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Critic's Corner Discuss a review. Provide constructive feedback. Talk to the industry. |
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Critic's Corner Discuss a review. Provide constructive feedback. Talk to the industry. |
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In Reply to: So how much $$ would it take to publish..... posted by Rick W on March 9, 2007 at 00:09:03:
As always, I speak here only for myself.I am under the impression that Stereophile makes money for its owners. OK, that is one data point.
I have also heard hearsay scuttlebutt that inception to date as of year before last, Absolute Multi Media's "Burn Rate" was, all-in (that is important, it lumps initial asset cost into the burn rate) was about $1 million a year. Now, that includes everything. But, if you were to exclude the websites and TPV, my guess is that the burn rate for TAS alone could be $500,000 a year. My guess is that even with clairvoyant management and immense financial discipline, making money by selling TAS is a very long shot--arguably it has never happened. Hearsay had it that a few years ago HP wanted out and was looking for backing for a new magazine--no takers.
I myself, in my interregnum between TAS and Stereophile, did some dinner-napkin computations for an audio equipment and music newsletter, print subscrition only, no advertising, and I could not make a business case for it. Why? The cost to acquire the customer was so large you could never work it off by subscriptions alone. Also, between scanners and email, one audiophile could subscribe, scan it, and send copies to a dozen non-paying friends.
I heard that by the time Fi folded, it had cost its owners $625 per subscriber. You can never dig out of that hole, especially when people __expect__ rock-bottom renewal offers.
Let's contrast TAS with a couple of other niche magazines. "Latin Mass" is not for overweight Hispanics, it is for devotees of the Roman Mass in Latin. Its paid rate base is more than twice as large as TAS'. "Biblical Archeology Review"'s circulation dwarfs that of Stereophile. BTW, there isn't much rancor in Latin Mass' letters page, but, there's plenty in BAR, but, mirabile dictu, nobody chalks it up to Demon Advertising... .
Bob Seeger sang, "I wish I didn't know now what I didn't know then." Ford's hubris in outbidding GM for Jaguar has cost them inception to date $10 BILLION.
I personally would not think that the game has been worth the candle for the resuscitation of TAS, but, first of all, I am not privy to their balance sheet, just scuttlebutt, and, it has not been my money.
I have no doubts about Rick W.'s sincerity, but I doubt that he is a typical reader of audio magazines. I have come, regretfully, to the conclusion that a large portion of the audio-mag readership (exactly how large I cannot say) is more interested in the "transactional experience" than in actually getting better sound at home and entering more deeply into the music.
By "transactional experience" I mean the stirring in the loins than happens when certain guys finally connect up with a desperate dealer on the cusp of bankruptcy who lets a $20,000 piece go for $1500 over dealer cost. Ah, the warm glow--that's what it's all about to some people. And it it's all about getting a deal rather than anything else, all you need is pretty pictures, oohing and aahing, until the next flavor of the month comes along.
I do not say that such people are the majority, and, I treasure the readers I have who care deeply about music and express appreciation for my efforts to let them know about cost-effective equipment solutions. But those are precisely the people who can't afford (or don't wisht to pay) the outlay for an advertising-free magazine.
Catch-22.
Cordially,
JM
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Follow Ups
- Even WITH advertising, the "Burn Rate" can be $500,000/year - John Marks 10:23:36 03/13/07 (0)
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