Outlook group shuts down three intl magazines; fires over 100 employees

The Outlook group has decided to close down its international magazines, People, Geo and Marie Claire. The publishers, Outlook Publishing (India) Pvt Ltd have issued an official statement that these magazines will be discontinued with immediate effect and there would not be any forthcoming issues. The magazines were published under a licensing arrangement from the original publishers. The statement goes on to say that the other magazines of the group will continue in the same manner as they are being published and that the management is committed to rest of the group’s magazines. The official version is that the license fees were way too high and was becoming unsustainable. Hence it was decided not to renew the licensing agreement.

Marie Claire, a leading international women’s fashion and lifestyle magazine, was launched in India in 2007 through an agreement with Groupe Marie Claire, a French publishing company. In the same year, through an agreement with Time Inc, People was bought to India in 2008. The Outlook Group then tied up with European magazine publisher, Gruner + Jahr (G+J) International in 2008 to launch the Geo science magazine in the country.

The three magazines employed around 100 staffers and their immediate future is uncertain. An employee on conditions of anonymity told Adgully that the decision was a bolt out of the blue and they got to know of the decision through a tweet and then through media reports.

Opinions as to the closure are mixed. A few to whom Adgully spoke opined that the decision was actually surprising as the magazines were doing well and that lifestyle advertising is not suffering from the effects of reduced adspends. While some others said that over the past few months, revenues through advertising and circulation had almost become stagnant. Salaries were becoming difficult and given the rising costs of raw inputs like newsprint, power etc, the magazines were sort of becoming cost centre. It is also said that the magazines did not exactly catered to the lifestyle tastes of the discerning Indian reader; as a result the death knell has already been sounded. It was only a matter of time before they had to shut down.

Whatever be the real reason, as of now we go by the management’s statement. As days go by, the real picture will emerge. Meanwhile keep watching this space.