After years of losing money, Newsweek announced on Thursday that it will stop printing its magazine and become a digital-only publication, to be called Newsweek Global.
The print is slowly shifting into the oblivion. With the dawn of the ‘digital world’ in the 1990s, the mode of distributing information has since never been the same. Print&media companies have started to take advantage of this great phenomenon by dividing their attention to both print and the digital sectors. But starting out as a station wagon, the internet has since metamorphosed into a race care going at full throttle. Print&media companies, in the flurry of it all, don’t want to see this opportunity slip from there grasp and let competition weaken their chances of making it big. They want to start now. And just like that Newsweek has taken the move. They have said bye bye to print, and embraced the digital world. Newsweek is ready to test the race car.
Another reason that people are not reading Newsweek magazines is that they come out, and as the name suggests, every week! People can get the latest news from so many other sources much earlier and most of it is the same quality. They can get it free online, or even from a different magazine which is circulated more often.
Newsweek will become fully digitalized in early 2013. The last print issue in the United States will be December 31st issue.
Why did they decide to take this blatantly huge change:
Well, first off the company wasn’t performing. For many years the company was facing bouts of slowdown and underperformance. Readership drastically decreased, and people were finding other sources with which they were more comfortable with and could get access too at a much earlier time rather then waiting for Newsweek’s weekly issues. Newsweek was making big losses and investors weren’t the least bit satisfied. Investors were in a state of euphoria, as were the management of the company. The big question on the minds of these individuals was “How do we bring the company out of this mess?”.
There first cry for a comeback quickly backfired. Ms. Brown, editor-in-chief and founder of online Newsweek Daily Beast Company, tried really hard to grab the attention of the public who were quickly losing interest in their products. Provocative, gaudy, and quite frankly out of the blue covers and articles made there way into the Newsweek magazines. Covers on drug addiction, erotic material and even something about President Obama being the “first gay president”. The cover was actually a facade, and inside story was actually about his view that gay rights should be legal. But still, the covers became a channel for much ridicule.
With no stimulus to get the ideas flowing, the editors and journalist were really lost. They finally put up an asparagus on the cover of one of there magazines. Thats right, an asparagus dangling from a woman or something. That was like their knell call.
And in the midst of all that: “According to Bloomberg.com, Newsweek is projected to lose as much as $22 million this year. In 2011, ad pages for Newsweek fell 16.8 percent, according to the Publishers Information Bureau—a dismal year following an even worse 2010, when ad pages plummeted nearly 20 percent.”
The transition will help the company get rid of their aching loss of $40 million which has weighed the company down for quite a while now. Tensions arose with this figure. Hopefully this loss should be covered in the transition. All this and more will turn out for the better.
Rivalry with Time
“While advertising pages and revenue grew modestly, it brought in a fraction of the money earned by rivals like Time.”
Time was a much bigger company and could withstand heavy losses and persevere. Newsweek could not.
Newsweek is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence. – Wiki
Research holds in their favor:
Tablet users are burgeoning over the past few years – by year’s end the # of users will reach 70 million, up from 13 million two years ago.
39% of the Americans, according to a study, get their daily news updates online.
With the decision made, the company will also be making layoffs. Journalism industry is just getting tougher and tougher, and a majority are finding it tough to get ahead and survive. I feel bad for the employees who will be let off, trying their chances once again to secure a job in this ‘wild’ economy.
There printing side of the business has been there for ages. It has been running for nearly 80 years. There printing industry, although still venerable and by no means falling below the mark, is no longer generating the turnover that it used to. Prices have escalated, cost of distribution is ever so rising, advertising revenues are faltering and many more concern are making themselves apparent. Now they have realized the stunning potential that awaits them in the digital world. They want to let go of the past and strive for the new in the future.
“We are transitioning Newsweek, not saying goodbye to it.” – Tina Brown
But then again a lot will be missed:
“Exiting print is an extremely difficult moment for all of us who love the romance of print and the unique weekly camaraderie of those hectic hours before the close on Friday night.” – Newsweek
The stuff at the ending moments of the video, where he talks about other companies who have already made the transition, really tells us that this phenomenon of digitalization is really happening. And man, its happening fast.