Vintage Vehicle Magazines and Covid-19

[8E45E]

I just got word American Car Collector magazine has suspended publication with the July/August issue being their last.  This is a week after I learned the English publication, Classic Van & Pickup just suspended publication with the Summer, 2020 issue.

 

https://www.americancarcollector.com/news/publication-of-acc-suspended            

 

Any other casualties of magazines ceasing publication because of this damn pandemic?   Rather disheartening to see this, as during the winter months, I look forward to reading vintage vehicle magazines to keep myself entertained when I can't enjoy driving my cars around.

 

Craig

[SC38dls]

Craig - I was in the subscription fulfillment business (we processed the names to generate the mailing labels) for the last 42+ years. I was downsizing the business and had over 50 trade magazines we processed mointhly.  I now have 1 monthly and 1 quarterly ( which is the oldest automobile magazine ever and went from 90,000 monthly down to 2500 quarterly subscriptions) so yes other pubs have ceased publication.  Advertising is one problem and delivery times is another.  US MAIL use to go by air using extra space on flights cargo holes. Now there is no extra space so it is being trucked when they can get a truck going to a specific area not filled with higher class mail. 

dave s 

[John_Mereness]

The topic has come up in conversation as their publications rely a lot on auctions and other high profile sale - of which there are not many going on currently and I would say for the most part they lost their book store and news stand sales too (none of those businesses are open around here).  

 

I would say  wise move to focus on Sports Car Market (which covers A to Z) - which by the way is a fabulous publication. 

[46 woodie]

I don't think it was because of the pandemic, but a couple dozen folded last year. Most are hot rod/custom car related though. Such iconic titles as Hot Rod and Street Rodder among them. It's a sign of the times, most magazines are now available on line and let's face it, the new people that read auto related magazines are all foreign/tuner related. 

[SC38dls]

Most magazines have approximately 20-25% digital readership. Some have dropped print completely but that is due to lost of advertising and cost of printing & postal fees. As stated before my business has seen a major number of trade journals close due to the virus. This is because the advertising contracts were cancelled and that is what covers the expenses. Most subscription monies covers the cost of keeping the number of subs at a level the advertisers expect. Obtaining new names and keeping renewal efforts going cost most if not all of the sub dollars. If a magazine doesn’t make its advertising guarantees in number of subs they may have to refund or totally loose the advertiser. 
dave s 

[lump]

12 hours ago, 46 woodie said:

I don't think it was because of the pandemic, but a couple dozen folded last year. Most are hot rod/custom car related though. Such iconic titles as Hot Rod and Street Rodder among them. It's a sign of the times, most magazines are now available on line and let's face it, the new people that read auto related magazines are all foreign/tuner related. 

I've been a major advertiser in most car magazines here in the USA for nearly 40 years, and am therefore quite familiar with this subject, first hand. HOT ROD magazine is still alive and doing okay. STREET RODDER is not. 

 

Several factors contributed to the fall of magazines. The internet is an obvious factor, but many magazines were declining even before the internet really became strong enough to cause such problems. For example, about 15-20 years ago there were lots of different competitive companies involved in magazine distribution, and these companies controlled the newsstands everywhere (where your single-copy sales come from...and those readers are the most likely to become your future subscribers). Then there was a giant movement for consolidation, and now there are only 2 or 3 remaining. Small publishers have it really tough these days. 

 

I published a bi-monthly full-color magazine called CAMARO CORRAL, for about 10 years. We had lots of advertisers (as we were the only Camaro-only magazine in the country at that time). Selling enough ads was no problem... The challenge was DISTRIBUTION. We had so many advertisers that we needed more readers, to buy those advertisers' goods . But getting over that next hump was really tough (we sold 10,000 issues bi-monthly, but needed even more readers). Direct mail was getting prohibitively expensive (it's even worse now), and display ads in other magazines was simply not cost-effective. Finding ways to reach new customers was really tough. 

