How Publishers are Capitalizing on Their Communities
For Subers, making video work for NAPCO required structuring the video department in a very specific way. Unlike departments like accounting, which aren't expected to generate revenue, NAPCO's video department is held accountable for balancing it's own P&L. "We wanted it to be a standalone business unit," says Subers. . "We started very modestly, year one, with our revenue goals," Subers says. "And now in the second year, we have 2 X'd our revenue and 2 X'd our profit."
Another key to NAPCO's video business is that the company is not just selling advertisers access to its communities on a video platform, but also selling its video services to clients, producing videos for clients that may not have the technical skills or storytelling know-how to create meaningful video.
Foreign Affairs' videos specifically target the more dedicated segment of its audience. According to Hammes, most of the publication's videos are either of events or short interviews of world experts conducted by the magazine's editor.
Part of the concern with video is that it has the capability to become very expensive. Between building a studio, buying camera equipment, and hiring people who know how to use that camera equipment, the costs can quickly add up. Subers, who hired an Emmy award-winning director to helm the department and championed the creation of a new studio—knows this well. But the costs are worth it when offset by revenue. "It's been wonderful, and it's a really exciting growth area."