THENEW SINGLE COPY

August 1, 2011
Volume XVI, #4
Editor: John Harrington

A NEWSLETTER ABOUT PUBLISHING AND PUBLISHING DISTRIBUTION

www.nscopy.com

Associate Editor: Eileen Harrington

Notes and Thoughts

Financials

Audit Reports Due August 8. Expectations Are For Continued Soft Numbers
There is little hope that next weeks release of the first half 2011 reports of the audit services* will contain much good news. Previews, based on trade publication reports and early looks at ABC Rapid Reports, indicate that the trends of the past three years are likely to continue, which means near double-digit single copy unit declines. Expected to be especially hard hit are the celebrity weeklies, even with expected bumps from the slew of issues focusing on the Prince WilliamKate Middleton wedding. However, many specials, i.e. bookazines, focusing on the wedding were either unaudited or were not off-sale until after June 30 and will consequently not be part of next weeks figures. Magazine Information Network (MagNet), the wholesaler supported data gathering organization, plans to release first half numbers next week as well. MagNets figures will include all publications, audited and non-audited. Harrington Associates unique analysis of the audited numbers will appear in the 8/15/11 issue of The New Single Copy.

AMREP. Meredith. Martha Stewart

AMREP Corporation, parent company of Palm Coast Data, the subscription fulfillment provider, and Kable Media Services, reported a $20 million decline in revenues for its most recent fiscal year. The numbers appeared on AudienceDevelopment.com (7/27/11). The news release said, This [impact of the recession and new media] has resulted in reduced subscription and newsstand sales. Kable's newsstand distribution revenues fell by more than one million dollars to $11 million. However, Kable is till a profitable operation. Overall, AMREP reported a net loss of over $7.5 million.Meredith Corp. posted a $30.3 million profit for its most recent quarter, a figure that was down nine percent. But profits were up 22% for the fiscal year. As reported in The Des Moines (Iowa) Register (7/28/11), Meredith has expanded its print and digital publications line, with the purchase of EatingWell Media Group, and introduced a new print advertising guaranteed p rog ram called Meredith Engagement Dividend (see below).Martha Stewart Living Omnimedia Inc., as noted on FolioMag.com (7/26/11) reported publishing revenue was down 3.2% in the most recent quarter to $34.1 million. The
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ACT2 Experience. The Second Act Set for Mississippi in October

The Magazine Innovation Center at the University of Mississippi will be the scene for the second edition of the ACT Experience, called Restart Your Engines: The Future of the Printed Word in a Digital Age. The dates are October 26 to 28, 2011. The director of the Innovation Center is Samir Husni, journalism professor at the University. Among the speakers will be Frank Anton, CEO of HanleyWood; Scott Crystal, former president of TV Guide; Sid Evans, group editor, Time Inc. Lifestyle Division; Phyllis Hoffman DePiano, CEO, Hoffman Media; Kent Johnson, CEO of Highlights for Children, Inc.; Steven Kotok, president, The Week; Will Pearson, president, Mental Floss Inc.; Roy Reiman, founder, Reiman Publications; Sue Roman, president, The Taunton Press; Bob Sacks (AKA BoSacks), Precision Media Group; and John Harrington, publisher/editor, The New Single Copy. Other speakers and participants include Vito Di Bari, designer and futurologist (Italy); Scott Coopwood, publisher, Delta magazine; James Elliott, the James G. Elliott Co.; Nina Gerwin founder, Eye Capture; Jeremy Leslie, editorial designer and founder, magCulture.com (U.K.); David McDonald, CEO, True North Custom Media; Mark Pasetsky, founder, Cover Awards; and Franska Stuy, editor in Chief, Libelle (The Netherlands). Husni also plans a panel, featuring printers and paper company executives, on The Future of the Printed Word. For more information on ACT2, go to http://
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Financials (cont.)
company, as a whole, reported revenue was down from the previous years quarter by less than one million dollars to $54.9 million, and the adjusted EBITDA showed a loss of $1.6 million compared to a $2.4 million gain.

