• Folio:, Tuesday, May 2, 2006 11:15 AM

Daniel E. Aks of Folio: argues that too many magazine-industry professionals, eager to get onboard the brand-extensions bandwagon, believe that simply repurposing magazines for the Web constitutes a successful strategy.  The challenge is more complicated than that, he says. What’s the best way to make the transition?  "Shift from a magazine orientation into a ubiquitous, targeted, reader and advertiser-centric media information and services enterprise. This will lead to more products and services for the existing customer base, as well as attract new customers. Most importantly, publishers have to accept that the initial brand extensions are not necessarily the sexy or fun stuff." Acknowledging that magazines are, overall, in a down cycle that may never fully recover, Aks pitches four ways to deal with reality, including getting out of the business altogether: "1. Be the industry consolidator: Buy existing competitors so that the consolidator accrues the benefits of leading share, including pricing advantage, broader reach and capabilities, and cost scale. 2. Operate the business for cash: Eliminate costs associated with intermediate-term revenue improvements, and focus on getting the most cash from existing business. Accept and prepare for gradual decline. 3. Exit the business. 4. Extend the brand into adjacent (more growth-oriented) markets."

Read the whole story at Folio: »