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Therearearound160differentmagazinepublishersintheUK.Theseare thedominant players.

Thesefourareallforeignowned. Hearst andCondNastarefullyAmericancompanies withUKdivisions,andthetwoareclosecompetitors.CondNastsGlamouroutsells CosmopolitanintheUKfashionandlifestylemarket;VogueandElle(whichHearst acquiredlastyear)alsogoheadtohead. IPCwasaBritishcompany,nowownedbyAmericans,andretainsrathermoreofits distinctlyBritishidentity. BauerandHBauer(partsofthesamecorporation)owetheirsuccessinBritishpublish largelytotheirpurchaseofEMAPconsumermagazinesin2008.

ThesefivecompaniesareBritish. ImmediateMediawasbornonlylastyear,throughthemergingofBBCMagazines with OriginPublishingandMagicalia. Futureisresponsibleforanumberofrelativelyspecialistbutmainstreampublications. AsisHaymarket. Dennispublishesaselectionofsmallerandnichemarkettitles,includingViz. NorthernandShellonlypublishesahandfuloftitles theirmainbusinessisin newspapersandbroadcasting(ChannelFive).However,thetitlestheydoownarehugely successful likeNew!andOK!

Thisbarchartshowsthenumberoftitlesproducedbythebigeightpublishers.Thetop twoarebothforeignowned,butImmediateand Futurearentfarbehind.

Takenas apiechartofthewholemarket,wecanseethataboutonequarterofalltitles arepublishedbyforeigncompanies.Thetwobiggest BauerandIPC arereallyrunand operatedwhollyfromtheUK,andjusthaveforeignowners. AnotherquarterareownedbyBritishbusinesses,andhalfofallthetitlesproducedin theUKareownedbysmall,independentpublishers. However

ifwelookinsteadatthesizeoftheiraudiences,thepicturechanges.Intermsof magazinecirculation,IPCandBauertitlesbothreachmorethansixmillionreaders, getting closetodoublethereachofImmediateMediastitles.Hearstownshalfthe numberoftitlesthatImmediateowns,butisreachingmoreUKcitizens.

Putthatanotherway,andsuddenlyforeign ownershipcanbeseentobedominatingthe market.WhilethebigfiveUKPublishersarekeepingtheirquartershareofthe circulation,theforeignownedcompanieshaveonequarterofthetitlesbutnearlytwo thirdsoftheaudience.

SoletstakeacloserlookatHearst MagazinesUK thecompanyformerlyknownasthe NationalMagazineCompany(orNatMags)andawhollyownedsubsidiaryofHearst

Likemostoftheotherforeignpublishers,Hearsthasgrown inpartbybuyingupsmaller publishers.In2009ittriedtobuyEMAP,andin2010issuccessfullyboughtHachette Filippachi,aFrenchcompany. Thiskind ofhorizontalintegrationbringsabouteconomiesofscale,butsometimesata costtotheconsumer.Inthiscase,HearstdecidedtocloseSheandCosmopolitanBride toconcentrateonsomeoftheirnewertitles,includingRedwhichwasadirect competitortoShe.ThisobviouslyrobbedShereadersinparticularoftheirfavourite magazine HearstofferedShesubscriberscopiesofRedinsteadinabidtokeepthese readersonboard.

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Asweveseenbefore,publishersmightcompeteovertitlesandaudience,buttheyalso functionasoligopolies.Several havecollaboratedtobuyorestablishmajordistributors, likeCOMAG.

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NotonlydoesthissaveHearstandConde Nastfrompayinganothercompanyto distributetheirtitlestoUKvendors(newsagentsetc.),theycanalsoprofitfrom distributingtitlesfromother,smallerpublishers.Thisisanexampleofvertical integration.

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Many oftheworldsbiggestmagazinetitlesarepublishedinlocaleditionsalloverthe world.MarieClaireisanunusualexampleofthis.TheFrenchoriginalispublishedbya companythatonlypublishesthisonemagazine(andrelatedspinoffs).Ratherthansell therightstotheMarieClairebrandtoonecompanyforinternationaldistribution,its beensoldtodifferentpublishersindifferentmarkets,asyoucanseehere.Thissuggests thattheownersofthebrandwantthedifferentcountriestitlestohaveamorelocal flavour,whilestillretainingthevaluesandidentityofthebrand.

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Mostother internationaltitles,however,tendtobenefitfromeconomiesofscaleand theirhorizontalintegration. Forexample,takeHearstsCosmopolitan,whichisclaimedtobethebiggestselling fashionandlifestyletitleintheworld.ThisisanextractfromtheUKsJuly2011edition.

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Asyoucansee fromthis,theJuneUSAedition,theUKhaspickedupandreproduced thesamecontent.

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SohastheSouthAfrican edition.Asyoucansee,boththecopy(thearticle)andthe photographyhasbeenreusedbyallthreeeditions.

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However,boththeUKandtheSAeditionsseemtobefollowingtheUSAslead.Theyre benefittingfromthe economiesofscalecreatedbyhorizontalintegration the photographerhasonlyhadtobepaidonce,andthearticleonlywrittenonce,sothe costsofdoingthisareeasilysharedacrossthedifferenttitles. Itcould bearguedthattheseeconomiesaretotheadvantageofthelocalreaders they cangetamoreexpensivequalityproductbecausethecostsareshared,andDiazis interestingtoallthreeaudiencesforexactlythesamereasons,sowhyreinventthe coverage? Conversely,wecouldask:areCosmoreadersreallygettingan experiencedtailoredto theirlocalneeds?OraretheyjustgettingtheUSAsleftovers andanovertly Americanisedculturalexperienceasaresult?

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Interestingly,theSAeditionsharessomedesignideaswiththeUKone,suchasthe layoutoftheQuizsection,whichisdifferentintheUS. ItshouldalsobenotedthattheSAeditionispublishedunderlicencebyAssociated Magazines,whichlaunchedthisversionofCosmoin1983,ratherthandirectlyby Hearst.

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Ofcourse,sometimestheculturalexchange workstheotherway.Forexample,heres UKpopphenomenonAdeleonthecoveroftheDecemberissueofCosmointheUSA.

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Andheresheisonmany,manymorecovers. TheexceptionistheUKedition,which carriedJessieJinstead.PerhapstheUKreadershiphashadenoughofAdelebynow! SinceJessieJisnotyetaworldwidecoverstar,thiscoverdemonstratesthatUKreaders ofCosmoCANgetanexperiencethatistailoredtotheirneeds.Italsodemonstratesthe magazinespowertospreadculturalinfluencearoundtheworld:Adeleappearedonthe covereverywherefromtheCzechRepublictoIndonesia,andfromLithuaniatoThailand, betweenDecember2011andApril2012.

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Allthisis, ofcourse,anexampleofSynergy.HearstMagazinessavesmoneyinthe productionofmorethantwentydifferenteditionsbysharingthesamephotographsand content.Thesameprinciplescanapplyjustasmuchtoadvertisingandproduct placement:advertisersmaybenefitfromspecialratesinreturnforappearinginmultiple regionaleditions,butthissecuresplentyoffundingupfrontforrunningcosts.

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Hearst hasalsouseditsestablishedCosmo/Cosmopolitanbrandnamestospreadout intoothertitlesinavarietyofterritories.CosmoonCampusisafreemagazinefor universitystudents,andthereareseveraldifferentCosmopolitanShoppingtitlesaround theworld.TheoneshownhereisfromRussia.CosmopolitanBrideis,infact,adefunct title

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itceased publicationwhenHearstacquiredHachetteFilippachi.

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TheUKApril2012editionfeatured acovermount.Eachcopywassoldinsideaplastic envelopethatalsocontainedoneoffourdifferentsamplesofCliniquecosmetics.This freegiveawayworkssynergetically forbothCliniqueandCosmopolitan:Cliniquegetsto persuade375,00020somethingCosmoreaderstotrytheirproducts,andCosmocan persuadethesamereadersthattheyregettingextravalueforthesamecoverprice.As youcanseehere,Cosmosupportsthiswithpromotionalmaterialinsidethemagazine.

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Heresanotherexampleofan advertorial therearelots!Thefocus,asever,tendstobe onfashionandcosmetics.

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Aregular featureinCosmopolitanistheHitList.Thisrunsoversixpagesandfeatures dozensofdifferent,interchangeableproducts inthisinstance,handbags.Thedesigners andmanufacturersallprovidesamplestoCosmo,andinreturntheygettheirproduct pluggedinthemagazine.Cosmopolitanbenefitsfromappearingtoberightatthe cuttingedgeoffashionandfillssixpageswithadvertisingmasqueradingaseditorial. ThatssynergybetweenCosmoandthefashionandaccessoriesindustries.

