But if you’re impatient, you can simply look at the following table, which details the publisher’s Q3 performance:

Bewkes has a less drastic spin on the cuts, of course: He argues that among other things, they will help “increase consumer utility.” How’s that? Well, Fortune magazine, for instance, will publish less frequently, which will supposedly make each issue that much better. But you can see where this logic leads…

One item of note so far: While Time Inc. has said that it will not be closing titles during this round of cuts, Bewkes left the door wide open for future moves, promising to “take a hard look at non-strategic and unprofitable titles.”

In the meantime, while I’ve read reports that say folks who work in online operations won’t be affected by the cuts, that’s not the case; I’ve heard of a few different staffers on the Web side who are on their way out.

Here’s the full set of slides Time Warner (TWX) used during the earnings call:

time inc slides –

“On the new online Microsoft Store, we’ve added a bunch of new products, including Windows 7 PCs as well as select 3rd party software and accessories,” Trevin Chow, senior lead program manager for Microsoft Store, said in a blog post announcing the move. “And let’s not forget a ton of gaming products that have been added including a bunch of the top selling Xbox 360 titles.”

Interesting. Not exactly sure what the upside is to selling PCs online when you don’t make them. It’s not like Microsoft (MSFT) will be offering a better experience than, say, Best Buy (BBY), HP (HPQ) or Dell (DELL). And an online outlet doesn’t afford the company the same opportunity to cultivate the “Microsoft Experience” it’s clearly going for in its brick-and-mortar outlets. So why bother?

A unified experience online and off, I suppose. And, if the infrastructure is in place to sell through one channel, why not sell through both? Of course, the downside is that if you don’t execute well, you risk giving customers another lousy experience with which to associate your products.

It’s not a huge shock to see some of those titles go: Cookie, for instance, wasn’t a prestige title for Condé–like Domino, which the publisher closed down earlier this year, it was founded in 2005.

But Gourmet is one of Condé Nast’s most famous titles, and editor Ruth Reichl is one of Condé’s best-known editors. Most observers would have figured that Bon Appétit would go instead. CEO Chuck Townsend says the Gourmet brand will live on, zombie-style, via TV and publishing deals.

Condé has long cultivated a reputation as the magazine world’s most glamorous outpost, impervious to the petty concerns that bedeviled lesser folk. But the double-punch of the ad industry’s move away from print titles and a recession that pole-axed the luxury brands Condé depends on, has staggered the publisher. (Disclosure: I do some free-lance work for Condé title Vanity Fair).

Signs of trouble showed up late last year when the publisher made uncharacteristic staffing cuts. And in 2009, it began shuttering magazines: In addition to Domino, it closed Portfolio in April, just two years after a high-profile launch.

By July, Townsend had brought on consultants from McKinsey and Company to help figure out where else it could trim; the news that September ad pages would be down anywhere from 17 percent to 47 percent made it clear that other titles would be going.

I wouldn’t expect this to be the last big set of magazine cuts, by the way: Time Warner (TWX), for instance, has made it clear that it wants to hang on to Time Inc. but that it thinks the publisher employs too many people who produce too many titles.

Here are the details on the Condé cuts, via an internal memo (intended for public consumption) from Chuck Townsend:

From: “Townsend, Chuck”
Date: Mon, 5 Oct 2009 10:16:52 -0400
To: Conde Nast Publications-All <_273fee@condenast.com>
Conversation: Announcing Changes within Condé Nast
Subject: Announcing Changes within Condé Nast

We have now completed an extensive review of our business–an important undertaking given the dramatic changes in the U.S. economy. The review has led us to a number of decisions designed to navigate the company through the economic downturn and to position us to take advantage of coming opportunities.

Condé Nast’s success comes from the ability of our publications to attract readers with a wide range of interests, as well as advertisers who value them. But in this economic climate it is important to narrow our focus to titles with the greatest prospects for long-term growth.

As a result of our review, Brides will increase its frequency to monthly to solidify its position as the most important brand in the bridal category, and Modern Bride and Elegant Bride will close.

