Selling magazine articles one-by-one is the goal of startup

A recent startup based in Toronto called Cover Story has been created to sell magazine articles on a per-article basis. 

Launched last summer, the online micropayment platform now has about 150 articles available from four Canadian magazines, including Inroads Journal, A/J Alternatives Journal, Ecoparent  and Green Teacher. Registration is free, there are no subscriptions and there are many free articles. Paid ones start at 49 cents apiece. There are no set up costs to the magazine and revenues are shared as articles are sold. 

The founders of the platform are Aditya Chityala and Aswani Pulipakal, each finance professionals with MBA degrees from the Rotman School at the University of Toronto. 

subTerrain magazine shrinks its format to "break out of staid conformity"

The future is smaller for subTerrain magazine. The Vancouver -based literary has announced it is downsizing its format with its current issue (#76, "The Future Issue") to what it calls a "non-standard off-size" (essentially somewhat like a super-digest.) It has sent a message to subscribers that says, in part

We feel this suits our personality better.  subTerrain started out as a 7 x 10 ’zine and eventually caved in to industry pressure and embraced life as a standard format, newsstand magazine. Well, after nearly three decades of life, we’ve decided to break out of the staid conformity of the magazine rack and live a little. We want to enliven our journey with unpredictability; not only content, but form as well must remain fresh. We are not the New Yorker nor Harper’s, magazines that have maintained their “brand” look for decades and decades on end. We want to embrace the uncertainty of the future; we want to bank on the near limitless possibilities that the unknowable can offer. We don’t want you to know beforehand what to expect from us. We want to surprise you with every issue. We want subTerrain to be an anticipated little piece of mail.

Inovva acquires Halifax-based Oyster Group

The Oyster Group, a Halifax-based circulation management and fulfillment company, has been acquired by Inovva, which specializes in web-based data management tools for magazine subscriptions, newsletter recipients, contest entries and event attendees. Oyster Group and its founder Faith Drinnan have been serving magazines in Canada and the United States since 1979. 

Drinnan intends to retire soon and Jennifer Taylor, her vice-president, client services becomes director of accounts at Inovva. The company's main offices will remain in Halifax. 

"This is very exciting news," says Inovva president Brinda Luckoo in a release. "The Oyster Group has an excellent reputation in the publishing industry and we are very keen to bring their expertise to our clients. They are well known as a dedicated, hard‑working group of professionals who have been helping publishers build their paid subscriptions for some 25 years." 

"We spent quite some time looking for the right buyer," says Drinnan. "Inovva has the personnel, the skills and the vision to ensure ongoing growth for the business we started in 1992. The company shares our values and commitment to both clients and staff. Plus, they have the most extensive range of traditional and digital offerings in Canada."

This was the second such acquisition this year.  In January, the company purchased Publish2Profit, a Calgary-based technology company that offers online sales and accounting solutions specifically tailored to the needs of magazine and periodical publishers.

Plumping circulation with SIPs is bringing U.S. publishers to a moment of reckoning

Keeping magazine circulation up by emphasizing non-revenue circulation sources is putting publishers in a jackpot of their own making, according to a piece in Folio: magazine by consultant Baird Davis. Newsstand business is suffering and the rush into a digital future is being repaid by a slowdown in digital circulation.(All U.S. data. See illustrative charts here and here. )

The newsstand decline of sales of audited titles is being masqued by the inclusion of special interest publications or "bookazines, he says. A close analysis of MagNet data showed that, net of those products, the sales of audited publications in the first half declined 14.9 percent, with revenue off 15.4 percent, indicating that the rate of decline for audited titles, rather than slowing as is often said, is actually accelerating.  and net revenue for non-audited titles actually rose 5.8 percent, compared to the steep 15.4 percent decline for audited titles.

He says that major publishers are the biggest users of non-revenue circulation. 

