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Night Sky Euthanized - S&T Next?
While everyone jumps all over a company when there are cuts -- ascribing
them to people who don't care about their customers -- the fact is that a business needs to make enough money to stay alive. Making a profit would be good as well. This isn't a volunteer effort. If the company is doing poorly then either they make changes or go out of business. Going bust is also bad for us loyal customers. You mention that some of the people who lost their jobs were making poor management decisions. This implies two things: 1) the company was being poorly run and thus was *not* doing well, which certainly necessitates changes (which *always* means making very difficult decisions), and 2) they're getting rid of the right people, which implies they're making the right decisions. It's either a company that needs fixing that is finally getting the attention it needs, or it was doing fine and the new owners are just going to ruin it (for no apparent reason after a large expenditure to acquire it). The former makes sense but the latter doesn't. Sky and Telescope is most definitely not a cash cow (as someone put it); it's a small-time niche publication in the world of publishing. Wringing "every last dollar from the company" wouldn't be worth the expense of buying it and the subsequent effort. The fact is that virtually every print publication in the country is having problems these days. Most ascribe that to the Internet and many are trying to adapt but most are still having a hard time of it. The New York Times is one example among many. Sky and Telescope may be a big deal to us but it's still a niche publication that's going to have a very hard time in an environment where even venerable publications with world-wide reputations among the general populace are having historic difficulties. I don't have all the facts so I can't (well, won't) voice an opinion. And I'm not a business person so I can't evaluate NewTrack's decisions. But they may just be doing what's neccesary to keep Sky alive. I hope they succeed. I've been a subscriber for 35+ years and I intend to continue as long as they're in business. It's still a product that's well worth the cost for me. And they need all the subscribers they can get these days. Mike Simmons |
#2
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Night Sky Euthanized - S&T Next?
Mike Simmons wrote:
While everyone jumps all over a company when there are cuts -- ascribing them to people who don't care about their customers -- the fact is that a business needs to make enough money to stay alive. Making a profit would be good as well. This isn't a volunteer effort. If the company is doing poorly then either they make changes or go out of business. Going bust is also bad for us loyal customers. You mention that some of the people who lost their jobs were making poor management decisions. This implies two things: 1) the company was being poorly run and thus was *not* doing well, which certainly necessitates changes (which *always* means making very difficult decisions), and 2) they're getting rid of the right people, which implies they're making the right decisions. Or they were given an impossible task. It's either a company that needs fixing that is finally getting the attention it needs, or it was doing fine and the new owners are just going to ruin it (for no apparent reason after a large expenditure to acquire it). The former makes sense but the latter doesn't. Sky and Telescope is most definitely not a cash cow (as someone put it); it's a small-time niche publication in the world of publishing. Wringing "every last dollar from the company" wouldn't be worth the expense of buying it and the subsequent effort. As you mention later in your post, you are not a business person. I am the former ad manager at Astronomy. Long ago, yes, but at least I have 15 years' experience in print media. Mike, I agree with everything else you've posted, but have to take issue with the "no cash cow" part. Sky & Telescope has all three of the major bases covered: 1. Advertising rates are set by cost-per-thousand readers, which is a magic formula that accounts for both internal and external realities. In short, how much you need and how much the competition is charging. Usually the former is more important for S&T because even though S&T's circulation is lower than Astronomy's, its audience of mid-to-high level astronomers is prime and very loyal so there's no need for the magazine to discount to attract advertisers. Advertisers have told me over the years that their response from S&T is consistently better than from Astronomy, although both are profitable. See the listing of advertisers and compare it to Astronomy's, or just heft the two side-by-side. 2. Those loyal readers renew at an extremely high rate, better than 90%, which means that the expense of replacing them is relatively low. Astronomy's renewal rate is high also; I don't know which is higher. Mass circulation magazines can drop below 60, 50 or even 40% renewals, which means a huge expense to maintain circulation and therefore ad revenue. See "CPM" above. 3. S&T's subscription price is also relatively high. They dominate astronomy clubs and this is also the only area where they discount, but it gives them a high quality audience. Otherwise, they get full price for their subscriptions. No "save 75% by subscribing" here. To summarize, S&T gets high renewal at full rates from a very high quality readership, along with full-price ad revenue. Niche or not, that's a cash cow. The fact is that virtually every print publication in the country is having problems these days. Most ascribe that to the Internet and many are trying to adapt but most are still having a hard time of it. The New York Times is one example among many. Sky and Telescope may be a big deal to us but it's still a niche publication that's going to have a very hard time in an environment where even venerable publications with world-wide reputations among the general populace are having historic difficulties. Interesting point, but I wonder if a niche publication will be affected by the Internet as greatly as a mass market one. You can get general news anywhere, even blogs get it right sometimes, but hobby news coverage is much less thorough. Still, time will tell. I don't have all the facts so I can't (well, won't) voice an opinion. And I'm not a business person so I can't evaluate NewTrack's decisions. But they may just be doing what's neccesary to keep Sky alive. I hope they succeed. I've been a subscriber for 35+ years and I intend to continue as long as they're in business. It's still a product that's well worth the cost for me. And they need all the subscribers they can get these days. I like S&T also, having been in this game for 40+ years. I compare it to Fine Woodworking, a quality niche pub if ever there was one. Bob |
#3
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Night Sky Euthanized - S&T Next?
Hi Bob,
Mike Simmons wrote: While everyone jumps all over a company when there are cuts -- ascribing them to people who don't care about their customers -- the fact is that a business needs to make enough money to stay alive. Making a profit would be good as well. This isn't a volunteer effort. If the company is doing poorly then either they make changes or go out of business. Going bust is also bad for us loyal customers. You mention that some of the people who lost their jobs were making poor management decisions. This implies two things: 1) the company was being poorly run and thus was *not* doing well, which certainly necessitates changes (which *always* means making very difficult decisions), and 2) they're getting rid of the right people, which implies they're making the right decisions. Or they were given an impossible task. Yes, definitely a possibility. I can only say that unless it's known to be impossible then you have to try something different. I believe there is more to the decisions than that but won't go into it more here. It's either a company that needs fixing that is finally getting the attention it needs, or it was doing fine and the new owners are just going to ruin it (for no apparent reason after a large expenditure to acquire it). The former makes sense but the latter doesn't. Sky and Telescope is most definitely not a cash cow (as someone put it); it's a small-time niche publication in the world of publishing. Wringing "every last dollar from the company" wouldn't be worth the expense of buying it and the subsequent effort. As you mention later in your post, you are not a business person. I am the former ad manager at Astronomy. Long ago, yes, but at least I have 15 years' experience in print media. Mike, I agree with everything else you've posted, but have to take issue with the "no cash cow" part. Sky & Telescope has all three of the major bases covered: ....Good tutorial snipped for brevity... To summarize, S&T gets high renewal at full rates from a very high quality readership, along with full-price ad revenue. Niche or not, that's a cash cow. Thanks for the insight, Bob. My comment was from a more naive standpoint knowing that Sky hasn't been doing well for some time now. I see its potential -- and am even more optimistic based on what you've told me -- but the bottom line just hasn't been good lately. That tells me that new direction really is needed to keep this cow producing the cash it should for the benefit of all of us. I don't happen to mind how much profit the owners may make as long as we're getting the product we want at a price that's reasonable. The fact is that virtually every print publication in the country is having problems these days. Most ascribe that to the Internet and many are trying to adapt but most are still having a hard time of it. The New York Times is one example among many. Sky and Telescope may be a big deal to us but it's still a niche publication that's going to have a very hard time in an environment where even venerable publications with world-wide reputations among the general populace are having historic difficulties. Interesting point, but I wonder if a niche publication will be affected by the Internet as greatly as a mass market one. You can get general news anywhere, even blogs get it right sometimes, but hobby news coverage is much less thorough. Still, time will tell. I would think niches would be even better served by the Internet. One or two publications can't cover everything in a hobby, and web sites have become increasingly important for the many aspects of the hobby that aren't well covered in print. I do get general news from the web but mostly for news that I can't get from my local paper, such as international publications. But for astronomy I use the web a lot for observing information, product reviews and other information that's just not part of the print mags. The niches of the niche, I guess.g And us hobbyists like the web to interact, which a magazine can't provide. But as you say, time will tell. I don't have all the facts so I can't (well, won't) voice an opinion. And I'm not a business person so I can't evaluate NewTrack's decisions. But they may just be doing what's neccesary to keep Sky alive. I hope they succeed. I've been a subscriber for 35+ years and I intend to continue as long as they're in business. It's still a product that's well worth the cost for me. And they need all the subscribers they can get these days. I like S&T also, having been in this game for 40+ years. I compare it to Fine Woodworking, a quality niche pub if ever there was one. Bob Mike |
#4
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Night Sky Euthanized - S&T Next?
Mike Simmons wrote:
Yes, definitely a possibility. I can only say that unless it's known to be impossible then you have to try something different. I believe there is more to the decisions than that but won't go into it more here. Hmmmm...you make me curiouser. I don't happen to mind how much profit the owners may make as long as we're getting the product we want at a price that's reasonable. Word. Bob |
#5
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Night Sky Euthanized - S&T Next?
On Mon, 11 Dec 2006 18:02:56 GMT, Bob Schmall wrote:
Mike Simmons wrote: Yes, definitely a possibility. I can only say that unless it's known to be impossible then you have to try something different. I believe there is more to the decisions than that but won't go into it more here. Hmmmm...you make me curiouser. I didn't mean to imply that I have any special insight, Bob. I don't. Just speculation as to what might be going on, which I don't like to post in a forum like this. Odd behavior for s.a.a., I know, but I'm funny that way. But decisions that some find unfathomable are usually not hard to understand when you have all the facts. I suspect the original poster's speculation (and some others here) falls into that category. Mike Simmons |
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