Publishers Join Forces to Control Costs
Chicago, IL
Alan Douglas and Bill Walker announced today at the American Business Media Top Management Meeting that they are forming the Integrated Media Consortium (IMC) a voluntary buying cooperative for publishing companies. The consortium will be owned and run by the members and the founders. The objective of IMC is to improve the bottom line of small and medium-sized magazine publishing companies ($3-200 million in annual revenues) serving b2b, b2c, consumer and custom markets by providing financial benefits through consolidation of volume purchasing. This consolidation will make it possible for the consortium to reach strategic benchmarks that warrant pricing typically reserved only for the largest-volume buyers.
"We will launch the consortium with our founding members." said Bill Walker who will become president of the new venture. "Our first members include Allured Publishing, Douglas Publications Inc., Dowden Health Media, Edgell Communications, Farm Journal Media and National Trade Publications Inc. We are having talks with several others and expect to reach our target by January 1, 2005."
Alan M. Douglas, President Douglas Publications and Chairman of IMC said "This has been my vision since I initiated the Small Publishers Committee at ABM in 1991. As publishers take advantage of the economic upswing and improve the top line, they will also need to control costs to stay competitive."
Printing, paper, fulfillment, freight forwarding, general office supplies, travel services and telephone are among the cost centers IMC will look to leverage.
Humphrey Tyler President of National Trade Publications Inc. and Chairman of ABM's Smaller Publishers Advisory Committee said "The IMC is a natural extension for smaller to mid-sized publishers as they look to stay competitive."
Janet Ludwig Chairman and CEO Allured Publishing said "I see an advantage of being able to reduce costs but I also see the ability to gather with my peers to benchmark Allured with other companies in similar situations."
IMC's goal, once launched by the initial 10 members, will be to grow to 23 companies publishing more than 100 magazines by year end 2005.
IMC will retain Peter Craig of Bay Sherman Craig & Goldstein as financial advisor and Dorsey & Whitney LLP as legal counsel.