Gourmet magazine will cease monthly publication, but we will remain committed to the brand, retaining Gourmet’s book publishing and television programming, and Gourmet recipes on Epicurious.com. We will concentrate our publishing activities in the epicurean category on Bon Appétit.

Finally, Cookie magazine will be discontinued, and resources that had been dedicated to its publishing will be invested elsewhere.

The editorial and business staffs of Modern Bride, Elegant Bride, Gourmet, and Cookie all have earned their magazines large and devoted followings. We have been proud to publish these titles, and we are grateful to the staffs for their hard work and dedication.

These changes, combined with cost and workforce reductions now underway throughout the company, will speed the recovery of our current businesses and enable us to pursue new ventures. In the coming weeks, we hope to announce initiatives to develop digital versions of our brands that will make use of new devices and distribution channels.

Condé Nast is now in its 100th year of creating the most respected and iconic brands in the publishing world. These changes will ensure that our unique publishing company will continue in its preeminent position for many years to come.

That’s what ngmoco co-founder and Electronic Arts (ERTS) alum Neil Young said of Apple’s iconic handset at the Game Developers Conference in San Francisco earlier this year, and it’s worth reflecting on a bit in light of a new report from Bernstein Research analyst Toni Sacconaghi that claims the iPhone OS will soon create pricing and customer migration pressure for traditional gaming platforms.

Noting that some 665-760 million games may have been downloaded from the Apple (AAPL) App Store during the last 12 months, Sacconaghi estimates that the installed base for the iPhone and iPod touch platform could amount to about one third of the total handheld gaming installed base by 2012.

“We believe that gaming embodies the power of Apple’s App store: it has dramatically lowered the entry barriers for both developers and gamers alike, resulting in an unparalleled number of available games at affordable prices, which is creating lock-in and enhanced interest in Apple’s high-margin iPhone (and iPod Touch) platforms,” Sacconaghi writes.

Continuing, the analyst adds: “By most measures, gaming has been the killer App Store category, accounting for an estimated 40% of all downloads. Most importantly, we believe that gaming is providing yet another incremental, differentiated reason for consumers to purchase iPhones and iPod Touches, and creates powerful lock-in to the App Store platform and Apple products on a go forward basis.”

The upshot of all this is bad news for traditional gaming console developers–particularly those who have dismissed it as a novelty. “Most gaming developers today view the iPhone and other smart phones as an incremental opportunity, which targets the casual gamer but not the dedicating gaming enthusiast,” Sacconaghi explains. “Over time, however, we believe that the combination of evolutionary improvements in iPhone/iPod gaming functionality, the convenience of the App Store download model, the App’s Store leading title selection and lower price points could cause some migration among gaming enthusiasts to the Apple platform and/or pressure traditional gaming incumbents’ hardware and software pricing.”

And this is clearly what Apple (AAPL) is aiming for. Consider these recent remarks from Phil Schiller, the company’s senior vice president of worldwide product marketing: “People are starting to see what a great gaming device this is. When you think about the companies that came before us…when you played those other systems, they seemed so cool, but now when you look at them, they don’t stack up against the iPod touch….No Multi-Touch user experience, Games are expensive, No App Store, No iPod, Expensive Games ($25-$40) and uncomfortable retail buying experience. [There are] 607 games for PSP and 3,680 games for Nintendo DS. [But there are ] 21,178 Game and Entertainment Titles at App Store.”

Crawford’s thinking: After Time Warner ditches AOL, which is scheduled for a spinoff later this year, the company will ditch its magazine business as well. That will leave it with a portfolio made up only of a movie studio and cable networks, and a big cash pile to play with.

Time Warner won’t comment, but I’m sure the company has heard Crawford make this prediction before. His Capital Research Global Investors owns more than eight percent of Time Warner shares, which means he gets plenty of access to Bewkes and his lieutenants.