"The really heavy use of non-rev circ is largely confined to the publishers with high circ level titles that are chasing national advertising. These include, shown with their percentage of non-rev circ use: Time Inc. (30.7 percent), Meredith (29.5 percent), Condé Nast (32.5 percent), Wenner (30.6 percent) and Rodale (23.3 percent). These publishers, particularly Time Inc., Meredith, and Condé Nast, have easier and more economical access to non-rev circ sources. They also appear to be using these sources, not only to support high circ levels, but also to sustain a competitive advantage over publishers who don’t have the resources to keep pace in what amounts to a high-level circulation battle of chicken"

Advertisers are not being fooled, says Davis, and are therefore negotiating discounts for these line extensions, particularly as their ballooning usage has now exceeded single copy sales for the first time. 

As for digital circulation, he says that digital may have peaked in 2015 at 4.4% of paid circulation; "a far cry from the 10 percent figure that many publishers were forecasting just a few years ago."

"The age of unfettered circulation levels for audited consumer magazines is fast coming to a close. The dramatic decline in newsstand circ, the proliferation of non–rev circ, the prospect of less than expected digital circ, along with reduced reader demand for print products have all conspired to place stringent new circulation level restraints on publishers. 

"Some publications, like Reader’s Digest and TV Guide, have responded to the market changes and reduced their circ levels. But even a casual review of single copy, digital, and non-rev circ use reveals that many publishers are still stubbornly clinging to circ levels that are no longer appropriate in today’s market."

Brinda Luckoo leaves Rogers Media and takes her circ skills to Equisoft

[This post has been updated] Brinda Luckoo, a respected leader of consumer magazine marketing at Rogers Media has been appointed as executive vice-president, media services, with the digital business solutions company Equisoft. 

Luckoo was with Rogers for 15 years, there managing the circulation of some of the largest consumer and b2b magazine in Canada, including acquisition and retention activities for all consumer brands such as Chatelaine, Maclean’s and Hello! Canada. She was also responsible for the launch of Texture, the "all you can read digital subscription service. [Update: Luckoo was one of a number of people laid off in February by Rogers.] 

At Equisoft, she will be responsible for overseeing the enhancement of, among other things, Publishing Elements, a suite of tools designed to help publishers and media companies to optimize their revenue streams and manage audience, content and subscriptions. 

CMC presents awards for outstanding circulation

The CMC Awards are presented to celebrate the creativity of Canadian circulators, recognizing and honouring excellent, professional circulation work being done in the Canadian publishing industry. This year's awards were presented at a reception Wednesday evening during the MagNet conference in Toronto and the winners are:

• Audience Development – Canada’s History Magazine. (The award is made on the basis of meeting strategic objectives with a circulation promotion, innovation, execution and results.) 
• CMC Scholarship – Fiona Wong (House and Home) (formerly known as the Caren King Scholarship Award, this recognizes an individual’s initiative and achievement, and encourages further professional development. The scholarship is worth $3,000.)
• Vendor Award – Cindy Chang (CDS Global) (recognizing an individual working with a vendor in support of the Canadian publishing industry – a remarkable person who helps magazine circulation experts excel at what they do. This includes those working in distribution, delivery, fulfillment and database support.)
• Magazine of the Year – Outdoor Canada Specials (for outstanding achievement in overall performance, consistent with ongoing promotional efforts throughout 2015 that combined to reach stated circulation goals. This could include retail programs that span numerous issues, multiple subscription campaigns over the course of the year, or digital initiatives that helped to achieve circulation targets.)
• Lifetime Achievement – Mark Hamill (Rogers) (The award recognizes a body of work with an extraordinary legacy of achievement in magazine marketing.)

What to do about the newsstand? Publishers and everyone else want to know

The CMC is holding a seminar and social in Toronto Thursday Jan 28 about how to fix the newsstand. It's not the first time that the association has asked that or similar questions, but now it wants to confront the challenges of 2016. 

