May 25, 2015 Media Industry Newsletter Vol. 68 No. 21 New York, N.Y. www.minonline.com

Steve Smith's Eye on Innovation: Apple’s Wearable Is a Publisher Proving Ground, Not Yet a Platform. Truth told, after a week of wearing and tending to it conscientiously, the Apple Watch is an underwhelming experience. As a piece of hardware it sits comfortably within Apple’s infamous “Reality Distortion Field,” but it’s much less a work of coveted jewelry than the company wants us to believe. It’s bulbous, and anything but sleek. It's a black block glass that protrudes from the wrist and resembles the original iPhone. Anyone thinking this is less geeky than previous smart watches should stop drinking the Kool Aid immediately. In all respects, the device has first-generation written all over it. As a content delivery mechanism, the experience is unimpressive so far. (continued on page 4)

"EW's" Mattiace-to-Duque Publisher Change Looks Seamless. Outwardly, this went smoothly, with Melissa Mattiace calling her two years at the En- tertainment Weekly helm "an honor." She was thanked by People publisher Karen Kovacs– her boss since the March addition of EW group publisher–for her "passion and dedica- tion" in producing "record-breaking digital growth across all platforms." Still, the May 19 news was not a surprise, because Mattiace was rumored to be on the hot seat for the past year, and conditions intensified with the Kovacs promotion coming in tandem with Rich Battista's hire as People and EW president. By promoting People and EW West Coast sales director Ellie Duque and keeping her based in Los Angeles, Battista and Kovacs have an on-site executive who could be an asset in building the all-important entertainment category as the movies and TV fall previews near and, to a lesser extent, technology and automotive. It also increases the responsibility of EW associate publisher Lana LoRusso, who added VP to her title and becomes the top New York business executive. Thus far, it has been a quiet 25th-anniversary year for EW under new editor Henry Goldblatt, who succeeded now-Time Inc. senior VP of editorial innovation, Matt Bean, in February. (continued on page 5)

Noah Galloway's Whirlwind Dancing with the Stars and "Men's Health" Week. Pretty good for a physically challenged veteran who one year ago, in the words of Men's Health editor-in-chief Bill Phillips, "was entering a contest." The content was Men's Health's first Ultimate Men's Health Guy competition, and Gal- loway won through readers' votes and judges' selection. His win put him on the November 2014 cover. (continued on page 2)