But here’s the thing: The body language from Time Warner executives in recent months makes me think they intend to keep at least part of their magazine business in the family. More than body language, actually: “Time Warner without People? I can’t imagine it,” one well-placed Time Warner official told me recently.

That said, I won’t be surprised if the publisher employs fewer people, producing fewer magazines in the future.

Time Warner officials have repeatedly said that Time Inc. has too many titles: The magazine unit publishes 23 magazines in the U.S. How many can you name? And last year’s mass layoffs, while unprecedented for the publisher, were still fairly modest compared to other publishers’ cuts. The six percent reduction left Time Inc. with some 9,400 people on the payroll.

But executives at the publisher love to stress, off the record, that its flagship titles–Time, People and Sports Illustrated–are each on track to generate millions of dollars of profit this year, even though ad pages and revenue are down. And while Time Inc. certainly hasn’t figured out its digital business yet, at least some of its print properties could and should do well on the Web, as People.com is already doing.

There are certainly assets that Bewkes and company could dispose of fairly easily. For instance, its U.K.-based IPC Media unit, which handles many of the 90-plus titles it publishes outside the U.S., is frequently brought up as a sale candidate. But I’d be surprised if he got rid of Time Inc. and its iconic brands altogether.

For the record, here’s how Time Inc. performed in the first half of the year. The company has already said it expects similar numbers for the remainder of 2009 (click table below to enlarge).

Parsons will be a part-time adviser says the New York Times and will keep his current job as Citigroup (C) chairman as well. Providence’s media bets include MGM and Univision, which haven’t worked out, and Hulu, which has.

Providence and Parsons have worked together at least once before: In 2004, Parsons sold Warner Music Group (WMG) to a consortium that included Providence, Thomas H. Lee Partners and Edgar Bronfman Jr.

Perhaps Providence will tap Parsons’s knowledge of his former employer for another deal: Time Warner executives keep murmuring about the need for magazine publisher Time Inc. to shed some of the 115 titles it operates.

That’s substantially more than the 300,000 available for download on Amazon’s Kindle service, though half-a-million of them are public-domain books provided by Google (GOOG). They’ll be compatible with Apple’s (AAPL) iPhone and iPod touch, BlackBerry smartphones, and, when it finally arrives at market, the Plastic Logic eReader, a Kindle DX-size e-book reader for which the Barnes & Noble eBookstore will be the exclusive storefront.

“Today marks the first phase of our digital strategy, which is rooted in the belief that readers should have access to the books in their digital library from any device, from anywhere, at any time,” said BN.com president William J. Lynch.

With a few noteworthy exceptions, of course. E-books sold by Barnes & Noble (BKS) won’t be compatible with Sony’s (SNE) Sony Reader Digital Book or Amazon’s (AMZN) Kindle, which they are clearly intended to undermine.

To what degree they’ll manage that is anyone’s guess. One thing is sure: We’ll almost certainly be seeing an e-book price war in the near future. And when Apple finally gets around to uncrating that tablet/e-reader device it’s been working on, all bets are off.

Below, video of the Plastic Logic Reader demo from our D7 conference in late May.

]]> http://allthingsd.com/20090721/barnes-noble-to-amazon-mine-is-bigger-than-yours/feed/ 6 http://allthingsd.com/20090721/barnes-noble-to-amazon-mine-is-bigger-than-yours-2/ http://allthingsd.com/20090721/barnes-noble-to-amazon-mine-is-bigger-than-yours-2/#comments Tue, 21 Jul 2009 09:00:36 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=21771 Six years after shuttering its first e-book effort, Barnes & Noble has embarked on a new one. Monday afternoon, the bookseller announced what it describes as “the world’s largest eBookstore,” an online storefront that boasts 700,000 titles.

That’s substantially more than the 300,000 available for download on Amazon’s Kindle service, though half-a-million of them are public-domain books provided by Google (GOOG). They’ll be compatible with Apple’s (AAPL) iPhone and iPod touch, BlackBerry smartphones, and, when it finally arrives at market, the Plastic Logic eReader, a Kindle DX-size e-book reader for which the Barnes & Noble eBookstore will be the exclusive storefront.

