Folio: Wire | 7.13.06
By Marrecca Fiore and Linda Zebian
VNU Lays Off
Mediabistro’s Dylan Stableford is reporting that multiple insiders tell FishbowlNY that VNU has laid off staffers at magazines within its "Week" triumvirate – Adweek, Brandweek, and Mediaweek. According to those with knowledge of the situation, up to 10 editorial and sales employees were pink-slipped.
Conde Nast Buys Wired News In a self-reported news story, Wired News says it has been sold to Conde Nast Publications for $25 million. Wired News was previously owned by Lycos. The deal brings Wired.com and Wired magazine under the same owner after an eight-year separation. For more on the sale click here.
PIB Ad Revenues Up a Modest 3.2% for First Half of ’06
Total magazine rate-card-reported advertising revenue for the first half of 2006 increased 3.2 percent compared to the same period last year, closing at $11.1 billion according to Publishers Information Bureau (PIB). Ad pages totaled 114,705, posting a 0.2 percent loss against last year. The month of June showed a slight 0.9 percent increase in ad revenues, closing at $1.9 billion for the month, with pages down 1.7 percent from June 2005, closing at 20,185.
Eight of the 12 major advertising categories posted PIB revenue and page gains in the first half of the year, with the Drugs and Remedies and Retail categories generating double-digit growth. Apparel and Accessories; Direct Response; Financial, Insurance and Real Estate; Public Transportation, Hotels and Resort; Toiletries & Cosmetics and Technology saw increases in dollars and pages.
M&A Transactions Up by $10 Billion for First Half of 2006
Over 315 deals were made from media and information industry acquisitions in the first half of 2006, accounting for $37 billion in value according to reports released by the Jordan, Edmiston Group. This is a 33.5 percent increase in transaction value (up from about $28 billion in 2005) and a 12.5 percent increase in the number of deals over the same period in 2005.
The largest deals thus far has been the $11 billion acquisition of VNU by a number of private equity firms and the $6 billion acquisition of Knight-Ridder to McClatchy. JEGI reported 18 transactions under its belt during the first six months of the year, which doubles the number of transactions, completed by the investment company from January to June 2005.
The number of online media sector deals nearly doubled while the marketing and interactive services sector transaction value jumped 116 percent over last year. B-to-b magazines transaction value is up 22 percent while the number of consumer magazine transactions are up 26 percent over last year. Database information services deal value was reported up nearly 300 percent while number of deals are up 16 percent. The number of exhibitions and conferences rounded out the first half of 2006 up 29 percent while newspaper publishing deal values were up 172 percent.
Vibe is Sold; DoubleClick Acquires Klipmart
The Jordan, Edmiston Group has managed two recent transactions: The sale of online ad sales and management company Klipmart to digital advertising solutions company Doubleclick, as well as the acquisition of urban music magazine Vibe by private equity firm The Wicks Group of Companies. The new owner has fired much of the magazine’s editorial staff as part of the acquisition. The acquisition of Klipmart corresponds with DoubleClick’s goal of providing digital media while integrating the management and measurement of all rich media, display and search channels. Klipmart technologies and products will remain available to all clients on both DART and non-DART platforms. The acquisition will enable DoubleClick to produce both video and non-video enhanced ad units for digital advertising customers. In efforts to extend the Vibe brand into multiple media platforms and channels, New York-based The Wicks Group has acquired all assets around the magazine including women’s title Vibe Vixen; Vibe Online; television network Vibe On Demand; Vibe on film; and MVibe, a wireless service connecting the Vibe audience to up to the minute Vibe content. Other properties include Vibe CD and DVD series as well as television programming.
1105 Media Launches New Title
Respiratory Management, an industry publication targeting home medical equipment respiratory suppliers, sleep disorder professionals and respiratory therapists, will debut at Medtrade 2006 this September, 1105 Media Inc. has announced. Respiratory Management is the newest member of 1105’s HME Media Group, headed by publisher Karen Cavallo. The magazine’s editor is Deborah Cooper. The new title joins monthly sister publications Home Health Products — a 13-year-old product-driven tabloid magazine covering the entire HME spectrum — and Mobility Management, a magazine devoted exclusively to the HME mobility and rehab markets, and created by Cavallo five years ago. Respiratory Management will be published bi-monthly in 2007. Respiratory Management is the first new magazine to grow out of the HME Media Group since its parent company, Chatsworth, California-based 1105 Media was formed in April 2006 to purchase 101communications. Medtrade, the home medical equipment industry’s largest trade show, will take place September 18-21 in Atlanta.
