Special Report: Publishers’ Outlook 2011
PE: Where are you investing most heavily?
Clinton: This is our first full year of publishing Food Network Magazine, and it has been a huge success: 1.3 million circ and the No. 1-selling food magazine on newsstands. So we continue to invest in that baby; [it] has become a big baby.
But we are always putting investment dollars into our core magazines. In the last couple of years, we increased the trim size of Good Housekeeping, … Redbook, House Beautiful [and] Country Living. So we've been enhancing production values. …
It's important that we invest in our core product because that continues to be … where we get [the majority of] our revenue and profits; but at the same time, we have to invest in [expanding] our digital sites, in all things iPad and tablet. … We have a team now that is working on iPad and tablets, [and] we're building out an app lab at Hearst Tower.
We've hired an advertising executive to run the emerging advertising side of the app world, so those are big investments in people. If you go to MagazineConversation.com, we are investing a lot in bringing consumer insights to the marketplace [regarding] how consumers use, read and feel about magazines as part of their media experience. … That's great information we can take to our advertisers.
PE: What's your 2011 print outlook?
Clinton: The good news is [that] the advertisers have realized the importance … of magazines in the mix, so magazines … are very much a part of the media mix and, I think will continue to be. We [expect] … to see growth on the print side, while we are growing out these other businesses.
PE: Will revenue from paid content (e.g., paywalls, subscriptions) grow?