1. 1 The New Challenges for LA Publishers How to Manage Your Company to Realize Profitable Growth Howard W. Fisher

2. 2 What’s great about LA? Mobile Multicultural Outdoors Affluent Weather 24/7 The real city that never sleeps! Largest city in California Pacific Rim attitude Closer to expanding markets—China +

3. 3 CA — Largest State and Growth Census PopulationChange, 1990 to 2000 Rank AreaApril 1, 2000April 1, 1990NumberPercent 1 California33,871,64829,760,0214,111,62713.8 2 Texas20,851,82016,986,5103,865,31022.8 3 Florida15,982,37812,937,9263,044,45223.5 4 Georgia8,186,4536,478,2161,708,23726.4 5 Arizona5,130,6323,665,2281,465,40440.0 6 North Carolina8,049,3136,628,6371,420,67621.4 7 Washington5,894,1214,866,6921,027,42921.1 8 Colorado4,301,2613,294,3941,006,86730.6 9 Illinois12,419,29311,430,602988,6918.6 10 New York18,976,45717,990,455986,0025.5

4. 4 California is the 5th Largest Economy in the World 1995—7 th 2000—6 th 2001—5 th Going for 4 th

5. 5 California’s Economy far Larger than New York (Publisher Central) Aerospace Software Entertainment Agriculture Bio Tech Technology

6. 6 West Coast Trend Setting Medical Bio Tech Tech Design Fashion Entertainment Internet Development

7. 7 LA Culture Diverse Unlimited activities Genetic adventurer disposition New Ellis Island – South to North migration – Far East to West Coast migration Changing Latin culture – Language shifts – Tipping points

8. 8 LA is a state of mind Protest, Controversy Peoples Republic of California Surfboards, Skateboards Low Riders, Fast and Furious Music, Motion Pictures, Television Extremisms Idea Generation, Integration, Fusion

9. 9 LA—a tendency to set trends, but not capitalize on them Publishers’ reluctance to capitalize on scientific, cultural and product trends that move West to East. What needs to be done differently? Recognize your own trends

10. 10 Research LA Times—best prognosticator of trends Observe news from bellwether states – California, Oregon, Texas Observation—implications—consequences

11. 11 LA Times Festival of Books 160,000 consumers in one place What is really being offered? What do these people want? What will they want 5 years from now?

12. 12 Market concept Value is in growing markets Can the concept be scaled? Can the concept be expanded? First to market?

13. 13 Be Market Driven What products will we need to create for this changed market? Shape Product to Market

14. 14 Think user / consumer—not books What are their needs for information? – Web – Book – Magazine – Newsletter – E-letter – E-community Ancillary Products

15. 15 Media explosion has changed consumer habits & expectations Information explosion 60,000 vs 135,000 new titles in 5 years – Gaps & opportunities What future forms of information, education & entertainment do we see? How can an LA publisher grow a business in this environment?

16. 16 Research & Understand Your Market Look at the big picture – Your media’s trends – Your market Trade? Educational? Domestic International – Your channels

17. 17 Publishing Plan Where can you be successful? Where can you own the category? How can you own the channel?

18. 18 IP rules What is the intellectual property? What barriers to entry can be erected? Success invites competition

19. 19 Market Conditions What are the market conditions we’re experiencing & expect to have? Decreased bookstore sales Increased Internet sales Increased competition for Special Sales

20. 20 Make Special Sales Core New New York trend Known by smaller and midsized publishers for decades Advantages—Closer contact with end consumer, no returns, better margins, better payment

21. 21 Are you doing the web right? Online communities Google and other search words ONIX compliant Continuously evolving technologies

22. 22 Think long-term Micro and small presses do have value Quality titles stand the test of time How do we create value from the beginning?

23. 23 Questions? How can we leverage changes in media explosion and new consumer expectations? Should we be competing or cooperating with a compatible partner? What areas of the publishing process should our company invest in or control?

24. 24 Thanks Howard W. Fisher The Fisher Company 7493 N. Oracle Road Suite 125 Tucson, AZ 85704 Phone 520-547-2460 Fax 520-744-0944 E-mail howard.fisher@thefishercompany.com