IAC To End The Print Edition Of Newsweek
Newsweek and The Daily Beast merged back in November 2010. Newsweek recently announced that they would be ending the print version of their publication. Newsweek is the famous 80-year-old weekly news magazine and is going entirely digital. The December 31st edition will be the last print edition. The online successor of the print version will be called Newsweek Global, which will offer a single subscription-based international edition made for e-readers, tablets, and web browsers.
Brown and Newsweek Daily Beast CEO Baba Shetty said that they “anticipate staff reductions and the streamlining of our editorial and business operations both here in the U.S. and internationally.”
Executives at the company said that they are “transitioning Newsweek, not saying goodbye to it.” The executives added that they “remain committed to Newsweek and to the journalism that it represents. This decision is not about the quality of the brand or the journalism—that is as powerful as ever. It is about the challenging economics of print publishing and distribution.”
IAC/InterActiveCorp is the parent company of The Daily Beast and Newsweek. The combined Newsweek/Daily Beast property contributed to higher losses for the Media group at the Q2 results of the company. IAC took an $18.6 million pre-tax non-cash charge to recognize the declining value of their investment in the properties.
Newsweek had generated $99.4 million in ad revenue for the first 9 months of 2012, which is up 5.4% when compared to the same period last year. However it is down from $114.3 million in the same 9 months in 2010. The print magazine had around 1.5 million subscribers as of June, which is down from 3.1 million in 2007.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry