AdAge published an interesting interview with the CEO of
Newsweek following the company’s announcement that they would stop selling hard
copies of the magazine in favor of going all-digital. I was surprised to learn that the
distribution of the print edition costs upwards of $40M. This happens to be almost exactly the amount
of money that the publication has been losing annually, according to The New YorkTimes. Newsweek is now looking for ways
to differentiate in a commoditized market.
IAC, the magazine's operator, seems to be having some success in doing this with
another online news site, The Daily Beast, which (unlike Newsweek) is entirely free online.
Newsweek’s CEO said online advertising on The Daily Beast was up 40%
last year. It will be interesting to see
if the once-popular Newsweek can make a comeback online.
No comments:
Post a Comment