“Today marks the first phase of our digital strategy, which is rooted in the belief that readers should have access to the books in their digital library from any device, from anywhere, at any time,” said BN.com president William J. Lynch.

With a few noteworthy exceptions, of course. E-books sold by Barnes & Noble (BKS) won’t be compatible with Sony’s (SNE) Sony Reader Digital Book or Amazon’s (AMZN) Kindle, which they are clearly intended to undermine.

To what degree they’ll manage that is anyone’s guess. One thing is sure: We’ll almost certainly be seeing an e-book price war in the near future. And when Apple finally gets around to uncrating that tablet/e-reader device it’s been working on, all bets are off.

Below, video of the Plastic Logic Reader demo from our D7 conference in late May.

]]> http://allthingsd.com/20090721/barnes-noble-to-amazon-mine-is-bigger-than-yours-2/feed/ 0 http://allthingsd.com/20090717/think-you-own-the-book-you-bought-for-your-kindle-you-dont-says-amazon/ http://allthingsd.com/20090717/think-you-own-the-book-you-bought-for-your-kindle-you-dont-says-amazon/#comments Fri, 17 Jul 2009 19:50:33 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=9446 Buy an e-book for Amazon’s Kindle recently? You might want to check to see if it’s still on your device. Kindle users are complaining that the e-commerce giant has removed titles from their machines this week and given them refunds in their place.

What happened? The details are fuzzy, but apparently, a publisher that supplied Amazon (AMZN) with two George Orwell titles has decided that it doesn’t want to sell them via Amazon anymore. So away they went.

Readers described their experiences at this Amazon forum, and one of them included this note she said she received from Amazon customer service explaining what happened:

The Kindle edition books Animal Farm by George Orwell. Published by MobileReference (mobi) & Nineteen Eighty-Four (1984) by George Orwell. Published by MobileReference (mobi) were removed from the Kindle store and are no longer available for purchase. When this occured, your purchases were automatically refunded. You can still locate the books in the Kindle store, but each has a status of not yet available. Although a rarity, publishers can decide to pull their content from the Kindle store.

Normally, I’m pretty cavalier about the complaints that people make about the evils of digital rights management–the locks and restrictions distributors often attach to digital media like music, movies and books–but this is the sort of incident that gives those gripes some gravitas. If you’re buying bits, you ought to own those bits, just as you would when you plunk down dollars for a CD, a book or any other physical item.

Doubly confusing: As far as I can tell, Amazon’s license terms don’t have any loophole that allows for this. The section on “digital content” explains that I don’t have the right to “sell, rent, lease, distribute,” etc., the stuff I buy from Amazon. But it sure looks like stuff I buy, I keep:

Upon your payment of the applicable fees set by Amazon, Amazon grants you the non-exclusive right to keep a permanent copy of the applicable Digital Content and to view, use, and display such Digital Content an unlimited number of times, solely on the Device or as authorized by Amazon as part of the Service and solely for your personal, non-commercial use. Digital Content will be deemed licensed to you by Amazon under this Agreement unless otherwise expressly provided by Amazon.

So, what am I missing here? I’ve asked Amazon for comment, but if anyone has any bright ideas, sound off in comments below.

UPDATE: Amazon says the copies it sold were “illegal”, because the publisher never had the rights to them. But it says that going forward, it won’t be removing books from customer’s Kindles “in these circumstances”.

]]> http://allthingsd.com/20090717/think-you-own-the-book-you-bought-for-your-kindle-you-dont-says-amazon/feed/ 0 http://allthingsd.com/20090610/the-latest-kindle-bigger-not-better-than-its-sibling/ http://allthingsd.com/20090610/the-latest-kindle-bigger-not-better-than-its-sibling/#comments Thu, 11 Jun 2009 01:04:03 +0000 Walter S. Mossberg http://ptech.allthingsd.com/20090610/the-latest-kindle-bigger-not-better-than-its-sibling/ There’s a brand-new variant of the Amazon Kindle e-reader, and it’s available from the online bookseller starting this week.

