Time Warner Chairman Speaks About New Media, Trends in Print
Press release from the issuing company
June 16, 2004 -- (WhatTheyThink.com) -- Print has a bright future and will remain a very effective medium for companies to deliver the message they're sending to consumers according to Don Logan, Time Warner's Media & Communications Group Chairman. He oversees America Online, Time Inc., Time Warner Cable and the Time Warner Book Group. The comments were made in an exclusive interview published today at WhatTheyThink.com.
Logan has been named the recipient of the 2004 Prism Award presented annually by New York University in recognition of distinguished leadership in the graphic arts and communications industry. The award will be presented on June 21st at The Plaza Hotel in New York City. He recently spoke with Cary Sherburne, Senior WTT Editor, about Time's business model, AOL, Print's future and how printers can succeed in the digital economy.
Below are excerpts from the interview which can be read in its entirety by visiting www.whattheythink.com.
What Happened with AOL
Logan: “We developed a broadband product, which we had never had before, made organizational and structural changes, and tried to change the culture from a single product to a multi product company. We were fighting an advertising and commerce revenue line that in 2001 had peaked at $2.4 billion, and had dropped by $800 million at the end of 2002. Our narrowband business was declining and we made a strategic decision to stabilize the business, move our costs to a variable basis as much as possible and get back into the online advertising game.
“Our advertising business bottomed out last year, and now our ad revenues at AOL are back to growing at close to industry levels. We also fixed our international business—primarily Europe — which went from losing $600 million to profitability. Again, our goal was to reverse the profit slide, get the business growing and find ways to continue that growth. We needed to be sure that AOL was a business that could grow at least as fast as the rest of our portfolio. We have accomplished that. In the first quarter of this year, we turned the corner from an earnings perspective.”
Logan: “The truth is, there are too many magazines out there. During the recent economic downturn, many cut back on editorial budgets as ad revenue declined and, as a result, there is not enough substance and meat to them. We think that is a mistake. You have to continue to invest in the titles to maintain the highest quality magazines in each category. By doing that, we will then be able to retain readers and get our fair share of advertising.
“At Time Inc., we will be solidly up this year. Until last year, we have been up 12 years in a row – at 13% compound annual growth rate. It's a good business. We are continuing to invest and believe in its future.”
Premium Access Members can read the full interview by visiting www.whattheythink.com
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