The ACT 6 Conference Addresses the Newsstand

In 2009 I was excited to hear that Dr. Samir Husni (aka Mr. Magazine) had launched the Magazine Innovation Center at the Meek School of Journalism at the University of Mississippi in Oxford. I thought it was past time that the conventional wisdom was challenged. Yes, the world of information is changing. Yes, digital is the future. But did that mean that digital was the only future? While we  embrace digital, revise how we look at media and magazines and journalism do we have to dance so happily on the grave of printed magazines?

One of the missions of the MIC is to host conferences that discuss the business of publishing in an open and free ranging forum. The conferences are called ACT (ACT is the acronym for “Amplify, Clarify and Testify.”) At the first ACT conference I was thrilled to see speakers beyond the usual batch of insiders who spoke at most magazine conventions. Better yet, we got to hear from a wide range of Samir’s publishing acquaintances from overseas and learned how they were addressing the changes in the magazine world. And even better than that, the auditorium in Overby Hall was filled with journalism students, undergraduates and graduates who were there to learn about magazine publishing and what the future may hold for them.

This year, the ACT conference was in the Spring (April 20 – 22) instead of the Fall.  After five conferences that focused on a wide variety of topics, this years’ ACT featured several panels on the struggles of the newsstand side of the business.

Day One of the ACT conference kicked off with an industry overview from Tony Silber of Folio Magazine. It was followed by a very lively and informative address from Sid Evans of Southern Living Magazine.

Day Two took on a whole different form.

The conference kicked off with an historical overview of the makeup of the newsstand distribution industry from John Harrington, a consultant and editor of the New Single Copy newsletter and former head of the industry trade group, The Council for Periodical Distributors of America (CPDA). John is a long time industry veteran and he was able to lay out for many conference participants how the newsstand was organized, how it had worked for many years. Finally he explained why the industry experienced such rapid consolidation and had arrived at such a precarious position in the second decade of the 21st century.

But for any newsstand veteran, the surprise was the next panel, “Reimagining The Newsstand”. This was a remarkably open and frank discussion between several publishers, a major magazine wholesaler, and the major supplier of books and magazines to Barnes & Noble. The panel was moderated by Gil Brechtel, a former magazine wholesaler and current CEO of MagNet, a data service that provides publishers with store level information on their newsstand sales. The members of the panel were: Shawn Everson of Ingram Content, David Parry of TNG, Hubert Boehle of Bauer Media, Andy Clurman of AIM Publishing and Eric Hoffman of Hoffman Media.

While it was not that remarkable to have wholesalers and publishers on a panel discussion, this panel was more lively and open (Perhaps because we were nowhere near either coast?). Before the panel opened, each participant was given the opportunity to give a short presentation on their side of the business. This was incredibly informative. I could understand, fully for a change, the incredible pressures that TNG operates under (High fixed costs, pressures from retail customers, competitors for space within those retail customers, pressure from magazine suppliers). I could see why a publisher from another country (Hubert Boehle of Bauer) would view the American newsstand with a skeptical and quizzical eye (Germany has similar sales volume as the US, yet a higher sell through and lower remittance to the retailer). It was fascinating to hear about the transformation of Ingram from a strictly magazine and bookstore reship operation into a multi-channel company that also profited from digital production and distribution was impressive and remarkable.

Did the panel fix the newsstand?

Of course not. The challenges that face the newsstand distribution business can’t be fixed in one morning. But to my mind, this was the first of what should be many open, frank, and engaging discussions. We should continue this conversation. You can watch the presentation below:

https://www.youtube.com/watch?v=d3NE9CgQBm0

This panel was followed up with another MagNet sponsored panel titled “Cover Data Analysis for Editors”. This was led by Joshua Gary of MagNet and included Brooke Belle of Hoffman Media, Josh Ellis of Success Magazine, Liz Vaccariello of Readers Digest and Sid Evans of Southern Living. From my perspective, this was another successful panel. It was refreshing to hear from editors who understand that newsstand copies are the public front door to their magazine. That something designed to appeal to a potential reader could make that part time fan of the magazine a full time paying subscriber.

https://www.youtube.com/watch?v=IkIdc3LuysY

Consider the potential streams of revenue open to magazine publishers today: Events, e-commerce, newsletters, blogs, video, subscriptions. Ask yourself, why wouldn’t you put your best foot forward with every single issue that hits the newsstand? Why wouldn’t every newsstand cover be a piece of art instead of the very last thing you think of?

I don’t know. Any art directors or editors want to chime in?

The MagNet cover panel discusses the impact of discounted sub on newsstand sales.

In a March editorial, Tony Silber, the VP of Folio Magazine stated that the fate of the newsstand is not the same fate of print magazines. Tony correctly points out how the channel no longer generates much, if any profit. That racks are “truncated”. That many editorial pursuits have moved online. His address at the opening of the ACT conference was inspiring. But on this point I’d have to disagree. What has happened to the newsstand could very well be the fate of the printed word if publishers do not pay attention to all aspects their business. If all they do is react.

The fate of the newsstand is the fate of any business if the participants pay no attention the rumblings of their customers or suppliers. If you don't watch and respond to trends, the fate of the newsstand is waiting for you.

If we want readers to buy newsstand copies, we have to give them a reason to do so. If we want the newsstand channel to be profitable, then the participants in the channel have to cooperate and on the same page about who, how, when and how much they will get paid.

Recently a supplier contacted one of my customers and rather (Rudely I thought) informed them that they were not profitable, that they would have to switch to another form of discount and that they would have to agree to this right now this very minute or else they would be dropped. A quick review of this distributors sales showed that their sales losses were significantly higher than anything else this title had ever experienced. Moreover the discount structure that the title was currently declared "unprofitable" had been imposed by the distributor in an earlier “either/or” declaration. In other words, the losses this distributor incurred were self inflicted. Why? Because they took their eye off the ball and didn’t think long term.

When will sales stop declining? When we give readers a compelling reason to buy. When the producers of the content, the publishers decide that it is a channel of sales that they should pay attention to. In fact, during the ACT conference, we heard from several publishers who are doing well on the newsstand precisely because they are paying attention to their business.

It’s my hope that the discussions that were started at this years ACT conference continue. The alternative is a continued drift. At a certain point, we need to stop the drift and chart a new course. That point really is now.