{"id":468,"date":"2008-05-14T03:08:00","date_gmt":"2008-05-14T10:08:00","guid":{"rendered":"http:\/\/paulgillin.com\/2008\/05\/idg-reinvents-itself-online.html"},"modified":"2008-05-14T03:08:00","modified_gmt":"2008-05-14T10:08:00","slug":"idg-reinvents-itself-online","status":"publish","type":"post","link":"https:\/\/gillin.com\/blog\/2008\/05\/idg-reinvents-itself-online\/","title":{"rendered":"IDG Reinvents Itself Online"},"content":{"rendered":"

Last week, The New York Times <\/em>wrote about International Data Group\u2019s (IDG) successful transition from a print to an online model<\/a>. I was intrgued to read about IDG Chairman Patrick McGovern\u2019s enthusiasm for the economics of new media. Having gotten to know McGovern a bit during my 15-year career at IDG, I asked him to appear on the weekly MediaBlather<\/a> podcast that I co-host with David Strom. He immediately agreed. That’s the kind of person McGovern is. With all of the weighty issues that he must deal with every day, he is never too busy to chat with a colleague, whether current or past. In fact, McGovern still visits every IDG operation in the U.S. each December to distribute bonuses individually to every employee. <\/p>\n

Our interview was about the business issues of IDG\u2019s transition from a print powerhouse to an online specialty publisher. McGovern\u2019s perspective is be inspiring. While the print industry collectively moans about the pain of transitioning from print to online, IDG has quietly taken its medicine and reinvented itself. Today, the company derives less than half its revenue from print titles, and McGovern expects online business to make up 70% of sales by 2012.<\/p>\n

At InfoWorld<\/a>, which was spotlighted in the Times <\/em>article, the closure of the print edition and shift to a wholly online model actually increased margins from a small net loss to a 37% net profit. \u201cNot only is there survival after going online, but it\u2019s a much better environment,\u201d McGovern told us.<\/p>\n

IDG\u2019s strategy is now to launch all new titles online first, build an audience and then take the business to print if the market demands it. \u201cThat way, we already have the audience and we can show the advertisers who\u2019s asking for [the print title] and who\u2019s going to read it,\u201d McGovern said. \u201cIt takes away the risk.\u201d<\/p>\n

What works in the U.S. doesn\u2019t work the same way globally, of course. Scandinavia and Korea are among the regions of the world that are innovating most successfully in online publishing, McGovern told us. In contrast, India is still a healthy print market but with a budding cell phone culture that may make it the first major economy to jump from paper to mobile devices without an intermediate PC stage.<\/p>\n

There are some other gems in this interview. One is about IDG\u2019s flirtation with a public offering through its books division a decade ago. McGovern, who has always taken a dim view of the public markets, relates how the experience distracted the group from its traditional market into ancillary businesses where it had no expertise. \u201cIf they had stayed private, I think they\u2019d be a larger and more successful company today,\u201d he commented.<\/p>\n

We also talked about IDG\u2019s phenomenal success in China, where it publishes a host of consumer titles in addition to its big technology brands. IDG\u2019s venture capital arm now makes more money for the company from investing in Chinese businesses than the rest of the company does from publishing.<\/p>\n

If you want to hear an optimistic perspective on the future of media from someone who is leading the charge, listen to this podcast<\/a> (right click and choose \u201cSave As\u2026\u201d to download to your computer). I think you\u2019ll find it to be 25 minutes well spent.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, The New York Times wrote about International Data Group\u2019s (IDG) successful transition from a print to an online model. I was intrgued to read about IDG Chairman Patrick McGovern\u2019s enthusiasm for the economics of new media. Having gotten … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[70,91,119,125],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pTy95-7y","_links":{"self":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts\/468"}],"collection":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/comments?post=468"}],"version-history":[{"count":0,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts\/468\/revisions"}],"wp:attachment":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/media?parent=468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/categories?post=468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/tags?post=468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}