Around the Business

Meredith. Bloomberg BusinessWeek

In response to advertisers demands for greater accountability, Merediths National Media Group, which includes its magazines, has announced its Engagement Dividend. The program, the details of which will be determined on a case by case basis, essentially guarantees that ads in the publishers magazines, which includes Better Homes & Gardens, Ladies Home Journal, and More, will improve the sales of the advertisers

THE NEW SINGLE COPY, August 1, 2011 Page 2 products. If the plus numbers cannot be demonstrated, additional ad space may be provided until the numbers are reached, as reported by Advertising Age (7/25/11). The program will be restricted to Merediths largest client advertisers.Bloomberg Businessweek, the successor to Business Week, is expanding an alternative distribution plan to its print subscribers. Currently nine percent of the publications 860,000 U.S. subscribers receive their subscriptions hand-delivered with their Friday morning newspaper. The publisher is reported, by AudienceDevelopment.com (7/26/11) to be expanding that figure to 30% by the end of the year. The move reflects continuing dissatisfaction with the United States Postal Service. The article said that nearly 40% of subscription copies are not being delivered until sometime between Monday and Wednesday of the following week, or nearly a week after the copies left the printer.Rider Circulation Services (RCS) will be the national distributor for Renegade, six-times frequency, on sale 9/20/11, cover price $5.99.

ACT2 (cont.)
www. mrmagazine.com/act/. The first edition of ACT, which stands for amplify, clarify, testify, was held in October 2010. It differed from any other publishing conference I have ever attended. To some degree, it was because of the eclectic group of speakers, but it was also elevated because of the university atmosphere, and the participation of the universitys journalism students, who contributed an enthusiasm and excitement that convinced the grayer heads that there will be a future for print in the age of digital.

very, very difficult for the American economy to withstand at this point in time. Wal-Mart, the largest retailer in the world, accounts for an estimated 15% of U.S. magazine retail sales.

The Differences in the Digital Publishing World

In an interview posted on BoSacks@aol.com (7/25/11), Peter Meirs, vice president of production technologies, Time Inc., talking about the difference in digital publishing, said, The most successful publications on the iPad are not straight reproductions of printed materials. You cant superimpose one medium onto another, you need to modify it. And thats what were seeing from most publishers. Its a whole different type of design.

Wal-Mart CEO Worried About U.S. Default

Hopefully, by the time this is seen by most of The New Single Copys readers, the United States Congress will have voted to raise the nations debt ceiling in at least a moderately constructive fashion. However, the following except from a WWW.com (7/25/11) article is worth citing: The Aug. 2 deadline to raise the nations debt ceiling cast a pall over markets, as Mike Duke, Wal-Mart Stores Inc.'s president and chief executive officer, warned a U.S. default would be devastating for the economyA default and the ripple effect I think would be impactful and, representing our consumers, we think that would be

Postal Service Honors John Johnson, Ebony-Jet Founder

Next year, the U.S. Postal Service will honor John Johnson, founder of Johnson Publishing (Ebony and Jet), by putting him on the face of a stamp. He is only the sixth publisher or journalist so honored. As I wrote when he passed away in 2005, anyone who ever spent even a little time around John Johnson, always left the event in awe of the man.

2011 Magazine Retail Sale Report Available

The 2011 edition The Magazine Retail Sales Experience, from Harrington Associates, is now available. It features circulation sales figures for all audited titles for 2000 to 2010 and cumulative newsstand performance numbers for the same period for all newsstand sales. The data is presented in spreadsheet format. Included in the data is average circulation per-issue, both subscription and single copy, annual subscription and single copy unit sales, total retail dollar sales, and retail sell-through figures for a majority of titles. Magazines are also editorially categorized. Information is stored in an Excel spreadsheet, providing unlimited capability for sorting and comparing. Also included is a short slide presentation, in PDF format, of 2010 performances. For $350, the data can be delivered via email, or by standard mail on a CD-Rom. For more information, contact Harrington Associates at info@nscopy.com. It is also available at www.nscopy.com. THENEWSINGLECOPY is published 45 times a year, by Harrington Associates, LLC., P. O. Box 1332, Charlestown, RI 028131332. 401-213-6830. FAX 508-819-4926. E-mail: jharrington@nscopy.com. ISSN 1521-1169. Subscription price : $425 per year. Delivered by FAX and e-mail. Overseas FAX: price varies by region. Single copy: $20. Reproduction and/or redistribution by any means without written permission is prohibited. www.nscopy.com