Covid-19 and the Media Industry
Posted on Tuesday, April 28, 2020 at 10:41 PM
The latest news about how the novel coronavirus is affecting the
publishing business.
Indie Magazines Form Subscription
Bundle
With many physical newsstands and brick-and-mortar
stores closed for business, niche indie print magazine publishers have
had to find new ways to survive. One such solution: Magbox, a
subscription-based curated collection service. Greg Dool of Foliomag.com
reports that “the first box will be shipped in June, containing the
latest issue of ROVA as well as Adventure Journal, Drift,
Fifty Grande and Sandwich magazines.” Boxes will ship
every two months with a different mix of titles each time. Read more here.
NYT
Pauses Sunday Travel Section
With travel on the back burner
until the Covid-19 pandemic eases, the New York Times is
rethinking its Sunday supplement. This week, it replaced the travel
section with a new “At Home” section to reflect the current reality.
Read more here.
Payments
for Publishers Delayed
The coronavirus has worsened a
longstanding problem in the publishing industry: payment schedules.
Publishers were already struggling with payment terms that stretched as
long as net-60, but now, according to Max Willens of Digiday.com, those
payment schedules have widened even further: “Through the first three
weeks of April 2020, payment delays on invoices to publishers and media
agencies have increased 20%, according to data collected by FastPay....
Separate research conducted by Oarex ... found that the number of firms
that paid their invoices late rose 14.6%, to 55%, in the first quarter.”
Even worse, Willen says, the problem is likely to magnify in the coming
weeks and months, creating further cash flow nightmares for many
publishers. Read more here.
Magazine
Print Revenue Up
The news for magazine publishers during the
pandemic isn’t all bad. Keith J. Kelly of the New York Post
reported this month that newsstand sales were up last month thanks to
Covid-19 panic buying. Sales slowed as March drew to a close, but the
surge earlier in the month helped offset the slowdown. But tougher time
may be ahead, Kelly warns: “Monthly magazines had already sold the ads
for the May issues prior to the pandemic, so the slowdown is expected to
start showing in the June issues. Some advertisers have pulled back
completely, while others are trying to recalibrate their messages.” Read
more here.
Membership
Up at Daily Beast Inside
Since the coronavirus pandemic hit
the United States, the Daily Beast has seen a jump in memberships to its
Beast Inside product, reports Kayleigh Barber of Digiday.com. As some
other publications have done, Daily Beast has kept content pertaining to
Covid-19 and public health free to all. But, as Barber notes, “some of
the growth has been driven by making more of its opinion and analysis
coronavirus coverage beyond the paywall.” Read more here.
Cuts
at Meredith
Meredith is making big changes due to the current
advertising slump. Alex Sherman of CNBC reports that the magazine
publishing giant is cutting pay for 60 percent of its staffers until
September and “instituting a hiring and wage freeze and a ‘significant’
reduction in using freelance writers for its magazines.... [I]t is
withdrawing its fiscal 2020 performance expectations last communicated
in February and is suspending its dividend.” Read more here.
Layoffs
at Gannett and in Other Newsrooms
News publisher Gannett has
laid off workers nationwide, but specific information about the
locations and extent of the layoffs has been hard to come by. Kristen
Hare and Ren LaForme of Poynter.org have been providing continuous
updates in their dig for more information. It’s not clear whether or not
the layoffs stem from coronavirus-related losses or the company’s 2019
merger with GateHouse, though one source tells Poynter that it’s the
latter. Drawing largely from social media postings, Hare and LaForme
have compiled, and continue to update, a list of states with known
layoffs. Read more about the Gannett layoffs here.
For a running list of newsrooms that have furloughed or laid off
employees, click here.
Media
Professionals Who Have Died of Covid-19
Poynter has compiled
a list of media professionals who have died of coronavirus and has been
updating it as things develop. The list includes prominent journalists
and photojournalists from all over the world. Read it here.
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