• WILL LUCKY BE A CONDÉ NAST BELLWETHER? "GLUTTONOUS" CRAIN'S....Page 2 • APP REVIEW: THE GUARDIAN'S FREE APP IS JOLLY GOOD...... Page 3 • NEWSPAPER NATIONAL NETWORK'S AGENCY POPULARITY; WEBMD'S 10TH...Page 5 • MAGAZINES' ORIGINAL DIGITAL VIDEO IS GROWING...... Page 6 • IGNORE MYTHS; TVG & LETTERMAN; HOUSE BEAUTIFUL'S KITCHEN... Pages 7,8 www.minonline.com © 2015 Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. Page 2 min 5/25/2015 Noah Galloway's "Men's Health" Championship Season (continued from page 1) The attention that followed (including an appearances on Ellen) earned Galloway an invitation to compete on Dancing with the Stars. Being the first physically challenged male competitor in the series' 20 seasons made him and professional partner long- shots, so his third-place finish in the finals on May 19 was a tri- umph. Reports cited Galloway's injured right wrist made it difficult for him to lift Burgess with his arm. It's also said his "rabid" fan base, includes many veterans and MH readers. Post DWTS, Galloway, his fiancée Jamie Boyd and Burgess took the red eye from Los Ange- les to New York for a May 20 that began with and ended with MH's 11th Grooming Awards at Ph-D at the Dream Downtown. It couldn't have been scripted better for MH with 300-plus guests at the event, and a new perk for Galloway is becoming the spokesperson for Ken- neth Cole's Mankind fragrance. "Noah will always be part of the MH family," says Phillips. "He will be judging the 2015 Ultimate Men's Health Guy competition, and that we knew him before the world knew him is pretty neat." Galloway and Boyd are pictured (right) with MH publisher Ronan Gardiner and his fiancée, Saatchi & Saatchi planning director Christine Hasbun. The "Lucky" Experiment Takes a New Turn. It was not a major surprise last week when Lucky Group CEO Josh Berman announced that the 15-year-old women's fashion and shopping brand was becoming less print with the frequen- cy reduction to quarterly from 10 times per year. Digital, specifically e-commerce, will dominate beginning with the September launch, and–per the minonline commentary by senior editor Caysey Welton–the formula of "the print magazine [as a] seasonal catalog for fash- ionistas with a mission to engage consumers through content and then drive them to make purchases online...could work." As CEO, Berman is attempting to fix something that is broken and bring Lucky more in line with his BeachMint e-commerce company that bought a majority stake in the brand from Condé Nast nine months ago. This is also a new approach for CN, which has traditionally closed unsuccessful businesses while retaining the rights in the event of a revival. That was done in October 2013 with Domino in partnership with three Internet entrepre- neurs. Rebuilding a business from scratch carries much less fanfare than changing one that results in the departures of Lucky president Gillian Gorman Round, editor-in-chief Eva Chen and 20 other staffers, according to Adweek. Time will tell if a successful Lucky is the role model for other CN titles should simi- lar circumstances arise. Two "Gluttonous" Headlines from Crain's Titles. On May 21, Crain's New York Business' Website had them hungry: Shake Shack's trademark filing has customers salivating over chicken sandwiches And on the same day, Crain's Chicago Business' site interpreted McDonald's CEO Steve East- erbrook "bumping pay for some workers" with this classic "greed is good": McDonald's CEO 'proud' of pay hike as protests continue

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Distributed via email and online. For email and postal address changes, allow 2 weeks notice. Send to: Client Services or call 888-707-5814. For advertising info contact 301/ 354-1629. Contents may not be reproduced in any form without written permission. Subscription Rate: $1099 min 5/25/2015 Page 3 Steve Smith's App Review: It's The Experience, Stupid: Why "The Guardian" Excels. I have more than a dozen different news apps on my iPhone, from NYTNow, to aggregators like News Republic and Circa, to inspired longer form apps like Medium and Timeline. For my dai- ly world news, however, I tap into The Guardian’s news app most frequently. The app use is habitual and motivated by a number of factors, only some of which involve the quality and relevance of the content. The user interface and the overall pleasure of an app experience is an intangible but very real part of app retention and depth of use. You might say that all apps are games on some level. With use comes a bit of joy; not just information. The Guardian’s free app is unrivaled in the elegance of its design. Dispensing the default one-column feed of image- heavy scrolls that dominate other apps—this one reimagines design. Stories are contained in a blend of vertical and horizontal boxes. Thumbnails are used sparingly throughout the scrolling experience; keeping the eye, rather than the thumb, moving. You are not just trying to catch the relevant story as it whizzes by, but actually reading. The homepage scroll is long but as customizable as any news app I've seen. Tapping a Home+ button brings up an ar- ray of possible sections that you can add, remove and rear- range. In fact, the degree of control is quite remarkable­ —down to offering a condensed mode, managing what content your iOS widget contains and allowing a lighter version when off WiFi. As with most operations in the app, all these are intuitively designed with oversized operational buttons and clear paths. Unlike many apps, the reading experience itself is superb, with strong use of light but legible typefaces, pull quotes to break up the scroll-read and comfortable use of white space. I appreciate the app's use of in-line ads while clear- ly demarcating them with both grey background and a visible “Advertisement” tag. With a login, articles can be bookmarked for later reading, but a big omission is offline reading. What makes the app a joy to use? The fluidity of the tap- ping, scrolling and reading experience. Tap a story on the homepage and it seems to unfold rather than trigger a page load or an expansion. The image or headline stays in place but the larger story seems to unfold around it, then the back button tucks the story back into the home or hub page scroll. This feels elegant and smooth, enhanced by a slight fade visual that conveys a sense of floating into and out of elements instead of mechanically “clicking” into and “loading” things. The interface insulates the user from the technology to create a flow of its own while incredibly retaining the feel of a newspaper. There is a tremendous depth to the content and as simple and customizable as the main homepage may be, sliding in the main menu demonstrates just how much there is here to browse—for subscribers this includes daily crosswords. And yet there are still some weaknesses to the app. The advertis- APP REPORT CARD ing, mostly networked in, poorly sized and of uneven quality and rel- evance, detracts from the beautiful design. This is one app where we User Experience A long for real native advertising. Additionally, the alerting mecha- nism is too blunt, allowing just for breaking news and the app uses Overall Design A iOS’s embedded sharing tools but often misaligns the thumbnail image Social Integration B- to accompany the post. All in all, The Guardian app demonstrates how much design and UI Mobile Utility B matters; and it's not just in typefaces and color, but layout and flow of experience. Like it or not, these are the little things that Monetization B- compel users to tap your app instead of a rivals in that split second decision. It's a part of app gamesmanship that too few legacy brands Final Grade B+ understand... or want to admit. Page 4 min 5/25/2015

