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Business Plan for Rolling Stone, LLC

Lindsay Baratelle Ilana Gazda

Michelle Heffner Becky Sullivan

Alanna Ross

MUI 440 Entrepreneurship in the Music Industry

Joseph Taylor April 29, 2014

Table of Contents Executive Summary Pg. 4-5 The Opportunity Pg. 4

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Description of the Business Pg. 4 Competitive Advantage Pg. 4 The Target Market Pg. 4 The Management Team Pg. 5 Brief Summary of Financial Projections Pg. 5 Description of What The Business Needs Pg. 5 Exit Strategy for Investors Pg. 5 The Business Pg. 6-8 The Opportunity Pg. 6 Mission Statement Pg. 6 Description of the Business Pg. 6 Competitive Advantage Pg. 7 Current Status & Requirements Pg. 8 What the Business Needs Pg. 8 The Management Team Pg. 9-11 Management Team Pg. 9 Board of Directors/Advisors, Key Professional Service Providers Pg. 11 Company Structure, Intellectual Property, and Ownership Pg. 12 Organizational Structure Pg. 12 Legal Structure Pg. 12 Intellectual Property Pg. 12 Industry Analysis Pg. 12-23 Industry Description Pg. 12 Porter’s Five Forces Pg. 14 Target Market Pg. 17 Competitive Position within Target Market Pg. 18 Competitive Grid Pg. 20 Online Presence Pg. 20 New Tehcnology Pg. 21 Circulation Pg. 21 Ad Retention Pg. 22 Marketing Plan Pg. 23-28 Product Feasibility and Strategy Pg. 23 Pricing Strategy Pg. 24 Channels of Distribution Pg. 25 Promotions and Advertising Pg. 25 Operations Plan Pg. 28-29 Method of Production or Service Delivery Pg. 28 Availability of Quality Labor Pool Pg. 28 Business Partnerships Pg. 29 Quality Control Pg. 39

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Customer Support Pg. 30 Financial Plan Pg. 30-33 Capital Requirements for the next 3-5 Years Pg. 30 Overview of Financial Projections Pg. 31 Income Statements Pg. 31 Balanace Sheets Pg. 32 Statement of Cash Flow Pg. 32 Payback and Exit Strategy Pg. 32 Critical Risk Factors Pg. 33-34 Management Risk Pg. 33 Marketing Risks Pg. 33 Operating Risk Pg. 33 Financial Risks Pg. 34 Intellectual Property Infringement Pg. 34 Other Risks as Appropriate Pg. 34 Appendix Pg. 35-38 A. Supporting Documents Pg. 35 B. Resumes of founders and key employees Pg. 36 C. Prices of products and prototypes Pg. 37 D. Other documents as appropriate Pg. 38 Executive Summary The Opportunity Rolling Stone magazine focuses on bringing forth content for those who have a passion for music. With skilled interviewers and reporters, they strive to take risks in their stories and cover all aspects of entertainment, including music, film/television and book reviews, and political and pop culture coverage. From 1967, they made a point of getting the hard-hitting stories and interviews. The magazine was created for the counterculture of the ‘60’s to find an outlet and

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inspiration. Today, they have adapted into the celebrity-driven entertainment industry with reporting on more celebrity news and have branched out into all genres of music. From The Beatles and Bob Dylan on the cover to Jay Z and Miley Cyrus, the magazine has made several changes to adapt to what the young audiences want to see without losing sight of their mission: to report on cultural changes fueled by music. Description of the Business Rolling Stone sets out to give an in-depth account of the culture of the day, through the energy of music. They started with the first account of The Beatles and Bob Dylan and have grown to include other entertainment aspects. With the decline in the print industry, the magazine has gone on to several digital formats and has switched to a more glossy and profitably-sized magazine. The website is becoming more integrative, including many links to various related content. The main source of revenue for the magazine is in advertising, which is why they have switched to a more advertiser-friendly, smaller-sized format. Competitive Advantage Rolling Stone magazine tries to be more than just a music publication, but a publication that elaborates on the things music brings to the culture of the day. The magazine continues to report on issues that other magazines are afraid to touch. It is a medium of “political opposition,” reporting on political opinions of the government and its officials1. With a decline in print formats, Wenner Media had to make some innovations in the magazine to stay profitable. Rolling Stone was one of the first magazines to get a website in the 1990’s. They are slowly working toward a more integrative digital format, attempting to revamp their mobile app and online website. Rolling Stone All Access is a subscription service that promotes both the online and print formats. It gives users access to online archives of each year the magazine has been published. With the emergence of social media, the magazine has several platforms to spread its news, including Twitter, Facebook, Pinterest, Tumblr, and Youtube accounts. The Target Market Rolling Stone magazine has always strived to target a young audience, mostly male, aged 18-24. Since its inception, the company has been known to aim articles at the counter-culture: liberal, rock-and-roll loving college students. With the changing attitude of society, the magazine is trying to appeal to a broader group of music and entertainment lovers. There are many direct competitors to Rolling Stone, including Spin and Billboard magazine, as well as many indirect competitors that are genre-specific music publications. Rolling Stone is trying to diversify its target market by getting involved in niche markets, namely the country music market in Nashville. The Management Team Jann Wenner is the CEO and President of Wenner Media LLC, a publishing company that controls Rolling Stone magazine. He is the co-founder, publisher, editor and heart and soul of the magazine. His ex-wife Jane Wenner is currently the VP of Wenner Media. Ralph J. Gleason was the founding editor of Rolling Stone and co-founded the magazine with him; he continued working on the magazine until his death in 1975. Jann’s son, Gus Wenner, is currently the 1 Wood, Gaby. "The Voice of America." The Guardian. Guardian News and Media, 29 Apr. 2006. Web. <http://www.guardian.co.uk/music/2006/apr/30/popandrock.pressandpublishing>.

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director of RollingStone.com. Will Dana is the managing editor at Rolling Stone since 2005. Joseph Hutchinson is the Design Director, after being promoted from Art Director. Dana Rosen is the General Counsel at Wenner Media, taking care of all the legal matters. Chris McLoughlin is Rolling Stone’s Publisher. Rolling Stone (a part of Wenner Media) is a privately owned company; therefore information on its Board of Directors, Advisors and Key Professional Service Providers is not open to the public. Brief Summary of Financial Projections Rolling Stone is a privately owned company; there is little public reports of its financial projections. The reported sales total for 2013 was $78 million, with a lot of its expenditures going towards advertising and payroll. With the print industry starting to go digital, there is new opportunities to make revenue through subscription fees and advertising. Jann Wenner insists that change is a big part of the culture of the magazine, so they will continue to make changes to the content to coincide with the changes of the industry. Description of what the business needs Rolling Stone must continue moving in the digital format. Its move to an iPad app is its first step into the tablet world. The website with available online subscription to gain its All Access archive is proving to help the business. The company needs a sizable amount of capital to start its new country office, especially if they want to put out a country publication. The magazine has started to partake in programmatic media buying to enhance the advertising on the website. However, their website needs much more interactivity for it to gain more views. It should begin to add more content unique to the online format so that there are not two mirror copies. Exit strategy for investors Rolling Stone’s exit strategy would be acquisition-based. The magazine owns copyrights to a lot of content, including articles, photographs, and videos. Being acquired by another company would be easiest in this case, allowing Rolling Stone to gage the buyer’s value and more easily pay off accounts. With the reputation of the magazine and Wenner Media, it would not be hard to find an interested company. The Business The Opportunity Rolling Stone Magazine is a magazine that changed American culture. With its innovative reporting on music, politics and cultural events, this magazine spoke to a whole generation. Co-founder Jann Wenner started the magazine in San Francisco in 1967 as a “quirky rock-music-oriented biweekly,” but it has evolved and transitioned with a lot of cultural changes.2 It is now about more than music, representing the mainstream. Wenner wanted to cover rock’n’roll in its raw format, “the most powerful cultural and political force in a time of widespread social

2 Jann S. Wenner Biograpjy." Jann S. Wenner. Web. 3 Apr. 2014. <http://www.jannswenner.com/Biography/>

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tumult.”3 The magazine sought to go deeper into stories and take risks, for example, covering the election campaign of Nixon, the Manson murders, and kidnapping stories.4 Wenner also had a talent for seeking out creative reporters, and in turn these reporters became famous themselves. Wenner was one of the few people that realized quickly that the counterculture movement equated to money and reached out to these young music fans through the hard-hitting reporting of the magazine. They continued to reach out to younger viewers by focusing on television, movies, and books to keep up with the celebrity-centered nation. Mission Statement Rolling Stone Magazine sets out to display music in an opinionated, cultured way. Founder Jann Wenner quotes an informal mission statement as: “Rolling Stone was founded and continues to operate in the belief that rock'n'roll music is the energy centre for all sorts of changes evolving rapidly around us: social, political, cultural, however you want to describe them.”5 The goal is to be “not just about the music, but about the things and attitudes that music embraces.”6 The magazine hopes to show the real America behind the mediatized version presented to the masses. It wanted to present a “revolutionary insight” into our country that is “funky, violent, deeply divided, despairing, exultant, rooted in rich historical tradition and ethnic variety.” The slogan for the magazine has been “All the News That Fits,” meaning to imply that the magazine defines its own terms, searching for truth in its articles.7 Description of the business When Jann Wenner and Ralph J. Gleason founded the magazine in 1967, “made a point of commissioning serious, comprehensive interviews with musicians and artists.”8 Opinionated reporters like Hunter S. Thompson and talented interviewers like Jonathan Cott brought forth the stories that the counterculture age wanted to hear about, including one of the first insider looks into The Beatles.9 By the 1980’s, Rolling Stone adapted to include more entertainment and pop culture elements after Wenner made his move to New York. The magazine became more celebrity-friendly, with more articles on fashion, celebrity news and movies. Rolling Stone was easily spotted on newsstands since before 2008 the magazine was printed on large sized paper. The company decided to switch to a normal sized format to become more profitable, attract advertisers, and receive better deals from printers. “All you’re getting from that large size is nostalgia” and although that can be a powerful marketing tool. To make up for this loss “Rolling Stone will switch to heavier, glossy paper and sleeker page designs, and it will be glued rather than stapled — “perfect bound” instead of “saddle stitched,” as it attempts to look more streamlined and professional. “Rolling Stone has become more glossy, more celebrity-driven, 3 Weir, David. "Wenner's World." Salon.com. 20 Apr. 1999. Web. <http://www.salon.com/1999/04/20/wenner/>. 4 Wood, Gaby. "The Voice of America." The Guardian. Guardian News and Media, 29 Apr. 2006. Web. <http://www.guardian.co.uk/music/2006/apr/30/popandrock.pressandpublishing>. 5 Wood, Gaby. "The Voice of America." The Guardian. Guardian News and Media, 29 Apr. 2006. Web. <http://www.guardian.co.uk/music/2006/apr/30/popandrock.pressandpublishing>. 6 Rolling Stone." Wikipedia. Web. <http://en.wikipedia.org/wiki/Rolling_Stone>. 7 Wenner, Jann S. Introduction. 20 Years of Rolling Stone: What a Long, Strange Trip It’s Been. N.p.: Friendly, 1987. N. pag. Jann S. Wenner. Web. <http://www.jannswenner.com/Bookshelf/20_Years_Of_Rolling_Stone.aspx>. 8 Wenner, Jann S. Introduction. 20 Years of Rolling Stone: What a Long, Strange Trip It’s Been. N.p.: Friendly, 1987. N. pag. Jann S. Wenner. Web. <http://www.jannswenner.com/Bookshelf/20_Years_Of_Rolling_Stone.aspx>. 9 Wenner, Jann S. Introduction. 20 Years of Rolling Stone: What a Long, Strange Trip It’s Been. N.p.: Friendly, 1987. N. pag. Jann S. Wenner. Web. <http://www.jannswenner.com/Bookshelf/20_Years_Of_Rolling_Stone.aspx>.

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and more profitable, and has successfully focused its energies on wooing younger generations of readers. The company has also produced radio and television programs, in addition to its publishing activities.”10 The company says with the size reduction and the reduction in production costs, any money saved “will be offset by the inclusion of more pages and the shift to thicker, glossier paper.”11 This is the third time the magazine adapted to a new format, its first two issues were the size of a tabloid newspaper because of the budget. The magazine then added a second fold and grew again, to 10.5 inches by 15 inches in 1973, when it also began printing on a four-color press. It grew to the larger size it just abandoned in the ‘80s.12 With all the changes, Wenner insists that the mission remains the same. Competitive Advantage With the digital age making it hard for print formats to be sustainable, Rolling Stone has moved much of its content online. Through the website, there is an archive present to allow fans of the magazine to access any article in the history of the magazine online. There is a subscription service to access the archives, where consumers pay $3.95 per month, or $29.95 for one year. Upon subscribing, consumers get 4 issues free when you order for a year (30 issues). Consumers can subscribe online and can set up automatic renewals. This also includes a subscription to the print magazine to keep that format alive. With the decline in the print industry, revenue is kindly welcomed through any digital means. Hardcore music fans will enjoy being able to access old articles from the 43 years of Rolling Stones journalism. Although the magazine held out for a while before joining the tablet revolution, they eventually went to a tablet format in 2012. The tablet version of the magazine contains song samples and purchases, links to the multimedia site, and a “Guest List” where celebrities pick music they are currently listening to. Users can also access issues digitally on iTunes, Nook, Kindle Fire, Zinio, Google Play and NIM.

To stay competitive in different markets, Rolling Stone is creating a country website, “Rolling Stone Country” in 2014. “The new standalone site's aim is to cover the country music scene in the same way Rolling Stone does rock and pop music…to fill the void in digital coverage of country music.”13 The company will be opening an office in Nashville, TN to produce the website and even plan a special country-themed print issue to expand their consumer base. Current Status & Requirements Overall magazine sales have been decreasing, as the digital revolution gets stronger and more technologically advanced. Magazine circulation was down 1.5% in 2010.14 “Single-copy sales declined sharply through the first half of 2013, falling 28% compared with the period a year

10 Uhle, Frank. "Wenner Media LLC." Answers. Answers, n.d. Web. <http://www.answers.com/topic/wenner-media-inc>. 11 "Rolling Stone Ends Large Format after 4 Decades." Today. Associated Press, 14 Oct. 2008. Web. <http://www.today.com/id/27178925/ns/today-today_entertainment/t/rolling-stone-ends-large-format-after-decades/#.U16uia1dWxA>. 12 "Rolling Stone Ends Large Format after 4 Decades." Today. Associated Press, 14 Oct. 2008. Web. <http://www.today.com/id/27178925/ns/today-today_entertainment/t/rolling-stone-ends-large-format-after-decades/#.U16uia1dWxA>. 13 Sebastian, Michael. "Rolling Stone Plans a Standalone Website to Cover Country Music." Advertising Age., 5 Dec. 2013. Web. <http://adage.com/article/media/rolling-stone-planning-website-cover-country-music/245551/>. 14 Matsa, Katerina-Eva, Tom Rosenstiel, and Paul Moore. State of the Media. Rep. State of the News Media, 2011. Web. <http://stateofthemedia.org/2011/magazines-essay/data-page-4/>.

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prior. Industry wide newsstand sales dropped 10% during that time. The magazine's total paid and verified circulation increased slightly, however, to nearly 1.5 million.”15 Paid subscriptions are declining, as more people tend to buy a single copy when it suits them. The company has decided to publish on tablets as a push to keep up with the technological demand. The app includes song samples, interviews, and links to relative content, but will mostly replicate the print magazine.16 “90 percent of survey respondents suggested they read more magazine content since acquiring their mobile device,” which pushed Wenner to go digital with a tablet app.17 Print ad pages, a huge source of revenue for the magazine, are declining because of the cost of printing. However, the magazine keeps loyal subscribers by continuing to write about controversial topics; for instance, their cover story of the Boston Bomber stirred up a lot of arguments and was even pulled from the shelves of several stores.18 What the Business Needs to Move Forward Rolling Stone has slowly started revamping their product over the past few years, going digital with a website and iPad app. RollingStone.com received 4.3 million unique monthly visitors in October 2013, up 34% from October 2012.19 However, most of their online content is not as interactive as it could be and mirrors the print copy. With a more interactive customizable website/app, the magazine could increase its online subscriptions. The magazine is making moves into other markets by creating a country platform in Nashville. To increase value in advertising, Wenner Media is starting programmatic media buying (using software to purchase digital advertising), which is perfect for Rolling Stone’s entertainment category that “has a brand authority that translates into our programmatic packages.”20 This will promote the product team and ad operations to a new level. With this, the brand is also looking into launching a new RollingStone.com that will be so much more integrative and contains more content. The Management Team Jann S. Wenner- Wenner Media CEO In 1967 at 20 years old, Jann S. Wenner forever changed American culture when he dropped out of college at UC Berkeley to start a “quirky rock-music-oriented biweekly called Rolling Stone.” Since then, Jann has been a pivotal force in maintaining the successful music-oriented

15 Matsa, Katerina-Eva, Tom Rosenstiel, and Paul Moore. State of the Media. Rep. State of the News Media, 2011. Web. <http://stateofthemedia.org/2011/magazines-essay/data-page-4/>. 16 Mathis, Joel. "Rolling Stone Headed to IPad in 2012." Macworld. Macworld, 29 Nov. 2011. Web. <http://www.macworld.com/article/1163891/rolling_stone_headed_to_ipad_in_2012.html>. 17 Mathis, Joel. "Rolling Stone Headed to IPad in 2012." Macworld. Macworld, 29 Nov. 2011. Web. <http://www.macworld.com/article/1163891/rolling_stone_headed_to_ipad_in_2012.html>. 18 Ehrenfreund, Max. "Rolling Stone Cover of Dzhokhar Tsarnaev, Boston Bombing Suspect, Stirs Controversy." The Washington Post. N.p., 19 July 2013. Web. <http://www.washingtonpost.com/world/national-security/rolling-stone-cover-of-dzhokhar-tsarnaev-boston-bombing-suspect-stirs-controversy/2013/07/19/05e18be0-f07d-11e2-bed3-b9b6fe264871_story.html>. 19 Sebastian, Michael. "Rolling Stone Plans a Standalone Website to Cover Country Music." Advertising Age., 5 Dec. 2013. Web. <http://adage.com/article/media/rolling-stone-planning-website-cover-country-music/245551/>. 20 Liyakasa, Kelly. "Wenner Media Calls Programmatic ‘Integral’ Driver Of Business." Ad Exchanger. Ad Exchanger, 29 Oct. 2013. Web. <http://www.adexchanger.com/publishers/wenner-media-calls-programmatic-integral-driver-of-business/>.

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publication that speaks to generations.21 Wenner functions as the CEO and President of Wenner Media LLC, a privately held company in the Publishing Industry headquartered in New York City,22which heads Rolling Stone Magazine where Wenner is also a co-founder, publisher, and editor.23 “Wenner’s publishing success lies in his intuitive understanding of the changing lifestyles of his readers” as well as his hands-on approach to publishing. He founded Outside in 1977, a contemporary outdoor magazine, but later sold the magazine to another publisher. In 1985, Wenner purchased Us magazine from the McFadden Publishing. in 1989, he assumed total ownership of the magazine and repositioned it as Us: The Entertainment Magazine. In 2001, Disney became an investor in Us magazine and in August 2006, Wenner bought out Disney and now owns 100% of the magazine. Now referred to as Us Weekly, the magazine currently draws 11.7 million readers per week. In 1992, Wenner launched Men’s Journal magazine, which has been awarded the National Magazine Award for General Excellence and an award for Professional Service. The magazine currently has 3.2 million readers and growing. In April 1997, Wenner became the youngest inductee into the American Society of Magazine Editors (ASME) Hall of Fame. In 1994, he was named Publishing Executive of the Year by adweek, a leading industry trade publication. In March 2004, he was inducted into the Rock & Roll Hall of Fame with a Lifetime Achievement Award in the non-performer category. The magazine has won a total of 14 National Magazine Awards for General Excellence, Design, Photography, Visual Excellence, Specialized Journalism, Feature Writing, and Reporting. “Today, RS continues to reign at the forefront of American journalism, and with 12 million readers it serves as the ultimate source for music information and popular-culture trends.”24 Jane Wenner- VP of Wenner Media Jane Schindelheim married Jann S. Wenner and became VP of Wenner Media shortly after the start of Rolling Stone Magazine. The risky venture was mostly originally funded by Schindelheim’s family. After 43 years of marriage, the two separated in 1995. Jane continues as the VP of Wenner Media today.25 Ralph J. Gleason- founding editor of Rolling Stone After attending Columbia University, Gleason moved to San Francisco and began writing for the San Francisco Chronicle. In 1950, he initiated the first regular coverage of jazz and pop music in the mainstream US media. He was the first critic to review jazz, pop, and folk concerts and interviewed many high-profile artists like Frank Sinatra and Elvis Presley. Along with Jan Wenner, Gleason founded the bi-weekly music magazine, Rolling Stone, to which he contributed

21 "Jann S. Wenner | Biography." Jann S. Wenner. Web. 30 Mar. 2014. <http://www.jannswenner.com/Biography/> 22 "Wenner Media." LinkedIn- World's Largest Professional Network. LinkedIn Company Profile|. Web. Apr. 2014. <http://www.linkedin.com/company/wenner-media>. 23 "Jann Wenner." Wikipedia. Wikimedia Foundation, 21Apr. 2014. Web. Apr. 2014. <http://en.wikipedia.org/wiki/Jann_Wenner|>. 24 "Jann S. Wenner | Biography." Jann S. Wenner. Web. 30 Mar. 2014. <http://www.jannswenner.com/Biography/> 25 "Jann Wenner." Wikipedia. Wikimedia Foundation, 21Apr. 2014. Web. Apr. 2014. <http://en.wikipedia.org/wiki/Jann_Wenner|>.

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to until his death in 1975. Gleason left a lasting legacy at Rolling Stone as widely respected music commentator. His name still reads on the magazine’s masthead today.26 David Kang- Chief Digital Officer of Wenner Media David Kang became the Chief Digital Officer of Wenner Media in 2012. Kang will become responsible for all paid content, ad sales, social media and e-commerce for Wenner’s brand across all digital platforms.27 His previous positions include Creative Director of Content Extensions at Hearst Magazine where he helped turn Cosmopolitan and Good Housekeeping into multiplatform, multibrand content franchises with digital apps, mobile sites, social media, e-books, etc. Kang joins Wenner at a time of impressive digital growth for Wenner’s three publications.28 Gus Wenner- Director, Rollingstone.com Fresh out of Brown University at just 22 years old Jann Wenner asked his son, Gus Wenner, to head website of a major national magazine- rollingstone.com. In an e-mail sent to all Rolling Stone staff members, Wenner wrote, “Dear All:

David and I are very pleased - and I am very proud - to announce that Gus Wenner, after leading the re-launch re-design effort for our website, will now continue by heading up the overall operations of RollingStone.com.

-Jann”29 Will Dana- Managing Editor at Rolling Stone After handling much of the magazine’s national coverage, Wenner promoted Will Dana to Managing Editor in May 2005. Dana has been apart of Rolling Stone since 1996. Managing Editor at Rolling Stone was Dana’s dream job.30 Joseph Hutchinson- Design Director at Rolling Stone Joseph Hutchinson graduated from the Maryland Institute College of Art with degrees in Illustration and Graphic Design in 1898. Shortly after, he became a News Artist at The Baltimore Sun and worked his way up to Assistant Managing Editor. In May 2007 he was hired as Art Director for Rolling Stone and in December 2011 Hutchinson was promoted to Design Director of the magazine.31

26 "Ralph J. Gleason." Wikipedia. Wikimedia Foundation,|. Web. Apr. 2014. <http://en.wikipedia.org/wiki/Ralph_J._Gleason>. 27 "Wenner Media Adds Chief Digital Officer." - FishbowlNY. Web. 18 Apr. 2014. <http://www.mediabistro.com/fishbowlny/wenner-media-adds-chief-digital-officer_b50363> 28 Cohn, Steve. "David Kang Named Wenner Media Chief Digital Officer." Min Online. Access Intelligence, 12 Jan.2012|. Web. Apr. 2014. <http://www.minonline.com/news/19722.html>. 29 Nolan, Hamilton. "Jann Wenner's Kid Is the New Head of RollingStone.com." Gawker. 20 May 2013. Web. |Apr. 2014. <http://gawker.com/jann-wenners-kid-is-the-new-head-of-rollingstone-com-508921163>. 30 "Dreams Can Come True: Will Dana Climbs Rolling Stone Ladder." Gawker. Web. 18 Apr. 2014. <http://gawker.com/103776/dreams-can-come-true-will-dana-climbs-rolling-stone-ladder>. 31 Hutchinson, Joseph. "Joseph Hutchinson." LinkedIn- World's Largest Professional Network. Web. | Apr.2014. <http://www.linkedin.com/pub/joseph-hutchinson/4/722/883>.

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Dana Rosen- General Counsel at Wenner Media Dana Rosen graduated from New York University School of Law. In May 2006, she became responsible for all legal matters regarding Us Weekly, Rolling Stone and Men’s Journal magazines and “all corporate legal matter for Wenner Media and its affiliates.” Rosen deals with Litigation, Digital, Corporate, Intellectual Property, Marketing and Media.32 Chris McLoughlin- Rolling Stone Publisher In August 2013, Chris McLoughlin was named Publisher for Rolling Stone by Wenner Media. McLoughlin had previous served as publisher of Men’s Jounrnal where he oversaw a redesign of MensJournal.com and introduced Men’s Jounral Gear Lab.33 Board of Directors, Board of Advisors and Key Professional Service Providers Rolling Stone is a privately owned company, not much employee information was available to us. Rolling Stone may or may not have a Board of Directors, Board of Advisors or Key Professional Service Providers since this information is not released to the public.34 * Please refer to the appendix to see a copy of the email we sent to a few Rolling Stone contacts we uncovered. Our attempt to retrieve this information directly from the company itself was unsuccessful. (See Appendix D) Company Structure, Intellectual Property, and Ownership Organizational Structure Stated explicitly on their website, Rolling Stone is a limited liability company.35 Rolling Stone LLC is the daughter company of Wenner Media LLC, which was formerly known as Straight Arrow Publishers, Inc until 1993. Jann Wenner, the head of Wenner Media LLC and editor, publisher and founder of Rolling Stone LLC, oversees Us Weekly and Men’s Journal.36 All three magazine publications are limited liability companies.37 38 Legal Structure Rolling Stone LLC is a private corporation and this information was unavailable to us. An email was sent to them in an attempt to uncover this information but we did not receive a reply. (See Appendix D)

32 Rosen, Dana. "Dana Rosen." LinkedIn- World's Largest Professional Network. Web. | Apr.2014. <http://www.linkedin.com/pub/dana-rosen/5/243/379>. 33 Sebastian, Michael. "Wenner Media Shifts Men's Journal Publisher Chris McLoughlin to Rolling Stone."Advertising Age Media RSS. 21 Aug. 2013. Web. | Apr.2014. <http://adage.com/article/media/wenner-media-names-chris-mcloughlin-rolling-stone-publisher/243772/>. 34 "Company Overview of Rolling Stone L.L.C." Bloomberg Businessweek. 27 Apr. 2014. Web. Apr. 2014|. <http://investing.businessweek.com/research/stocks/private/board.asp?privcapId=4641116>. 35 "Rolling Stone." Rolling Stone. N.p., n.d. Web. 27 Apr. 2014. <http://www.rollingstone.com/>. 36 "Company Overview of Wenner Media LLC." Businessweek.com. N.p., n.d. Web. 10 Apr. 2014. 37 "Terms of Service - Us Weekly." Latest News. N.p., n.d. Web. 10 Apr. 2014. 38 "Men's Journal Magazine - Men's Style, Travel, Fitness and Gear."Mensjournal.com. N.p., n.d. Web. 10 Apr. 2014.

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Ownership Structure of the Business Wenner Media LLC is the holding company of Rolling Stone LLC, with Jann Wenner being the head and founder of both corporations. Not much information is released to the public about ownership, since Rolling Stone Magazine is a privately owned corporation.39 Intellectual Property Rolling Stone owns all copyright to all material published, including, but not limited to, text, photography, video, audio, images, animations, audio, and such on. On their website, Rolling Stone makes the Digital Millenium Copyright “DMCA” apparent in their copyright terms and disclosures.40 Rolling Stone retains all ownership and other rights to all content of trademarks, logos, and any connection usage. Rolling Stone must be prominently credited in all connected publications. Industry Analysis Industry Description Rolling Stone is a part of the Magazine & Periodical Publishing in the United States. This industry includes companies that produce and distribute magazines and periodicals in print and online. However, this industry does not include those who distribute their publications exclusively online. The Magazine & Periodical Publishing industry is known for researching topics, writing and editing articles, and designing graphics, advertisements and pages for print and online publication. Some of the more popular niches of publications in this industry are entertainment, home and living, general interest, and academic and professional magazines.41 In recent years, the Magazine and Periodical Publishing industry has gotten significantly weaker due to online publications that offer free subscriptions. Additionally, the economic recession of 2008 caused a decline in consumer demand for magazines and periodicals, as many Americans faced a decreased amount of disposable income; in 2009, revenue for this industry declined by 14%. Despite a recent revival in disposable income, consumer demand for magazines and periodicals is still low due to competition from the aforementioned online publications and a decline in print advertising. Two of the main factors in determining revenue in this industry are consumer and print advertising spending, both of which declined during the recession. As profit decreased, companies were forced to conserve their advertising costs, which decreased the Magazine and Periodical Publishing industry’s largest revenue source. As publications in this industry struggle to keep their readers and attract advertisers, revenue is expected to decline 0.5% in 2014 (see figure A).42

39 "Rollingstone Services - Terms of Use." Rolling Stone. N.p., n.d. Web. 10 Apr. 2014. 40 "Rolling Stone RSS Feeds." Rolling Stone. N.p., n.d. Web. 10 Apr. 2014. 41 “Industry Definition” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1232>. 42 "At a Glance" 51112-Magazine & Periodical Publishing in the Us (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=1232>.

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Figure A43 Since 2009, companies in the Magazine and Periodical industry have attempted to cut costs by laying off employees, discontinuing unprofitable magazines and closing their offices. Additionally, many companies in this industry have been forced to close as revenue dropped during the economic recession. In the past five years, the number of companies in the industry has declined 1.1% per year, leaving a total of 5,344 active companies in the industry.44 Thankfully, the Magazine and Periodical industry is shifting away from print publishing and integrating their content online with websites, social media and mobile applications. According to The Wall Street Journal, as of February 2014 “magazines with a digital replica had a combined circulation of 10.8 million, and increase from 7.9 million a year earlier.”45 The attractiveness of this industry is in decline. The current trend of online content may encourage some companies to completely exit the Magazine and Periodical Publishing industry in order to publish their content exclusively online. Start-up costs and staff sizes for online-only publications are small, further increasing the attractiveness of the industry for exclusively digital publications. Additionally, the market for digital-only content is growing. According to the MPA - The Association of Magazine Media, “the digital-only audience grew from 9.2 million in mid-2012 to 16.9 million in mid-2013.” Online-only magazines are becoming more popular than print magazines because they are able to focus on more specific content, thus drawing more targeted markets. In order to remain successful in the industry, magazines and periodicals must integrate

43 “Industry Performance” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=1232>. 44 "At a Glance" 51112-Magazine & Periodical Publishing in the Us (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=1232>. 45 “Industry Performance” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=1232>.

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their content online in order to expand their audience and keep up with the constantly developing digital age.46 Porter’s Five Forces The Porter’s Five Forces industry and business analysis structure was developed by Michael Porter, and help determining the competitiveness and attractiveness of an industry. In any industry, a company is aiming to offset the impact of these five forces, thus creating a positive effect on their profitability and rate of return. The five forces include the threat of new entrants, threat of substitute/compliment products, the bargaining power of suppliers and consumers, and the rivalry of existing firms. In order to diminish the negative effects of these five forces, a company must create barriers to entry to the industry and outperform their competitors. Rolling Stone has accomplished this through its integration of its product with new technologies, brand recognition, credibility and product differentiation.47

Barriers to Entry Status: Medium and Steady

46 “Industry Performance” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=1232>. 47 "Porter Five Forces Analysis." Wikipedia. Wikimedia Foundation, 24 Apr. 2014. Web. 26 Apr. 2014. <http://en.wikipedia.org/wiki/Porter_five_forces_analysis>.

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In the Magazine and Periodical industry, the barriers to entry are not excessively high. According to MediaFinder, “114 magazines have launched in the first three quarters of 2013.” However, the majority of these new magazines were created by companies that were already in existence. Newer publications do not pose a huge threat to existing ones: they are more likely to create a publication that addresses a small niche within the market, while larger companies benefit from “brand recognition with consumers and advertisers.” Additionally, printing costs is another factor to consider. Although the majority of publications outsource printing, making start-up costs low for newer publications, circulation plays a role in production costs. With niche markets the circulation is lower, resulting in higher printing costs per copy; on the other hand, existing magazines from large companies with high circulations will benefit from lower printing costs.48 1. Threat of New Entrants Status: High and Increasing Since the barriers to entry in the Magazine and Periodical industry are relatively low, the threat of new entrants is high. Additionally, because the industry is shifting from the print medium towards digital, the most direct competition is from publications who are strictly digital. The number of digital publications is rapidly increasing, so the amount of competition against the industry is increasing as well.49 2. Threat of Substitutes and Complements (online and foreign publications) Status: Medium The shift of the industry towards the digital realm is increasing the threat of substitutes and complements in the industry. As magazines and periodicals integrate their content online and with mobile applications, foreign consumption for these publications increases. New technology and the merging of print content with digital allows US consumers to easily gain access to

48 “Competitive Landscape” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1232>. 49 “Competitive Landscape” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1232>.

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foreign publications through mobile applications and websites, creating substitutes for American magazines and periodicals.50 Due to the rapid growth in revenue from online publications, low revenue from print publications has been somewhat offset. Many consumers in this industry have “demonstrated a preference for continuing subscriptions to magazines instead of substituting them with other sources.” As a result, the amount of subscribers has only slightly decreased during the economic recession. According to MPA - The Association of Magazine Media, single-copy sales of publications dropped 17.2% in 2009, while subscriptions only dropped 4.4%. Overall, many consumers are choosing to utilize online and mobile publications as supplements to their existing magazine and periodical subscriptions instead of substituting them completely.51 3. Rivalry of Existing Firms Status: Medium The number of competitors in this industry is high, especially with the rise of online publications. However, magazines and periodicals often target certain niche markets, and Rolling Stone has found a way to set itself apart from other firms in this industry by creating a differentiation in its product. Rolling Stone focuses on a mixture of content, including music, politics, and finance, which helps set it apart from other music magazines. In the past five years, the industry has experienced a 1.8% drop in its growth rate, as many magazines and periodicals are shifting towards online content. Thus, the digital realm is experiencing an increasingly high growth rate.52 4 / 5. Power of Suppliers/Consumers Status: Medium/Low Small magazines and periodical companies are more likely to integrate their publications with online content and mobile applications, as opposed to large corporations. This shift towards the digital realm allows these small businesses to eliminate printing and production costs, thus allowing them to eliminate their dependence on suppliers such as printers and distributors.53 However, magazine and periodical companies must be careful when transitioning towards all-digital content. Older consumers who are not as proficient with new forms of technology may not be adverse to publications who shift towards online content. Target Market

50 “Products & Markets” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/productsandmarkets.aspx?entid=1232>. 51 “Industry Performance” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=1232>. 52 "At a Glance" 51112-Magazine & Periodical Publishing in the Us (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=1232>. 53 “Competitive Landscape” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1232>.

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As seen in Figure B, the target market for Rolling Stone is men ages 18 to 24, who consume 59.3% and 27.6% of the market, respectively. Additionally, 73.9% of consumers are white.

Figure B54 In general, consumers of the Magazine and Periodical Publishing industry “tend to have higher-than-average incomes, and have attained higher-than-average education qualifications.” Additionally, as the industry continues to shift towards online content, readers will continue to represent the “more privileged factions of society.” The age of the target market of this industry will also continue to decrease as the industry shifts towards online content, as younger consumers are more likely than older consumers to read publications on mobile and tablet applications and on websites.55 The Magazine and Periodical Publishing industry has an advantage in that they are able to target niche markets with their products, in turn preventing drastic declines that have occurred in newspapers and other forms of mass media. However, printed periodicals such as Rolling Stone compete with digital publications, which has caused a decline in readership as consumers in the target market turn to digital publications to consume their content.56

54 "Demographics." Rolling Stone media kit. N.p., n.d. Web. 27 Apr. 2014. <http://www.srds.com/mediakits/rollingstone/demographics.html>. 55 “Products & Markets” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/productsandmarkets.aspx?entid=1232>. 56 “Products & Markets” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/productsandmarkets.aspx?entid=1232>.

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In the ten to fifteen years following Rolling Stone’s inception in 1967, the magazine’s target market was clearly defined: “white, middle-class college-educated (or college-attending) men and women who loved rock-and-roll.” The publication was considered the “gold standard” for rock journalism and attracted a wide audience of young people who supported “left wing, ‘liberal’ viewpoints.” However, by the early 1980’s, the political landscape had changed drastically. With the election of conservative Ronald Reagan in 1980, young Americans began to reject the liberality that was so prevalent a decade earlier. In order to appeal to a younger audience again, Rolling Stone changed its format in the early 1990’s to cover pop culture, music, and television and movie stars. Today, Rolling Stone has integrated its content to the online market to further appeal to young audiences, as well as “increasing its coverage of politics, and, since the 2008 global financial collapse, the banking industry.”57 Competitive Position Within Target Market Competition within this industry is extremely high and only increasing. As seen in Figure C, the Magazine and Periodical industry is segmented into five main markets: entertainment magazines, academic and professional magazines, home and living magazines, general interest magazines, and other periodicals. Although all publications within the industry are in competition with each other, publications within these specific markets are in direct competition among themselves for readers and advertisers, while also competing with other forms of new media. The content and target market of the publication has an effect on the degree of competition that publication has with other media. For example, “business magazines can compete with business newspapers, such as the Wall Street Journal, as well as with the business sections of general newspapers.58

Figure C59

57 International Business, Times. "Rolling Stone Magazine: A Gasping Dinosaur." International Business Times 18 Sept. 2012: Regional Business News. Web. 27 Apr. 2014. 58 “Competitive Landscape” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1232>. 59 "At a Glance" 51112-Magazine & Periodical Publishing in the Us (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=1232>.

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In general, companies try to maximize sales and the circulation of their publications in order to increase the value of their advertising space. However, advertiser and consumer demand has declined since the economic recession, causing intensified competition in the industry. Additionally, the Magazine and Periodical Publishing industry experiences competition from online-only publications, as well as from other websites, books and newspapers.60 Direct competitors of Rolling Stone include other print publications such as SPIN, Billboard, Alternative Press, Paste, Blender, and Q Magazine. These direct competitors go after the same customers through print music magazines, like Rolling Stone. Rolling Stone also faces competition from online-only music publications such as NPR Music, Pitchfork, SPINner, and Consequence of Sound. However, with today’s constantly evolving digital technology, competitors in the industry are also constantly changing. Future competitors are competitors who could move into direct or indirect competition at any time, and should always be considered when surveying the competitive landscape for an industry. Rolling Stone magazine also faces indirect competition with niche-specific music magazines such as Country Weekly, Guitar World, DRUM! Magazine, Opera Magazine, and Symphony Magazine. These publications are also in competition with Rolling Stone, although to a lesser extent than its direct competitors. Despite the fact that they offer drastically different content and reach a more targeted audience than Rolling Stone, competition still persists because readers still have to decide what they want to consume and spend their money on. Competitive Grid

RS Billboard AP SPIN Paste Q

Online Presence

High High High High High High

New technology adaptation

High High High High Low High

Circulation 1,469,267 16,327 297,000 459,000 Online 52,781

Pricing $4.99 / $29.95

$6.99, $149 $5.99 / $14.95

Free Free … … … / $141.13

Advertising retention

Low Medium Medium Medium High Medium

Online Presence Rolling Stone Magazine

60 “Competitive Landscape” 51112-Magazine & Periodical Publishing in the US (2014): n. pag. IBISWorld. Web. 26 April 2014. <http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1232>.

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Rolling Stone has had a website since the late 1990s and features blogs, photos, and videos. The publication experimented with message boards in its early years, but permanently removed the feature in 2010. Rolling Stone has accounts on various social media sites including Facebook, Twitter, Instagram, Pinterest, Tumblr, YouTube, StumbleUpon, Google+, and RSS feeds. Additionally, their website offers archives for past issues to current magazine subscribers.61 Billboard Magazine Billboard Magazine launched billboard.com in 1995 as Billboard Online. The online extension of the music publication attracts “well over ten million unique visitors each month in more than 100 countries and has become the de facto digital destination for popular music.” Billboard has accounts on social media sites including Facebook, Twitter, Instagram, YouTube, Google+, Tumblr, Pinterest and Spotify. The website allows visitors to view the current Billboard charts, read music news and artist interviews, as well as look at photos and video.62 Alternative Press Magazine AP Magazine’s website is very similar to Rolling Stone magazine’s; they offer news, reviews, photos and videos, as well as an archive to past issues. AP also offers podcasts, an online store and contests, which are features that Rolling Stone does not offer.63 SPIN Magazine Unlike Rolling Stone magazine’s website, SPIN Magazine’s website offers a FREE archive to past articles. In addition, you can access news articles, features, music and photos on their website. SPIN is present on social media sites including Facebook, Twitter, YouTube, Google+, Rdio, Foursquare, and RSS feeds.64 Paste Magazine Originally a print publication, Paste Magazine switched over to a digital-only magazine in 2010. Because of this, its online presence is very strong. The website for Past Magazine offers links to its social media sites including Facebook, Twitter, Google+, Pinterest, and Instagram. The publication encompasses a wide variety of topics including music, movies, TV, games, comedy, books, design, tech, drink, and geek. Visitors can also access photo galleries, video, stream songs, and read TV and movie reviews.65 Q Magazine Q Magazine’s website is very music-centered, and includes a track of the day as well as playlists (including a featured playlist). Visitors can also access interviews, articles, photos and video on the website. The publication is present on social media including Facebook, Twitter, Pinterest, and YouTube. Additionally, the website offers an archive for covers of previous issues.66 New Technology

61 "Rolling Stone." Rolling Stone. N.p., n.d. Web. 27 Apr. 2014. <http://www.rollingstone.com/>. 62 "Billboard." Billboard. Web. 27 Apr. 2014. <http://www.billboard.com/>. 63 "Alternative Press." Alternative Press. Web. 27 Apr.2014. <http://www.altpress.com/>. 64 "SPIN.com." SPIN. N.p., n.d. Web. 27 Apr. 2014. <http://www.spin.com/>. 65 "Paste Magazine." pastemagazine.com. N.p., n.d. Web. 27 Apr. 2014. <http://www.pastemagazine.com/>. 66 "Q Magazine." Q Magazine. N.p., n.d. Web. 27 Apr. 2014. <http://www.qthemusic.com/>.

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With such a high demand for the integration of print publications with the web, almost all magazines and periodicals need iPad and mobile versions of their publication in order to survive in the industry. Rolling Stone, Billboard, AP, SPIN and Q Magazine have all integrated their content seamlessly with the web, all offering different online and mobile versions of their publication. Rolling Stone offers its publication in print and for iPad, iPhone, Nook, Kindle Fire, and Android. Billboard is available in print, iPad and online. AP has versions of its publication in print and for iPad, iPhone and Nook. SPIN is available online and for iPad. Q Magazine is offered in print, iPad and iPhone. However, Paste magazine has not adapted to new technology at all. The publication is only offered on its website. Circulation Rolling Stone Magazine According to the Alliance for Audited Media, Rolling Stone Magazine had a circulation of 1,469,267 in 2013.67 Billboard Magazine Billboard has a weekly subscription of 16,327.68 Alternative Press Magazine AP Magazine has 297,000 subscribers.69 SPIN Magazine SPIN Magazine has a circulation of 459,000.70 Paste Magazine Because Paste is an online-only publication, it has no circulation. Q Magazine As of 2013, Q Magazine has a circulation of 52,781 for print and online editions.71 Advertising Retention Rolling Stone Magazine Rolling Stone magazine’s print advertising retention is in declining, having dropped 27.1% to 139 in 2014. However, advertising for digital editions of the publications, like the iPad app, is increasing.72 Billboard Magazine

67 "AAM: Total Circ for Consumer Magazines." Alliance for Audited Media. N.p., n.d. Web. 27 Apr. 2014. <http://abcas3.auditedmedia.com/ecirc/magtitlesearch.asp>. 68 "Billboard (magazine)." Wikipedia. Wikimedia Foundation, 25 Apr. 2014. Web. 27 Apr. 2014. <http://en.wikipedia.org/wiki/Billboard_(magazine)>. 69 <http://www.wolframalpha.com/input/?i=what+is+the+circulation+of+alternative+press>. 70 "SPIN Magazine Micro MediaKit." SPIN Magazine Media Kit Info. N.p., n.d. Web. 27 Apr. 2014. <http://justmediakits.com/mediakit/609-spin.html>. 71 "Consumer Magazines Combined Total Circulation Certificate: July to December 2013."Audit Bureau of Circulations. Bauer Consumer Media, n.d. Web. 26 Apr. 2014. <http://www.abc.org.uk/Certificates/18862601.pdf>. 72 Sass, Erik. "Magazine Ad Pages Fall 4%." MediaDailyNews. MediaPost, 15 Apr. 2014. Web. 26 Apr. 2014. <http://www.mediapost.com/publications/article/223725/magazine-ad-pages-fall-4.html>.

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Billboard magazine advertises that it is “the only music publication that reaches a highly influential audience that sets pop culture trends,” with its audience consisting of business leaders and power players of the music industry. Since it does reach such an influential group of readers, advertising retention for this publication is steady.73 Alternative Press Magazine AP magazine boasts that their magazine will allow advertisers to reach a “dedicated youth market.” Since they have moved their publication into the digital world, advertisers are prone to chose marketing their products on the digital versions of AP as opposed to the print publication.74 SPIN Magazine SPIN Magazine recently made the change to become an exclusively digital publication. Thus, its print advertising retention went from 56.24 pages in 2012 to 0 pages in 2013. Digital advertising is in a period of growth though, as most advertisers favor digital advertising over print advertising.75 Paste Magazine During the economic recession in 2009, Paste magazine’s print edition was closed permanently due to lack of advertising retention.76 Currently, Paste magazine operates as a fully digital publication, and advertising retention has increased as more advertisers recognize the growth of digital publications.77 Q Magazine In its message to potential advertisers, Q Magazine calls itself “a legendary monthly magazine which celebrates everything that’s great in rock and roll.” Q has an online presence that includes “a new interactive iPad edition, social media, Q Radio,” all of which make the digital outlets of Q Magazine attractive for advertisers because of the number of people it can reach.78 Marketing Plan Product Feasibility and Strategy

73 "Billboard Magazine." Billboard Media Planner. N.p., n.d. Web. 27 Apr. 2014. <http://advertising.billboard.com/magazine>. 74 "Become a Partner with Alternative Press." Alternative Press. Alternative Press, n.d. Web. 27 Apr. 2014. <http://www.altpress.com/advertise>. 75 "Jan - Mar 2013 vs 2012." The Association of Magazine Media. The Association of Magazine Media, n.d. Web. 26 Apr. 2014. <http://www.magazine.org/insights-resources/pib/magazine-titles-data-historical-march-2007-%E2%80%93-january-2002/jan-mar-2013-vs>. 76 Stableford, Dylan. "Paste Launches Campaign to Save its Magazine." M and A and Finance @ FolioMag.com. Access Intelligence, n.d. Web. 26 Apr. 2014. <http://www.foliomag.com/2009/paste-launches-campaign-save-its-magazine#.U12MFGRdUso>. 77 "Advertise with Paste." pastemagazine.com. N.p., n.d. Web. 26 Apr. 2014. <http://www.pastemagazine.com/paste/2008/10/advertise-with-paste.html>. 78 "Q." Bauer Media Magazines. Bauer Media Group, n.d. Web. 28 Apr. 2014. <http://magazines.bauermediaadvertising.com/magazines/detail/Q>.

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With a circulation rate base of 1.45 million, Rolling Stone has been in the publishing game for over 40 years and is still serving its target by staying true to its content and technologically up to date. As Rolling Stone states itself, “Whether the subject is music, TV, movies or politics- over 12 million young Americans trust and turn to Rolling Stone every two weeks to keep them up on the subjects they care about most. Bold stories. Big interviews. Insightful commentary. All delivered with energy, passion, irreverence and a point of view that defines its audience.” As subscription rates for physical copies are declining,79 Rolling Stone is now thinking of new and innovative ways to expand their product and offer different methods for readers to access Rolling Stone content. With so much competition in the ever-changing digital world, the task has become to not only retain readers but to appeal to new generations.

