Of course ACP will close mags, but the big question is what happens after that?
I doubt it was his intention, but there was only one topic of conversation on the press table after new ACP Magazines boss Matt Stanton faced the media for the first time: which magazines is he about to close?
It came after a refreshingly bullshit free assessment of the company’s position. There was a nod towards the fact that ACP had been slow to start implementing a digital strategy, and an acknowledgement that more magazines will go.
None of it came as a surprise to hear, but oddly it was much more confidence building than the company’s previous whistling-in-the-graveyard approach that all is well.
And of course it’s worth remembering that the point of the lunch was to remind the market of the strength of one if its key titles – the redoubtable Australian Women’s Weekly.
Nice post Tim,
What if these publications stop printing and are JUST online (as websites, not paid downloads)?
They obviously have more competition and there wouldn’t be as much money in the advertising, but without the overheads of printing and distribution, how bad will this affect profits?
Justin
@justin_hazelton
Dangerous to only look at circ. Trader group does well and owns that category. It’s not massive but decent yield and contributes EBIT. Same probably for People.
They can take a circ hit if they exist in categories with a need for magazine ad formats. Don’t look at the niche titles, look at the generalist ones who have a load of advertisers who could easily move their ad dollars to another format.
The big issue the finance guys at CVC will be looking at is not just the magazines but the management overheads. Cutting titles just means spreading overheads over less titles. ACP may have been slow on the online uptake however “real” online Ad $$’s for the likes of ACP, Pacific remain a fraction of magazine Ad $$’s.
Copying comment from other story:
When Nine sell ACP will they also sell the digital properties and these will then not be part of NineMSN anymore?
Tricky deal.
Mags with circ fluctuations of 4 and 5% annually are hardly at risk of closure.