 

We hand-placed copies of our magazine on local Dayton, Ohio newsstands in person, and split the sales price with the book store owners. They sold really well, and we were encouraged. But we couldn't go in person like that to thousands of book stores around the nation for each issue. So what to do? In the meantime some distributors heard of our local success with newsstand sales, and offered to meet with us and discuss an opportunity. So we flew to Chicago and listened to their offer. WOW! The deal they offered was a formula for certain bankruptcy...MY bankruptcy. No way was I willing to print 100,000 copies and deliver them to these folks, and then wait 6 to 9 months for them to pay me 1/3 of the cover price for however many copies that they would tell me that they had sold. They offered NO proof of whether my magazines were ever sold, or even unpacked and put on display. Moreover, I learned from good friends who had spent their entire lives in the magazine industry that these same distribution companies have contractual agreements to deliver uncirculated scrap paper (IE: unsold magazines) to recycling plants. That's right...as a publisher you do not get return of unsold copies. Leftover magazines become the property (and revenue source) for the distributor. So they have no incentive to even unpack the boxes of your magazines...much less to display them for sale. And, if you plan to honor the terms of your contract, you must continue to print and provide that 100,000 copies of your title for 6 to 9 months before you even know how many copies they are going to tell you that they have sold of your very first issue with them! You could be bankrupt for months before you even found out about it. 

 

In my case, at the very time that I was wringing my hands and knashing my teeth over distribution issues, I got a phone call from someone who had decided to buy my magazine...and wouldn't take "no" for answer. 

 

God is good. 

[John_S_in_Penna]

That's a very useful and informative explanation, Lump.

Thank you.

 

Looking at old magazines, I see that the cover price

of magazines has gone up much more than the rate of 

inflation.  For example, what was 25 cents in the 1950's

might be $4.95 now.  I've heard that despite that high

cover price, magazine owners don't get much of that amount.

 

Does having fewer distributors in the market mean that

they're taking a bigger percentage?  High magazine-rack

costs mean that I'm less likely to buy an example.  Can Lump

or anyone give more insight?

[SC38dls]

Not only do the newsstand distributors control the “where” your pub will be put on display but they also control when it will go on display and where on the newsstand it will be. Front row eye level is the prime spot. Third row bottom is the least likely to sell and that is where the independent publishers usually get put. 
Back in the 70’s & early 80’s the distributors had to return the cover part showing the issue & price for any unsold copy. This stopped when the mega publishers (Time, Hurst, Times Mirror, basically the 7 sisters - women’s magazines) made a deal for exclusive early distribution and placement forgoing the return proof. They didn’t care as their additional copy cost was very low on the print runs. 
I said before it’s advertising not circulation dollars that keep a pub profitable. Circulation acquisition cost just keep going up and it keeps getting harder to find good subscribers. The USPS also has rules as to the percent of advertising to editorial based on the number of pages in an issue. Their postage cost increases dramatically based on that percentage. One reason my business was unique was we were able to give a publisher historical data on the number of times a sub renewed. When this percentage went below a certain percentage we did special offers to get it back above what we called the life blood number. The average to break even on acquisition cost was 2.3 renewal’s per sub. That is difficult to maintain on a small (under 50,000 circulation) publication. It worked until Covid 19 destroyed that base. 
dave s 

[lump]

10 hours ago, John_S_in_Penna said:

That's a very useful and informative explanation, Lump.

Thank you.

 

Looking at old magazines, I see that the cover price

of magazines has gone up much more than the rate of 

inflation.  For example, what was 25 cents in the 1950's

might be $4.95 now.  I've heard that despite that high

cover price, magazine owners don't get much of that amount.

 

Does having fewer distributors in the market mean that

they're taking a bigger percentage?  High magazine-rack

costs mean that I'm less likely to buy an example.  Can Lump

or anyone give more insight?

John, 

That's some very good insight from SC38DLS above. 

 

I would add that, the cover price of the magazines these days reflects this new distribution reality. As newsstands shrink, and as it becomes ever harder to gain newsstand space for your magazine, publishers must rely more and more on selling subscriptions in order to boost circulation. (Have you noticed how many subscription-offer postcards fall out of every new magazine you open?) A cover price is rarely the reason that a reader decides to buy or not to buy a magazine they saw on the newsstand (according to my friends and associates in the industry). Rather, people either find a few interesting headlines and/or subject matters on the cover, or interesting articles inside, and toss the magazine into their grocery cart. Or, they aren't interested enough, and simply put it back.

