Kansas City, here we come

Folio: The Magazine for Magazine Management, August 1, 1990 by Tony Silber

MINNEAPOLIS-Suppose a European company-or a U.S. company, for that matter-thinking of moving to Kansas City wanted information on the Midwest agricultural implements market, or on the Kansas economy.

Soon, the best place to get that data might be a news service run by the nation's city and regional business magazines. At least, that's the vision of Thomas Minnhagen, president of Minneapolis-based MCP Inc., owner of 14 business books, including CorPorate Report Minnesota.

Companies or other news agencies could buy stories from the business titles' news wire, rather than rely on often spotty coverage from city newspapers or national journals.

It's a concept that has been bandied about before, but its time is unquestionably coming, Minnhagen says. "This has been reserved for the big players, like The Wall Street journal. This is doing something with the regional publications that it is [now] possible to do with the national publications."

As free trade agreements are reached and new trade blocs emerge, he says, foreign firms wanting a foot-hold in a new market will try to learn through the area magazines.

Others aren't so sure. "I think there's a lot of potential for this, but in terms of who takes the next step, I don't have the answer," says Robert Felsenthal, associate publisher of Crain's New York Business. But, he adds, "obviously, Europeans are doing business in U.S. markets, and vice versa, and there's going to be a need for this information."

And Ray Shaw, CEO of American City Business journals, owners of 25 city business newspapers, calls the notion a "blue-sky, nebulous" one that could divert a company's attention from the bottom line. "Electronic publishing is not an area that's top of mind for us right now," he says. "There's a great deal of uncertainty."

He also says he isn't sure the kinds of information and news that city and regional business magazines provide is suitable for sale in a fastpaced market. Shaw was president of Dow jones & Company for 10 years and founded the Dow jones News Service in 1970.

Minnhagen argues that there's no, need to divert any attention. "When I say that we're getting into electronic distribution in the future, I certainly don't think we should change direction in terms of concentration on our local markets," he says.

"We are now introducing editorial and production systems that are already storing information electronically," he explains. "That enables us to do it when we feel ready. "

For MCP, the first step is to link its 10 tabloids in a network, then begin electronically selling news from those publications. Minnhagen envisions this step taking about two or three years to set up for a trial run. Only then would a link be made with other area business publications.

Interpublisher cooperation will be essential in establishing a cohesive, logical network of local business news. But that may be difficult to attain. "I'm not sure we want to work together," says Felsenthal of the feasibility of Crain's New York Business teaming up with the Association of Area Business Publishers on such an effort. "I'm not sure we don't, but I'm not sure we do, either."

Marcia Appel, executive director of the 91-member AABP, believes the idea of electronic distribution of news under the organization's auspices is viable. "i think it's safe to say that most of our member publications of a certain larger size are looking at alternative distribution methods," she says. "The question really will be, How can we respect the integrity of each organization while ensuring that they get a fair return for their products?" And, she adds, "I've seen tremendous opportunities for repackaging our information and repositioning it for different markets.