Working in the heart of an industry that is fighting to survive, and many of them failing, PressReader is in a unique position to see up close what makes publishers different ̶ why some succeed while others struggle.
In the magazine space, it’s particularly interesting because unlike newspapers that only seem to focus on a few revenue streams, successful magazine publishers have a broader vision, willing to think outside the box and diversify in ways that make dollars and sense. And if ever there was a poster child for diversification, it’s Hearst.
The privately-owned company may have started off 130 years ago as just a newspaper publisher, but today the empire has grown to more than 360 businesses, spanning cable television networks, TV stations, radio stations, advertising, customer experience management solutions, financial services, credit ratings, medical information and services, transportation, and software-as-a-service solutions for aviation.
According to its 2018 annual review, Hearst grew revenues by 4% to US$11.4B and recorded a profit for the eighth consecutive year. Given the struggles most publishers are experiencing these days, it might surprise you to know that Hearst’s magazine and newspaper businesses are “solidly profitable.”
It’s a success story many of us in this business could take lessons from, not the least of which is Hearst’s support of the UN’s 17 Sustainable Development Goals (SDG). Here are some of the things it’s doing to create a better future for people and the planet. I hope they inspire you as they did me.
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In 2012, the Hearst Tower was the first skyscraper in New York City to achieve both LEED Gold for new construction and LEED Platinum for existing buildings. Today, Hearst Tower is in the top 10% of efficient buildings in the US, uses recycled materials in 90% of its structural steel, and composts 100% of its wet food waste.
Being a good neighborIn 2019, Hearst completed its California Flats Solar Project, Jack Ranch, installing a million solar modules that produce clean, renewable electricity for the likes of Apple and Pacific Gas and Electric. Jack Ranch sits on a 73,000-acre (~29,500 ha) historic cattle ranch (grass-fed, of course) and displaces over 109,000 tonnes of CO2 emissions every year – that’s like removing ~22,000 cars from the road. |
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Despite its aggressive transition to digital, Hearst’s print media is still a significant part of the company’s business.
To minimize the impacts its print operations have on the planet, Hearst launched several sustainability programs over the past number of years.
After being recognized for conforming with environmental standard ISO 14001 in 2019, Hearst UK committed to replacing all plastic magazine bags with sustainably-sourced paper wraps in 2020.
HearstLab startups receive everything they need to launch a new business, including:
Check out HearstLab and some of its startups, and you will probably come away thinking as I do – that it has spawned enough businesses to cover every Sustainable Development Goal there is. It is truly a remarkable program.
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In April 2020, Hearst Foundations granted US$50 million in emergency funding to 100+ medical, humanitarian, and cultural organizations in the US hit hard by COVID-19 pandemic.
The gamut of SDGs helped by Hearst Foundations within the US over the years can’t be overstated. From the American Indian College Fund to the Children’s Defense Fund, Kids in Crisis, the Cleveland Clinic Foundation, Covenant House, food networks, boys and girls clubs, and library associations, Hearst Foundations’ contributions help make people’s lives better all over America.
Despite journalism being recognized as an essential service during the pandemic (albeit not everywhere, and not every form of journalism), as of April 2020 in the US alone, ~36,000 news organization workers had been laid off, furloughed, or had their salary reduced. Some organizations shut down their operations altogether.
But not at Hearst. Two days before The New York Times shared the devastation happening in newsrooms, Hearst announced that there would be no layoffs, furloughs, or pay cuts as a result of COVID-19. Instead, the company was giving all employees a 1% bonus, ignoring budget targets used to determine executive bonuses, and launching a new bonus merit pool later this year.
As a private company, Hearst has a lot of leeway on how it runs its businesses – a privilege other publishers pray they had or wished they’d never lost. But being private doesn’t guarantee success – a sad reality recently faced by the McClatchy family that saw their 163-year-old empire lose billions of dollars in just 15 years, forcing them to file for bankruptcy protection early this year.
What makes Hearst so different than so many other media barons? Is it strong leadership, an entrepreneurial spirit that embraces diversification, a shared vision that ”values innovation, storytelling, creativity, vision, social good and partnership,” or all of the above?
Maybe it’s as simple as its founder, William Randolph Hearst said: keeping one’s mind on the objective, not the obstacle.
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We’ve been working with Hearst since 2014 when its Italian publications joined PressReader, followed by Hearst UK titles in 2016, and Hearst US newspapers and magazines in 2018 and 2019, respectively. It’s been a privilege to work with such a visionary, fearless, and inspiring partner.
If you want to share your sustainability initiatives and programs with our readers, I’d love to hear from you. Let’s talk!