Taking a break from the MLS conference semi-finals, the World Series or the kick-off of the NBA season? We’ve got some interesting subscription features for you. McClatchy lays off 30 employees as it continues its digital transformation, Meredith Corp sells the MONEY brand to Ad Practitioners LLC, and American Press Institute shares examples of how publishers have successfully retained subscribers through engagement. Also this week, Netflix is raising $2 billion in debt to pay for content, and the Financial Times adds consultancy to its list of services to help other publishers learn from their paywall success.

McClatchy Lays Off 30 Employees as it Continues Digital Transformation 

Last week, in an email to staff, McClatchy president and CEO Craig Forman outlined big changes coming to the organization as it continues its digital transformation, reports Poynter. The changes include leadership shifts and changes to functional areas (News, Finance, Customer and Product, and Operations). They also include layoffs of about 30 employees, or 1% of staff. None of the layoffs will come from reporting positions.

Here are highlights from Forman’s five-page memo to staff, published by Poynter:

• CFO Elaine Lintecum will retire at the end of June 2020. She will be succeeded by Peter Farr, chief accounting officer and corporate controller.
• Mark Zieman, vice president of operations, will retire at the end of 2019. His position will not be filled.
• The company will divide into two operating segments: East, to be led by Sara Glines, currently president and publisher of The News & Observer, and West, to be led by Gary Wortel, currently president and publisher of The Sacramento Bee. Both will continue in their current roles as well and report directly to Forman.
• Cynthia DuBose, senior editor for special projects, will take on a new role as leader of the Audience Growth team.
• Functional group changes will require additional changes including leadership changes in functional areas as well as layoffs, retirements and departures.

“Regrettably, with these changes, we have notified and will be saying goodbye to colleagues across the enterprise who have worked diligently and contributed to our mission of local journalism in the public interest. We are all very grateful to these colleagues for their achievements and collaboration and thank them for their energy, dedication and commitment,” wrote Forman.

“I know this is a lot of change to process at once. In such business transformations as ours, operational effectiveness is enhanced by transparency, clarity and open communication,” Forman added.

Meredith Corp Sells MONEY Brand to Ad Practitioners LLC

Meredith Corp is selling the MONEY brand to Ad Practitioners LLC for an undisclosed sum. Meredith acquired MONEY in 2018 as part of its purchase of Time Inc. Initially, Meredith said it was looking for a buyer for MONEY, since it wasn’t consistent with its other core consumer brands. However, in April, Meredith said MONEY was no longer for sale. At that time, Meredith also announced that MONEY‘s last print issue would be June/July 2019, as the company focused on MONEY as a digital publication instead.

“We are pleased to find a great home for the MONEY brand and wish all parties great success under the new ownership,” said John Zieser , Meredith chief development officer, in a news release. “We continue to make significant progress on our asset sales and expect to shortly announce additional transactions at attractive multiples.”

Ad Practitioners LLC, who owns a portfolio of digital brands that include ConsumersAdvocate.org, will buy MONEY.com, which is currently run by 14 employees. The Meredith employees will continue until the end of January at the latest. Ad Practitioners LLC was started in 2016 and is headquartered in Dorado, Puerto Rico. The company says it reaches over 45 million unique visitors annually.

“We are incredibly excited to open a new chapter in MONEY’s almost 50-year conversation with consumers,” said Gregory Powel, CEO of Ad Practitioners. “As a lifelong reader and fan of MONEY, I’m committed to investing in this iconic brand and realizing its full potential.”

3 Ways to Increase Reader Engagement for Long-Term Retention

Retaining subscribers is one key to every subscription company’s success, but different methods for different types of businesses. Publishers, for example, have tools that work for them that will be different than retention tools that might be used by an SVOD, SaaS or subscription box company.

In a Reader Revenue Toolkit for the American Press Institute, Gwen Vargo offers great examples of how publishers have successfully retained subscribers through high levels of engagement.

Turn passive readers into engaged subscribers through rewards. The Sacramento Bee gives rewards to its digital readers through a point system. They can earn points by reading news stories, watching videos, taking quizzes or playing games. They can use those points to win prizes (e.g., gift cards, experiences, etc.) and access other perks only available to subscribers.

Encourage print subscribers to access the digital edition. Some print subscribers will only ever engage with the print version of their local paper. However, some may be interested in a digital version, so they can read on the go. How? Offer subscribers something in the digital version that they can’t get in the print version – additional content, special sections or exclusive access. The more “touches” you make with a subscriber, the more likely they are to stick around. McClatchy does this by providing a digital replica of the print version which appeals to legacy subscribers. They may not be ready for a new digital experience, but a familiar digital experience may feel more comfortable.

Use subscriber data to make suggestions about other content they might like. By tracking a user’s reading history, you can identify the types of articles they read, what sections of a publication they are drawn to, as well as what types of content they prefer (e.g., most read sections, videos, infographics, long-form articles, etc.) Leverage this data to deepen the subscriber relationship by suggesting content they may have missed. The Dallas Morning News does this and the tactic increases the perceived value of a subscription.

For more ideas and examples, read Vargo’s article, “How to Retain Subscribers by Keeping Their Engagement High Over Time” at AmericanPressInstitute.org.

Netflix is Raising $2 Billion to Fund Content and Operations 

Netflix is going on a spending spree, raising $2.0 billion in debt. According to the October 21 news release, Netflix plans to use the proceeds for “general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

On the heels of a strong Q3 earnings report last week, Netflix beat Wall Street expectations, except for subscriber numbers. To maintain that pace amid new competition from Disney+ and Apple TV+, Netflix needs some working capital for marketing, and money to either create or acquire original content. Content, after all, is the key differentiator between the OTT services. Subscribers tend to follow their favorite shows, wherever they land.

An infusion of cash could help Netflix make some immediate changes or content acquisitions to help it stay ahead of the pack.  

Financial Times Adds Subscription Consultancy to Its List of Services 

Times are tough for newspapers all over the world. Newspaper organizations are merging and consolidating, laying off staff, reducing print days and cutting costs anywhere they can. They are trying to make a legacy business model sustainable in a rapidly-changing digital world.

One publisher – the Financial Times – has seen success with its transition to the new media landscape, and it wants to leverage that success to diversify its revenue. The Drum reports that the Financial Times is putting out its consultancy shingle to help publishers and other businesses and brands grow their subscriber bases. The effort will be led by FT’s chief data officer Tom Betts.

“Since 1999, we’ve been transforming the Financial Times from a print publication financed by advertising, to a subscriber-first digital news service. Data sits at the heart of this transformation, enabling us to act on meaningful insights about our audience. This was pivotal to reaching one million paid-for readers earlier this year,” Betts said.

“Through FT Strategies, we’ll apply these learnings to help other organizations build long-term and valuable relationships +with their customers and stay ahead of disruption in their markets,” added Betts.

FT already has clients on board including Bonnier, The Business of Fashion, Penguin Random House and the V&A. Learn more in “Financial Times Consultancy Offshoot Offers Access to Minds Behind Its Paywall Success” by John McCarthy for The Drum.