 

You'll notice that there are several enticing headlines, photos, and/or subjects featured on many magazine covers these days...in order to urge casual shoppers to pick the magazine up and look through it. (Getting casual readers to open that front cover is a powerful tool, and the goal of every magazine publisher, art director, and circulation mgr). And the goal of boosting single-copy sales is also why magazine articles are typically split into parts, as in, "...article continued on page ____." This layout style of putting only the first couple pages of each interesting story in the first part of the magazine causes casual readers in the store to notice several interesting articles when they browse through a magazine from the rack...even if they only flip through the first dozen pages or so (rather than have those readers find only one article...which might not appeal to them...because the entire story is covered on continuous pages). Of course, another reason for this traditional layout style is that readers are forced to flip through more pages to finish an article that they are reading...thus passing over lots of advertisers' ads in the process (and it has been my job for years to catch the eyes of those browsers and readers, with interesting headlines, artwork, colors, etc). 

 

Publishers have often lost money over the years on fulfilling subscriptions and on single-copy (newsstand) sales. But they need those massive sold-copy numbers to attract the advertisements which pay for the entire magazine operation. These days, raised cover prices are absolutely necessary for magazine survival. 

[SC38dls]

In my 40+ years of magazine circulation work I’ve heard and seen a number of different things newsstand distributors do. I’ve even seen them fan the issues to remove the blow in cards of the magazines that have a lower payment contract. It’s a tough industry for the independent small publisher
dave s 

[8E45E]

13 hours ago, lump said:

John, 

That's some very good insight from SC38DLS above. 

 

I would add that, the cover price of the magazines these days reflects this new distribution reality. As newsstands shrink, and as it becomes ever harder to gain newsstand space for your magazine, publishers must rely more and more on selling subscriptions in order to boost circulation. (Have you noticed how many subscription-offer postcards fall out of every new magazine you open?) A cover price is rarely the reason that a reader decides to buy or not to buy a magazine they saw on the newsstand (according to my friends and associates in the industry). Rather, people either find a few interesting headlines and/or subject matters on the cover, or interesting articles inside, and toss the magazine into their grocery cart. Or, they aren't interested enough, and simply put it back.

 

You'll notice that there are several enticing headlines, photos, and/or subjects featured on many magazine covers these days...in order to urge casual shoppers to pick the magazine up and look through it. (Getting casual readers to open that front cover is a powerful tool, and the goal of every magazine publisher, art director, and circulation mgr). And the goal of boosting single-copy sales is also why magazine articles are typically split into parts, as in, "...article continued on page ____." This layout style of putting only the first couple pages of each interesting story in the first part of the magazine causes casual readers in the store to notice several interesting articles when they browse through a magazine from the rack...even if they only flip through the first dozen pages or so (rather than have those readers find only one article...which might not appeal to them...because the entire story is covered on continuous pages). Of course, another reason for this traditional layout style is that readers are forced to flip through more pages to finish an article that they are reading...thus passing over lots of advertisers' ads in the process (and it has been my job for years to catch the eyes of those browsers and readers, with interesting headlines, artwork, colors, etc). 

 

Publishers have often lost money over the years on fulfilling subscriptions and on single-copy (newsstand) sales. But they need those massive sold-copy numbers to attract the advertisements which pay for the entire magazine operation. These days, raised cover prices are absolutely necessary for magazine survival. 

I have always purchased my magazines from the newsstand.  Our post office is BRUTAL on anything larger than a standard envelope.  I have received too many issues tattered and torn after being through the mail; even ones that clearly say Do Not Bend on the front of the envelope.  When I pay that kind of money for a magazine, I want one that looks new and unread by others.

 

Craig

[keithb7]

Today pretty well everyone has a pretty powerful computer in their pocket. A cell phone. Actually the thing it seems to do the least, is be used as a phone. The monthly cost to own a functional iphone is substantial. I can only speak of costs here in Canada. Most people are addicted to their phones. I see many homeless people on the streets that have and use iphones. These are not luxury items today. Seems to me a smart phone ranks right up there with food, cell phone, shelter then clothes. Probably in that order for many people. 
 

There are still only 24 hours in a day. The average working Joe has less time and interest maybe to read printed material.?Their faces are stuck in front of cell phones during leisure time it seems. It’s not hard to spend a $100/month total average cost for 2 people in 1 household, to run 2 cell phones. That expense and time investment never existed when magazines and news papers reigned king.  In reality, I get way more stimulation interacting almost live here. Seeing pics, getting help around my car of choice. Every topic is covered. Plus you get enjoyment helping others. It’s certainly better than writing a letter to a magazine and waiting months to see if they publish it. Then hoping they answer your technical question. 
 

Opening a magazine today is nostalgic, for me. It takes me back 40 years. The excitement still builds when I pull it from the mailbox. Then I flip thru it. I jump to my favorite articles. The quality of photos is important. 15-20 minutes  later I have not finished reading the whole thing. It gets shelved and I’m back to this forum. 
 

To me its easy to see why print media is struggling. Its not addicting like this forum. Many of us come back here many times a day. Print media is not updated with new topics to read almost by the minute. Its not interactive. You don’t get a sense of community. I do believe people’s attention span has become very short due to computers and cell phones. People want everything right now. Remember the old days when you got a busy signal? No matter. You just called back later. Today people are questioning why their friends are not reaponding to texts within seconds. My wife gives me heck all the time. On a Saturday when I’m in the garage. Grease up to my ears. Deep into my old car. I leave my cell phone in the house. Then she’s trying to text me while she’s out shopping somewhere. She comes home and reminds me to check my messages. I go look and there are 2 missed calls and a text from her. I do it all the time. I reminder that I will continue to do it. Somehow the human race survived before cell phones. My wife and I both grew up in a time before computers and cell phones. We know we can do it! Lol. 

 

Today I buy the odd Hemmings Motor News at the stand. Currently I subscribe to Hemmings Classic Car magazine.
 

 

Edited July 28, 2020 by keithb7 (see edit history)

[SC38dls]

Keithb7 valid points regarding smart phones. Magazines have to deal with that problem. The age factor and what subject the magazine covers has a lot to do with the digital/print debate. The more technical the subject the larger the percentage of print on readership. Our surveys have said this is because it is easier to flip back a page to reread or check a bit of information on print than digital. Print also usually has more accurate ( depending on the source of course as most pubs require fact checking) information than the internet. Many people believe Wikipedia is a valid source and always has accurate facts when in fact it can be 100% wrong. Good pubs do not allow that as a valid source. The beauty of a forum like this is not only the number of people willing to help but the experience they have and if someone post a possible error ( only happens once in a blue moon) many more will chime in and try to correct it. Plus they do it in a very friendly way.

We have also done surveys asking if you prefer print, digital or both and more subs prefer both over just digital ( print only is still the largest percentage). Follow up question tell us that is because they find it easier for reference if they need it for something they are doing (reports or other job related things they are doing on the computer) for their job. The age factor is also interesting as the younger generation that preferred digital only gets older they like print more. Has to be because of eye strain and just wanting to not see a computer after working with them all day. 
Still the biggest problem is postal and print cost and newsstand delivery/placement problems. 
C19 is just one more major bump in the road. 
Have fun, stay safe 

Dave s 

[8E45E]

5 hours ago, SC38DLS said:

Keithb7 valid points regarding smart phones. Magazines have to deal with that problem. The age factor and what subject the magazine covers has a lot to do with the digital/print debate. The more technical the subject the larger the percentage of print on readership. Our surveys have said this is because it is easier to flip back a page to reread or check a bit of information on print than digital. Print also usually has more accurate ( depending on the source of course as most pubs require fact checking) information than the internet. Many people believe Wikipedia is a valid source and always has accurate facts when in fact it can be 100% wrong. Good pubs do not allow that as a valid source. The beauty of a forum like this is not only the number of people willing to help but the experience they have and if someone post a possible error ( only happens once in a blue moon) many more will chime in and try to correct it. Plus they do it in a very friendly way.

We have also done surveys asking if you prefer print, digital or both and more subs prefer both over just digital ( print only is still the largest percentage). Follow up question tell us that is because they find it easier for reference if they need it for something they are doing (reports or other job related things they are doing on the computer) for their job. The age factor is also interesting as the younger generation that preferred digital only gets older they like print more. Has to be because of eye strain and just wanting to not see a computer after working with them all day. 
Still the biggest problem is postal and print cost and newsstand delivery/placement problems. 
C19 is just one more major bump in the road. 
Have fun, stay safe 

Dave s 

Another reason I'm in favor of print magazines is they are a huge reference, ready at will.  (At least for me.  Mine are easily at hand on several bookshelves.)

 

I find the printed page and work hand in hand when someone is requesting assistance on some automotive related subject.  One where I was able to assist here, as an example: 

 

Craig