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InPublishing: New chief executive’s plans for Johnston Press

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InPublishing has a revealing interview with Johnston Press’ new chief executive, a former technology boss with no newspaper experience.

Ray Snoddy interviews Ashley Highfield, who was former head of technology at the BBC and later in charge of Microsoft’s online and consumer operations, on his plans for the newspaper group.

It is worth reading the whole interview to find out why Highfield took up the challenge of joining the company, which seen its share price fall from 480p to 5p.

Here are a couple of extracts:

The new Johnston chief executive also points out that while not a newspaperman, he has run two of the largest online news portals in the UK, MSN and BBC online, where he was editor-in-chief responsible for several hundred online journalists.

Then of course there is the money, which included a welcome package of £500,000 worth of seriously deflated Johnston Press shares.

If the new chief executive can conjure up a little alchemy, find a better model for linking the print and digital world and get the share price on the move then he could become seriously rich.

Those however who expected Highfield to come in to Johnston Press and wave a magic digital wand on his first day at the beginning of November have already expressed disappointment.

Highfield insists he has a digital strategy but says it would be “premature” to say in any detail how he is going to implement it.

Highfield discusses content dissemination via iPads and other devices (incidentally, JP title the Scotsman launched a £7.99-a-month iPad edition earlier this week), but was less forthcoming about paywall plans (JP dismantled its trial walls in April 2010).

And what about paywalls and charging for online content?

“Watch this space”, is all Highfield will say but, clearly, increasing digital revenues is a central part of the emerging strategy.

The full InPublishing interview is at this link.

InPublishing survey: ‘Behind the turnover figures, the industry is essentially still in profit’

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The publishing industry is in ‘remarkably robust’ health, according to a new survey of 187 companies – encompassing 911 consumer magazines, 855 B2B magazines and newsletters, 413 newspapers (both regional and national) and a total of 1,056 individual websites.

The survey, which was a joint project between Wide Area, Wessenden Marketing and InPublishing magazine, suggests a slide rather than plunge in industry turnover – partly a result of ‘headcount reduction and ruthless cost control, where marketing budgets in particular have suffered’.

“Online growth is clearly outstripping print revenue trends; circulation revenues are performing better than advertising sales; and subscription sales better than retail copy sales. ‘Other revenues’ (which include reader offers, events & services, as well as contract publishing) are showing medium growth, behind online, but ahead of print revenue streams,” the survey suggests.

This is an extensive piece of work, well worth a read (you’ll need to register), and includes sub-sections dealing with:
Online opportunities and threats
Website profitability and costs
How publishers are planning to ‘manage the future’

Some key findings from the report are below:

  • 59 per cent of those surveyed have under 10 per cent of their turnover coming from online/digital activities;
  • Online revenue streams are showing the most growth with paid-for online content, classified online and display advertising ranking above print revenue streams;
  • 20 per cent of publishers surveyed are looking to grow staff numbers, while 54 per cent will hold steady;
  • Online, the highest threat publishers are facing is a lack of resources/focus/knowledge e.g. not having the skills in-house to adapt to new technologies or resources to develop online offerings;
  • Cutting costs and overheads and developing more innovative, multimedia advertising strategies are seen as the most critical tasks for publishers going forward.