DOJ Halts Quad/Graphics-LSC Communications Merger
Posted on Saturday, June 29, 2019 at 3:46 PM
In the news: A proposed merger between two publishing giants is under
legal scrutiny.
Two major printers and distributors of
magazines and books, Quad/Graphics and LSC Communications, announced a
merger that was set to finalize this year. But the Justice Department
has slammed the brakes on the proposed deal. Marc Tracy of NYTimes.com
reports that "lawyers in the department's antitrust division argued that
the merger would decrease competition and drive up prices."
This
is no small merger. Quad/Graphics publishes all Condé Nast and many
Hearst magazines, as well as Scholastic books, says Tracy. LSC
Communications publishes, among other things, two highly circulated AARP
titles and book publishing giant Penguin Random House. Tracy reports
that the DOJ has two key supporters on its side: the Authors Guild and
PEN America. Read more here.
Also
Notable
Apple News+ Revenues Sluggish, Say Publishers
Apple
News+ is off to a rocky start. According to Mikey Campbell of
AppleInsider.com, publishers are complaining that they're not seeing
much revenue from the service, and that the product seems "unfinished"
and technical support is hard to come by. Campbell reports, "Apple is
said to have estimated publishers would in their first year on News+
rake in 10 times the revenue they made from Texture." But the results
are mixed, he says: Some publishers are faring worse than they did with
Texture, while others aren't seeing any change at all. Read more here.
Facing
Reality: Paid Subscription Growth
"We have reached a point at
which paid subscription growth, for many media companies, feels
unattainable," writes Dean Horowitz in a June 4 Foliomag.com piece. He
discusses some of the outdated thinking that hampers paid subscription
growth and offers tips on retaining and growing subscriptions. He warns
publishers against escalating subscription pricing; instead, he says,
"audience development today means aligning subscribers with the
messaging that resonates the loudest with them." Read more here.
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