What has changed in the industry that will help restore newsstand sales? Are promotions essential? What sell-thru rate should publishers expect and what can be done to increase this? When should a new magazine go on the newsstand and when should a magazine drop out? What can Publishers do to advance their products at the newsstand in today’s environment? How do we make ourselves more viable in the eyes of our retail partners? How do we protect and possibly grow our space at retail?

The panelists will be

• Craig Sweetman, Owner of CRS Media
• Jerry Lynch, President of IPDA
• Pat Strangis, Director Newsstand Marketing at TVA
• Anita Baldwinson, Manager of Retail Services & Marketing at TNG

The event is at the Minto Quantum South Tower, 2181 Yonge Street, Toronto from 3:30 to 5 p.m., with the social immediately afterwards. Free to CMC members. Non-members$25 for the seminar; $10 social only.

Have we reached the point of "peak digital"?

D. B. Hebbard over at Talking New Media says in a current post that digital circulation of magazines seems to have peaked, at least judging by established U.S. majors. He points out that while digital's contributions to over all circulation numbers climbed for two year or so, towards a "magic level" of 10%, they seem to have stalled.Wired, which once claimed 10.2 percent of its circulation in digital subscriptions, now reports 7 percent. 

"Most discussion about digital today in the magazine world centers on “total audience” a concept best exemplified by the MPA’s Magazine Media 360 reports. According to the MPA, magazine audience growth was nearly 10 percent in the first half of 2015, making magazine publishing one of the fastest growing segments in the US economy – something absolutely no one believes. 

"The idea that measuring total audience reflects the power of a magazine brand makes sense, but it does little to actually sell advertising. The list of magazine being folded continues to grow not because total audiences are declining, but because too few ad pages are being sold into these struggling titles." 

U.S. magazine circulation slips 2.2%in 1st half 2015

Audited data shows that the total circulation of U.S. magazines fell 2.2% in the first half of 2015, compared with the same period a year earlier. According to a report in MediaDailyNews, based on figures compiled by Alliance for Audited Media, celebrity titles fell, largely driven by a decline in newsstand sales. In Touch Weekly slid 8.5% in total circulation, Life & Style was down 5.4% and OK Weekly 5.4%. People magazine's total circ was down 1.2%.

More magazine fell 41% in total circ, Woman's World 11.1% and First for Women 7.9%.

In men's magazines, Playboy fell 23.1% and Field & Stream 4.2%.

Meredith’s new Allrecipes magazine saw circulation soar 70.6%. Food Network Magazine’s circ rose 6.3%.

Next Issue Media marking four years offering "all you can read" magazine sub service

Next Issue Media, the so-called "Netflix for magazines", is apparently no flash in the pan; it is marking four years since the all-you-can-read "digital newsstand" or subscription service was launched. It was created as something of a matter of self-preservation by the big U.S. magazine publishers (Conde Nast, Hearst, Meredith, Time Inc.) and soon thereafter Rogers Media spent $5 million launching Next Issue Canada in Canada, which included 100 U.S. and a dozen Rogers titles. 

A year ago, it was reported that the Canadian service had 45,000 paying customers and 20,000 people trying a free preview. It was reported elsewhere that the U.S. version had about 150,000 paying subscribers, though it had yet to achieve profitability. 

The service started with 32 titles and one device (iPad) and now offers more than 145 titles on 6 devices, including various iPhone and Android smartphones and tablets as well as desktops. 
Related posts:

• Rogers Media withdraws magazine titles from library service offering free downloads
• Next Issue Canada mag sub service has 45,000 paying, 20,000 tryout customers
• Next Issue Canada rolls out free 30-day trial for non-Rogers subscribers
• Preview of Next Issue Media digital newsstand for U.S. titles now online

New, streamlined 2-page AAM audit form coming

The Alliance for Audited Media has reached consensus on a simplified, two-page magazine report for U.S. and Canadian publications which it covers. The new rules take effect in the second half of 2015 (the actual reports will not be available until December 2015) and the AAM says it will present data in "a clearer and more concise format". Additional data will remain available in the Media Intelligence Center tab, including per-issue stats.  You can see the prototype here or view a video tutorial. 

