More troubles for Conde Nast

It seems it's not the cover cost of their magazines that is the problem at Conde Nast. They just don't know how to run their business. If this continues, I expect we will lose a few more of our favorite magazines. Unless you read Golf World....


In today's New York Post:

"They are overstaffed and overpaid. They should have cut back 20 percent when they cut back five," this person said.

That kind of thinking is stirring fears inside that a new round of cuts could be coming. And for the first time in more than a decade, the privately run company led by Chairman S.I. Newhouse Jr. and CEO Charles Townsend could be awash in red ink.

"We continue to manage our business through a difficult economic climate," said a Condé spokeswoman.

Much of the problem rests with Condé's policy of never discounting off the rate card.
"Advertisers are finding that they can buy around them," said the former executive.

Only one magazine in its stable is showing a rise over a year ago: Golf World, a small circulation weekly, that is up 16.5 percent through the Feb. 23 issue.

You can read the article in its entirety here:

http://www.nypost.com/seven/02252009/business/getting_nasty_at_cond__233__156766.htm

I wonder how long it will be before we hear rumblings about Vanity Fair and Vogue? What a waste.