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8/2/2019 Magazine Ownership - Does It Matter With Notes
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Therearearound160differentmagazinepublishersintheUK.Theseare thedominant
players.
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Thesefourareallforeignowned. HearstandCondNastarefullyAmericancompanieswithUKdivisions,andthetwoareclosecompetitors.CondNastsGlamouroutsellsCosmopolitan
in
the
UK
fashion
and
lifestyle
market;
Vogueand
Elle(which
Hearst
acquiredlastyear)alsogoheadtohead.
IPCwasaBritishcompany,nowownedbyAmericans,andretainsrathermoreofitsdistinctlyBritishidentity.
BauerandHBauer(partsofthesamecorporation)owetheirsuccessinBritishpublishlargelytotheirpurchaseofEMAPconsumermagazinesin2008.
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ThesefivecompaniesareBritish.
ImmediateMediawasbornonlylastyear,throughthemergingofBBCMagazines withOrigin
Publishing
and
Magicalia.Futureisresponsibleforanumberofrelativelyspecialistbutmainstreampublications.AsisHaymarket.
Dennispublishesaselectionofsmallerandnichemarkettitles,includingViz.NorthernandShellonlypublishesahandfuloftitles theirmainbusinessisinnewspapersandbroadcasting(ChannelFive).However,thetitlestheydoownarehugely
successful likeNew!andOK!
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Thisbarchartshowsthenumberoftitlesproducedbythebigeightpublishers.Thetop
twoarebothforeignowned,butImmediateand Futurearentfarbehind.
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Takenas apiechartofthewholemarket,wecanseethataboutonequarterofalltitles
arepublishedbyforeigncompanies.Thetwobiggest BauerandIPC arereallyrunand
operated
wholly
from
the
UK,
and
just
have
foreign
owners.AnotherquarterareownedbyBritishbusinesses,andhalfofallthetitlesproducedin
theUKareownedbysmall,independentpublishers.
However
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ifwelookinsteadatthesizeoftheiraudiences,thepicturechanges.Intermsof
magazinecirculation,IPCandBauertitlesbothreachmorethansixmillionreaders,getting close
to
double
the
reach
of
ImmediateMedias
titles.
Hearstowns
half
the
numberoftitlesthatImmediateowns,butisreachingmoreUKcitizens.
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Putthatanotherway,andsuddenlyforeign ownershipcanbeseentobedominatingthe
market.WhilethebigfiveUKPublishersarekeepingtheirquartershareofthe
circulation,
the
foreign
owned
companies
have
one
quarter
of
the
titles
but
nearly
two
thirdsoftheaudience.
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SoletstakeacloserlookatHearst MagazinesUK thecompanyformerlyknownasthe
NationalMagazineCompany(orNatMags)andawhollyownedsubsidiaryofHearst
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Likemostoftheotherforeignpublishers,Hearsthasgrown inpartbybuyingupsmallerpublishers.In2009ittriedtobuyEMAP,andin2010issuccessfullyboughtHachetteFilippachi,
a
French
company.Thiskind ofhorizontalintegrationbringsabouteconomiesofscale,butsometimesata
costtotheconsumer.Inthiscase,HearstdecidedtocloseSheandCosmopolitanBridetoconcentrateonsomeoftheirnewertitles,includingRedwhichwasadirectcompetitortoShe.ThisobviouslyrobbedShereadersinparticularoftheirfavouritemagazine HearstofferedShesubscriberscopiesofRedinsteadinabidtokeepthesereadersonboard.
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Asweveseenbefore,publishersmightcompeteovertitlesandaudience,buttheyalso
functionasoligopolies.Several havecollaboratedtobuyorestablishmajordistributors,
like
COMAG.
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NotonlydoesthissaveHearstandConde Nastfrompayinganothercompanyto
distributetheirtitlestoUKvendors(newsagentsetc.),theycanalsoprofitfrom
distributing
titles
from
other,
smaller
publishers.
This
is
an
example
of
vertical
integration.
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Many oftheworldsbiggestmagazinetitlesarepublishedinlocaleditionsalloverthe
world.MarieClaireisanunusualexampleofthis.TheFrenchoriginalispublishedbyacompany
that
only
publishes
this
one
magazine
(and
related
spin
offs).
Rather
than
sell
therightstotheMarieClairebrandtoonecompanyforinternationaldistribution,itsbeensoldtodifferentpublishersindifferentmarkets,asyoucanseehere.Thissuggests
thattheownersofthebrandwantthedifferentcountriestitlestohaveamorelocal
flavour,whilestillretainingthevaluesandidentityofthebrand.
