That the Meredith/Time deal was even proposed suggests how
much publishing has changed. With the advent of the Internet, the primary
sources of revenue—circulation and advertising—have eroded, while the costs of
printing magazines—ink, paper, and distribution—continue to rise. In the 20th
century, publishers of all shapes and sizes looked to Henry Luce’s Time Inc.
for ideas on how to make profitable magazines. But in the months and years to
come, they are much more likely to look to Meredith to figure out how to
survive.
Meredith has profited from a few key strategies.
They are experts at repurposing their content across multiple platforms
(magazines, books, websites, mobile devices, tablets, etc.) and aggressively
look beyond advertising and circulation for revenue. In print, they stay as far
away from the news as possible. They are particularly successful at licensing
their magazine titles’ names to major national businesses selling branded
products; they also run their own marketing agency. Meredith hasn’t been immune
to the forces battering the industry. But over the past decade, by
strategically tweaking their portfolio, they’ve managed to maintain steady
profits and reliable margins year after year in spite of the turbulence.
