Dotdash Meredith, the digital media company owned by Barry Diller’s publicly traded internet holding company IAC, is trimming print editions to six Meredith titles, including EatingWell, Entertainment Weekly, Health, InStyle, Parents and People en Español, according to a memo obtained. by Axios.
Why is this important: IAC acquired about two dozen Meredith titles last year as part of a $2.7 billion acquisition of Meredith’s National Media Group. At the time, Dotdash executives said they aimed to digitize magazines and make them more profitable by introducing new growth areas, such as e-commerce.
Details: In the memo to staff, Dotdash Meredith CEO Neil Vogel said “the decision to move these brands digital-only means that some jobs – around 200 roles primarily supporting our print operations – will be eliminated.”
- These reductions will represent less than 5% of the company’s total workforce.
- Vogel made it clear in the memo that the purpose of the cuts was to help digitize and modernize the brands, which he calls “among our most successful, largest and fastest growing digital properties.”
- He also said that in 2022, the company plans to invest more than $80 million in content for its brands.
Between the lines: Dotdash has a strong track record of investing in brands to modernize them for the digital age.
- The company has spent more than $45 million transforming the content it inherited through its acquisition of About.com in 2012.
Be smart: One of the magazines that Dotdash Meredith has yet to announce changes to is People, which is one of the most widely circulated magazines in America, according to the Alliance for Audited Media.
And after: After the cuts, approximately 19 print magazine titles will remain in Dotdash Meredith’s portfolio. A source familiar with the company’s plans said it plans to invest in all of its remaining print products by improving paper quality, photography and editorial.
Go further: Read Vogel’s memo below:
Team,
Effective immediately, we will no longer be printing monthly magazines for EatingWell, Entertainment Weekly, Health, InStyle, Parents and People en Español. This is an important step in the evolution of Dotdash Meredith, and I want to be clear with everyone about what we are doing and what lies ahead.
We said it from the start, buying Meredith was about buying brands, not magazines or websites. It is no news to anyone that there has been a pronounced shift in readership and advertising from print to digital, and as a result, for a few major brands, print no longer serves the primary purpose. of the brand. Thus, we will move to a digital-only future for these brands, which will help us unlock their full potential. These brands are among our best performing, largest and fastest growing digital properties – online audiences for Parents, InStyle and EatingWell are each growing more than 40% year over year. another – and all of these brands have a bright future.
The decision to move these brands to digital-only means some jobs – around 200 roles primarily supporting our print operations – will be cut. Transitions like this are very difficult and impact colleagues and friends, some of whom have been with the company for decades. I can’t thank these employees enough for bringing these brands to the position of strength they hold today. Brand managers have already informed those affected and we are taking great care to ensure a smooth transition for these employees.
Today’s step is not an exercise in cost savings and it’s not about capturing synergies or any other acquisition jargon, it’s about embracing the inevitable digital future for the brands concerned. We’re very serious about investing for growth – in 2022 alone, we’ll be investing over $80 million in content across our brands. We currently have over 100 vacancies in editorial, engineering, product, design, and e-commerce, some of which we hope to fill with affected individuals today.
Opponents will interpret this as another nail in the print’s coffin. They couldn’t be more wrong – the print remains at Dotdash Meredith’s heart. From PEOPLE to BHG to Southern Living to WOOD, and all of our other beloved print publications, we continue to deliver incredible value to print readers, and will proudly print over 350 million magazines in 2022. Starting in ‘today we will invest in our forward-thinking print brands and products: from improving paper quality and cutting sizes to ensuring world-class editorial and beautiful photography. We breathe new life into these forward-thinking brands across all formats to ensure they can meet both the moment and the needs of their readers in new and innovative ways.
These are tough decisions, but we believe they are the right decisions. We remain more excited than ever for the future of our brands and our business.
NV