McGraw-Hill making big mistake by trying to sell BusinessWeek
Diane Mermigas writes on Bnet.com why she thinks that McGraw-Hill should hold onto BusinessWeek magazine instead of trying to sell it.
Mermigas writes, “Itâ€™s trying to sell BusinessWeek as a cohesive branded entity that should command a premium price based on posterity, when in fact its content is the real prize. But selectively packaging and selling the magazineâ€™s individual features and byline writers could collectively yield a bigger payday from Web aggregators â€” such as AOLâ€™s MediaWorks â€” seeking to bolster their ranks of paid contributors.
“Such an approach could establish a template for transforming other legacy print-media publications into prosperous digital content factories. Fortune and Forbes are among other struggling business magazines in a similar death spiral.
“There are reasons why this makes sense:
- Various online news sites grabbed some of the editorial in the aftermath of Conde Nastâ€™s decision to discontinue Portfolio. That fierce competition among segmented sites means you can never have too many differentiated writers.
- Content suitors could pressure McGraw-Hill to include data-sharing arrangements with its Standard & Poorâ€™s ratings agency and other data-gathering units that provide content to BW, opening up new sources of revenue.”
Read more reasons here.