A grave offer: Taddle Creek gets with the Hallowe'en season

The Toronto literary journal Taddle Creek is making a Hallowe'en-themed subscription offer of $10 for two years of the twice-a-year publication, which works out to $2.50 an issue. In its usual wacky way, it explains the offer: 

"Subscribe to Taddle Creek (or renew your current subscription) by midnight on All Hallow’s Eve and pay the frighteningly affordable price of only $10—a sum lower than the bottom of a freshly dug grave!"

A two-year, four-issue sub normally costs $18 or $4.50 an issue. 

Cheers! Free wine is a subscription lure for magazine

The liquor laws are decidedly different, but here's a premium idea from Britain that's too good for Canadian publishers to pass up. Get on it, will you? 

A £92 subscription to the New Statesman saves £113 over the newsstand price of the weekly, plus the subscriber gets 6 free bottles of wine worth £61.94 (in the United Kingdom, only).

Geist contest pays tribute to the smoking life (and draws in subscriptions, too)

Geist magazine of Vancouver is well-known (and regarded) for its eclectic and fearless literary content but also for its quirky and off-the-wall competitions,such as the postcard story contest and the erasure contest. It may have come up with the off-beatest of all with its Tobacco Lit Writing Contest, for which the extended deadline is now September 15. 

It calms, soothes, relaxs, smells great, tastes better; loosens muscles, heightens focus; makes you look older, makes you look cooler; dulls taste buds, shortens your breath; yellows teeth, blackens lungs; cripples your heart, fries your brain, and of course, it kills you. To the cigarette, for all that it does, it is time we pay tribute. 

Entrants are asked to send $20 ($5 for each additional entry) and to write 500 tobacco related words (or fewer) in any genre, so long as it's original. First prize is $500, second $250, 3rd $150 and honourable mentions $100. All winning entries will be published in Geist and on geist.com. Every entry includes a one-year subscription to Geist, (which, we suspect, is half the reason for doing this.)

Alliance for Audited Media merges with digital auditing firm ImServices

The Alliance for Audited Media (AAM), the well-known audience auditing service previously known as the Audit Bureau of Circulations, has joined forces with the ImServices Group, bringing added horsepower to its technology and advertising audits and information services. Among other outcomes of the merger is that it is launching a new viewable ad impression certification service called Certified View. 

"The two organizations are merging their skills and expertise to create a leading independent service provider that will help clients address some of the key challenges facing today’s interactive advertising industry, including unseen ads, illegitimate clicks, fraudulent traffic and growing advertiser demand for independent verification services," the company said in a release.... 

“Together, AAM and ImServices have a real opportunity to help advertisers, publishers and technology firms solve some of the more complicated issues that surround interactive advertising,” said Tom Drouillard, AAM’S CEO, president and managing director. “Each organization has complementary strengths and strong industry ties that allow us to take on critical issues like online fraud, ad viewability, mobile metrics and cross-media measurement.”

Take that, you annoying insert card!

I agree with the publisher of This Magazine, Lisa Whittington-Hill, who says on her Facebook post how troubling it is that someone went to the bother of having a rubber stamp made to register their displeasure with her magazine's insert cards. (Annoying they may be, but publishers wouldn't use them if they didn't work.) 

Best Canadian magazine newsstand covers to be announced today

The Canadian Cover Awards/Grands prix canadiens-Meilleures couvetures are to be presented Tuesday at the Courtyard Toronto at 6 p.m. Along with the various category winners, this year's Newsstand Marketer of the Year will be named, an individual who demonstrates true innovation in a successful newsstand marketing project. The awards are a joint production of Magazines Canada and the Circulation Management Association of Canada. Sponsors are reception sponsor Alliance for Audited Media, promotional retail sponsor Gateway Newsstands, marketing sponsor Covers Sell and design sponsor K9 Design Co.

