I've Heard of Cheap Deals, but this is Ridiculous

In spite of how pathetic Michigan's economy has become, it still raised my eyebrow when I heard that a house was being sold for $1. I honestly thought I had seen it all in the world of transactions until I opened up my Mediabistro ezine today.

Bistro reports: "Yesterday, after hearing about OpenGate Capital's purchase of TV Guide we wondered why the company would buy the struggling pub, writing, 'Honestly, it's a little hard to understand what OpenGate sees in the magazine, even if the purchase was for an absolutely rock bottom price.'"

"Well, it turns out that was 100 percent the case. Advertising Age's Nat Ives found out that the investment company bought the mag for a grand total of $1. Furthermore, Macrovision — which owned TV Guide — will give OpenGate a $9.5 million loan at three percent interest, a great deal in these uncertain times."

"But still, the magazine lost $20.3 million in 2007. What is OpenGate thinking? Its managing partner Andrew Nikou told Ives his company's thought process: 'The reason we acquired this business is simple. It needed additional investment. We're investing in this company to take it to the next stage.' Good luck with that, guys"

Essentially, TV Guide has devolved into a venture capital deal. It is clearly more than an idea, since it has decades of history behind it. But it has such a terrible track record to stand on and is back to square one in making a case for its continued existence. TV Guide has all the elements of a free rag, but they are still trying to "sell it" as a viable subscription publication. Thanks to the large number of cable and satellite services, it is very difficult for a print publication to provide thorough information on specific programming. That leaves the Internet. Meanwhile, all of the companies that provide programming (like cable companies) gladly tell you what is on their systems. Better than a magazine or a website, they do it through the remotes they provide. It is simply too simple to use any other means.

I don't see how there is a market for a TV Guide and don't think there has been a need for such in years. But old business models die hard. Just ask the US automobile industry.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Top Ten Magazines Has Economist on Top

One of my favorite magazines is The Economist. It is the most thorough (without slipping into the less engaging "academic journal" genre) and strikes me as a publication without an agenda. The publication is often deemed "conservative" (especially by European standards), but it doesn't present its views in any way one could consider biased in tone. If anything, its views are expressed in a matter of fact manner. It provides a very thorough understanding of the unique perspectives that different countries and cultures have towards today's problems.

The Economist is a more intellectually oriented publication and I was surprised to see it on the top of Advertising Age's list of the best magazines. Mediabistro wrote about the honor noting: that the magazine's "editor-in-chief Jonah Bloom announced his publication's "A-List" awards earlier tonight and The Economist won Magazine of the Year, beating out No. 2 Women's Health and No. 3 Elle."

Advertising Age than provided the rest of the "A-list"

No. 10 — Conde Nast Traveler

No. 9 — House Beautiful

No. 8 — People Stylewatch

No. 7 — New York ("A perennial award winner, I'm afraid.")

No. 6 — Fast Company ("They love to steal Ad Age stories.")

No. 5 — National Geographic

No. 4 — Every Day With Rachael Ray

No. 3 — Elle

No. 2 — Women's Health ("Perhaps the most intuitive spin-off in magazines. Also known as the 'Duh' magazine.")

No. 1 — The Economist

Six of the magazines are lifestyle oriented, with Women's Health topping the list and Elle not far behind. Two are informational (New York and National Geographic), but of very different styles. The last two (Fast Company and The Economist) are business and financial oriented.

The above seems to be a very eclectic list and without any particular trend other than they all are visually attractive. That would be a significant part of the "bottom line" to a publication like Advertising Age.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.