This alternative Kindle, called the DX, is a super-size version of the popular Kindle 2, which arrived earlier this year. It sports a 9.7-inch screen, some 2.5 times as big as the surface area of the Kindle 2′s 6-inch display. It also sports a higher price tag — $489, versus $359 for its smaller sibling, which remains on the market.

Amazon’s Kindle DX

Like previous models, the Kindle DX allows you to shop for, and wirelessly download, any e-book in Amazon’s (AMZN) growing catalog — now about 275,000 titles. It uses the same easy-on-the-eyes screen technology as the smaller model but at a higher resolution. It still lacks color, and renders images only in gray scale. But the new DX adds a new capability: auto-rotation, which allows you to read in landscape mode.

This new, larger model isn’t primarily aimed at readers of standard books. It is targeted at three markets: textbooks, newspapers and other periodicals, and business documents in either Microsoft’s (MSFT) Word format or Adobe’s (ADBE) PDF format.

Unfortunately, I’ve been testing the Kindle DX and I didn’t like it nearly as much as the Kindle 2, which I own and enjoy using daily. While it performs its promised tasks adequately, I found that its size and weight made it awkward and tiring to hold for long periods of reading. It’s still fairly thin and light, but it’s 85% larger and heavier than the standard Kindle.

In addition, Amazon has degraded the user interface. To prevent the device from being even larger, the company had to remove the left-side page-turning buttons, confining all the controls to a vertical strip on the right. The keyboard at the bottom is also more vertically cramped.

If you’re left-handed, you have to spin the device around and rotate the screen to get buttons on the left, where they appear with their labels upside-down.

Similarly, if you choose to read in landscape mode, all the navigation controls, including the joystick for moving the cursor, will be awkwardly placed at either the top or bottom, far from where your hands are holding the device, and the keyboard essentially will be unusable.

In my view, the Kindle DX would have been a better product with on-screen touch controls that could instantly adapt to its size and orientation.

In reading standard books on the DX, I also encountered instances where the text on a page varied in shade from light gray to black.

I had mixed results with business documents. As with previous Kindles, you can either email personal documents to your device, for a fee, or drag them onto the Kindle via a cable, for free. But, unlike the smaller models, the new DX has PDF display capability built in, so it renders PDF files much more accurately than the older Kindles. That is a big improvement. It also allows you to view Excel and PowerPoint files if you save them in PDF format before sending them to your Kindle DX.

The Kindle DX, right, is a large-screen version of the popular Kindle e-reader, left.

I tried a variety of documents, and in many cases the results were great. The text was crisp, and the tables and graphics looked like they should. But I found that on some of these PDF documents, the text was too small to read. Yet, the Kindle lacks the ability to zoom in on PDF documents. You often can make the type larger by rotating to landscape mode, but this splits the PDFs into multiple pages, sometimes breaking them awkwardly.

Also, Amazon has raised its fees for converting and delivering business documents via email to all Kindles. The charge was formerly 10 cents a document. Now, it’s 15 cents per megabyte, which can add up if you load up your Kindle with lots of large documents. Most of my test documents, which were fairly small, cost over $1 each.

Newspapers looked about the same on the DX as they do on the smaller Kindles. Despite the larger screen, they don’t use traditional print or Web layouts, but a special Kindle layout that some users like a lot, but which I find annoying because it makes it harder to quickly scan multiple headlines.

The Kindle DX does have some nice touches. For the extra money, you not only get a larger screen, but also about twice the storage capacity. Also, because the screen is wider, you can adjust the margins on the DX, to obtain a line length that’s comfortable for your eyes and optimal for reading speed.

Amazon claims the same multiday battery life for the DX as for the Kindle 2. In my tests, I was able to go for several days of moderate reading without recharging, and much more if I turned off the wireless capability.

Although I wasn’t able to test college textbooks, I suspect they may be the killer app for this product. Many already are so expensive and heavy they could make the weight and price of the Kindle DX seem trivial in comparison.

But for standard books, I’d stick with the smaller, more comfortable Kindle 2.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

]]> http://allthingsd.com/20090610/the-latest-kindle-bigger-not-better-than-its-sibling/feed/ 0 http://allthingsd.com/20090413/amazon-apologizes-for-ham-fisted-cataloging-error/ http://allthingsd.com/20090413/amazon-apologizes-for-ham-fisted-cataloging-error/#comments Tue, 14 Apr 2009 00:31:49 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=6253 Amazon won’t come out and say exactly what happened to its sales-ranking system over the past few days. But it is sorry, and it would like the Web and its customers to know that it wasn’t singling out books aimed at gays and lesbians. Here’s the apology:

This is an embarrassing and ham-fisted cataloging error for a company that prides itself on offering complete selection.

It has been misreported that the issue was limited to Gay & Lesbian themed titles–in fact, it impacted 57,310 books in a number of broad categories such as Health, Mind & Body, Reproductive & Sexual Medicine, and Erotica. This problem impacted books not just in the United States but globally. It affected not just sales rank but also had the effect of removing the books from Amazon’s main product search.

Many books have now been fixed and we’re in the process of fixing the remainder as quickly as possible, and we intend to implement new measures to make this kind of accident less likely to occur in the future.

That isn’t going to mollify Amazon’s most vocal critics in the blog- and Twitter-spheres or the ones who ascribe the screw-up to either homophobia or nefarious hackers. But it’s almost certainly going to be the last word from Amazon (AMZN), which is about as tight-lipped as a publicly-held retailer can be.

Wall Street analysts have to beg Amazon to part with even basic financial details. If you think Jeff Bezos and company are going to get into the workings, and failings, of their online catalog, I admire your optimism.

]]> http://allthingsd.com/20090413/amazon-apologizes-for-ham-fisted-cataloging-error/feed/ 0 http://allthingsd.com/20090311/apple-netbook-actually-an-e-book/ http://allthingsd.com/20090311/apple-netbook-actually-an-e-book/#comments Wed, 11 Mar 2009 16:15:19 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=14669 Reports that Apple is developing a new touchscreen device are picking up traction and credibility. In the past few days, claims made in a Chinese-language financial newspaper have been reinforced, first by Dow Jones and The Wall Street Journal, and now by Reuters as well. Consensus seems to be that Apple (AAPL) has ordered 10-inch touchscreens from Wintek–the Taiwanese outfit that manufactures the smaller screens used in its iPhone and iPod touch–and that those screens are destined for an entirely new device. Netbook is the word most often bandied about for it, but given its size and function, I wonder if it’s not more of a tablet. Or e-book reader. There’s nothing much on which to base this theory, aside from another rumor that’s been making the rounds lately, as recounted by Andy Ihnatko of the Chicago Sun-Times.

“There’s something I keep hearing, and I don’t think I’d rank it as high as a rumor, but it’s an interesting story that I keep hearing, that for awhile, trucks loaded with books would arrive at a loading dock on the Apple campus, and offload big, big, big, big, huge loads of books, and then the trucks would leave empty. And Apple does not have a 100,000-book employee library there on the Apple campus. So one is prone to believe that they’re doing something with these books, such as turning them into text for some purpose we can only guess at. There’s been a long-standing rumor that Apple has been silently preparing to open a bookstore on the iTunes store, and they want to make sure that they have a very large stock of electronic titles when they do open.”

Interesting, no? Especially in light of these new reports about 10-inch touchscreen devices. Could Apple be developing a new souped up e-book reader–a TouchBook, if you will? Something on which you could read books (in color), watch movies, surf the Web and create and edit documents? Something that would upend and redefine the e-book sector as we know it? And are the mysterious “books” to which Ihnatko refers really books and not the device themselves…

PREVIOUSLY:

• Coming Soon From Apple: Big Touch?
• iTablet: Apple’s Killer App for Higher Ed

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