EYE ON INNOVATION STEVE SMITH

Apple’s Wearable Is A Publisher Proving Ground, Not Yet A Platform (continued from page 1)

Basically, most Apple Watch-ready apps merely push iPhone content alerts to your wrist. That goes for the big brands like Time, CNN, ESPN, The New York Times, etc. This is a convenience, to be sure, but not a game-changing content experience. Unfortunately, the Apple Watch app just mirrors the alert schedule of the phone, when they re- ally need a more customized and less aggressive schedule. I turned off alerts or unin- stalled a number of apps because I didn’t welcome nearly as many messages on the watch as I do on my phone. Some apps do have discrete, native watch iterations, but their execution is un- even at best. ESPN gives you a couple of scores and headlines that appear to be loca- tion aware. C|NET junks up the screen with a massive scroll of headlines that can tap through to story lead graphs and an option to save the full story for reading later on the phone. The New York Times also pushes top headlines and has a save-for-later func- tion, but it uses a preferable card-flipping interface. Some apps use an iOS handoff function that puts their icon on the phone’s lock screen. Among the major media players, Yahoo Weather (iOS’s native weather app), Fandango, TV Guide and Epicurious probably best accommodate the watch interface and use case. Weather gives you a visual representation of current conditions in a ring of icons that outlines future conditions. Tapping on the image changes the ring to precipita- tion and tempo forecasts. Epicurious wisely aims for pure functionality: cooking tim- ers that can be tied to recipes on the phone app or just simply set on the watch. TV Guide gives you just a list of trending TV shows and the ability to set a remind- er alert to watch them. Fandango uses simple features like quotes from a new movie and film stills. All of these brands are thinking seriously about use cases, making the best out of the limited interface and reducing content ruthlessly. As a media device, smart watches almost certainly will be glance-o-vision. They have to be structured in content and design for the nano screen. Using a card interface seems to work best versus the relentless scroll. Some apps try to plant a back button in the upper left corner of the watch screen, but tapping navigation buttons on this small screen is not as intuitive as a swipe. One of the hurdles for app makers is the basic Apple Watch homescreen, which actu- ally discourages app use. The wall of icons makes it easy to misfire and launch an unintended app. I found myself making very little use of the wheel for navigation and scrolling through content. But more to the point, the watch feels more like a push platform than a pull. In the week I have used it and loaded it with media apps, I rarely felt compelled to load an app other than weather and activity trackers. If I were really in the mood to catch up with headlines, I would go to the larger phone screen. Generally, I welcomed the alerts on my wrist, and occasionally saved them for later. But the apps’ ability to pull users in on this screen is highly debatable. All that said, the Apple Watch is exactly the right platform for experimenting with glance-able content formats. Publishers need to accommodate a next level of intimacy here. This will require not only greater brevity but also smarter alert scheduling and the courage to whittle down their brand to simplistic core value propositions for the user. The smartwatch itself is likely a niche version of a broader, fragmented wear- ables category that media companies must test now. Apple Watch is the best place to start. Look for individual Apple Watch App Reviews here in min during the coming weeks.

Steve Smith (popeyesmith @c o m c a s t .n e t ) is digital media editor for min. min 5/25/2015 Page 5 Mattiace-to-Duque "EW" Transition Looks smooth (continued from page 1) Mattiace's EW predecessor, Karin Tracy, was ousted as InStyle publisher in November 2014 after the Fashion Rocks partnership with CBS and the Richard Beckman-led Three Lions En- tertainment proved to be a financial flop. That did not stop Vice Media CEO, Shane Smith, from hiring Beckman as chief revenue officer on May 8. A Former "EW" Publisher Delivers Some Good Newspaper National Network News. Ray Chelstowski, who was EW publisher during 2009 and much of 2010 (ad pages in that 20th- anniversary year were nearly +20%), will mark his second anniversary as Newspaper National Network CEO on June 3. He tells min that research conducted last month by Advertiser Per- ceptions found agency media buyers who specialized in newspapers rated the NNN third as a "preferred partner" after The Wall Street Journal and The New York Times and ahead of Tri- bune Publishing (Chicago Tribune, Los Angeles Times, etc.), The Washington Post and Gan- nett (USA Today). NNN was established 21 years ago to bring national advertising to news- papers, and the Advertiser Perceptions study strengthens Chelstowski's argument that it is needed more than ever.

WebMD Had a Healthy First Quarter... The 19-year-old parent of the namesake health-care website and magazine has been trading on Nasdaq since 2005. WebMD's $143.3 million revenues in first-quarter 2015 were nearly $10 million greater than the $133.8 million over the same period last year. Two-year CEO, David Schlanger, credited the "healthy external environment for biopharma companies... translating into positive momentum for WebMD." Net income (profitability) was $10 million, up from $6 million last year, and the approximate $46-per-share value is closer to the 52- week high of $53.30 (July 2, 2014) than to the $34.40 low. ...And Print May Be a Second-Quarter Catalyst. May marks WebMD's 10th anniversary as a magazine, and "the 100-page issue is the largest in memory," says editor-in-chief Kristy Hammam. "Pharmaceuticals–prescription and over-the- counter–and packaged goods are our biggest advertising categories." The "regular" WebMD is published eight times per year, much of the 10.2 million print-run goes to the 85% of U.S. primary-care physicians' offices in 115 specialties. There are also custom editions for Walgreen's and Wal- mart shoppers, a diabetes quarterly for endocrinology practices and an an- nual campus edition for college health clinics. Last November, Hammam and WebMD president Dr. Steve Zatz hosted the brand's inaugural Heroes Awards in New York. Top honor went to actor Michael J. Fox, who received the Hall of Fame Award for his public battle against Parkinson's disease. Good Morning America co-host and May anniversary cover subject, Robin Roberts, emceed. As a survivor of breast cancer and non-Hodgkin's lymphoma, she, too, is a hero.

"The Wall Street Journal" and "Scientific American" Have a WebMD Trait. On May 19, the WebMD-like How Doctors Break Bad News was on the front page of the WSJ's Personal Journal. SciAm concurrently posted its June lineup, which included the Doctors Are Poorly Trained in End-of-Life Care, but That Can Change column in Science Agenda. Page 6 min 5/25/2015 Original Digital Video Finally Ready for Its Close-up? As regular media readers of min's coverage on the Magazine Media 360º Brand Audience Re- port know, video audience growth among magazine brands in the past year has been second only to mobile migration. Video uniques among the listed titles were up 14.1% in Q1 2015 compared to Q1 2014, and we dare say it's more profitable. Individual titles have seen double to quadruple-digit growth. One reason for this is the much broader adoption by audiences of original digital video programming. The Interactive Advertising Bureau and Gfk released a survery of 1900 con- sumers that shows 24% of the entire U.S. population watch at least one digital native video program a month. This is up 13% from last year, which matches Magazine Media 360º Brand Audience Report's audience growth. In other words, it looks like magazine brands are catching rather than missing this digital wave. As I've said since the early streaming media services in the late 1990s (Pseudo TV, WB Entertaindom), digital video only makes sense away from desktop. And this expansion of in- terest is all about post-PC devices. More than half (56%) of these video program watchers are using connected TVs and smartphones to access the content, while 48% use tablets. The original digital video viewership attracts a younger skew (18-34), 43% of whom say they watch this content. The IAB positions these shows as especially effective in captur- ing the so-called "cord-cutters" who don’t subscribe to or have minimal cable/satellite packages; they like the edginess and originality of the programming versus traditional TV. The takeaways for magazine brands are that making video which plays well on small screens and gets distributed on the major streaming and OTT players (Roku, Apple TV) will be key, but leveraging social media as a discovery portal is essential. The surveys show that 42% of these viewers (47% of women) found new shows via social, compared to 24% in 2013. Word of mouth is still king (53%), but search is not (22%). Regardless, IAB is overenthusiastically describing a platform worth building, not a ro- bust ecosystem. Declaring an audience of 59 million from viewers that only watch once a month is questionable math. On-demand video needs habitual and predictable usage. Distri- bution and alert/reminder mechanisms need to evolve to remind people they like. min 5/25/2015 Page 7

COMMENTARY TODD KRIZELMAN

The Myth of the Integrated Buy

Despite publishers offering completely integrated advertising options, buyers tend to focus on a single media format. This means that there are essentially two groups of advertisers buying with the publisher: one buy- ing online, the other buying print. Publishers have reorganized their sales teams actively over past few years to adjust to buying behavior. Recognizing that the skill-set for digital is different from print and that buying channels remain siloed, especially at agencies, one popular structure today at large national publishers is to operate separate sales teams, one focused on print, the other focused on online, rather than a unified team selling across diverse media. Here are our findings on the buying habits of print and online advertisers from a 2015 Q1 survey of members of the MPA: 1. 69% of Q1 print advertisers (5,643 out of 8,152) are placing ads in print only on member MPA titles. There are actually very few integrated packages observed. 2. 23% of print advertisers (1,848) are buying one format beyond print, which in- cludes online display ads, video ads and e-newsletters. 3. 8% of print advertisers (679) buy in two or more media formats. This reveals per- haps the greatest myth of all. For all the heavy lifting publishers have done to in- tegrate the user experience across media formats (which is what the user wants), the buying community hasn't followed suit. 4. 81% of online advertisers (13,960 out of 17,249) are placing ads online only. 86% of these advertisers placed their ad buys programmatically. 5. 23% of email advertisers focus on e-newsletter only (227 of 980). This is inter- esting because it demonstrates that although email is out of fashion in some circles, it remains popular with a minority of media buyers who consider it their format of choice. Although 980 advertisers buy email, just 23% are truly committed to it.

Todd Krizelman is CEO of MediaRadar.

