In the wake of Richard Beckman’s exit from Prometheus Global Media and replacement by Dottie Mattison, TheWrap’s Sharon Waxman digs into the finances of the east coast firm’s main media holding, The Hollywood Reporter. According to her unnamed sources, it’s not pretty:
TheWrap spoke to two individuals with knowledge of the company who say that The Hollywood Reporter will lose $6 million in 2012. That is not hard to believe, given the thin number of ad pages that populate the magazine most of the year.
To be sure, Hollywood likes the magazine, and credit goes to editor Janice Min for making it a lively, attractive read. But with only 12,000 paying subscribers – according to several insiders – out of what they claim is a circulation of 70,000, the business model is not working.
A publicist for Prometheus denied the article’s claims that THR is not profitable, while Beckman wished Waxman a happy Fourth of July… and then hung up on her. FishbowlLA reached out to the Reporter for comment and got this response from editorial director Min:
“The news of Dottie’s appointment was broken by the Wall Street Journal online and in print, covered by WWD and the New York Post, and was distributed widely on PR Newswire. For a blog to state that it was ‘hardly distributed’ is ridiculous, and when combined with the fabrication of fictitious accounting numbers, says everything anyone needs to know about agenda masquerading as ‘reporting.’”
The Hollywood Reporter print edition, which operates on a Tuesday-to-Monday production cycle, is wrapping up a scheduled two-week summer hiatus. Read Waxman’s full column here.