• by Michael Shields , August 11, 2004

Media planners who have been following Time Inc.'s launch of All You this week have generally been coming to the same conclusion: This could be pretty big.

It is not the magazine itself that has necessarily juiced them up, but rather the methodology behind the launch--one that many believe has the potential to reshape the publishing industry.

"I think this is a big deal," said Brenda White, Starcom USA Media Director. "I think it is something you'll see more of. I applaud Time Inc."

White added: "It sends a message to the industry. There are different ways to launch a magazine. I really think this is the future."

So does Time Inc. Says All You's publisher Diane Oshin: "It was Time Inc.'s intention to create a new paradigm for launching a magazine."

It appears that All You is attempting to alter that paradigm on two fronts--first, by utilizing an exclusive relationship with mega retailer Wal-Mart, which has displayed an undeniable power in shaping American tastes (Wal-Mart has 1,398 general merchant stores, 1,585 "Supercenter" stores, and 82 "neighborhood" stores).

"Wal-Mart is almost like the seventh TV network," said Mike Neiss, executive vice president of media at Lowe Worldwide. "Where else can you assemble that audience? It's almost a proposition that advertisers can't ignore."

Second, there is the formula of naked salesmanship that All You will use to attract customers. Based on a British publishing model favored by Time Inc. subsidiary IPC, All You will feature newsstand-only distribution, a cheap cover price, tons of cover headlines, and lots of editorial.

Besides offering millions of potential readers, The Wal-Mart distribution ensures that advertisers will reach shoppers during a time when shopping magazines are hot. "You are at least assuring advertisers that they will reach consumers who are actively looking to spend money," said Lowe's Neiss. "The pretense of aspirational edit is not there. This is very specific. You are in the place; buy this."

However, the degree to which Wal-Mart is actually involved in this launch is open to question. They have no influence over editorial, yet it is assumed that they are using considerable clout to ensure the launch's success, including giving the magazine prominent placement at checkout (at least initially), giving away the first issue for free (they won't say who paid), and having cashiers wear promotional buttons.

That's as far as it goes, says the retailer. "It will be treated just as any other magazine," said Karen Burke, Wal-Mart spokesperson. "It is at the checkout for the time being, and I don't know if that will change."

While Starcom's White speculated that Wal-Mart's arrangement with Time Inc. could open up some sort of in-store exposure for advertisers, rumors have the checkout placement ending at some point, while the entire exclusive distribution arrangement expires in January 2006.

But perhaps even bigger than what Wal-Mart will or will not do is the efficiency that many believe Time Inc. will enjoy from this on-the-cheap publishing model.

Buyers speculated that Time Inc. will be able to dodge using expensive wholesalers to deliver to newsstands while also avoiding costly print overruns. Some even predicted that the "cheap" editorial allows for a lower cover price.

The perceived value of that $1.47 cover price is also considered crucial.

"I don't think that Wal-Mart is the key story," said Robin Steinberg, vice president, director of print services at MediaVest. "There are hundreds of thousands of magazines sold at Wal-Mart. The trend here is the value-conscious consumer."

A consumer that some feel is being underserved.

"There is a need for a magazine for the middle class, the lower middle class, that speaks to their needs on an everyday basis," said Steve Greenberger, Zenith Media senior vice president, director of print media.

Yet Steinberg doesn't believe that All You's women's-service-like edit is all that unique. "This is First for Women for today's world," she said. She is also less enthusiastic about the newsstand-only model. "Newsstand has been eroding for 25 years, and the biggest erosion has been over the past couple of years," she said. "We are moving into a more subscription-based world."

However this new publishing world shakes out, almost everyone agrees that if this launch works, there will be many more retailer and publishing marriages to follow, with Kmart and Target being obvious choices (Target declined to comment, and Kmart was unreachable).

"I think you will see a lot more experimenting with custom publishing [with retailers]," said Zenith's Greenberger.

Lowe's Neiss believes that even existing magazines, such as women's services books that are struggling, could repurpose their content and produce similar retail magazines.

"If this happens to be a hit, there will be a very quick verdict," he said.