To combat the declining subscribership, Rolling Stone has put in a great effort to provide information to readers in ways other than print publication. Rollingstone.com has launched its All Access Archive, giving people online access to all past magazine issues for a small fee. In addition, in 2013 Rolling Stone launched a digital version of the magazine, now available on all tablet formats. Rolling Stone has also launched a music news app and a live music app. 80 Pricing Strategy Rolling Stone’s pricing for printed publication is relatively similar to its competitors, with most 1-year subscriptions ranging anywhere from $10-$40.81 An average single copy is sold at $4.9982 and an annual subscription (24 issues including 2 double issues, totalling in 26 issues) is sold for $29.95.83

In early 2012, Wenner Media published a $10 app version of its book The Beatles: The Ultimate Album-by-Album Guide to test the waters of turning their print magazine into a digital form. While Wenner Media was initially slow to adapt to the digital trend, The Association of Magazine Media’s survey stated, “90 percent of respondents suggest they read more magazine content since acquiring their mobile device...That’s a loyal- and growing- audience for publishers, even ones like Jann Wenner who have been loudly skeptical of the iPods promise for their businesses.”84Now currently available for iPad, Rolling Stone offers multiple purchase options to best fit the readers needs. As stated in the Apple App Store description:

“You decide which option is right for you: -Buy a single issue of Rolling Stone for $4.99

-1 Month subscription for $1.99, plus first month free

79 "Media Kits; Rolling Stone." SRDS.com. Standard Rate & Data Service. Web. 12 Apr. 2014. <http://www.srds.com/mediakits/rollingstone/index.html>. 80 Wenner, Jann S. Rolling Stone. Rolling Stone. Web. |Apr. 2014. <http://www.rollingstone.com/>. 81 "Compare Music Magazines." Find The Best. FindTheBest.com, Inc. Web. | Apr. 2014. <http://magazine.findthebest.com/d/d/Music>. 82 "Media Kits; Rolling Stone." SRDS.com. Standard Rate & Data Service. Web. 12 Apr. 2014. <http://www.srds.com/mediakits/rollingstone/circulation.html>. 83 "Get 4 Free Issues." Rolling Stone Subscription Offer.Rolling Stone. Web. | Apr. 2014. <https://www.rollingstonesubscriptions.com/storefront/subscribe-to-rolling-stone/site/rs-bth-newoffer.html?link=1018408>. 84 Malthis, Joel. "Rolling Stone Headed to IPad in 2012." Macworld. 29 Nov. 2011. Web. 01 Apr. 2014. <http://www.macworld.com/article/1163891/rolling_stone_headed_to_ipad_in_2012.html>.

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-1 year subscription for $19.99, plus first month free”85 Rollingstone.com’s archive feature is accessible to print subscribers for free. Faq about the Archives states, “The Archives are a complete digital collection of every Rolling Stone issue since it was first published in 1967 until present time. The Archives are like a time machine, not only bringing subscribers content to read, but also bringing back memories of favorite songs, artists and events that shaped people’s lives whether they were relevant twenty years ago or just last week.” 86 For non print subscribers, Rolling Stone is offering a deal for the interested to Subscribe to the magazine and get 4 issues for 99¢ and get instant access to the current online issue and Rolling Stone Archives for free in hopes of more subscribers using this loss leader method.87

Channels of Distribution Rolling Stone Magazine’s ratebase is 1.45 million and it is published by its parent company, Wenner Media LLC. It is distributed on newsstands throughout the world as well as online at rollingstone.com and digitally for tablet users. The digital magazine is available through Apple App Store, Google Play, Nook, Zinio, Kindle, Next Issue and Kobo. Rolling Stone is dipping further into digital waters, with two iPhone Apps (Music News and On The Road Live Music) featuring additional music content. 88 As Rolling Stone is expanding their staff for digital platforms, the available content is continuously growing. Offered exclusively for Rolling Stone Digital, as stated, rollingstone.com is equipped with access to:

“• Breaking News • Music and Movie Reviews

• Content Channels • Blogs • RollingStone’s “Best Ever” Lists • Archives (Archives from over 40 years with over 1,000 issues of RollingStone available online for the first time ever )” Rolling Stone is enhancing the content for various categories available on their website such as:

“ • Music: The authority on music news, reviews and in-depth artist information • Politics: Commentary and reviews on today’s big issues • Movies: Reviews, Interviews and Commentary • Reviews: Albums, Songs and Movie • Artists: Profiles and photos • Blogs : Music, politics, tech, fashion • Photos: Custom curated galleries for music, movies & TV and politics 85 "Rolling Stone Magazine." App Store. Wenner Media, LLC, 16| Jan. 2014. Web. Apr. 2014. <https://itunes.apple.com/us/app/rolling-stone-magazine/id584432649?mt=8>. 86 "All Access FAQs | Music | Rolling Stone." Rolling Stone. Rolling Stone | Jann S. Wenner. Web. | Apr.2014. <http://www.rollingstone.com/music/pages/all-access-faqs-20111018>. 87 "Rolling Stones Archives- Subscribe." Rolling Stone Subscription Offer. Web. | Apr. 2014. <https://www.rollingstonesubscriptions.com/storefront/site/rs-archiveaccess.html>. 88 "RollingStone Digital Access." Rolling Stone. Web. |Apr. 2014. <http://www.rollingstone.com/services/digital-access>.

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• Videos: RS Live, RS Cover Shoots, New & Hot, At The Movies”89 Because of their move to digital, Rolling Stone is able to remain competitive by offering multiple methods of access the magazine and Rolling Stone original content that caters to many different user needs in an ever-changing digital world. Promotions and Advertising For years, Rolling Stone has gained the attention of readers through the use of controversial and iconic covers and features. As stated in their Press Kitt, “For over 43 years, Rolling Stone has never just reported the news. Rolling Stone makes the news.” 90 The magazine is often topic of conversation in the media due to its provocative nature. (Appendix for controversial covers) Their most controversial to date was August 2013 featuring Boston Marathon bombing suspect Dzhokar Tsarnaev on the cover, causing readers to question whether Rolling Stone was acting in good taste with its choice of cover.91 New England based stores like CVS, Walgreens and Tedeschi Food Stops boycotted the issue.92 Despite of the controversial cover choice and boycotts from distributors, edition sales doubled. Figures released by the Magazine Information Network show sales jumped by 102% over average per issue sales in the last year. The editors at Rolling Stone stand by their decision to publish Tsarnaev on the cover, stating that it fell “within the traditions of journalism and Rolling Stone’s long-standing commitment to serious and thoughtful coverage of the most important political and cultural issues of our day.” 93 The magazine uses various promotional offerings such a variety of subscription options for both print and digital versions. Also, subscribers receive exclusive access to The Archives, which also to helps drive up subscribership (as stated in Pricing Strategy, pg. 24.) Subscriptions also include Automatic Renewal Benefits94 and the option for print and ipad edition combo packs. For $34.95, readers can subscribe to receive 30 total print issues and 30 total digital issues for the price of just 26 issues.95 In addition, the magazine also has a Special 2 89 "RS Digital." Rolling Stone Media Kit. Rolling Stone. Web. | Apr. 2014. <http://www.srds.com/mediakits/rollingstone/RSdigital.html>.

90 "Rolling Stone Press Pages." Rolling Stone. Web. |Apr. 2014. 90<http://www.srds.com/mediakits/rollingstone/PressPages.pdf>.

91 Brown, Hayes. "Glamorizing Terrorism?: Rolling Stone Cover Of Boston Bombing Suspect Sparks Controversy Online." ThinkProgress RSS. 16 July 2013|. Web. Apr.2014. <http://thinkprogress.org/security/2013/07/16/2312871/tsarnaev-rolling-stone/>. 92 Stampler, Laura. "Here's How Advertisers Reacted To Being Placed In Rolling Stone's Boston Bomber Issue."Business Insider. Business Insider, Inc, 17 July 2013. Web. | Apr. 2014. <http://www.businessinsider.com/advertisers-react-to-being-in-rolling-stones-boston-bomber-issue-2013-7>. 93 Saul, Heather. "Rolling Stone Magazine Sales Double after Controversial 'Boston Bomber' Cover." The Independent. Independent Digital News and Media, 1Aug. 2013. Web. | Apr. 2014. <http://www.independent.co.uk/news/world/americas/rolling-stone-magazine-sales-double-after-controversial-boston-bomber-cover-8741803.html>. 94 "Get 4 Issues Free." Rolling Stone. Rolling Stone, |. Web. Apr. 2014. <https://www.rollingstonesubscriptions.com/storefront/site/rs-4for1.html>. 95 "Get 4 Free Issues." Rolling Stone Subscription Offer.Rolling Stone. Web. | Apr. 2014. <https://www.rollingstonesubscriptions.com/storefront/subscribe-to-rolling-stone/site/rs-bth-newoffer.html?link=1018408>.

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for 1 Gift Offer. This offer allows you to gift two 1 year subscriptions for just $29.96 at 26 issues per gift. Each additional gift is $15.96 Rolling Stone covers are also made into large posters and are available for purchase. All of the deals are conveniently available at RollingStone.com. While the print magazine still runs, Rolling Stone on the tablet is a much more unique and improved experience. Readers have the ability to actually listen to the music featured in the magazine. Its iPad version that is exclusively optimized for Apple’s tablet is fully equipped with iTunes links that allow readers to view, sample and purchase content from featured artists directly through the iTunes store. In addition to its newly improved musical aspect, the digital version also features a section called Digital Publishing Suite, where readers can view a slideshow of photos that would not likely have fit in the print version.97 With this kind of technology exclusive to the digital publication only, Rolling Stone is enticing people to subscribe to the digital version. Rolling Stone has also been known to partner with companies to offer special deals using content marketing. In the past, L’Oreal’s Garnier Fructis brand has partnered with Rolling Stone to create content marketing around the discovery of new and emerging musicians and their style. In 2011, the L’Oreal brand made history by searching for new artists around the country and asking consumers to vote for their favorites to decide who would become the first unsigned artist ever to be featured on the cover of Rolling Stone magazine. Later, in 2012, Garnier Fructis evolved its content marketing to Rolling Stone’s Women Who Rock annual issue, inviting customers to vote again for an emerging female musician to be featured in the flip cover of its celebrity cover artist.98 Partnerships like this not only help increase readership, but also helps to connect with consumers and build a stronger emotional connection with them.

