Hachette reorganization may have long-range impacts on Canadian market

Tectonic shifts are likely, with the reorganization of Hachette Filipacchi, one of the world's largest consumer magazine publishing companies. According to a story in MediaDaily News, Hachette and its companion company,Lagardère Active (which specializes in digital and mobile media) have been put under the control of a single executive. It's early days, but it's likely that an increased push into multi-platform digital comment is driving this change.

Didier Quillot, formerly chief of telecom giant Orange France, last week was named chairman of both Hachette Filipacchi and Lagardère Active, and Quillot is expected to consolidate and coordinate their print and digital media strategies.

Hachette's magazine properties are well known in the U.S. Founded in 2004, Lagardère Active North America has already worked with Hachette properties to create mobile content, including Car & Driver Mobile, Elle Mobile and American Photo Mobile.

In addition to planning big media acquisitions in the United States, rumor has it Quillot may sell some Hachette properties, and has already begun firing executives from businesses slated for the auction block. To make room for Quillot, in September one of the grand old men of French media, Gerald de Roquemaurel, chairman and CEO of Hachette for 35 years, was kicked up to a supervisory board.

Hachette is not only a major publisher of many U.S. based magazines that are in the front rank on Canadian newsstands, but the company is also a partner with Transcontinental Media in Elle Quebec and Elle Canada and a major player in Canadian wholesaling and distribution.

Although some of these [U.S. consumer] titles are category leaders,said the story, overall Hachette has seen total advertising pages and profits fall 6.2% to 10,490, according to the Publishers Information Bureau. Meanwhile, total ad dollars fell slightly--1.7%--to almost $1.085 billion.