David Letterman Was Past Tense at "TV Guide" Long Ago. His 35 years as a talk-show host are over, and most agree that Letterman is second only to Johnny Carson in having the greatest impact on the genre. But Carson's 31 TV Guide cov- ers spanned his 1962-1992 reign on The Tonight Show while Letterman's 12 centered around his early years at The Late Show. Until his May 18 "tributes" inset, Letterman had not appeared since April 14, 2001 (below right). But that issue's Energized! Refreshed! So Gosh-Darn Funny! cover line is equally ap- plicable today. It caps four favorites, with the August 28, 1993, Late Night Star Wars! spread coming two days before The Late Show premiere. Page 8 min 5/25/2015 "House Beautiful's" Residential Kitchen of the Year. Until now, HB's Kitchen of the Year was to see, not to use. From 2008-2012 Kitchen was on display at New York's Rockefeller Center (the only commercial exposition allowed), and drew many summer tourists. In 2013, it was at a showhouse in Manhattan's Kips Bay, and last May, it went cross-country to adorn San Francisco's Decorator Showcase. HB's 2015 Kitchen of the Year on display May 2-3 in the New Orleans home of Helen and Scott Jenkins was quite a change. "We chose New Orleans because of its historic architecture and because of our support in rebuilding the city after Hurricane Katrina," says nine-year pub- lisher and Hearst Design Group (HDG) publishing director Kate Kelly Smith. "In 2008, three years after the storm, we helped Harry Connick, Jr. build Musi- cians' Village with Pottery Barn, which was back this year." The Jenkins were found through the Junior League of New Or- leans. "Their home is an Italianate frame house that was built in 1860," says HDG associate publisher and group marketing di- rector Sean Sullivan. "The couple had done a lot of remodeling of the house–except for the kitchen. They were going to remake it sooner or later, and we helped to make it sooner." With the assistance of decorator Ken Fulk, who designed the Kitchen in his San Francisco hometown last year. Furnishings were provided by HB partners Caesarstone (quartz countertop) and KitchenAid (oven), which are pictured, along with Thom- asville (cabinetry and furniture), Grohe (faucets), American Standard (sinks), Custom Ser- vice Hardware, Hudson Valley Lighting, Troy Lighting, Wedgwood (china) and Pottery Barn. Fulk also designed the "custom kitchen" at JLNO headquarters, and events in both venues drew 2,500 and raised $48,000 for JLNO charities that include the continued rebuilding of New Orleans as the 10th anniversary of Katrina nears. Pictured (from left): Smith, Scott & Helen Jenkins, Fulk, HB editor-in-chief Sophie Donelson, HDG editorial director Newell Turner and Sullivan. (photo by Gustavo Escanelle) Skip Lunch Fight Hunger Is an ONGOING Passion of "Food & Wine's" Dana Cowin. The editor-in-chief's support of the nonprofit City Harvest matches her two-decade tenure, and in 2003 Cowin helped start Skip Lunch Fight Hunger to feed New York kids nutritious meals during the sum- mer when most school cafeterias are closed. May is the peak of the fund-raising, and as Cowin says, 60 meals result from every $15. Leading the corporate support in 2015 are Cit- ibank, BlackRock, Ogilvy & Mather and Guggenheim Partners, as they and many individuals have built a cumulative tally to over $4 million. Cowin is pictured in front of the CH food truck, which stopped at many Manhattan venues during the week of May 11. War–From Lexington & Concord Through Iraq & Afghanistan–Is Hell. When Life editors were going through their trove of photographs for the 1990 cof- fee-table book World War II (Little, Brown), they selected a weary soldier who clearly had done more than his fair share of Pacific island-hopping in the cam- paigns leading to V-J Day in August 1945. The photographer was W. Eugene Smith (1918-1978), who was wounded in Okinawa. But no one knows the fate of the soldier, who has never been identified. That is why every Memorial Day we honor those who were known and those who were un- known. The 70th anniversary of the end of World War II is one milestone, and the 150th anniversary of the end of the Civil War–when Memorial Day began–is the other. In memory of those who served, The Editors Steven Cohn, Editor-in-Chief Steve Smith, Digital Media Editor Caysey Welton, Senior Editor