, has really been disturbing to me because I realized that if you segment out the stories that are in an issue and distribute them across different channels and you ask the readers of those stories, they very rarely can tell you which magazine brand the story has come from. And that’s a very dangerous thing because we have an object lesson. And I have a unique perspective because doing The Source magazine I was very close to the music industry. And I saw the music industry change from an album-CD-based business to a singles business and it has been devastating for that industry. Because when you have to just pick a hit, all of a sudden people don’t even know the singer that the hit is from oftentimes. And there’s no real artistic voice in a hit single, but there is in an album or a CD, because you’re getting a body of work.

And magazines are like albums and CDs where they’re a body of work, they’re an editorial voice each issue. And you’re trying to convey that to your reader, there’s a message; a great magazine has a theme that runs through each issue. And magazines won’t survive if they lose that part of what they are because that’s the very essence of a real magazine.

We’ve been very careful to make sure that we preserve brand. So in order to do that, you have to address what is this discovery challenge in the app stores that exist. A large part of it is the search in the app stores has not been good. I think that Apple, Google and Amazon have been frustrated by the lack of uptake initially on the magazine product. But I think that is going to change. I really believe that people are going to, if they can find them, adopt these digital magazines if the apps are good and they’re more accessible. They really will. I refuse to believe that people have given up on the concept of magazines.

I think that we’re on the verge of a real renaissance in the publishing industry. And we’re providing the tools that are going to allow the magazine publishers that really understand that to address the vast audience that’s out there for them, because that’s the beauty of digital. We’ve seen this with the evolution of the Internet, where sites traditionally were seeing a small audience grow into giant audiences because there were a lot of people who were interested in that point of view or that special interest. And that’s the beauty of digital because the cost of distribution is so low. That’s where your potential universe is so much greater.

Samir Husni: I know you’re used to skeptics, being one of those Harvard business graduates that launched a Hip-hop magazine, everyone thought you were all crazy. So the skeptic in me is now going to ask you; why do you think this little engine named MagMaker Editions is going to succeed where, almost with no exception, most of the legacy media companies have failed or semi-failed?

Ed Young: That is a great question. I’m a geek, OK? Let’s put that out there. (Laughs) I love numbers. If we reflect back on the early days of The Source, it’s hard for people to believe now, but 1988 or 1989 when I went out and said, “Hey everybody, the next pop music is going to be rap or Hip-hop,” that sounded crazy. (Laughs)

Samir Husni: Especially coming from a Harvard graduate. (Also laughs)

Ed Young: Exactly. And so here’s this young black guy going around the country to the old traditional wholesalers, and I’m telling these older guys rap music is going to be the new pop music. And they would just look at me and say, Ok…and it was a very interesting discussion, but the reason that I had come to the conclusion wasn’t because I was a fan of rap music, it was because I went back and crunched numbers. And I looked at historical trends in music and overlaid that with sociological trend minds and then looked at the capitalization that had occurred in the music business relative to different music genres and when I tied it all together, the thing that popped out was interesting. It was that music genres actually follow an S-curve life-cycle just like any product.

And if you think of music genres as a product, Hip-hop or rap was the new product that had been the one that was winning and had been capitalized by the music companies and it was at the last two years of the innovation phase of that new music genre S-curve product life-cycle, which meant after the innovation phase, the next phase is the growth phase. So I went and I told my partners, I said listen, guys, this is incredible. We’re on the verge of this crazy growth for rap and the numbers say that, so what we have to do is if we position ourselves appropriately, we’re going to ride this wave up and the periodicity of each segment of that S-curve product life-cycle is 13½ years. And if you ask, why would that be? Think about it. Think about the age of kids when they start really getting into music and the big music consumption periods; it’s that 13-year stretch. It’s very fascinating and it worked.

We were fortunate. It’s not about being smart; we were at Harvard, sure, but it’s not that we were smart; it’s that we were in the right place at the right time and we didn’t mess it up. (Laughs) And that’s so much of it.

Samir Husni: So how is the Geek going to save the magazine industry? (Laughs)

Ed Young: Right. (Laughs) Well today, I’ve done essentially the same thing where I said OK – I was able to back then get in my car and drive around to the distribution channels, which you can’t do today, the newsstand is basically broken for smaller publishers. I couldn’t do today what I did back then because back then I was able to make money off of the newsstand, back then I could make a LOT of money off of the newsstand if I could figure out where my purchases actually were and get the wholesalers to allow me to dictate where my magazine would be distributed. I owe so much to these guys who own these wholesalers around the country because they actually did relent and let this crazy young kid go into their wholesale back offices and do distributions. It was just incredible that they let me do that, but they ended up benefitting tremendously as well, because our sell-through was always easily over 50%.

But that situation doesn’t exist today. You’re not able to travel around to the wholesalers; newsstand is, as I said, pretty much a break-even proposition for the smaller guys. So if I look at it and say how can I give tools to the smaller guys, because remember, looking at history, the small guys are going to be the big guys; can I provide them the tools of distribution that are going to allow them the bridge this transition period from print-dominated revenues to digital-dominated revenues? If that transition occurs, there’s going to be this period where it’s print and it’s digital; so it’s not an either/or proposition.

Continuing with how does the Geek save publishing; if I can provide the tools at a price-point that isn’t prohibitive, such as the digital dominance for a $150 tagline, if I can give them the tools that allow them to have the apps in the marketplace, the apps that are their brands in the marketplace, I then have to go back and ask how do I replicate that wholesaler model that used to exist for the physical presence of their magazines?

So what we’ve done is built other products that are tied to MagMaker Editions, the MagMaker platform. We have public place, for example, I mentioned that one of my partners is a founder of waiting room subscription services, so we have a Waiting Room Reader that we’re going to launch shortly, we’re working on partnerships with some professional organizations and some other very interesting companies that are in the space, so that’s a Public Place discovery engine. We have already launched what we call The Inflight Reader App, which is a library of magazines that is a pure discovery engine for travelers. When they go to an airport there is a library that’s unlocked for them that allows the traveler to discover any of the magazines, download and read them; you can actually download ahead and when the customer gets to the airport the library unlocks and they are able to read what they’ve downloaded.

This is a way that you’re able to expose people to magazines that they may have never heard about, but in a digital manner. You can, of course, buy from the app directly at any point in time; you get a free 24 hour reading period, but at any time you can buy and keep that issue. You can subscribe to whatever digital offerings the magazines have and you can even get a print subscription through the app, of course, that’s up to the publisher.

But it’s these kinds of things such as how do you extend this physical public place discovery that’s occurred in digital. We’re working on that. We’re also looking at, and this is to the skeptics because print is not disappearing, digital has not taken off in the way that it should have, and what we’re working on to address that also is some very interesting partnerships with traditional print and distribution people. And I think we’re going to have some very exciting announcements in the very near future, because there needs to be a hybrid approach to digital space. It’s not print or digital, and I can’t reinforce this enough; it’s print and digital. And MagMaker Editions is something that will allow the publishers to really enhance their print and digital offerings in a way that makes sense for the consumer.

Samir Husni: You did it once with The Source, but these are different times; what are some of the major stumbling blocks that you’ve faced with this new venture?

Ed Young: These are different times. And that’s something that I think about. I’ll wake up in the middle of the night and say – hmm. I really need to humble myself and realize that just because I had success with The Source it doesn’t mean that I’ll have success with anything else and so I need to relearn. One of the biggest challenges, being a print publisher, I love magazines; the biggest challenge for me in the text space is realizing that the things that worked for me in print and the things that worked for me in my early career, are not necessarily going to work in this other space, and that there are younger people, non-business trained people who I had to learn a whole lot from. It’s been a very humbling experience.

But I’ve really gotten to the point where, and with my team, we get both spaces and we realize that’s a very unique thing. Dealing with magazines right now, you have people who have tendencies to be either/or and we’ve really been humbled. We’ve had to say, “You know what, that just doesn’t work.”

And one of the things that comes up all the time with the bigger publishers is if they see something new they want to know what the ROI is on the new and innovative product. But the tech guys will teach you if it’s new and innovative you can’t tell what the ROI is. (Laughs) That just goes part and parcel with the new and innovative description.

But the big thing is, and this is why historically legacy companies don’t make it, because it lies largely in the fact that they’re not willing to make those leaps, they don’t understand that they can’t have an ROI that is defined for these new things. And the other part is that when you’re going into this new tech-reality the cost of failure is very cheap. And that was the hardest thing to understand and we built our platform with this in mind. One of the things that Mark Zuckerberg got is release fast and things will be broken. Now we’re to the point where our stuff isn’t broken, but what we have done is we’ve made it modular, so that as the consumer changes, we’re able to change stuff for our publishers really quickly with the update – boom – it pushes out. We’re not dependent upon the app stores updating as much as others are; we actually have a platform where all the approvals are in place, all of the functionalities in place and it’s modular on the view side.

But what Zuckerberg was so brilliant at understanding was that when you put it out, when the consumer demands something or they find something, the fix is a couple of hours of programming and when you fix something the user has asked for, or if they found a bug even, and you respond, they love you more, because they feel ownership now in your product, because they pointed something out and you addressed it.

Whereas when I was doing print, if there was a mistake or something you needed to change; you had to do a whole new print run.

Samir Husni: When is the launch date? When is MagMaker going into action?

Ed Young: We’re going to start taking our orders for this new offering the day after Labor Day, September 2nd and the website will be up to start accepting the intake for publishers; it’s very simple and based on PDF. It’s PDF-based, we pull it in, there’s a viewer that they have to approve once we process. The $150 doesn’t come into play until they approve the build. We’re trying to make this as risk-free as possible and as painless as possible. There’s a dashboard where they’re able to put in links to the social media, properties that they have, they can put in links naturally, language-named links or whatever pages they have in the app; it’s very user-friendly. It’s a digital-replica type concept, but made to feel like a custom app. And that is key, that is the biggest point for us, that we wanted to make something that allowed the user-experience to be what users really want, not what the publisher would necessarily think the user wants, but what the user really wants, which is a huge difference.

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

Ed Young: What keeps me up at night is the fact that I love magazines, that I think they are a truly vital part of our country, our democratic ideals. The integral part of our information dissemination, which makes this country great is somewhat in jeopardy and that keeps me up.

I look at that and think: we can’t lose that. If we lose that, we lose so much more than people realize. That has really driven my team to come out with something that we think gives, not just a fighting chance, but gives people an opportunity for an amazing future. I was with my mother-in-law, my wife and son and I were driving up to a family event with her and she was in the backseat of the car the whole time and she was reading. On the way back she was reading; she read up and she read back. I finally looked at her and saw she was on her iPad and we had gotten her a Nook before and she’d now gone to the iPad. So I said, “You like reading on the iPad now” and she said, “Yes. You know it’s great.” But the thing that struck me when we were talking was that she lives in a very nice, active, adult community. And she’s in a book club. There’s book clubs, Bible study clubs; all of these different things in the community. What I realized was the reason that she had jumped to the iPad was because of the book club. And one person had it, they showed her that you could change the text size and everything and now all of them have the devices. And all they use are the devices.

There’s just so much focus on the millennials, but the adoption rate for her group, which is late sixties to seventy years old, was magnitudes greater because when one person discovers it in this active adult-type community living that is so prevalent, fifty other people went out and got one. (Laughs) And that kind of massive adoption is about to happen over the coming months, this isn’t far into the future, because they’re discovering the utility that these devices offer and they have the cash. And they have the desire and what’s really great for magazines is these are the magazine “readers.” And if we can give them a product that they like, they’re going to adopt it on their new devices like we’ve never dreamed. And we have the tools for them to be able to do that in a way that makes sense for them.

Samir Husni: Thank you.

Follow

Get every new post delivered to your Inbox.

Join 6,204 other followers

%d bloggers like this: