Publishing, Advertising and Online Industry Experts Assess Role and Prospects of Magazines in New Media Age; New Research Report from Cowles Business Media and The Medill School of Journalism at Northwestern University Sheds Light on Issues Facing Publishers; Open, Ongoing Dialogue Established on the Web

Business Wire, March 18, 1996

ORLANDO--(BUSINESS WIRE)--March 18--In a new report released on the first day of the Magazine Management Conference (M2) here, some of the nation's leading publishing and marketing executives, as well as new media experts tackled the myriad issues facing traditional magazine publishers who hope to find success in the digital age.

The report, entitled "A Research Report on the Role of Magazines in the New Media Age, 1996," found that magazine publishers of all varieties -- online and traditional, big and small, niche and mass market, consumer and business -- each have their own set of hurdles to clear before finding an economically viable digital publishing model.

Some of the key findings include:

The Internet is changing so quickly that magazine publishers, especially smaller ones, would be smart to form strategic alliances (even with competitors) to help allay the costs (and risks) associated with creating a successful online model. Some experts even suggested that smaller publishers would be best served by waiting on the sidelines until the path to profit becomes clearer.

A new breed of publisher on the Internet challenges the role of traditional content providers. Advertisers have their own space and ability to create compelling content, signaling a new and potentially competitive dynamic between advertiser and publisher. TV and cable networks also have both the talent and resources to succeed in this new medium. And in niche markets, where the cost of entry is not very high, upstart "live" publishers may pose an unexpected challenge to established magazine brands.

Magazine editors are particularly well-suited to succeed in this interactive medium with their ability to offer perspective, a point of view and solutions -- not just information. Also, the relationship between the user and provider requires the very trust that readers bestow on a magazine brand.

The Internet potential is very different for different publications depending on market penetration, market "need to know" and other factors. Powerful brands are important for building traffic. Yet publishers who only invest heavily in sophisticated, beautifully crafted, color image sites have already learned that Field of Dreams profits do not automatically follow. Fresh, interactive compelling content generates repeat visits, and success on the Internet. Business and professional publications are expected to find online prosperity faster than consumer publications.

To look at the Internet mainly as a place to provide information to users in a new form is a mistake. It is a multi-dimensional medium with extraordinary potential to save money in customer communications and to market one-to- one and one-to-many worldwide.

While the study covered considerable ground, the dynamic nature of "new media" (a term some called obsolete) prompted many more questions than answers. As a result, the sponsors of the report, Cowles Business Media and The Medill School of Journalism at Northwestern University, have agreed to place both the report and a "live supplement" on Media Central, a Cowles Business Media Web site (http//:www.mediacentral.com),where media professionals and others will be able to add their own views, thoughts and questions in an effort to establish an ongoing dialogue.

"We expect a lively discussion of new media issues on our Web site," said Hershel B. Sarbin, Co-Director of the Report and Senior Advisor to Cowles Business Media. "People who are quoted in the online supplement can change their minds about something they said six months ago, or last week," added Don Schultz, Co-Director of the Report and Professor of Integrated Marketing Communications at The Medill School of Journalism. "This makes a lot of sense when things change so rapidly," he added.

Furthermore, it was announced that the 1996-97 study will be conducted entirely via the Internet. In this way a broader group of media and marketing executives can be engaged to identify critical issues and key trends. The dialogue will be global, not just national.

Cowles Business Media, a unit of Cowles Media Company, publishes print and Internet-based magazines, newsletters and research reports focused on the media, marketing and information industries. Headquartered in Stamford, CT, the company's publications, products and events include Direct, Inside Media, Folio:, Catalog Age, Cable World, SIMBA Information, Inc. research and analysis and several major industry trade events, including the Folio shows, M2 and the National Center for Database Marketing Conference.

Cowles Media Company is a newspaper, magazine, and information services company headquartered in Minneapolis. Its operating units include The Minneapolis-St. Paul Star Tribune and Cowles Enthusiast Media, publishers of special interest consumer books, magazines and related products.

Cowles Business Media and The Medill School of Journalism wish to thank the following people for their generous contributions of ideas and opinions: