That right fellas Source Intercourse has fucked it's self and the magazines into bankruptcy. I wonder how many magazines will become extinct. That means more people will be on the web looking for tech and cars. Is this the death of the corporate car magazine? "If we didn't have bonuses, we wouldn't have had anybody working for us." Drexel Burnham Lambert spokesperson, explaining why the company gave over $195 million in bonuses just before it filed for bankruptcy. (Bloomberg) -- Source Interlink Cos., the publisher of Motor Trend, Hot Rod and Street Chopper magazines controlled by billionaire Ron Burkle's Yucaipa Cos., sought bankruptcy protection as it moves to become a private company. The company, which also distributes newspapers and other publications, listed debt of $1.9 billion and assets of $2.4 billion as of April 24 in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. Source Interlink publishes 75 magazines, mostly about cars and motorcycles, putting it at the nexus of two struggling industries. Iconic Motor Trend is in bankruptcy as Chrysler LLC and General Motors Corp. face a similar fate this week and next month.
I wish I got bonuses for screwing up. I guess that is why I actually have to work, at work. Too dumb to fail properly.
That was a pre-packaged Chapter 11. That means they screwed the shareholders / bondholders, but they will still be around. It is just a way to eliminate the debt and take the company private.
Im guessing over the next few months there will be a surge on internet car sites and quite possibly a flood of newbies here on the HAMB. Having just been laid off from that company, I had a publisher (real asshole) dismiss the internet as a "fad". Guess he never bothered turning on his computer at home.
I loves me the web, but I will NEVER give up print...........even if I have to keep making magazines myself.
Pfffttt... You argued me every step of the way. ....... This is the tip of the iceberg fellas. It's gonna get worse and we are going to lose some really important titles. I know of one right now that is fighting for it's next issue hard. It's bad. The economy is accelerating the problem, but it's not the source. The one thing we have learned in the online world is that advertising simply isn't all that effective... It's really over valued - both online and offline. The ROI just isn't there. Companies are beginning to realize that ad expenditures are better spent on sound R&D and good customer service... This rewards you with good reviews inside communities and VERY effective word of mouth exposure. Mark my words. Any publication relying on ad revenue for survival will not survive. That's old thinking from old people that lack of originality. Is print dead? No... Not if you are creative.
Just another example of how doing the right thing DOES NOT MEAN SHIT anymore... (Drawing a bonus while heading into bankruptcy) It is sad what we have come to,,,
road apple. I'm with you. The good magazines use the web to carry the content they can't afford to put in the magazine. The great ones put the really good information in the magazine and push people that want details from the web content to go buy the magazine. I will always want to flip through a well put together magazine.
My daughter's Cosmo Girl gave up a couple months back. I didnt give any thought to my R&C being at risk, I guess they all are. Scary. Lets hope for the best.
"Mark my words. Any publication relying on ad revenue for survival will not survive. That's old thinking from old people that lack of originality." -Ryan. Those are prophetic words that apply to MUCH more than the print/publishing world. It's a whole new world out there. Good words, Ryan.
Doesn't work... Want proof? Look at the web sites for HRM, R&C, Street Rodder, etc... They suck. Bad. That's for a few reasons: 1. These guys don't understand the online medium. David F. is a great example... He's the best editor that HRM has had in a long time. Hell, he's the best in the industry right now - bar none. He's fantastic and incredibly creative from a story point of view. I flat out love the guy and don't even know him. He failed online. Print guys expect to take their ideas online, add video, sell some ads, and be rolling in the money that their bosses enjoyed at Primedia. It doesn't work that way. One has very little to do with the other and it's impossible to jump in with no technical experience and expect to be successful. I would fail miserably at a print business. 2. You can't split content and expect continuity... NY Times tried it, Wall Street Journal tried it, etc... Hell, I built a tech company with the sole purpose of doing that. It didn't work. People expect fluid transition and it's hard to do from print to online. Print is not dead. I personally think this movement is going to clear out the shit. The publications that existed not for the reader, but for the advertiser are gone. They won't survive. The publications that put out quality content that is not driven by ad revenue will replace them. Rodder's Journal, Road & Track, Hop Up, etc... will flourish once the economy picks up. And personally, I think Rod & Custom has been really good as of late. I would hate to see them gone. I think R&C and HRM will always be around in one form or another.
So long as Rodder's Journal is doing well, I can do without another Build a SBC for 3K (latest Hot Rod) or another Red 69 Camaro with a big block (latest PHR). Real tech instead of how to bolt on the advertiser's products! Notice how the mags road tests usually find the newest car the best, unless there is a BMW? Road & Track tells it better in the used car reviews, telling you what years are good, how much typical parts cost and the common problem areas. The big mainstream mags have been about style over substance for years. They keep getting new graphics designers and changing the look (with the typical complaint letters) while they keep watering down the substance. There has never been a real look at how car companies are structured and run, just interviews with the heads who spout the same corporate-speak. Articles on the latest big buck watches for cross advertising? Give me a break! They have been doing the same thing the NHRA has, going after the top 1% of the rich, at the expense of the large core group.
I just renewed my subscription to Street Rodder for 2 years because I really like the turn they have made in the past couple of years. I hope it wasn't wasted....
What I read was that the bankruptcy will just erase their debt- not that they are going out of business.
Advertising is not dead, nor is print. Its just changing. Its happened before, it will happen again. EFFECTIVE advertising works. The problem is there is very little of it around. Buying space, putting up a couple of images of your widget and waiting for the orders to flow in is not advertising, thats wishing. Publishers have been overvaluing their ad space for a long time. That is changing. Ryan is right in that there is NO substitute for a satisfied customer and they are the best advertising you can buy. And yes, you can buy satisfied customers... by having a good product and good service and that costs money, more than any ad. But the customers have to know about you in the first place, thats where the advertising comes in. Print media needs to concentrate on what it does well, and leave the internet to do what it does well. The net is a place for networking and some knowledge base (some of the knowledge is of questionable worth, some is priceless, the trick is sorting out the two). Print serves as a source for in-depth, well researched articles. Reference material. Rodders Journal comes to mind.
It doesn't help that ever since Peterson Publishing was sold to investors they have milked it every way they can and the ad rates have become so unbearable so their is no ROI. I have friend that advertises with them in a big way and he has been cutting back for years and complaining of the tactics they use to get you to buy more. I have even seen it ruin good events like Americruise because they insisted on squeezing the last dime out of everyone involved, advertisers, sponsors and participants. Greed will kill the golden goose every time IMO.
Prove it. You can't, that's the problem... With online ads, you can track ROI obviously. But, those of us that have been online long enough have begun to realize that all advertising is over valued - even the stuff that is effective. Money is better spent creating a better product. I'm not saying ad budgets are gone. I'm saying they are going to be minimized. As they should be...
The Jalopy Journal
