Hearst-owned Esquire is blurring the boundary between advertising and editorial in new ways by putting an ad behind a peel-back flap on its cover. The American Society of Magazine Editors ad guidelines includes a dictate that the front cover is strictly "editorial space" and should be a sponsor-free zone. Did Esquire seek pre-approval from ASME for its novel ad unit? Sid Holt, ASME's CEO, says no, but that the cover is in keeping with the spirit of the guidelines. But, he adds, "Anything that would suggest the cover of a magazine can be sold to advertisers the way …

Unlike Detroit, the newspaper industry seems to be looking to wealthy individuals rather than the government to bail it out. Newspapers have long been the playthings of wealthy men, but a decline in advertising revenues is raising the question of whether private ownership or the shelter of sitting within diversified empires is now the industry's only valid business model. For instance, other Dow Jones titles are now supported by more stable cable channels and film studio revenues. The Washington Post is protected by the far larger income its parent company makes from its Kaplan education arm. …

It seems entirely likely that for-profit newspapers and local broadcasters might get philanthropic support from the civic foundations and private donors that are bankrolling news non-profits. With for-profit media watching their news-gathering resources dwindle, some editors say they're open to the idea of seeking help from donors. Charlotte Hall, president of the American Society of Newspaper Editors, says the idea raises multiple questions about how newspapers could solicit philanthropic support and still retain credibility. But it is doable. "A model could emerge for foundations to fund some local reporting at newspapers -- investigative reporting or an important local …

Playboy Enterprises is downsizing its New York office and transplanting its magazine staff to Chicago. "A small number" of the New York-based editorial and licensing employees will have the option of relocating to Chicago, while most will be laid off. Company insiders say the plan to dramatically cut costs by abandoning the expensive office space on Fifth Avenue in Manhattan has been under consideration for most of the past year. But editorial director Christopher Napolitano was reluctant to relocate his family. It is happening now because of a shift at the top -- the departure of CEO Christie …

An 85-page report from Stanford Group released this week is generally bullish on big entertainment companies. "Large-capitalization media companies will weather the storm better than most," despite a 6% decline in U.S. advertising spending this year, says the report. Stanford asserts that cable and satellite TV will remain resilient, as will films and entertainment. As proof, the report notes that U.S. box office results changed little in 2008 compared with 2007, despite last year's weaker economy. Stanford analysts also see opportunity in video games from the conglomerates. Time Warner and CBS are among analysts' stock picks for 2009. …

Source Interlink is joining Anderson News in demanding publishers pay an additional 7 cents for each copy of a magazine that it delivers to retailers, regardless of the actual number of copies sold by those retailers. Anderson News, which controls 25% of the market, told magazine publishers last week that it would exit the business if they refused to pay the new fee. Publishers had hoped if they declined to pay, it might force Anderson to retreat on the fee. But Source Interlink dropped its bombshell this week, informing publishers that it, too, would begin demanding a …

Scripps' newly minted Fine Living Network is based on the notion that young, upscale viewers want shows that entertain and inform. "Our programming has to be fun but [must] always provide a useful amount of take away for the viewer," says Chad Youngblood, FLN's general manager. To that end, FLN has added several series designed with life-enhancing elements for viewers. The network's new original series flow out of last year's successful launch of "Whatever Martha," featuring Martha Stewart's daughter Alexis poking fun at the domestic diva's classic daytime series. "Wingman," hosted by Glamour columnist Michael Somerville, will dispense …

Newsday settled an editorial disagreement that is likely to become more common in the industry, as financially strapped publishers try to use news content to aid the bottom line. Newsday editor John Mancini was missing from his office for several days, due to a dispute with new owner Cablevision over editorial content. He returned to the newspaper's offices Tuesday with the matter "resolved." Mancini told the newsroom staff that his absence since last week "was due to a difference of opinion with ownership over editorial policy. That has been settled. No one outside the newsroom influences our news coverage." …