Rolling Stone is also dipping into a variety of social media platforms to aid in the promotion and advertising process. In 2011, Rolling Stone released a Spotify app called Rolling Stone Recommends, in which users can stream a variety of songs, playlists, and albums recommended by the magazine’s editors, which helps to further promote the magazine.99 By using the app Vine (an app that allows users to create and share short videos), Rolling Stone is able to provide teasers to its audience. In order to create anticipation, Vine allows Rolling Stone to create videos that tease the magazine’s cover art. In the article How to Use Vine or Instagram to Sell Your Product, Aaron Zakowski states, “This strategy gets people talking about your brand and ensures that customers will revisit your social media websites in order to find more information about your products.” Rolling

96 "Special 2 For 1 Gift Offer|." Rolling Stone. Rolling Stone. Web. Apr. 2014. <https://www.rollingstonesubscriptions.com/storefront/subscribe-to-rolling-stone/site/rs-gift-2for1-0312.html?link=1014285>. 97 Adobe Digital Publishing Suite Team. "App of the Week: Rolling Stone." Adobe Digital Publishing RSS. Adobe Systems, Inc. |, 16 Jan. 2013. Web. Apr. 2014. <https://blogs.adobe.com/digitalpublishing/2013/01/app-of-the-week-rolling-stone.html>. 98 Gutman, Brandon. "5 Big Brands Confirm That Content Marketing Is The Key To Your Consumer." Forbes.Forbes Magazine, 27 Nov. 2012. Web. | Apr. 2014. <http://www.forbes.com/sites/marketshare/2012/11/27/5-big-brands-confirm-that-content-marketing-is-the-key-to-your-consumer/>. 99 Miller, Michael. "Five Top Apps for Spotify." Que Publishing. Pearson Education|, 23 Feb. 2012. Web. Apr. 2014. <http://www.quepublishing.com/articles/article.aspx?p=1842468&seqNum=4>.

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Stone magazine regularly uses this strategy to give their audience a preview of the celebrity that will be featured on next month’s cover. (See Appendix A)100 In addition to Vine, Rolling

Stone uses Facebook, Twitter, Tumblr and Instagram to promote its brand. Rolling Stone has also created two phone apps, which also promotes and advertises the magazine. The Rolling Stone Music News app description states, “Be the first to known with real-time music news, photos and videos. Plus, customize alerts to instantly learn what your favorite artists are up to.” The Rolling Stone On The Road live music app description states, “Don’t miss a beat. Get your go-to resource for the latest concert information. View shows in your own ‘hood or search by artist, venue or location. Plus, add an artist to your “favorites” tab and you’ll receive up-to-the-minute alerts.”101 In an attempt to expand their digital content to new audiences, Rolling Stone plans to introduce a new website called Rolling Stone Country in mid-2014. Gus Wenner, Director of RollingStone.com is leading this new venture, one of his first major moves since obtaining the position. According to Wenner, the country site plans to cover the country music scene in the same way Rolling Stone reports pop and rock music. Wenner says, “There’s a really big void in the digital coverage of country music as far as giving it the serious attention it deserves.” The country music scene is currently booming with more than a quarter of US adults now calling themselves country fans. Last year, the country music industry raked in $1 billion, which was fueled by a 4.2% increase in country album sales, according to Nielsen SoundScan. Rolling Stone publisher Chris McLoughlin agrees with Wenners move stating, “There’s a huge opportunity for us to expand the Rolling Stone consumer base by extending into country music.” The magazine will be opening an office in Nashville for its editorial staffers. To coincide with the country site’s introduction to the Rolling Stone family, the magazine is planning a country-themed print issue, which is a first for Rolling Stone. There are no plans for a regular print version of Rolling Stone Country.102 Operations Plan Method of Production or Service Delivery Rolling Stone Magazine is a bi-weekly publication distributed out to subscribed users and cleared retailers. Users and retailers subscribed to the magazine via internet, through phone or computer. Rolling Stone LLC publishes daily articles as pull factors for future subscriptions.103 100 Zakowski, Aaron. "How To Use Vine or Instagram Videos To Sell Your Products." Business 2 Community. 31 Dec.2013. Web. Apr. 2014|. <http://www.business2community.com/social-selling/use-vine-instagram-videos-sell-products-examples-0726707#!F7NRt>. 101 "Rolling Stone Digital Access." Rolling Stone. Rolling Stone. Web. | Apr. 2014. <http://www.rollingstone.com/services/digital-access>. 102 Sebastian, Michael. "Rolling Stone Planning New Website to Cover Country Music." Ad Age. Crain Communications|, 5 Dec. 2013. Web. Apr. 2014. <http://adage.com/article/media/rolling-stone-planning-website-cover-country-music/245551/>. 103 "Rolling Stone Subscription Offer." Rolling Stone Subscription Offer. N.p., n.d. Web. 18 Apr. 2014.

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Availability of Qualified Labor Pool Having such a vast pool to choose from due to technological networking, Rolling Stone LLC is able to publish and post high quality work. With many medium formats to find creative writers and designers, Rolling Stone LLC and alike publications, i.e.: US Weekly and Men’s Journal, do not hold difficulty in this field. With an increase in blogging, vlogging, and podcasting, writers and personalities are not hard to come across. When it comes to design work, the new software of Adobe Creative Suite (Photoshop, Illustrator, InDesign, etc.) design work for Rolling Stone is capable of high end. Such software helps potential designers with web layout formats and Rolling Stone LLC with knowledge and experienced designers. Business Partnerships

BONDI “Bondi's online digital publishing platform allows for browsing, searching and viewing of large collections of magazines. Digital issues are presented as exact replicas of the print release with all of the rich formatting intact. In addition to being a familiar experience to readers, this allows magazines to release back issues under the original copyright”104

SPOTIFY

“Spotify is a commercial music streaming service providing digital rights management- restricted content from record labels, including- Sony, EMI, Warner Music Group, and Universal”105

“Rolling Stone will integrate its year-end magazine issue with Spotify's service so readers can instantly play most, if not all, of the songs featured in the articles. The integration will involve the magazine's future issues” 106 Spotify also has its very own web page withing rollingstone.com to link to their playlist. [See appendix A for screenshot of Spotify link]

Yahoo

Yahoo holds a section for Rolling Stone music content on their website, and in return Rolling Stone Magazine presents a weekly Yahoo update music page to their web visitors.107 [See appendix A for Yahoo music on Rolling Stone graphic] To help Rolling Stone LLC fill their gap and expand their audience, Yahoo has dedicated a whole web section to the hot hits of country. [See appendix A for Country Music News] This partnership is helping RS plans for the future digital publication of Rolling Stone Country.

104 "Rollingstone Services - Partners." Rolling Stone. N.p., n.d. Web. 17 Apr. 2014. 105 "Spotify." Wikipedia. Wikimedia Foundation, 28 Apr. 2014. Web. 10 Apr. 2014. 106 Pham, Alex. "Spotify Partners with Rolling Stone, Others to Draw in Music Fans." Los Angeles Times. Los Angeles Times, 30 Nov. 2011. Web. 17 Apr. 2014. 107 "Yahoo Signs Content Pact With Wenner Media | Media - Advertising Age."Advertising Age Media RSS. N.p., n.d. Web. 28 Apr. 2014.

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Quality Control Rolling Stone LLC puts quality control in the forefront of the company with eight editors proofing, reviewing, and revamping all work before publications.108 All product holds true to Rolling Stone standard with the final editors’ reviews of written, image, design, photo, video, media and art work. Wenner Media LLC employs a Quality Assurance, Giovanni Colantonio,109 for the guarantees of quality control. Online and offline publications do not distribute without high quality control and review. Customer Support Rolling Stone LLC puts emphasis on customer support by providing many contact forms via their website.110 A customer may contact the company through phone, email, or web. Rolling Stone provides many links to answer customer inquiries before the need of contact, such as: “Help Desk” and “FAQ”111 Customer Support Obligations Rolling Stone LLC holds true to customer support obligations with contact support and help desk information, but also to customer privacy. All customer information is held confidential to the company, which is explicitly stated on the Rolling Stone website. The company's policy on privacy is describe in grave detail for customer clarification.112 Financial Plan Capital Requirements for the next 3-5 Years i. Sources and Uses of Funds113

Accounting Over $25,000 Advertising Over $250,000

Contract Labor Not Available Insurance Over $100,000

Legal Over $25,000 Management & Administration

Over $100,000

Office Equipment & Supplies

Over $250,000 Package & Purchase Print

Over $50,000

Payroll & Benefits Over $10 Million Purchased Print Over $25,000

108 "RollingStone.com Staff | Services | Rolling Stone." Rolling Stone. N.p., n.d. Web. 17 Apr. 2014. 109 "Giovanni Colantonio." World's Largest Professional Network. N.p., n.d. Web. 17 Apr. 2014. 110 "Rollingstone Services - Contact Us." Rolling Stone. N.p., n.d. Web. 17 Apr. 2014. 111 "Rolling Stone Magazine Customer Services." Rolling Stone Magazine Customer Services. N.p., n.d. Web. 17 Apr. 2014. 112 "Rollingstone.com Privacy Policy." Rolling Stone. N.p., n.d. Web. 17 Apr. 2014. 113 "Rolling Stone Press." Reference USA. Web. 15 Apr.2014. <http://www.referenceusa.com/UsBusiness/Detail/Tagged/0a823624fa1c4e44a54e80c43404b9fe?recordId=558784351|>.

