The cuts are aligned with an effort to focus on the company’s “master brands,” including Reader’s Digest, Taste of Home and The Family Handyman, “that have the greatest potential to grow across multiple platforms and through new revenue streams, such as partnerships and licensing in markets around the world,” a Reader’s Digest spokesperson writes in an email to FOLIO.
Thursday, December 15, 2011
Reader's Digest Makes Job Cuts
Reader's Digest has eliminated 150 positions across all of its business groups worldwide, with half the cuts affecting jobs in the U.S. and the other half international.
The cuts are aligned with an effort to focus on the company’s “master brands,” including Reader’s Digest, Taste of Home and The Family Handyman, “that have the greatest potential to grow across multiple platforms and through new revenue streams, such as partnerships and licensing in markets around the world,” a Reader’s Digest spokesperson writes in an email to FOLIO.
The cuts are aligned with an effort to focus on the company’s “master brands,” including Reader’s Digest, Taste of Home and The Family Handyman, “that have the greatest potential to grow across multiple platforms and through new revenue streams, such as partnerships and licensing in markets around the world,” a Reader’s Digest spokesperson writes in an email to FOLIO.
Resolute Forest Products Moves Forward in Fibrek Acquisition
Resolute Forest Products (formerly AbitibiBowater) has formally commenced its offer to buy all issued and outstanding shares of Fibrek Inc., a producer of market pulp. Based on Fibrek’s most recent publicly disclosed number of shares, the maximum amount of cash available under the offer is C$71,541,556.
Catalyst Paper Reviewing Debt Structure, Defers Interest Payment
Catalyst Paper reported that while it continues its review of alternatives to address its capital structure, it will defer the ~$21 million interest payment on its outstanding 11% Senior Secured Notes due 2016 and Class B 11% Senior Secured Notes also due 2016. The payment is due today. The company said operations are expected to continue as usual and obligations to customers, suppliers and employees will be met in ordinary course. Catalyst has 30 days within which to make the interest payment before triggering default. Failure to do so would allow 2016 Note holders to declare the $390 million principal and accrued interest immediately due and payable. If that demand were not satisfied in thirty days, it would constitute a default under the indenture relating to the company’s $250 million outstanding 7.375% Senior Notes due 2014.
Hearst’s Popular Mechanics Tries Personalized Ads
Though magazines have had the ability to publish customized editions for some time, the technology is evolving, allowing for less expensive production of individualized copies with, importantly, accountability measures to track results, always a key for advertisers.
300,000 subscribers to Popular Mechanics received customized content with their November issues; the magazine was bundled with an outsert from Hewlett-Packard that featured the recipient’s name and a scene of their hometown. A 16-page insert in the magazine informed the reader of specific locations for HP products. The promotion also contained URLs directing subscribers to an online contest, providing some indication (and measurement) of interest in the ads; 3% entered the contest, but 85% of the contestants clicked on QR codes in the insert that linked to more information on HP printers.
http://www.adweek.com/news/press/can-personalized-ads-save-magazines-137134
Source Interlink’s Buys Baseball America
In a move to expand its traditional sports portfolio, Source Interlink's GrindMedia bought Baseball America magazine and accompanying properties. Baseball America’s original staff will remain in the magazine’s Durham, North Carolina-based offices.
Heidelberg to Launch Digital Printing Portfolio
Heidelberger Druckmaschinen AG (Heidelberg) is on the final stretch with the international market launch of its digital printing portfolio and is due to complete this by drupa 2012. The portfolio comprises the Ricoh Pro C901 Graphic Arts Edition digital printing system and the new Pro C751 series, which is available in the Pro C751, Pro C751 EX, and Pro C651 EX versions.
CEPIPRINT and CEPIFINE Merge into Euro-Graph
CEPIPRINT, the Association of European publication paper producers and CEPIFINE, the Confederation of European fine paper industries announced recently that on the 1st of January 2012 they will join forces to create a new Association based in Brussels. The Association, to be known as Euro-Graph, will represent over 30 companies, operating well over 100 paper mills in Europe, with an annual capacity of approximately 45 million tonnes of graphic papers.
RR Donnelley Gets New Contract with IMG
R. R. Donnelley & Sons Company today announced that it has been awarded a new multi-year multi-million dollar agreement by IMG, a global sports, fashion and media business with nearly 3,000 employees operating in 30 countries around the globe. Under the terms of the agreement IMG will draw on the resources of RR Donnelley's domestic and international platform for digital and interactive initiatives and other content production and distribution including magazines, direct response, event marketing materials and more.
Wednesday, December 14, 2011
2011 Magazine Launches Up 23.8%
Mediafinder.com reported that 2011 magazine launches jumped 23.8% over 2010, while closures declined by 13.6%. There were 239 new titles published in this year and 152 shuttered. Food magazine has the highest growth with 25 new titles. There were 20 new regional magazines. In the business-to-business sector, there were 62 new titles, as compared to 34 last year. There were 38 closures; in 2010, there were 47.
USPS Announces Moratorium On Closures
The Postal Service has announced a five-month moratorium on the closure of post offices and mail processing facilities, in response to a request from 22 senators. The delay until May 15, 2012, is intended to give Congress more time to adopt legislation that would address the USPS financial crisis without drastic cuts in service.
Investlesprom Starts LWC Machine in Russia
A LWC paper machine was successfully started at the Investlesprom Kama mill in Krasnokamsk city (Perm region) in Russia. PM 7 (PM No7 (Vaahto Paper Technology) )produced the first coated paper on November 3, 2011. The estimated capacity is 86 thousand tons per year. The wire width of the machine is 3700 mm and design speed 1050 m/min.
UPM to Build New Headquarters
UPM is planning a new headquarters in the Helsinki city center. The proposed move will lower the company’s operating costs by ~2 million Euros. The building will be owned by a real estate company, but UPM will rent for the long-term. The lease for their current headquarters expires in 2013.
Separately, it was reported that UPM CEO Jussi Pesonen has been appointed chairman of the Confederation of European Paper Industries (CEPI), effective in January.
Tuesday, December 13, 2011
PIB Reports Q2 Ad Spend Up 5.7%
The Publishers’ Information Bureau announced that, based on rate card estimates, advertising expenditures for the second quarter were $5.2 billion, a 5.7% jump as compared to the same period last year. Ads featured in the titles tracked by PIB grew 0.8% to 43,000. 130 magazines reported increases. Ad spending by automakers rose 28%; ad pages jumped 41%. Food Network magazine gained the most, with ad sales up over 800% and ad pages more than doubling.
Verso Closing Two Sartell PMs This Week
As announced in October, Verso is shutting down paper machines 1 and 2 at its Sartell, Minnesota mill by the end of the week. The machines produced ~104,000 short tons per year of Supercalendered paper.
http://www.sctimes.com/article/20111213/BUSINESS/112120053/Verso-nears-first-layoffs-175-employees-total-will-let-go?odyssey=tab|topnews|text|Umbrella
Green Monday Online Sales Grow 19% Percent
ChannelAdvisor, a global e-commerce software provider, has announced that its customers experienced 19% growth in online same-store sales on Green Monday, traditionally the last day to purchase gifts online in order for items to arrive with standard shipping before Christmas.
Verso, Sappi & Publishers Partners in Forest Certification
Paper producers Verso and Sappi partnered with publishers Time, Inc. Hearst Enterprises and the National Geographic Society in a pilot project to secure environmental certification for more of Maine’s forestlands. The first phase of the plan created a way to simplify the SFI certification process for medium size landowners, making it easier for them to develop, implement and coordinate land management to the third-party forest certification standard. The second phase included additional landowners. An additional 1.4 million acres/570,000 hectares have been SFI certified through the project.
Hearst to Launch Biannual Cosmopolitan Latina in 2012
Hearst’s Cosmopolitan [0] brand is looking to make headway into the strong and growing Hispanic market through the launch of the new English-language Cosmopolitan Latina. The standalone magazine, set to launch in May 2012, will be published in both print and digital format twice a year, starting with a distribution of 545,000 and with plans for an increase in frequency and distribution in 2013, according to Cosmopolitan publisher Donna Kalajian Lagani. The brand will have a “content hub” on Cosmopolitan.com for now, adds Lagani, but may eventually move to its own site. Former managing editor of Studio One Networks’ LasFabulosas.com [1]. Michelle Herrera Mulligan will edit the product, along with a freelance and internal staff.
Print Week News Roundup
This week: Pureprint installs third Indigo; H'berg boss claims print volumes to stabilise; Stewarts of Edinburgh closes; Newspaper consolidation gets backing; Antalis McNaughton launches waste scheme.
Top 5 Magazines YTD 9/2011
Moving into the last weeks of 2011, min takes a look at magazine group publishers' boxscore data for January - September 2011 versus 2010. Of the 23 consumer groups listed, 10 showed gains in ad pages. Biggest performer was Wenner Media (totaling 290.37 additional ad pages) with their three mags all showing growth in 2011: Men's Journal (+9.36%), Rolling Stone (8.42%) and US Weekly (+15.55%). The other four top group performers were Source Interlink, American Express Publishing, Condé Nast and Hachette Filipacchi.
Monday, December 12, 2011
More Using Smartphone to Get Magazines
There is increasing evidence of smartphone use in the U.S. overall and specifically for access to publications. Recently, Affinity released the American Magazine Study, which said; ESPN the Magazine has more than 5 million smartphone visitors; People has almost 4 million; Sports Illustrated, WebMD the Magazine and TV Guide all have more than 3 million; TIME, Us Weekly and Entertainment Weekly have over 2 million; and Rolling Stone has over 1 million.
Google, with more than 150 publishing partners signed up, is launching an app for Android and Apple mobile devises. Bonnier has four titles available through the venue, including Saveur, Popular Science, Transworld and Parenting. CNET, AllThingsD, Forbes, Huffington Post and Fast Company are also “on board.”
Separately, Zite, which is a free personalized news app for the iPad, is moving into the mobile market.
UPM Closing Ettringen PM 3
UPM is closing PM 3, a newsprint paper machine, at its Ettringen, Germany paper mill on December 14.
Online Holiday Spending Up 15%
comScore has reported holiday season retail e-commerce spending for the first 39 days of the November - December 2011 holiday season. For the holiday season-to-date, $24.6 billion has been spent online, marking a 15% increase versus the corresponding days last year.
Quad/Graphics Expands Service Footprint with Bluestem Brands
Quad/Graphics, Inc. has signed a multi-year agreement with Minneapolis-based Bluestem Brands, Inc., best known for its growing Fingerhut and Gettington.com brands.
Google Launches Currents App
Google makes another move into the content space, debuting its Google Currents app for Android and Apple mobile devices. The company launches its app with a long list of publishing partners (over 150 of them) on board, including CNET, AllThingsD, Forbes, Huffington Post and Fast Company, according to a Google blog post [1].
White Birch Closes Stradacona
The Communications, Energy and Paperworkers Union (CEP) believed the closure of the White Birch Paper Stradacona newsprint mill in Quebec City is a lockout in disguise because the union was in the midst of negotiating a new contract.
However the judge sided with White Birch Paper and ruled that the temporary closure of the mill is for economic reasons. White Birch Paper followed through with their plan and the Stradacona mill closed on Friday, leaving 600 people out of work.
However the judge sided with White Birch Paper and ruled that the temporary closure of the mill is for economic reasons. White Birch Paper followed through with their plan and the Stradacona mill closed on Friday, leaving 600 people out of work.
Friday, December 9, 2011
Finish Forest Industries Federation Signs Agreement with Unions
The FFIF has signed a collective bargaining contract with three Finnish unions representing 94% of forest workers in the country. Paperiliitto, Pro and the Federation of Professional and Managerial Staff have agreed to a wage increase of 4.3% over the 25-month length of the contract. The white-collar workers of Pro had held several strikes last spring during negotiations.
Transcontinental Inc. Reports 2011 Earnings
Transcontinental announced FY 2011 revenues of $2.044 billion, up 1% over last year. Earnings were driven by its Printing sector as a result of new contracts and increased volume. Adjusted operating income was $252.7 million, also up 1%. Revenues for the fourth quarter were $537.5 million, down -3% as compared to the same quarter last year. Adjusted operating income was $86.3 million, a decrease of -3%.
Magazines Feature More QR Codes
GfK MRI Starch released a report showing that QR codes, or snap tags, appeared in 5% of magazine ads from January through August this year, as compared to 1.3% last year. Still unproven is the effectiveness of the QR codes; there isn’t evidence as yet that they bring additional consumer attention.
Magazine Roudup
Source Link Media has named Jim Adolph as publisher of its American Motorcycle Group. Mr. Adolph was formerly publisher of Car Craft and Dog Racing magazines. The Group includes Hot Bike, Hot Bike Baggers and Street Choppers magazines.
McGraw-Hill, which announced in September that the company was splitting into McGraw-Hill Financial and McGraw-Hill Education, has reported that it is cutting 10% of its workers, 550 employees, at the latter. The move is part of a plan to decrease annual costs by $100 million.
Bonnier Corp. has acquired four hunting expos from Target Communications. Terms of the deal were not disclosed. Bonnier publishes Field & Stream and Outdoor Life.
Publisher Get Married Media is shutting down its Get Married magazine and website this month.
Hoffman Media will no longer publish Semi-Homemade magazine, with Food Network celebrity chef Sandra Lee, after the January/February edition. A Sandra Lee spokesperson said the magazine would be restarted as part of a “multiplatform brand reorganization.”
Future Publishing is merging its UK and U.S. operations and creating a single global product line. The company produces gamer, music and technology enthusiast brands. Rachelle Considine has been promoted to chief operating officer.
Resolute and West Fraser Announce Pulp Price Cuts
Resolute Forest Products (Resolute) announced its list prices on five key grades of market pulp to North American customers this week, effective December 1 until further notice. For softwood kraft grades it slated price decreases of $30/tonne.
West Fraser informed North American customers that its northern bleached softwood kraft (NBSK) pulp price will decrease to $890/tonne, effective December 1 until further notice.
Voith Chairman Leaving Company
Peter Edelmann (52), Chairmann of the Management Board of Voith Turbo GmbH & Co. KG and Member of the Corporate Management Board of Voith GmbH is leaving the company upon his own request and by mutual agreement on the last day of the year.
IBM to acquire marketing analytics company DemandTec
IBM Corp. plans to acquire DemandTec Inc., whose cloud-based analytics service aids companies in setting price, promotion and merchandising tactics. The price is $440 million.
McGraw-Hill to cut 550 jobs in education business
McGraw-Hill Cos. has announced plans to cut 550 jobs, or 10% of its workforce, at McGraw-Hill Education. That move was among a number of initiatives McGraw-Hill unveiled Wednesday in an update on its plan, announced in September, to separate into two independent companies: McGraw-Hill Financial and McGraw-Hill Education.
Global Ad Spending Up 2011
Global ad expenditures will end the year at $464 billion, 3.5% higher than 2010, according to ZenithOptimedia, a Publicis Groupe company, then accelerate through 2014.
Heidelberg:Future Print Volumes
Heidelberg held its traditional end-of-year press briefing this week against a backdrop of extraordinary events in the industry and beyond.
With the situation at insolvent rival Manroland in flux, and the ongoing crisis in the Eurozone yet to be resolved, the world’s largest printing equipment manufacturer reaffirmed its confidence in the future of the industry.
Thursday, December 8, 2011
Manroland Great Britain Placed in Administration
Because of the insolvency of its parent company, manroland, Germany, manroland Great Britain has announced it has no other option but to also be placed in administration (similar to bankruptcy proceedings in the U.S.). The company is a supplier of printing machinery.
NYSE Notifies Verso of Unusual Market Activity
Verso Paper Corp. (NYSE:VRS) announced that the New York Stock Exchange, in accordance with its usual practice, contacted the company in view of unusual market activity in Verso’s common stock today. At the close of trading on the NYSE today, the price of Verso’s common stock was $1.44 per share, an increase of $0.33, or 30%, from the previous day’s closing price of $1.11 per share. In responding to the NYSE, Verso stated that its policy is not to comment on unusual market activity in its common stock.
Neenah Buyong Wausau Premium Brands
Neenah Paper has signed a definitive agreement to purchase certain premium brands, including Astrobrights and Royal, from Wausau Paper. The transaction has been approved by the boards of both companies and is subject to customary closing conditions.
The purchase would be financed through existing credit facilities and operating cash flows. Closing is expected to occur on Jan. 31, 2012 and additional details will be shared at that time.
Manistique Expects to Emerge from Bankruptcy End Q1 2012
Manistique Papers, Inc. has entered its final phase of financial reorganization with the mill operating near full capacity, according to officials. The mill has the capacity to produce 133M stpy of UGW on one PM.
A press release from MPI indicates the company filed paperwork with the United States Bankruptcy Court for the District of Delaware on Nov. 21 to enter its final planned stage of financial reorganization.
The actual process began last week, and is expected to be completed by March 2012. By reorganizing, MPI would be able to enter the process of selling the mill to a new equity holder with an appropriate debt structure.
Condé Nast/AdMeld Partners in Private Ad Exchange
In a major magazine publisher first, Condé Nast launched a private advertising exchange for select digital clientele. Partnering with service provider AdMeld, inventory from Condé’s entire digital portfolio was available at the time of the exchange’s launch.
Magazines, Year in Review
Face Up: 2011 Year in Review: 2011 was a year of redesigns and relaunches, as magazine covers aimed to provoke (and as a result, to sell). Some efforts amounted in positive buzz and hiked newsstand numbers; others inspired seemingly unending rounds of media heckling (Newsweek’s July 4th cover, which featured a very Photoshopped image of the late Princess Diana, here’s lookin’ at you).
Wausau Closing Brokaw Mill
Wausau Paper announced today that its Board of Directors has approved the sale of its premium Print & Color brands -- including Astrobrights(R), Astroparche(R) and the Royal family of products -- and closure of its Brokaw, Wisconsin, paper mill. The sale, to Neenah Paper, Inc., is scheduled to close on January 31, 2012. The Brokaw mill will be permanently closed by March 31, 2012, marking the end of the Company's material participation in the Print and Color markets. The Brokaw shutdown will affect approximately 450 hourly and salaried jobs.
USPS,Two Unions, Continue Negotiations to Midnight, Dec. 16
The Postal Service and two of its major unions have agreed to continue to extend separate labor contract negotiations. Although the contracts with the National Association of Letter Carriers, AFL-CIO (NALC) and the National Postal Mail Handlers Union, AFL-CIO (NPMHU) expired at m idnight Sunday, Nov. 20, the Postal Service and the two
52.9% Say Print is the Most Cost-Effective Marketing Medium
Thankfully, the cross-media message seems to be getting through. More buyers this year than last see print and electronic media as complementary rather than rival media. Likewise, while last year just 23% of respondents were planning on upping their print spend in the next five years, this year the figure is 26% (Print Week Survey).
There is comparatively good news when you look at the proportion of marketing budgets spent on print, too. While print has admittedly dropped by a percentage point from last year to 52% of budgets, the internet has dropped 3% to 25%, radio from 3% to 1% and TV from 6% to 4%. The winners are of course social media and event marketing, but it is print that seems to have lost least.
And it seems print gives you more bang for your buck too. A healthy 52.9% say print is the most cost-effective marketing medium, while the internet and email poll just 16.4% and 17.1% respectively. More surprising, perhaps, considering the low cost, is the performance of social media campaigns: just 4.3% of respondents say social media is the most effective ROI medium.
UPM to permanently close paper machine in Germany
UPM will permanently close down the paper machine 3 at UPM Ettringen paper mill on 14 December 2011 as being uncompetitive. In addition, overlapping operations are being restructured in the supply chain, paper sales and functions in the Ettringen, Plattling and Hürth mills. The negotiations concerning reconciliation of interest and social plan are concluded at the German units except Albbruck.
Wednesday, December 7, 2011
Resolute Forest Products Announces Downtime at SC Mill
Resolute reported that it will temporarily stop production the two machines at its Kénogami, Quebec mill. PM 6, a 77,000 metric tonne per year uncoated mechanical/SC-B paper machine will close next week and PM 7, a 139,000 mtpy uncoated mechanical/SC-A machine will be shut down on December 23. The machines will be restarted on January 3. The downtime is market related. Resolute announced five weeks of downtime at its Fort Francis mill last week.
Separately, Resolute CEO Richard Garneau said that the company will continue to operate its Bowater Mersey newsprint mill in Nova Scotia. The government granted the mill a $50 million package to help keep it running.
Stockholders Approve Merger
Temple-Inland stockholders approved the company’s merger with International Paper. The merger is still subject to regulatory approval and other customary closing conditions.
More QR Codes in Magazines
Interactive barcodes have been popping up more in magazines—Meredith Corp. has just announced it had selected Microsoft Tag as the 2D barcode standard across its magazines—but some questions still remain about its impact as an advertising tool. Effectiveness remains a question, though
http://www.adweek.com/print/136948
http://www.adweek.com/print/136948
Time Warner CEO Sees Good Q1 Ad Forecast
Time Warner Inc. Chief Executive Jeff Bewkes said the outlook for first-quarter advertising is "pretty good," depending on what happens with the world economy, despite signs of softness in the fourth quarter. Assuming no new economic shock internationally, "we are looking fine for the first quarter," he said at an appearance at an investor conference sponsored by UBS AG in New York on Tuesday. His comments came a day after Viacom Inc. CEO Philippe Dauman said he also expected to see stronger ad-sales growth in the beginning of 2012 than the end of 2011.
Third-Party Environmental Audits On the Rise
Reuters had a piece a couple of weeks ago about the growing pressure on corporations to hire independent auditors to validate their “green cred” and stave off claims of greenwashing:
Green audits – which for medium-sized companies can easily cost more than $100,000 – are helping a growing number of corporations assert their environmental responsibility in the face of scrutiny from the government, as well as consumers.
Regulators are making more demands. For example, companies that label their products as eco-friendly likely will face tougher oversight from the U.S. Federal Trade Commission under guidelines proposed a year ago.
Environmentalists make demands also. Overly positive green claims regularly trigger protest campaigns by such groups as Greenpeace. Green audits can also help companies find energy savings, fend off publicity nightmares and attract investors concerned about climate change.
EU Commission to Investigate Pricing of eBooks
BRUSSELS, BELGIUM—Dec. 6, 2011—The European Commission has opened formal antitrust proceedings to investigate whether international book publishers have, possibly with the help of Apple, engaged in anti-competitive practices affecting the sale of eBooks in breach of EU antitrust rules. The publishers include Hachette Livre, Harper Collins, Simon & Schuster, Penguin and Verlagsgruppe Georg von Holzbrinck.
Talbots Looking for New CEO, Closing Stores and Gets Offer From Sycamore
Yesterday, Talbots announced it had hired an executive search firm to find a new chief executive officer and that it was closing 83 stores this year and 110 stores by the end of 2013. Today, Talbots received an offer from private equity firm Sycamore Partners, which currently owns 9.9%, of $212 million for the balance of the company.
http://www.retailonlineintegration.com/aggregatedcontent/talbots-closing-83-stores-2011
Publisher Bonnier Buys Four Hunting Events
Bonnier Corporation [1], publisher of magazines including Field & Stream [2] and Outdoor Life [3], has purchased four hunting expos from Mequon, Wisconsin-based Target Communications [4] for an undisclosed sum.
http://www.foliomag.com/node/38304/print
http://www.foliomag.com/node/38304/print
Twin Rivers Madawaska Mill/Rail Deal
Montreal, Maine & Atlantic Railway announced a tentative deal Tuesday to sell 25 miles of railroad tracks and effectively end a long-running dispute by allowing another shipper access to a Madawaska paper mill. If the Federal Rail Administration and Maine Department of Transportation approve, J.D. Irving subsidiary Eastern Maine Railway will purchase the Madawaska-Van Buren-St. Leonard railroad line for an undisclosed amount.
Twin Rivers Paper Co. executives claimed a year ago that the Madawaska mill’s future was threatened by MM&A’s failure to maintain its railroad tracks and by its missed delivery and pickup deadlines — often forcing the coated and uncoated papermaker to hire trucks on the fly to make shipments — because of miscommunication or an insufficient number of railroad runs.
http://bangordailynews.com/2011/12/06/business/hermon-railroad-announces-deal-to-sell-tracks-to-madawaska-mill/print/
Twin Rivers Paper Co. executives claimed a year ago that the Madawaska mill’s future was threatened by MM&A’s failure to maintain its railroad tracks and by its missed delivery and pickup deadlines — often forcing the coated and uncoated papermaker to hire trucks on the fly to make shipments — because of miscommunication or an insufficient number of railroad runs.
http://bangordailynews.com/2011/12/06/business/hermon-railroad-announces-deal-to-sell-tracks-to-madawaska-mill/print/
J.C. Penney Buys 16.6 Percent Share of Martha Stewart Living Omnimedia
After initiating a search for investors and potential partners with Blackstone Advisory Partners in May 2011, Martha Stewart Living Omnimedia announces the resulting partnership. Retailer J.C. Penney invests $38.5 million in the multi-brand company, and will hold a 16.6 percent stake.
Tuesday, December 6, 2011
Canadian Pulp & Paper Companies Profitable for Three Quarters
The nine Canadian pulp and paper producers tracked by PPI Pulp & Paper Week recorded three consecutive quarters of profit in the face of unfavorable currency exchange rates, higher raw material costs and pricing pressures. The profit margin, however, remained very thin. Net earnings excluding special items for the group averaged 1.2% in Q3; they were 1.5% in Q2 and 2.2% in Q1. Sales were up 2.3% for Q3 2011 as compared to Q3 2012; revenues were down 1.2% in the same period.
US Will Stop Magazine Sales in Overseas Commissaries
By the start of February, magazines will no longer be sold at overseas commissaries, according to officials with the Defense Commissary Agency (DeCa). This includes 68 stores in Europe, the Pacific (Japan, Okinawa, South Korea and Guam) and Puerto Rico.
Sales at these stores amounted to roughly $1.46 million—620,000 units—in 2011.
H1 B-to-b Media Revenue Up 7.1%, Print Up 4.9%
Total b-to-b media revenue increased 7.1% to $12.9 billion in the first half of the year compared with the year-earlier period, according to Business Information Network data released by American Business Media.
Print and trade show revenue also grew. Print revenue was up 4.9%, climbing to $3.9 billion in the first half, and trade show revenue increased 1.0% to $5.1 billion.
Direct Mail Preferred Consumer Vehicle
Dallas—Despite the rise of digital marketing and channel proliferation, direct mail is preferred over email for receiving marketing messages, according to a new study by multichannel marketing company Epsilon.allas.
According to the company's “The Formula for Success: Preference and Trust,” direct mail is preferred over email in receiving brand or product information in almost every category, including financial services (36% to 8%), insurance (36% to 9%) and travel (21% to 13%).
In the study, based on an online poll in August of 2,226 U.S. consumers, 65% strongly agreed that they get too many emails, and 75% said they receive “a lot of emails I don't open.”
DMA, MPA Ask USPS to Withdraw Exigent Price Increase
Four postal associations have asked U.S. Postmaster General Patrick Donahoe to withdraw the U.S. Postal Service�s request for a $2.3 billion exigent postage increase for 2012.
The four groups -- The Direct Marketing Association; the Association for Postal Commerce 9; Alliance of Nonprofit Mailers; and MPA-The Association of Magazine Media -- sent a letter today to Donahoe, saying the request for a $2.3 billion exigent (above inflation) postage increase would be above the announced inflation-capped postage increases scheduled for Jan. 22, 2012.
Challenge; Finding Metrics to Measure Multichannel Ads
Marketers report difficulty making sense of online metrics
Companies can no longer ignore the growing online population, and many have already found ways to successfully reach both online and offline audiences using multichannel advertising.But difficulties associated with integrating and measuring the integration of online and offline advertising are also to blame.
http://www.emarketer.com/Articles/Print.aspx?R=1008719
Weekly Magazines Readying for No Saturday Mail
Many weekly magazines deliberately try to reach subscribers in time for the weekend, when there's more time for reading—and shopping trips that might wind up reflecting advertisers' suggestions. Losing Saturday would delay many copies until Monday, when the competition for time and attention is stiffer.
http://adage.com/article/mediaworks/magazines-gird-usps-nixing-saturday-delivery/231362/
HP Acquires Hiflex
HP today announced it has acquired Hiflex Software GmbH, a privately held global software solutions provider specializing in web-to-print and management information systems solutions for printing services. Financial terms of the transaction were not disclosed.
Founded in 1991, Hiflex is headquartered in Aachen, Germany.
Founded in 1991, Hiflex is headquartered in Aachen, Germany.
Vertis Gets Contract with Save Mart
Save Mart Supermarkets has named Vertis Communications as its exclusive provider of advertising inserts printing and logistics. This new contract, a complement to Media Services Vertis currently provides to Save Mart, will enhance the quality and speed to market of compelling inserts that capture attention and drive sales.
New Online Spending Record, $6 billion for Cyber Week
comScore (NASDAQ : SCOR), a leader in measuring the digital world, today reported holiday season retail e-commerce spending for the first 32 days of the November – December 2011 holiday season. For the holiday season-to-date, $18.7 billion has been spent online, marking a 15-percent increase versus the corresponding days last year. For each of three individual days, spending surpassed $1 billion.
MagnaGlobal Forecasts 5% Ad Growth for 2012
MagnaGlobal has revised its global ad spending forecast to 4.7% growth this year, down from an earlier projection of 5.2% growth. The restatement, to a total $427 billion, is due to softening in some markets during the second half of the year.
Next year, global ad spending is projected to grow by 5.0% to $449 billion, down from projected 6.5% growth, according to the forecast.
Next year, global ad spending is projected to grow by 5.0% to $449 billion, down from projected 6.5% growth, according to the forecast.
St. Marys Paper Gets a Tax Break
St. Marys Paper of Sault Ste. Marie, Ontario has won a property tax appeal. (The mill has been closed, no restart date has been announced.)
The company appealed its property assessment for 2006, 2007, and 2008.
An assessment board has ruled that the total assessment (both property taxes and education taxes) be reduced from $12.935 million to $3.78 million. This reduction will also have an affect on the tax years 2009, 2010, and 2011 due to the concept of tax capping.
Monday, December 5, 2011
EPA to Review Boiler Mact Regulations
EPA reconsiders boiler and incinerator emissions standards; would set limits for less than 1% of boilers
WASHINGTON DC, Dec. 2, 2011 (Press Release) - The U.S. Environmental Protection Agency (EPA) is proposing changes to Clean Air Act standards for boilers and certain incinerators based on extensive analysis, review and consideration of data and input from states, environmental groups, industry, lawmakers and the public. The proposed reconsideration would achieve extensive public health protections through significant reductions in toxic air pollutants, including mercury and soot, while increasing the rule's flexibility and addressing compliance concerns raised by industry and labor groups. The changes also cut the cost of implementation by nearly 50 percent from the original 2010 proposed rule while maintaining health benefits. These standards meet important requirements laid out in the 1990 Clean Air Act Amendments.
Rail Strike Averted
WASHINGTON DC, Dec. 1, 2011 (Press Release) - The nation's major freight railroads today reached tentative agreements with the Brotherhood of Locomotive Engineers and Trainmen and the American Train Dispatchers Association, which together represent about 26,500 employees in collective bargaining.
No Plans to Advertise on USPS Vehicles
Reports conflict over USPS freight truck advertising: In spite of several media reports indicating that the U.S. Postal Service (USPS) is in a partnership with Colorado-based advertiser Lighted Promotions to sell advertising on up to 17,000 postal freight delivery trucks in 11 states nationwide, a USPS spokesperson told Direct Marketing News on Dec. 2 that no such arrangement exists.
Postal Service Making Cuts, Will Slow 1st Class
Postal Service Pushes Forward with Big Cuts to First-Class Mail Next Spring: Facing bankruptcy, the U.S. Postal Service is pushing ahead with unprecedented cuts to first-class mail next spring that will slow delivery and, for the first time in 40 years, eliminate the chance for stamped letters to arrive the next day.
Global Ad Spending Up for 2012
2012 Global Ad Spend Forecasted to Grow 4.7%: The latest forecast by ZenithOptimedia finds that global ad spending in major media will grow 4.7% to $486 billion in 2012.
Friday, December 2, 2011
Magazine News Roundup
Time Inc. has named Sally Preston as publisher of Real Simple. Ms Preston was most recently working at Martha Stewart Living Omnimedia.
Open Sky Media, a portfolio company of private equity firm Hadley Capital, has purchased Marin magazine. Open Sky has recently bought a number of regional properties; chairman Paul Wormley said he is very optimistic about the city and regional magazine space and that their brands will have a strong digital presence, providing a “gateway to the print product.”
Consumer Reports is offering its print subscribers iPad access at no extra cost beginning with the January issue.
More About Magazines
Trunk, a lifestyle magazine focusing primarily on travel, will now be published biannually and, because of a deal with Source Interlink, it will now be sold in 20 countries.
Bauer Media Group has cut the rate base of Touch Weekly from 800,000 to 650,000 and Life Style Weekly from 450,000 to 400,000, as of January.
American Legacy, which did not publish three issues this year, has raised the new investment capital it sought and will resume publishing in February.
The Economist now has more than 100,000 digital subscribers, more than 3 million downloads of its app and has increased its print circulation 3% in the first 6 months of 2011.
Last of Friday's Magazine Roundup News
Hearst Corp., Advance Digital, A.H. Belo, Cox Media, Gannett, MediaNews, McClatchy and The Washington Post Co. have joined in creating Find n Save, a common platform that offers promotions and deals through newspaper websites.
American Media has signed an agreement with Fresh Media Group. The $10 million deal will reduce AMI’s costs by outsourcing production to Group FMG.
IDG will shutter its video gaming magazine GamePro. The winter edition will be its last.
Chapel Hill and Durham magazine publisher Dan Shannon is adding a new title, The Weekly.
Pregnancy magazine will be only available in digital format after the December/January issue, its last in print.
Consumers Still Like Direct Mail
Consumers Still Like Direct Mail
A study conducted by Epsilon found that 50% of U.S. consumers prefer direct mail to email and 75% say they get more email than they can read. 60% of the 2,226 consumers in the survey said they enjoy checking their physical mailboxes, a phenomenon the Consumer Channel Preference Study refers to as an “emotional connection” consumers have to their postal mail.
Separately, The American Catalog Mailer Association published the following statement: “We estimate the catalog industry paid $3.6 billion in postage, generating more than $1 billion of fixed-cost coverage above what it cost the USPS to deliver the catalogs...” “..half of America buys from catalogs.”
Teen Vogue Gets New Publisher
Condé Nast Names New Publisher for Teen Vogue
Jason Wagenheim, who just stepped down from his position as publisher of Condé Nast title Glamour, has been named as publisher of Teen Vogue. The company also announced that Kevin Martinez, who left Hearst in June, will become publisher of Details.
Jason Wagenheim, who just stepped down from his position as publisher of Condé Nast title Glamour, has been named as publisher of Teen Vogue. The company also announced that Kevin Martinez, who left Hearst in June, will become publisher of Details.
Meredith Begins ROI Program with K-C
Kimberly Clark First Meredith Engagement Dividend Client
Meredith Corp. announced early this year that it was offering, to selected advertisers who met specific criteria, a program that guarantees an increase in sales tied to printed ads. Nielsen and Meredith data will be used by Engagement Dividend, which will be launched early next year.
Meredith Corp. announced early this year that it was offering, to selected advertisers who met specific criteria, a program that guarantees an increase in sales tied to printed ads. Nielsen and Meredith data will be used by Engagement Dividend, which will be launched early next year.
Great Northern (Katahdin) Gets $1 Million from Maine
Great Northern Gets Help From State
Great Northern Paper is the owner of mills in East Millinocket and Millinocket, Maine, both of which had been closed until the company restarted PM 5, a newsprint and uncoated mechanical machine last month. Now, the Board of Directors of the Finance Authority of Maine has approved a direct loan of $1 million, giving Great Northern a chance to better its financial position. FAME is trying to help the mill retain ~215 jobs in the state.
Great Northern Paper is the owner of mills in East Millinocket and Millinocket, Maine, both of which had been closed until the company restarted PM 5, a newsprint and uncoated mechanical machine last month. Now, the Board of Directors of the Finance Authority of Maine has approved a direct loan of $1 million, giving Great Northern a chance to better its financial position. FAME is trying to help the mill retain ~215 jobs in the state.
Two Bidders for NewPage Port Hawkesbury Named
Two of Four Bidders for Port Hawkesbury Interested in Restart
The NewPage Post Hawkesbury mill, which went into creditor protection in September, has been in the process of seeking a new owner. Reportedly, there are four bidders, two of whom will probably restart at least the 400,000 short ton per year Supercalendered paper machine, if not the newsprint/uncoated mechanical PM. Previously, Paper Excellence (part of Asian giant APP) was identified as a suitor and today Stern Partners was named as the second firm interested in running the mill again. Stern is owner or part owner of West Linn Paper, Alberta Newsprint, FP Newspapers and Canstar Publications.
The NewPage Post Hawkesbury mill, which went into creditor protection in September, has been in the process of seeking a new owner. Reportedly, there are four bidders, two of whom will probably restart at least the 400,000 short ton per year Supercalendered paper machine, if not the newsprint/uncoated mechanical PM. Previously, Paper Excellence (part of Asian giant APP) was identified as a suitor and today Stern Partners was named as the second firm interested in running the mill again. Stern is owner or part owner of West Linn Paper, Alberta Newsprint, FP Newspapers and Canstar Publications.
Bowater Mersey Newsprint Mill Gets Reprieve
$50 Million for Bowater Mersey from Nova Scotia taxpayers:
Premier Darrell Dexter was in Liverpool, Nova Scotia this afternoon to make a multi-million dollar announcement for the Bowater Mersey mill.
Richard Garneau, CEO of Resolute Forest Products (co-owner of the Bowater Mersey mill) signed an agreement Thursday to maintain the mill for five years.
50% of Consumers Prefer Direct Mail
Study: Fifty percent of consumers prefer direct mail to email
Of the 2,226 U.S. consumers surveyed for the third Consumer Channel Preference Study, 60% said they enjoy checking their physical mailboxes, highlighting what the study refers to as an “emotional connection” to postal mail. In the U.S., 75% of consumers say they get more email than they can read.
Manroland Secures Credit, Production Continues
Germany's manroland mass credit approved; continuation of production and business secured
AUGSBURG, Germany, Dec. 2, 2011 (Press Release) - For the insolvent manroland AG the provisional insolvency administrator Werner Schneider has secured an agreement for a so-called "Massekredit" (similar to debtor-in-possession financing). "Continuation of production and business operations at manroland is therefore secured," said Werner Schneider, a financial auditor.
Time Inc. Names Real Simple Publisher
Sally Preston Named 'Real Simple' Publisher
The day after it named a new CEO, Time Inc. has ended another extended leadership search. Real Simple announced Thursday that Sally Preston would be its next publisher, ending a four-month process. Preston’s hire was in the works for a while, but was delayed by her previous employment at Real Simple rival Martha Stewart Living Omnimedia.
Manufacturing Expands for 28th Consecutive Month
Manufacturing ISM Report On Business Reports Growth: In the Latest Manufacturing ISM Report On Business®: The PMI registered 52.7 percent, an increase of 1.9 percentage points from October's reading of 50.8 percent, indicating expansion in the manufacturing sector for the 28th consecutive month.
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, eight are reporting growth in November, in the following order: Wood Products; Textile Mills; Petroleum & Coal Products; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Apparel, Leather & Allied Products; and Paper Products.
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, eight are reporting growth in November, in the following order: Wood Products; Textile Mills; Petroleum & Coal Products; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Apparel, Leather & Allied Products; and Paper Products.
Thursday, December 1, 2011
Sun Chemical Increases Prices on Press Blankets
Sun Chemical’s Rycoline Division to Increase Prices on Blanket Lines: PARSIPPANY, NJ—Dec. 1, 2011—Due to continued increases in the costs of key raw materials such as textiles and rubber compounds, Sun Chemical’s Rycoline Group will raise prices in North America by 5 percent on most blanket lines,...
Warren Buffet, Former News Boy, Buys Newspaper
Berkshire Hathaway to acquire Omaha World-Herald Co.: Omaha, Neb.—Berkshire Hathaway has announced plans to acquire Omaha World-Herald Co., which publishes the World-Herald and other daily and weekly newspapers in Nebraska and Iowa.
GamePro Magazine Shuttered
IDG Folds GamePro Magazine to Focus on Custom Projects: One of the last of the U.S. print magazines on video gaming left in the market is folding as IDG announced yesterday GamePro ceases publication with the current Winter issue.
USPS Will Fix Delay in Magazine Deliveries
USPS Promises to Fix ‘Unacceptable’ Flats Processing Delays:On-time performance levels for one-to-two day periodicals delivery have slumped to as low as 44 percent this year as USPS expanded its use of automated flats sequencing systems as a way of improving efficiency in processing flats immediately prior to delivery.
Online Ad Revenue Up 22% in Q3
Online ad revenue in Q3 nears $8 billion: New York—Internet ad revenue in the U.S. reached $7.9 billion in the third quarter, up 22% over the year-earlier period, according to the Interactive Advertising Bureau and PricewaterhouseCoopers.
Reuters Interview with Hearst CEO: Digital, New Time CEO
NEW YORK November30 (Reuters) - Hearst Magazines expects to reach one million digital subscriptions by the end of next year...Magazine companies are facing unprecedented challenges as a growing number of people choose to read content on digital devices like tablet computers and smart phones instead of in traditional print format.
http://www.reuters.com/article/2011/11/30/us-media-summit-hearst-idUSTRE7AT2FB20111130
Publishers; Digital Good for Audience Development, Maybe Not Advertising
The State of the Digital Edition Industry in 2011:
Nxtbook Media [1] recently wrapped its 2011 State of the Digital Edition survey, which looked at audience development and revenue growth, as well as where mobile fits in...Publishers are less satisfied with digital editions as an advertising tool than as an audience tool.
Nxtbook Media [1] recently wrapped its 2011 State of the Digital Edition survey, which looked at audience development and revenue growth, as well as where mobile fits in...Publishers are less satisfied with digital editions as an advertising tool than as an audience tool.
Consumer Confidence Index Improves
Consumer Confidence Index Improves: The Conference Board Consumer Confidence Index®, which had declined in October, improved in November. The Index now stands at 56.0 (1985=100), up from 40.9 in October.
Progress on IP/Temple-Inland Deal
Temple-Inland settles shareholder lawsuits over sale to International Paper:
Austin-based packaging and building products maker Temple-Inland Inc. has settled multiple shareholder lawsuits over the company's planned $3.7 billion sale to International Paper Co., according to a securities filing.
Austin-based packaging and building products maker Temple-Inland Inc. has settled multiple shareholder lawsuits over the company's planned $3.7 billion sale to International Paper Co., according to a securities filing.
Fibrek Recats to Resolute (AbitibiBowater) Bid
Fibrek reviews take-over bid from Resolute
The Board of Directors fears that Resolute’s unsolicited offer undervalues Fibrek and its future prospects. “The consideration offered under the Resolute proposal does not capture Fibrek’s true value for its shareholders”, said Pierre Gabriel Côté, President and Chief Executive Officer of Fibrek.
The Board of Directors fears that Resolute’s unsolicited offer undervalues Fibrek and its future prospects. “The consideration offered under the Resolute proposal does not capture Fibrek’s true value for its shareholders”, said Pierre Gabriel Côté, President and Chief Executive Officer of Fibrek.
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