The World's Toughest Transition

Across the magazine industry but especially in b-to-b publishing and particularly in technology, print media is facing decline. American Business Media's BIN reports indicate that the computer, software and telecomm categories produced $2.3 billion in 2000, $1.8 billion in 2001 and about $1.0 billion in 2005. All of this adds up to an extraordinary dilemma for print-media CEOs: Managing "legacy" print media and emerging online media simultaneously. The continuing shift in media has taken its toll. Since the end of June there has been a steady stream of CEO changes at prominent magazine companies. In October, Kelly Conlin left Primedia amid a rare display of public finger pointing. In November, Jim Casella moved out of the top operating role at one of the country's top two or three b-to-b media companies, taking on a new role as vice chairman for expansion into international markets. Also that month, Patrick Kenealy announced he was leaving as CEO of IDG to go back to that company's venture-capital business. Indeed, the only CEO of a major technology publishing company with significant tenure is Robert Callahan at Ziff Davis.

IDG, meanwhile, says that online now represents 20 percent of its total revenue. "Traditional publishers have a starting point for building online businesses with assets such as brands, unique content and relationships with advertisers but if they rely solely on that heritage, they surely won't succeed in the 'Web 2.0' world," says IDG president Bob Carrigan.

Source: Folio:

For more information, please contact:
Howard Sholkin
howard_sholkin@idg.com
617-239-7882