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Rent & Leasing Over $500,000 Technology Over $50,000

Telecommunications Over $250,000 Utilities Over $100,000

Overview of Financial Projections Sales Volume in 2013 = $78M114 Income Statements

Yes! Magazine 2011 Annual Report 2011 Operating Budget115

January 1, 2011-December 31, 2011 Income116 Sales (subscriptions, newsstand, books, back issues, posters, other) $678,580 Donations from individuals $392,236 Foundation grants $662,500 Interest and dividends $22,489 Total 2011 income $1,755,805 Expenses117 Staff salaries, benefits, and taxes $940,991 Interns $28,723 Magazine paper, printing, and distribution $244,145 Magazine circulation services $79,517 Outreach (education, media, High Impact Campaigns, marketing, conferences) $151,729 Editorial and web $69,650 Development $85,047 Office expenses and equipment $104,553 Total 2011 expenses $1,704,355 114 "Rolling Stone Press." Reference USA. Web. 15 Apr.2014. <http://www.referenceusa.com/UsBusiness/Detail/Tagged/0a823624fa1c4e44a54e80c43404b9fe?recordId=558784351|>. 115 Rep. Web. 21| Apr. 2014. <http://www.yesmagazine.org/pdf/PFN_2011_Annual_Report.pdf> 116 Rep. Web. 21| Apr. 2014. <http://www.yesmagazine.org/pdf/PFN_2011_Annual_Report.pdf> 117 Rep. Web. 21| Apr. 2014. <http://www.yesmagazine.org/pdf/PFN_2011_Annual_Report.pdf>

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**Disclaimer: Since Rolling Stone LLC is a private company and do not publish company financial statements that are accessible to the public, this income statement is from a similar company in the same industry** Balance Sheets

Time Warner Inc.118 2011 to December 31, 2012 (millions): Balance at December 31, 2011 .............................................................................................$ 16,048 Cash provided by operations from continuing operations ............................ …………………..(3,476) Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643 Repurchases of common stock .................................................................................................. 3,272 Dividends paid to common stockholders .................................................................................... 1,011 Investments and acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705 Proceeds from the exercise of stock options ............................................................................ (1,107) All other, net ................................................................................................................................ (66) Balance at December 31, 2012 ............................................................................................ $ 17,030 **Disclaimer: Since Rolling Stone LLC is a private company and do not publish company financial statements that are accessible to the public, this balance sheet is from a similar company in a similar industry** Statement of Cash Flows Rolling Stone LLC is a private company and do not publish company financial statements that are accessible to the public. Payback and Exit Strategy Because of the unique material published in rolling Stone Magazine, the possible exit strategy needed would most likely be acquisition-based. Rolling Stone Magazine owns numerous copyrights to magazine and website articles, photographs, videos, and other published material, collectively known as “content.” In 2012, Rolling Stone Magazine sold 1,389,552 subscriptions, as well as over 75,000 single-copy sales119. In addition to the above assets, the Rolling Stone Magazine name carries with it an internationally known distinctive brand, image, and culture. Although Rolling Stone has a strong foothold in print, the digital presence is certainly growing,

118 Rep. Web. 21| Apr. 2014. <file:///C:/Users/Alanna/Documents/JMU/Spring%202014/Entrepreneurship/TWX-2012-Annual-Report.pdf> 119 "Rolling Stone Media Kit." Rolling Stone Media Kit. AAM Publisher's Statement, 31 Dec. 2012|. Web. 15 Apr.2014. <http://www.srds.com/mediakits/rollingstone/circulation.html>

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and it carries a recognized cultural influence, Rolling Stone would definitely appear attractive to an acquiring company. An acquisition would allow Rolling Stone to mark their price based off of buyer’s perceived value, gradually pay off accounts, and leave the industry in good standing.

Critical Risk Factors

Management Risk The severe risk that Rolling Stone faces involves the company’s future when the founder, Jann Wenner, inevitably passes. In addition to being the founder, Wenner has also served as main editor and publisher of the magazine for over forty years120. This situation has been faced by other companies already, such as when the founder of Apple, Steve Jobs, passed in 2011. When Jobs passed and new management was introduced, Apple stock fell dramatically121. Thankfully, Apple recovered fairly quickly and continues to grow to this day; but if Rolling Stone is pushed to that, the company may not fare so well. Marketing Risks While technology is rapidly expanding and increasing in value, the magazine industry is struggling to keep up. It was hypothesized that the iPad would be the “savior of the magazine publishing industry when it hit the market back in 2010.”122 Unfortunately that wasn’t the case for Rolling Stone. They were late to the game and missed everyone jumping on the bandwagon which most likely caused followers of Rolling Stone to subscribe to a competitor who got their iPad app out earlier. Operating Risks With the current shift from print to digital causes a total shift in the operating process for Rolling Stone Magazine. The company will need to rely heavily on its digital partners to provide their needs which would include Rolling Stone LLC losing some pricing control to the partners. The total shift from print to digital after years of printing will most likely cause initial problems but may not take long to adjust. Financial Risks In a failing industry such as magazine publishing, any financial move is risky. Releasing content to an iPad app can be risky since the app is free, with additional costs optional once you’re in the app. The Rolling Stone app “will be [a] tablet version of the print magazine and, sadly, won't offer any new or unique content”.123 Without new or unique content, it will be difficult to

120 "Jann S. Wenner | Biography." Jann S. Wenner. Web. 30 Mar. 2014. <http://www.jannswenner.com/Biography/>. 121 Kim, Susanna. "Apple Stock (AAPL) Dips After Steve Jobs' Death." ABC News. ABC News Network, 06 Oct. 2011. Web. 15 Apr. 2014. <http://abcnews.go.com/Business/steve-jobs-death-apple-stock-aapl-dips/story?id=14680622>. 122 Marshall, Jack. "Magazines Fumble the IPad Opportunity." Digiday. 12 Apr. 2012. Web. 15 Apr. 2014. <http://www.digiday.com/publishers/will-ipad-magazines-ever-really-wor/>. 123 Hodgkins, Kelly. "Rolling Stone Magazine Coming to the IPad." TUAW. The Unofficial Apple Weblog, 29 Nov. 2011. Web. 18 Apr. 2014. <http://www.tuaw.com/2011/11/29/rolling-stone-magazine-coming-to-the-ipad/>.

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differentiate the app from the magazine itself and because of that confusion it could hinder the entire company financially. Also considering the ever-changing quality of technology, it’s possible that web-based media could flop at any given point. Intellectual Property Infringement Rolling Stone LLC displays its ‘Terms of Use’ on their website in the event that intellectual property belonging to the company is stolen or otherwise manipulated. “The RS Applications, the content offered in its print and electronic publications (‘Content’) and the Services offered are intended for your personal, noncommercial use in accordance with these Terms. You agree that you will not, unless specifically permitted by us (i) copy, display or distribute any part of the Content or RS Applications, in any medium, without Rolling Stone's prior written consent, or (ii) alter or modify any part of the RS Applications other than as may be reasonably necessary to use the RS Applications for their intended purpose. You further agree that you will not use any automated devices, such as spiders, robots or data mining techniques to catalog, download, store or otherwise reproduce, store or distribute Content or to manipulate the RS Applications or Services.”124 Rolling Stone provides ways to contact if anyone wants to obtain a license to use content in any way not described in the Terms of Use. Since the Rolling Stone headquarters is in New York, the company also has the laws of the state to protect them. Rolling Stone also lists ways to contact them if a user feels that he or she has experienced personal intellectual property infringement with the magazine or website. Other Risks as Appropriate Rolling Stone Magazine ran into a huge conflict when they put Dzhokhar Tsarnaev, the Boston Marathon bomber, on the cover of their August 2013 issue. Companies including “Walgreens and CVS banned the issue from its pharmacies in protest of the cover.”125 While the issue certainly sold well because of the controversy and got the Rolling Stone name out, it “sparked a backlash against the magazine in social media and in boardrooms around the country.”126 Rolling Stone attempted to defend the cover and story, claiming the story “[fell] within the traditions of journalism and Rolling Stone's long-standing commitment to serious and thoughtful coverage of the most important political and cultural issues of our day.”127 In spite of Rolling Stone’s defense, the magazine attracted negative criticism and lost subscribers due to that one controversial issue which may not be a cost they can afford in the failing industry. Appendix

A. Supporting Documents

124 "Rollingstone Services - Terms of Use." Rollingstone.com. Rolling Stone LLC. Web. 18 Apr. 2014. <http://www.rollingstone.com/services/terms>. 125 Shapiro, Rebecca. "Janet Reitman Discusses Her Controversial Rolling Stone Boston Bomber Cover Story." The Huffington Post. TheHuffingtonPost.com, 02Aug. 2013. Web. 21| Apr. 2014. <http://www.huffingtonpost.com/2013/08/02/janet-reitman-rolling-stone-boston-bomber-cover-story_n_3696415.html>. 126 Cuevas, Julie Cannold. Mayra, Sho Wills, and Josh Levs. "Rolling Stone Cover of Bombing Suspect Called 'slap' to Boston." CNN. Cable News Network, 01 Jan. 1970. Web. 21| Apr. 2014. <http://www.cnn.com/2013/07/17/studentnews/tsarnaev-rolling-stone-cover/>. 127 Cuevas, Julie Cannold. Mayra, Sho Wills, and Josh Levs. "Rolling Stone Cover of Bombing Suspect Called 'slap' to Boston." CNN. Cable News Network, 01 Jan. 1970. Web. 21| Apr. 2014. <http://www.cnn.com/2013/07/17/studentnews/tsarnaev-rolling-stone-cover/>.

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a. Pictures of Yahoo Partnership

b. Pictures of Spotify Partnership

c. Rolling Stone Cover Teaser on Vine

B. Resumes of founders and key employees

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a. Since Rolling Stone is a private company, this information is not available online. Some employees do have personal LinkedIn accounts that we were able to access with links provided in footnotes.

C. Pictures of products and prototypes

a. Controversial Covers 128

128 Stice, Joel. "The 20 Most Controversial Rolling Stone Covers of All Time." Heavy. 17 July 2013. Web. | Apr.2014. <http://www.heavy.com/entertainment/2013/07/20-most-controversial-rolling-stone-covers-of-all-time/>.

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b. Tablet Prototypes 129

D. Other Documents a. email to Rolling Stone sent to: publicity@rollingstone.com

129 Bell, Killian. "Rolling Stone Magazine Finally Comes To Newsstand, Filled With ITunes Links | Cult of Mac." Cult of Mac. Cultomedia Corp|, 17 Jan. 2013. Web. Apr.2014. <http://www.cultofmac.com/210797/rolling-stone-magazine-finally-comes-to-newsstand-filled-with-itunes-links/>.

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