Speech: Jack Griffin, 2010 American Magazine Conference

October 4, 2010

Jack Griffin
Chief Executive Officer
Time Inc.
Chairman, MPA

American Magazine Conference
October 4 2010

Thank you, Nina, for those kind words and thanks to you, John, for your steady leadership over the past three years of tumultuous – but promising – change across our magazine media industry. See how easily “magazine media” rolls off the tongue?

It is a great honor to become Chairman of MPA at this moment of renewal . A  newly focused mission and strategy, and an organization that clearly acknowledges the importance of Digital. A new identity and logo, which reflect the industry’s ongoing vitality and agility through the adoption of the term “Magazine Media” to describe all that we do.  Sounds great, : “MPA– The Association of Magazine Media.” It feels just like a new car.  A hybrid, of course, with the newest technologies, but it still has that old-fashioned, new-car smell.  I cannot wait – with help from all of you – to start driving it. But, of course, there will be some bumps in the road ahead of us.

There are headwinds to circulation and advertising revenue growth, escalating physical costs and expenses, increased competition and shifting consumer behavior – with the economy’s sluggish recovery hanging over us.

But despite these and other challenges, we have many enduring strengths and critical advantages to smooth our ride. We have powerful brands, direct relationship with subscribers that other media don’t have, new technologies and distribution channels, improved marketing capabilities and effective brand extensions and our business model with its multiple revenue streams is one that everyone else in media wants. On top of that, we know how to innovate across all of these fronts to create new opportunities for growth.

The past 12 months has seen what I call a “Competition of Ideas” as the most creative minds in our industry, motivated by the excitement of new digital media platforms, have endeavored to make the best next great app for tablets and smartphones.  Energy in, Energy Out!

That is why I like to say that it’s a great time to be in the magazine media business, and an even better time to tell everybody exactly that.

There are plenty of good-news numbers to back up this optimism about our industry. Here are just a few that tell me just how robust our business can be:

• Over the past five years, total magazine readers have increased by 4%.
  In fact, this 4% growth rate outpaces all media, except for the internet. Altogether, 93% of adults read magazines.

We are especially valuable to advertisers. The top 25 magazines do a much better job in reaching adults and teens than the top 25 primetime TV shows.

• Magazines rank #1 out of 16 media for consumers having a positive impression of advertising and magazine ad recall has grown 13% over the past five years.
• Magazines provide the most “bang for the buck” in driving purchase intent.
• Magazines appeal to diverse readers – with 82% of African-Americans and 75% of Hispanic/Latinos reading magazines.

These strengths are reflected in the recovery we are now seeing in our numbers. You can find these facts and a lot more on the MPA website in the Magazine Handbook .

As for the future, nearly 60% of American consumers plan to purchase an e-reader or tablet in the next three years.

• Four out of five prospective e-readers want to read magazines on their device – and have said they are willing to pay for it as an industry, we have already responded to this new opportunity in a substantial way: Our members have created 300 apps for brands across the spectrum. When did we last see such a burst of focused energy?

With the help of everybody in this room, the MPA has done an impressive job of underscoring the power of magazines in the print medium, thanks to the industry campaign launched earlier this year.

To build on this success:

• We are going to introduce consumers to all the different ways they can enjoy their favorite magazines.
• We are going to promote the value of our content and at the same time, we will make sure advertisers appreciate the strengths and value of the platforms where consumers can reach our brands.

More than ever, it’s about delivering our brands to consumers – wherever they are, whenever they want it, and on whatever platform they choose.

• This is a worldwide, 24/7 commitment.
• It’s not about gadgets and gimmicks anymore. 
• Today, our audience expects nothing less.

That brings me to five principles that I believe will keep us on the road to success.

First, our industry is built on the consumer. 

• Providing consumers with high-quality content and great products – no matter what the platform – is the organizing driver of our business.
• Our journalism and other content should continue to stand out from the flood of commoditized information. Remember, consumers place their trust in us; we must always honor that trust.

Second, we have to keep delivering exceptional value to our advertisers and marketing partners.  More and more, marketers want partnerships with companies that provide them with original ideas, cross-platform capabilities and unique links to consumers. We’ve always had a deeper relationship with our customers than other media. We know our subscribers. They pay us regularly, and we know what they really care about So we will continue to figure out new ways to provide value to our partners and get paid fairly for it.

Third, we must develop new sources of revenue while ensuring that we are fairly compensated for our content. Optimizing old business models is no longer enough. We need to keep innovating and investing to build new revenue streams with new products, marketing services, e-commerce offerings, brand extensions and more. Consumers recognize that our content is valuable; they have since our inception; simply put, let’s get paid for it.

Fourth, we need to make the most of new technologies and distribution channels. In addition to reaching our audience, any way that we can, new technologies give us the tools to reinvent how we present our content, to benefit from improved interactivity and to connect better to our audiences and they provide opportunities to expand our relationships with new retail and digital distribution channels.

Finally, fifth, we have to accept change in our industry as a constant, build capabilities to respond rapidly and effectively and – where appropriate – work together.

As we all know, agility and focus are the key to adapting to change. We must continue to apply these principles to how we do our work, organize ourselves, and deliver value to consumers and through MPA among other ways, we have the opportunity to learn continuously from and with each other.

I’ll sum up by reminding all of us to build on the core qualities that have earned us the loyalty and trust of our customers and partners. Things like storytelling, original reporting, fact-checking, interpretation and analysis, rich visuals and navigation. These strengths matter to all platforms at all times – as we inform, entertain and connect to readers like never before and ultimately, enlighten and delight in a way that no other medium can.

Again, I could not be prouder of becoming the Chairman of the MPA – The Association of Magazine Media , especially at such an important time. I truly appreciate the confidence that you’ve placed in me and I pledge to do my very best for our industry. So make sure you pass the word:  It’s a great time to be in our business – the world of magazine media.