Hearst UK reports 2023 operating loss | Digitalbox launches specialist sites
Plus Mill Media christens its new Glasgow title The Bell and we have the top 50 most-visited news sites in the US for August
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William Randolph Hearst made so much money out of newspaper and magazine publishing that he built a vast castle in California, furnishing it with entire historic rooms bought from the great houses of Europe.
You would struggle to buy a three-bedroom semi in Surrey with the pre-tax profits made by Hearst UK in 2023.
The UK subsidiary of Hearst Communications publishes famous magazines such as Elle, Good Housekeeping and Men's Health and reported an eleventh successive year of revenue decline.
Changing algorithms which prompted a sharp decline in website performance were largely to blame for Hearst UK's poor financial performance last year as well as the long-term decline of print. Magazine readers can see beautiful pictures on Instagram and form their own communities on Facebook, leaving publishers struggling to reinvent their businesses.
The good news is that following a shift towards membership models, Hearst is starting to grow its subscriber numbers. And it reports that advertising revenue looks set to recover this year.
Meanwhile, online-only publisher Digitalbox reports a change in direction in response to Google priorities and says more specialist sites are the answer - the first of which is dedicated to fans of the ITV soap opera Emmerdale.
Back in the land of news about the real world, Glasgow has a new local title launching on Monday staffed by two full-time journalists. The Bell is the fifth launch from upmarket, paid-for local news publisher Mill Media.
And we have the latest top-50 US news websites ranking, which shows most sites still up year on year, but down compared to a bumper July.
The Sun and the Daily Mail, which both cut staff in the US earlier this month, both reported falling traffic. The Mail fell 9% to 122 million website visits in August, according to Similarweb, and The Sun slid 46% year on year.
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New from Press Gazette
Hearst UK reports operating loss for 2023 but says ads are recovering
Digital revenue saw the most turbulence, with the company blaming algorithm updates across “several platforms”, likely referring to Google and Facebook, that affected search and other traffic referrals.
Entertainment Daily owner Digitalbox launches specialist sites after Google changes
The new “verticals strategy” has begun with the launch of Emmerdale Insider, which includes existing staff moved over from Entertainment Daily as well as others. Two more new sites are planned to go live before the end of 2024.
Top 50 news websites in the US: Most sites see traffic drop after bumper July
But the picture is rosier over a longer timespan, with three-quarters of the top 50 publishers seeing year-on-year growth in visits in August.
Mill Media to launch Glasgow title The Bell on Monday
The new title will begin to publish on Monday (30 September), initially without a paywall, and aims to release new content three times a week.
News in brief
The CMA says it still has competition concerns under Google's revised Privacy Sandbox and approach to cookies, which would allow users to choose whether to keep them. The watchdog is discussing with Google what changes are needed to address these concerns. (CMA)
Deadline has reported that under its new weekly iteration the Evening Standard is looking at using AI to write reviews under the name of its former art critic Brian Sewell, who died in 2015. (Deadline)
Broadcast has hired the former editorial and commercial leads of Television Business International, which was closed by Informa this summer, with a remit of helping its international growth. (Broadcast)
New guidance for editors on dealing with freelance journalists, developed by Women in Journalism , includes a call to abolish kill fees, to stop forcing writers to wait until their work is published to get paid, and to regularly review rates. (Women in Journalism)
Journalists at Southern California News Group, ultimately owned by Alden, have voted to support an open-ended strike after years of unsuccessful negotiations on pay and contracts. They claim many reporters have not received a pay rise in over a decade (Los Angeles Times)
Previously on Press Gazette
AI-aggregated newsletter firm changes logo after Buzzfeed legal threat
‘Bastards’: Publishers remain focused on alternatives despite Google cookies U-turn
Local press ‘does not have to be in decline’ says Newsquest as it grows profits
Mark Allen Group buys travel and aviation publisher Sixth Continent Holdings
Reach CEO Jim Mullen says regulation needed to save free online news
Daily Mail CEO on Google lawsuits, AI and why future of news is bright
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