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Mostother internationaltitles,however,tendtobenefitfromeconomiesofscaleand
theirhorizontalintegration.
For
example,
take
Hearsts
Cosmopolitan,which
is
claimed
to
be
the
biggest
selling
fashionandlifestyletitleintheworld.ThisisanextractfromtheUKsJuly2011edition.
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Asyoucansee fromthis,theJuneUSAedition,theUKhaspickedupandreproduced
thesamecontent.
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SohastheSouthAfrican edition.Asyoucansee,boththecopy(thearticle)andthe
photographyhasbeenreusedbyallthreeeditions.
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However,boththeUKandtheSAeditionsseemtobefollowingtheUSAslead.Theyre
benefittingfromthe economiesofscalecreatedbyhorizontalintegration thephotographer
has
only
had
to
be
paid
once,
and
the
article
only
written
once,
so
the
costsofdoingthisareeasilysharedacrossthedifferenttitles.
Itcould bearguedthattheseeconomiesaretotheadvantageofthelocalreaders they
cangetamoreexpensivequalityproductbecausethecostsareshared,andDiazis
interestingtoallthreeaudiencesforexactlythesamereasons,sowhyreinventthe
coverage?
Conversely,wecouldask:areCosmoreadersreallygettingan experiencedtailoredto
theirlocalneeds?OraretheyjustgettingtheUSAsleftovers andanovertly
Americanisedculturalexperienceasaresult?
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Interestingly,theSAeditionsharessomedesignideaswiththeUKone,suchasthe
layoutoftheQuizsection,whichisdifferentintheUS.
It
should
also
be
noted
that
the
SA
edition
is
published
under
licence
by
Associated
Magazines,whichlaunchedthisversionofCosmoin1983,ratherthandirectlyby
Hearst.
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Ofcourse,sometimestheculturalexchange workstheotherway.Forexample,heres
UKpopphenomenonAdeleonthecoveroftheDecemberissueofCosmointheUSA.
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Andheresheisonmany,manymorecovers. TheexceptionistheUKedition,which
carriedJessieJinstead.PerhapstheUKreadershiphashadenoughofAdelebynow!
Since
Jessie
J
is
not
yet
a
worldwide
cover
star,
this
cover
demonstrates
that
UK
readers
ofCosmoCANgetanexperiencethatistailoredtotheirneeds.Italsodemonstratesthe
magazinespowertospreadculturalinfluencearoundtheworld:Adeleappearedonthe
covereverywherefromtheCzechRepublictoIndonesia,andfromLithuaniatoThailand,
betweenDecember2011andApril 2012.
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Allthisis, ofcourse,anexampleofSynergy.HearstMagazinessavesmoneyinthe
productionofmorethantwentydifferenteditionsbysharingthesamephotographsand
content.
The
same
principles
can
apply
just
as
much
to
advertising
and
product
placement:advertisersmaybenefitfromspecialratesinreturnforappearinginmultiple
regionaleditions,butthissecuresplentyoffundingupfrontforrunningcosts.
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Hearst hasalsouseditsestablishedCosmo/Cosmopolitanbrandnamestospreadout
intoothertitlesinavarietyofterritories.CosmoonCampusisafreemagazinefor
university
students,
and
there
are
several
different
Cosmopolitan
Shopping
titles
around
theworld.TheoneshownhereisfromRussia.CosmopolitanBrideis,infact,adefunct
title
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itceased publicationwhenHearstacquiredHachetteFilippachi.
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TheUKApril2012editionfeatured acovermount.Eachcopywassoldinsideaplastic
envelopethatalsocontainedoneoffourdifferentsamplesofCliniquecosmetics.This
free
give
away
works
synergetically for
both
Clinique
and
Cosmopolitan:
Clinique
gets
to
persuade375,00020somethingCosmoreaderstotrytheirproducts,andCosmocan
persuadethesamereadersthattheyregettingextravalueforthesamecoverprice.As
youcanseehere,Cosmosupportsthiswithpromotionalmaterialinsidethemagazine.
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Heresanotherexampleofan advertorial therearelots!Thefocus,asever,tendstobe
onfashionandcosmetics.
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Aregular featureinCosmopolitanistheHitList.Thisrunsoversixpagesandfeatures
dozensofdifferent,interchangeableproducts inthisinstance,handbags.Thedesigners
and
manufacturers
all
provide
samples
to
Cosmo,
and
in
return
they
get
their
product
pluggedinthemagazine.Cosmopolitanbenefitsfromappearingtoberightatthe
cuttingedgeoffashionandfillssixpageswithadvertisingmasqueradingaseditorial.
