Time Inc.’s third quarter report reveals that revenue increased despite some problems that impact the entire industry: Declining print and circulation sales.
Revenue for the third quarter increased to $821 million, up from $818 million during the same period last year. That was good enough to beat Wall Street’s expectations, which predicted the company would post revenues of $817 million.
Time Inc., like most publishing companies, still had to contend with plummeting numbers related to print.
Print revenue was only down one percent, but would have declined by nine percent if not for “corporate transactions,” like Time Inc.’s acquisition of American Express Publishing. Likewise, circulation revenue — which includes subscriptions and newsstand sales — declined two percent; but excluding the transactions, would’ve declined by five percent.
The first wave of Condé Nast staffers are settling into their new digs at 1 World Trade Center this morning. The publishing house will occupy floors 20 through 44. It purchased the space — 1.2 million square feet — in 2012. But enough about that. We know you’re wondering which editor and staff will be on which floor.
According to The New York Times, Graydon Carter and Vanity Fair staffers have won that competition. While Condé’s CEO Chuck Townsend and other execs will be on the 42nd floor, Carter and Vanity Fair will be on the 41st. David Remnick and The New Yorker will take over the 38th floor; Anna Wintour and Vogue will take the 25th. The 44th floor will be occupied by Condé’s law firm.
This afternoon, by way of an entirely unpredictable “second look” from First Look Media, we have an internal item bylined to Glenn Greenwald, Laura Poitras, Jeremy Scahill and John Cook. It’s all about what led to the shocking exit of Matt Taibbi and while some elements of the narrative are in dispute, the overall picture painted is one of – primarily – a talented rogue journalist having a hard time adapting to the broader intricacies of a managerial position.
According to the item, the tipping point occurred earlier this month. While Taibbi insists the following accusations led him to be told he would be stripped of all managerial responsibilities pending investigation, First Look says that’s not the case:
These simmering problems came to a head this month when a Racket staffer complained to senior management that Taibbi had been verbally abusive and unprofessionally hostile, and that she felt the conduct may have been motivated, at least in part, by her gender. [First Look president John] Temple conducted an investigation, and First Look determined that while none of the alleged conduct rose to the level of legal liability, the grievance bolstered their case that Taibbi should not be the manager of Racket.
The pink slips we mentioned the other day are starting to fly at Condé Nast. According to WWD, the company cut 50 from the business side. The result is 25 percent decrease of the company’s media department.
As expected, the layoffs came under the watch of relatively new CMO Edward Menicheschi. The former Vanity Fair publisher has only been on the job for three months, but he wasted no time getting his hands dirty via what are obviously cost-cutting moves.
Unfortunately for Condé staffers, the layoffs probably aren’t over. Magazine publishers are meeting with president Bob Sauerberg on Tuesday. If the publishers aren’t hitting their budgets, more cuts are likely on their way.
The next few weeks are going to be a little tense at Condé Nast. According to the Wall Street Journal, 70 to 80 staffers — mostly on the publishing house’s ad side — are getting pink slips between now and the end of October.
Menicheschi sure knows how to make his mark. This many layoffs would be the biggest round of cuts to hit Condé since 2012.
The labor negotiations between Time Inc. and its staffers are not going well. More than 200 unionized Time Inc. employees have rejected Time Inc.’s “last, best and final” offer, according to the Newspaper Guild of New York.
In a rather bold statement, Bill O’Meara, president of the Guild, described some of Time Inc’s offer as “not only outrageous, but illegal.” The union claims that the contract would cut benefits and pay, as well as outsource 60 full-time jobs and 100 part-time jobs.
“Time Inc.’s proposal to hollow out its own company was voted down by its employees in a nearly unanimous vote because it is simply not acceptable,” said O’Meara. “Management wants the ability to send 160 editorial jobs overseas, which would be a massive blow to some of the nation’s most important and respected magazines. Many of Time Inc.’s proposals are not only outrageous, but illegal.”
Last month, Time Inc. stated that the union needed to recognize ”the new realities of the media industry, which has changed dramatically and continues to rapidly evolve.”
Under the cloak of a South Park animation still, a former Time Warner Cable retention agent spoke with YouTube talk show host David Pakman about his one-time duties.
“Jackie Keaton” revisits the training he received, the disconnect from sales agent promises and some of the retention routines. Techniques included “de-escalation,” e.g. calming down angry customers, and a kind of in-sickness-and-in-health professional vow:
“If a customer dies, someone has to take a death certificate into the local payment center. [But] If they’re sick or something, we can definitely upsell…”
The latest installment of Billboard‘s Q&A series “Corner Office” catches up with an executive watching over many new corners: Kickstarter CEO Yancey Strickler. In January, the 35-year-old Strickler and co. moved into a huge 29,000-square-foot space in Brooklyn, taking over what was once a pencil factory.
“We’ve been parodied by The Daily Show, Portlandia, The New Yorker… But South Park is an honor. I like to think it’s a signifier of our cultural relevance. Also, they had startlingly realistic interpretations of our office, so I commend them on their research.”
There’s a lot of money in video advertising, and so AOL has decided to expand its advertising partnership with Publicis. The deal will give VivaKi — part of Publicis — more access to premium video ad space across AOL’s brands.
According to a release, eMarketer reports digital video ad spending is increasing by a whopping 30 to 40 percent a year. EMarketer expects spending to hit $7.77 billion next year, up from $5.96 billion this year. Those kind of numbers were enough to convince AOL’s CEO, Tim Armstong, to go big.
“Video is fundamentally changing the Internet into sight, sound, and motion and the Publicis Groupe/AOL partnership is the start of enabling global video advertising to scale to global consumers — offline or online,” said Armstrong, in a statement. “AOL is transforming as a company and as a partner into a programmatic advertising platform, and today’s announcement is another big step in our strategy.”