Just ahead of its third-quarter earnings call, Martha Stewart Living Omnimedia today is announcing it is scaling back its print operation by cutting 1.1 million-circulation Everyday Food from a standalone 10x frequency to a 5x supplement to flagship magazine Martha Stewart Living.
In the meantime, the 760,000-circulation Whole Living, also on a 10x frequency, has been put on the block—the company says it’s already in discussions on a possible sale—and if a buyer doesn’t materialize then the brand’s content will be folded into Martha Stewart Living.
The pullback on print will come with a staff reduction, which The New York Times reports to be about 70 people, and MSLO says the new cost efficiencies of the moves could realize up to $35 million in annualized savings.
According to min box score numbers, Everyday Food is down about 3 percent in ad pages for the first three quarters compared to last year, and Whole Living has declined about 8 percent during the same period.
"We have taken decisive action to drive the company’s return to sustainable profitability, in part by reducing our costs for production and distribution and in part by creating even more engagement with our audiences, and better and more valuable opportunities for our advertisers," says MSLO president and CEO Lisa Gersh in a prepared statement.
The company is explaining Everyday Food’s predicament as a transition to digital. More of the brand’s content will be featured as a channel on Marthastewart.com and on the Everyday Food YouTube channel.
MSLO has also rolled out a MSL-branded "storefront" on Apple’s iTunes for its range of digital wares, including magazine content and its various spin-off apps.