ThatssynergybetweenCosmoandthefashionandaccessoriesindustries.
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Letsnotalsoforgettheverticalintegration andsynergyHearsthasachievedbysharing
itsoligopolypowerwithitsrivalConde NasttorunComag11.
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TheCosmoshopallowsHearsttocapitaliseontheCosmopolitanname bysellinghealth
andbeautyproductscarryingtheCosmobrand.Theyalsoadvertisetheseproductsin
their
magazines,
as
shown
here.
Both
the
branded
products
AND
the
internal
advertising
areexamplesofsynergy andthefactthatthisispromotedonthewebsite
demonstratesconvergenceaswell.
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As afashionandlifestyletitle,Cosmodependsuponcloserelationshipswithdesigners
andretailers.ThisexampleofsynergyfeaturescrosspromotionwithDorothyPerkins:a
portion
of
the
Cosmo
website
has
been
devoted
to
DPs
jeans,
and
this
is
mirrored
in
the
Aprilprinteditionbya20%offofferatDP.DorothyPerkinspaysHearstforthis
opportunity,andbenefitsfrombeingpresentedtoayoungish marketwithdisposable
income(theCosmoreader.)Onceagain,thisisalsoconvergenceinaction.
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Hearstmakethemost ofhorizontalintegrationtoreapthebenefitsofSynergy.For
example,bypairingtheirCosmoreadersupwithMensHealthreaders,viatheirdating
website,
they
get
to
use
two
of
their
brands
together.
As
both
sets
of
readers
have
to
submitalltheircontactdetails,Hearstalsogetstobuildupadetailedprofileoftheir
kindsofreaders.
IwonderwhatitsaysaboutREALCosmoreaders,thattheymightbeexpectedtowant
todateMensHealthreaders?HavealookattheMensHealthwebsite:doyouthink
theirreadersaregoingtobecompatible?
Andyes,thisisanextensionoftheclassicpersonaladssectioninnewspapersand
magazines.HavingarrivedontheInternet,thisisanotherexampleofconvergence.
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Cosmohasmovedbeyondsimplewebsites ontomobiledeviceslikeAppleandAndroid
smartphones.HearsthasdevelopedaspecialShoppingGenieapp.Hereshowitworks:
When
you
see
a
red
tick
symbol
next
to
a
fashion
or
beauty
item
in
Cosmo,
find
the
shoppingbagicononthatfeatureandscanit.Inthisissuewevechosenourfavourite
itemsfromClinique,NewLook,DebenhamsandBoohoo.Plus,wanna seewhat
everyoneelseisbuying?CheckouttheCosmoLovessectiontoviewtheclobberourreadersareorderingrightthissecond withhotpicksfromourfashionteamtoboot.
Whatthisdoesntsay butdoesmean isthatHearstgetstotrackthepurchasingchoicesofthousandsofitsreaders,whichnodoubthelpsitselladvertisingspaceand
productplacementopportunitiestofashionandcosmeticscompanies.
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YoucannowalsosubscribetoCosmopolitanontheiPad, inmorethanonecountry.In
fact,HearstoffersmanyofitspublicationsfortheiPad thisadfortheCompany
subscription
ran
in
Cosmo
in
April
2012
(theres
that
Synergyagain.)
Subscriptions
provideguaranteedincometoHearst.Distributingitelectronicallyisvirtuallyfree:there
arenopublicationcosts(nothingtoprint) andnodistributioncostseither(notrucksto
load,exchangefeestopaytonewsagents,norpostagetocover).Therearealsonew
developmentsintabletpublishingthathavethepotentialtomakethisamore
interactiveexperienceforthereader.Wellseemoreofthisnextterm.
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AnotherwayHearst getstotrackitsaudiencestastesandinterestsisthroughits
discussionforums.
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SowhatdoesallthismeanforCosmopolitansrelationship withitsaudience?
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Soyoube thejudge doesCosmosinternationalreachunderHearstsownershipmean
a) ThatCosmoreadersgetagreatdeal:awidevarietyoffreecontentacrossmultiple
media
and
access
to
the
best
content
from
sibling
titles
around
the
world,
orb) ThatHearstexploitsitsinternationalreachandoligopolypowertocutcostsby
globalising(ratherthanlocalising)itscontent,andexploititsrelationshipwithits
audiencetomaximiseadvertisingrevenue.
Whatdoyouthink?
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