Finalists for the awards are after the jump:
Read more »

Data shows circ declines for subs, sharp declines for singles; digital still insignificant

Canadian magazine circulation declined 5.7% for the six months ended December 31, according to Alliance for Audited Media data. Paid subs were down 5.4%; single copy sales down 12.7%. 

Of 61 reporting titles, the leading publications were Chatelaine (523,942, down 2.3 from the previous year, same period), Canadian Living (520,239, up 1.4%), Reader's Digest (396,692, down 16.1%), Maclean's (295,888, down 5.2%) and Style at Home (237,862, up 2.1%).  

Digital circulation for 50 titles reporting it showed a tripling to about 125,00 circulation or 1.6% of total, paid, verified and analyzed non-paid circulation. Leaders in digital circ were Reader's Digest (34,117), Canadian House & Home (11,045), Maclan's (7,807), Selection Reader's Digest (6,035) and Chatelaine (5,590).

AAM data about the circulation of American magazines in Canada in the first half of 2013 shows National Geographic on top with a total paid and verified circulation of 300,744, down 2.37% from 2012 same period). Other leaders were Cosmopolitan (184,569, down 16.5%),People (134,980, down 8.03%), O the Oprah Magazine (129,356, down 0.29%) and Woman's World (119,485, up 3.29%)

The total circulation of U.S. consumer magazines decreased 1.7% in the second half of 2013 compared with the same period 2012. According to a report from the AAM, the decline was mostly in single-copy sales, which fell 11% from 25.4 million to 22.6 million. Paid subscriptions fell from 264.9 million to 262.8 million. Digital circulation growth pulled the numbers back up by increasing 37% to 10.6 million copies; still, a relatively small (3.4%) of total circulation.

Latest numbers for ad sales of U.S. business-to-business publications are part of a long trend showing almost no rebound from the recession. Data published by the American Business Media shows that ad sales were down 7.5% for the year 2013 to August, the fourth year in a row where paves have not recovered from their zenith. (see graph below). The hardest-hit categories were automotive, aviation, banking and retail, with declines of between 11 and 23%. (There's a good article by D. B. Hebbard of TalkingNewMedia about this.) 

TC Media to handle all circulation marketing for Reader's Digest Canada

Reader's Digest Canada has struck an exclusive deal to have all of its circulation marketing services in this country handled by TC Media.

It means that effective today, TC Media will service the circulation marketing strategy and subscription marketing -- including acquisition, retention, reporting, audit and creative --  for all channels, including print, digital and the growing e-editions side. This includes five magazines, including Reader's Digest and its French-language equivalentSélection, Best Health, Our Canada and More of Our Canada as well as all associated branded websites such as readersdigest.ca, besthealthmag.ca, and plaisirssante.ca.

“Finding cost-effective and innovative solutions for our clients is a top priority at TC Media,” said Chris Purcell, vice president consumer marketing at TC Media, in a release. “We have extensive circulation  marketing expertise, and this deal enables us to extend these specific services to a leading publisher like Reader’s Digest.”

RDC retains full editorial control over all of its publications. A dedicated group at TC Media will work with Reader's Digest Canada's consumer marketing team. 

“Our expanded relationship with TC Transcontinental is the next important step in our strategy to grow our business in Canada,” said Philippe Cloutier, general manager of Reader’s Digest Canada. “Even more, this move will allow us to further focus our resources on publishing products and managing magazine brands people love to read.” 

No renewal until 2023: Geist offers 9 years for $90

Issue now on stands

Geist magazine, in celebration of its 90th issue, is making a subscription offer of 9 years of the quarterly magazine for $90. A normal 1-year subscription is $21 in Canada, so the 9-year offer is $99 or 52% off for a total of 36 issues (not taking account of inflation). Makes it hard to choose between this and the offer of one year of Geist and The Walrus for $40.