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.