Canon Co-Locates Six New Tradeshows
Apprise Media’s Canon Communications is implementing a co-location strategy for six of the eight manufacturing trade shows it acquired from Reed Elsevier in June, creating four mega-events throughout the country. Merging new shows with established manufacturing shows is part of Canon’s efforts to maximize attendance to shows to increase value for exhibitors. Fast Company, Inc. Partner With National Retailers Mansueto Ventures business titles Fast Company and Inc. magazines have made distribution deals with national retailers Staples, Office Depot and CompUSA. The deals began to take shape earlier this year and were finalized on Monday. Both magazines will be sold at retail at the three stores nationwide as part of the company’s efforts to extend their reach to early technology adopters and entrepreneurs.
Pace and The North Face Launch Online Magazine
Epic, a new online magazine from The North Face and Pace Communications custom publishing, will feature advice, trends and coverage of events and expeditions regarding the adventure sports industry. The Web site will include video feeds, live chats and photo slideshows of sporting expeditions from around the globe. Athletes and industry experts will share their own personal stories and tips on subjects like how to pack light and recipes for meals on the go. Readers will be able to upload the recipes onto their iPods to bring to remote areas. The North Face will also post its own events on the Web site.
ASME Launches Best Cover Contest
Inspired by last year’s "Magazine 40/40" celebration, The American Society of Magazine Editors has launched a competition for the top magazine covers from August 2005 through July 2006. The "Best Cover Contest" winners will be announced at the ASME summit, the American Magazine Conference, to be held in Phoenix, AZ October 22-24. Consumer magazines of the MPA and ASME are permitted to submit a cover in one of more of six categories which include: Cover of the Year; Best Celebrity Cover; Best News Cover; Best Fashion Cover; Best Concept Cover; and Best Service Cover. A special best coverline award will also be recognized. The deadline for submissions is Friday, August 11.
CondeNast Teams Up with Expedia.com
Online travel site, Expedia.com and CondeNast have signed a long-term partnership deal involving CondeNast Web site Concierge.com. Expedia is set to be the Web site’s exclusive online travel and booking engine, delivering online travel integration and enhanced content to travelers.
Condenast will provide Expedia.com customers with content including custom destination guides, customized travel content, annual CondeNast Traveler destination awards and lists and a special monthly CondeNast Traveler preview edition. This content will be accessible via Expedia.com as well as through other Expedia programs including Personal Trip Guide, a custom print guide delivered to Expedia.com customers via the mail.
USA WEEKEND Publishes Special Health Edition
USA WEEKEND Magazine launched a special midweek issue titled HealthSmart on June 21. The special edition is a spin-off of the magazine’s weekly HealthSmart column and was included in 76 newspapers nationwide and has a 7.5 million circulation.
The 32-page magazine was advertising supported and contained additional health editorial information not found in the weekly column. USA WEEKEND is considering publishing other spin-off issues later this year and in 2007.
Home Decorating Title Plans Editorial Changes for ’07
Norwalk, Conn-based home decorating and creative living magazine, Mary Engelbreit’s Home Companion will expand its coverage of the creative arts and artists at home and at work starting with its February/March 2007 issue. The Belvoir Media Group title is making the editorial amendments due to expressed reader interest in design and self expression. Other changes include a change in circulation to a rate base number of 295,000.
Publishing Group of America to Launch Rural Texas Title
A new four-color publication about Texas for Texans will go to 625,000 residents inside their local newspapers beginning in September. Scheduled for the third week of every month, Texas Profile will run stories on people, events, food, and culture that make life great across the Texas countryside. The new magazine targets rural Texas, which its publisher believes to be underserved by existing regional media focusing on life in the big cities. Texas Profile is an extension of American Profile, and will be delivered within the regular issues of that publication. At 625,000, Texas Profile will debut at more than double the size of Texas Monthly (300,000) and nearly double the size of Southern Living’s Texas edition (343,000). However, the magazine will charge advertisers less on a cost-per-thousand (CPM) basis–$65 CPM vs. $105.51 for Texas Monthly and $88 for Southern Living/Texas. In some categories, product exclusivity is available. Already, Ford has locked up the automotive category in 2006.
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