A rolling stone gathers no moss, and neither do international publishers looking to licence magazines in other markets, especially in the Middle East. Despite one fifth of all print publications in the GCC having closed since the beginning of last year, according to the data supplier MediaSource, commentators say magazines produced under licence from international publishers often fare better than their home-grown competitors.
While few new local magazines have emerged during the recession, a significant number of international licensed titles are set for launch in the Middle East, including regional editions of Rolling Stone, National Geographic and Forbes. They join an established set of magazines produced under licence in the region, including Time Out Dubai and Esquire Middle East, both published by ITP, and Hello and Campaign Middle East, produced by Motivate Publishing.
This is despite boom-time annual fees of up to US$750,000 (Dh2.7 million) for the rights to publish regional editions of leading magazines, a figure that has plummeted to a maximum of about $100,000 after the global economic downturn, according to one regional commentator. The growth of magazine licensing in the Middle East reflects global trends, says Chris Llewellyn, the president and chief executive of the International Federation of the Periodical Press (FIPP), a global association of magazine publishers.
"The number of cross-border magazine launches worldwide are tracking at 10 per cent more than last year," Mr Llewellyn says. Last year in Dubai, FIPP held the Worldwide Magazine Marketplace, a forum for magazine publishers to talk about brand licensing, joint ventures and content syndication. The decision to host the event in the Middle East was due to a growing confidence among regional publishers, Mr Llewellyn says. "Publishers like ITP and Motivate had been doing licensing for some time, but we saw some of the Arab publishers saying 'we could do this'. Even in downturns, advertisers like new things, particularly with brands they recognise."
Magazine licensing in the Middle East has become more established in the past three or four years, says Ian Fairservice, the managing partner of the Dubai-based Motivate Publishing, which produces four magazines under licence from international publishers. "Up until eight years ago when Dubai Media City opened, I don't think there was a single licensed magazine in the region," Mr Fairservice says. "In the last three to four years, there have been more launches of mainstream licensed magazines than home-grown titles in the Middle East."
One advantage of publishing a magazine under licence is that the agreement often comes with the right to use content from global editions. "Typically about 60 to 70 per cent of the magazine is made up from licensed material," he says. One of the most high-profile launches this year is likely to be that of Rolling Stone Middle East, a monthly English-language version of the US title, in November. Waref Hawasli, the owner of HGW Media, which holds the rights to publish Rolling Stone Middle East, says that launching local versions of established magazines can be more attractive to advertisers.
They "want to advertise in brands that are reputable, that are known worldwide. They realise that they're probably getting a stronger return on investment. The brand Rolling Stone is almost as well known as Coke or Pepsi - the brand recognition is there immediately," Mr Hawasli says. "I have several international titles in mind that I hope to bring to the region." But while the high profile of an international brand name can be beneficial, it does not guarantee commercial success.
"The doors that have been opening for my editors are remarkable. But it's not a magic bullet," he says "You need to adapt to the local market. [Having an international title] doesn't mean its going to go gangbusters overnight." Mr Hawasli declines to say how much his company is paying for the regional publication rights. "Obviously there are royalties that need to be paid to use the trademark and receive the content from the US edition. It is divided on a monthly basis but paid every six months," he says.
Mazen Nahawi, the president of News Group International, a news management company based in Dubai, says magazine licensing fees are $100,000 per year at most in the current economic climate. "I've heard numbers go from $50,000 to $750,000 per year, and that was during the boom years. I'd imagine in today's climate that it would be hard to be asking for more than $100,000 as a licensing fee," Mr Nahawi says.
"I'm aware first-hand of some of the asking prices from previous consulting work." Mr Llewellyn says that while the $750,000 figure "sounds very high", licensing agreements can range up to $500,000 in the region. "A big market-leading women's fashion lifestyle title would be a lucrative product in the Middle East." