Mag Bag: 'Food Network Magazine' Raises Rate Base

Food Network magazineFood Network Magazine Raises Rate Base

Defying the economic downturn, Hearst's Food Network Magazine is raising its rate base from 300,000 to 900,000 in October, capitalizing on the growing popularity of the magazine since its launch in October 2008. Hearst bumped the scheduled increase up from the original target of 600,000. In the first six months of publication, the title has racked up 550,000 subscriptions. If all goes according to plan, it will raise its rate base again to 1.1 million in August 2010.

This bold move comes amid a prolonged downdraft in magazine ad pages and revenues, with the cooking and epicurean categories especially hard-hit. In comparison with the first quarter of 2008, during the first quarter of 2009, Conde Nast's Bon Appetit and Gourmet saw ad pages fall 25.6% and 40%, respectively, while American Express Publishing's Food & Wine is down 30.2%. Time Inc.'s Cooking Light is down 17.2%, while Everyday Food is down 47.3%.

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Like other magazine publishers, after several years of success, Hearst has had mixed luck with new titles based on TV personalities. Last November, Hearst closed O at Home, a shelter-focused spinoff of O, the Oprah Magazine. In the first quarter of 2009, Everyday With Rachael Ray -- another cable cooking show-to-magazine brand produced by Reader's Digest Association -- is down 26.3%. On the other hand, Cooking with Paula Deen, a custom publication centered on the maternal Food Network personality produced by Hoffman Media, saw ad pages increase 18.3%.

Custom Publishing Not Immune, After All

Whatever good news the industry has to report on other fronts, custom publishing is not immune to the economic slowdown, according to the Custom Publishing Council -- which found that money spent on custom publishing decreased 20% in 2008 compared to 2007. The total number of custom publications fell from 143,000 to 123,157 between 2007 and 2008 -- a 14% drop -- while unique pages decreased 9.7%. However, the average circulation of the remaining custom pubs increased from 30,044 in 2007 to 37,340 in 2008, a jump of almost 25%.

Playboy Faces NYSE De-listing

In another sign of the falling fortunes of newspaper and magazine publishers, Playboy Enterprises faces de-listing by the New York Stock Exchange because its market capitalization fell to under $75 million -- the minimum level for listing on the exchange -- for a period of 30 days. As usual in these cases, Playboy has 45 days to submit a plan to raise the value of its shares to exceed the minimum market capitalization within the next 18 months. It won't be de-listed if NYSE approves.

Koten Leaves Mansueto Ventures

Last week, John Koten resigned as the CEO of Mansueto Ventures, the publisher of Inc. and Fast Company. No reason was given, but the departure followed several strange emails sent to staffers by Koten, who was said to be at odds with Joe Mansueto, the company's owner. Last October, Koten gave responsibility for the Web sites to the staff of the print magazines.

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