Marc Lotenberg believes traditional media is dead.
“Any content you can get, you can get for free,” says the founder and CEO of 944 Media LLC, which publishes lifestyle magazines in nine metro markets, including
Not that Lotenberg hasn’t tried it. The former club promoter launched his company in
Lotenberg says it was costing 944 a lot of money accounting for actual sales.
“It was almost cheaper to not sell the product,” he says from the company’s office in
So, the company’s publications went to free distribution with controlled circulation. 944 eventually transformed into a quasi-marketing firm, using the magazines to get its message across. Its signature events, including the 944 Village during last year’s Super Bowl and lavish parties at
“The events were the glue,” says Lotenberg. “It’s like a social network, but we bring it to life.”
That business model has been successful in an era when newspapers and magazines are bleeding red, losing advertisers and subscribers by the day.
Despite Lotenberg’s quips of a dying media industry, 944 still relies heavily on print advertising. About 70 percent of its revenue is generated through print ads, with events and online sales evenly accounting for the rest.
Although the events bring in only 15 percent of revenue, Lotenberg says they’re responsible for driving the print products. Monthly ad buy packages range from $3,000 to $5,000, depending on the publication.
Unlike other magazines in that space, published content is 30 days old at the latest — sometimes just days after the coverage. When the publications go to press on Fridays, the issue might contain content from a Thursday party or an ad placed the day before.
“Most of the companies in the game can’t act that fast and put something together in a week,” Lotenberg says.
Looking to attract a younger demographic, 944 last month acquired Michigan-based
Lotenberg says the 944 demographic has grown with the publication, beyond the club scene.
“We were looking at a way to get back to our roots,” he says.
With the Six Degrees deal, 944 now circulates more than 330,000 audited magazines a month. April 30 will mark the debut issue of Six Degrees under the 944 umbrella.
Six Degrees will continue to operate in its current markets and plans to expand into
944 Media LLC
Description: Specializes in print and online lifestyle content, special events and custom publishing
Founded: 2001
Founder and CEO: Marc Lotenberg
Address:
Employees: 90
2007 revenue: $12.6 million
2008 revenue: $13.3 million
Web: www.944.com