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Letsnotalsoforgettheverticalintegration andsynergyHearsthasachievedbysharing itsoligopolypowerwithitsrivalConde NasttorunComag11.

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TheCosmoshopallowsHearsttocapitaliseontheCosmopolitanname bysellinghealth andbeautyproductscarryingtheCosmobrand.Theyalsoadvertisetheseproductsin theirmagazines,asshownhere.BoththebrandedproductsANDtheinternaladvertising areexamplesofsynergy andthefactthatthisispromotedonthewebsite demonstratesconvergenceaswell.

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As afashionandlifestyletitle,Cosmodependsuponcloserelationshipswithdesigners andretailers.ThisexampleofsynergyfeaturescrosspromotionwithDorothyPerkins:a portionoftheCosmowebsitehasbeendevotedtoDPsjeans,andthisismirroredinthe Aprilprinteditionbya20%offofferatDP.DorothyPerkinspaysHearstforthis opportunity,andbenefitsfrombeingpresentedtoayoungish marketwithdisposable income(theCosmoreader.)Onceagain,thisisalsoconvergenceinaction.

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Hearstmakethemost ofhorizontalintegrationtoreapthebenefitsofSynergy.For example,bypairingtheirCosmoreadersupwithMensHealthreaders,viatheirdating website,theygettousetwooftheirbrandstogether.Asbothsetsofreadershaveto submitalltheircontactdetails,Hearstalsogetstobuildupadetailedprofileoftheir kindsofreaders. IwonderwhatitsaysaboutREALCosmoreaders,thattheymightbeexpectedtowant todateMensHealthreaders?HavealookattheMensHealthwebsite:doyouthink theirreadersaregoingtobecompatible? Andyes,thisisanextensionoftheclassicpersonaladssectioninnewspapersand magazines.HavingarrivedontheInternet,thisisanotherexampleofconvergence.

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Cosmohasmovedbeyondsimplewebsites ontomobiledeviceslikeAppleandAndroid smartphones.HearsthasdevelopedaspecialShoppingGenieapp.Hereshowitworks: WhenyouseearedticksymbolnexttoafashionorbeautyiteminCosmo,findthe shoppingbagicononthatfeatureandscanit.Inthisissuewevechosenourfavourite itemsfromClinique,NewLook,DebenhamsandBoohoo.Plus,wanna seewhat everyoneelseisbuying?CheckouttheCosmoLovessectiontoviewtheclobberour readersareorderingrightthissecond withhotpicksfromourfashionteamtoboot. Whatthisdoesntsay butdoesmean isthatHearstgetstotrackthepurchasing choicesofthousandsofitsreaders,whichnodoubthelpsitselladvertisingspaceand productplacementopportunitiestofashionandcosmeticscompanies.

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YoucannowalsosubscribetoCosmopolitanontheiPad, inmorethanonecountry.In fact,HearstoffersmanyofitspublicationsfortheiPad thisadfortheCompany subscriptionraninCosmoinApril2012(theresthatSynergyagain.)Subscriptions provideguaranteedincometoHearst.Distributingitelectronicallyisvirtuallyfree:there arenopublicationcosts(nothingtoprint)andnodistributioncostseither(notrucksto load,exchangefeestopaytonewsagents,norpostagetocover).Therearealsonew developmentsintabletpublishingthathavethepotentialtomakethisamore interactiveexperienceforthereader.Wellseemoreofthisnextterm.

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AnotherwayHearst getstotrackitsaudiencestastesandinterestsisthroughits discussionforums.

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SowhatdoesallthismeanforCosmopolitansrelationship withitsaudience?

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Soyoube thejudge doesCosmosinternationalreachunderHearstsownershipmean a) ThatCosmoreadersgetagreatdeal:awidevarietyoffreecontentacrossmultiple mediaandaccesstothebestcontentfromsiblingtitlesaroundtheworld,or b) ThatHearstexploitsitsinternationalreachandoligopolypowertocutcostsby globalising(ratherthanlocalising)itscontent,andexploititsrelationshipwithits audiencetomaximiseadvertisingrevenue. Whatdoyouthink?

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