It remains to be seen whether or not Conde Nast can transform itself into a "seamless, multi-media, multi-platform sales and marketing services facility" after its recent restructure.

Charles Townsend, CEO said this, ”The goal of the overhaul, is to transform Condé Nast into a business that relies less on advertising revenue and more on the income it makes from charging consumers to read its products on both digital and print platforms."  After years of relying on advertising (70% of their margin has been made on advertising) to pay the high costs of producing the likes of VOGUE and Vanity Fair, the company is depending on consumers' willingness to pay for the content.  With subscription prices for US readers at around $1 per issue, I guess we'll see how  those models work.

 Jack Myers (media economist and consultant) says this, "It's clear, however, that print-based media companies need to implement radical changes if they are to capitalize on the transcendent implications of digital media. By focusing its efforts on redefining itself as a marketing services and resources company that has strong and powerful media brands and loyal audiences at its core, Condé Nast is positioning itself at the forefront of a shift that is essential for the long-term health and vitality of the total media industry."

Mr Townsend says he has confidence that consumers will pay since some are now paying $180 a month for cable. “We’re entering a period where the handcuffs are off in terms of our ability to monetize the content we deliver to our consumers. We’ve had handcuffs on us for years. We could not break the stigma of a $12 subscription,” Mr. Townsend said. “I’ve got to morph out of that business.”  His goal is to rely 50/50 on paid content/advertising across print, online, mobile. 

It won't be easy with their traditional legacy, divisional silos and compensation models, but at long last they are trying to figure a way forward.  It will be an interesting one to watch.

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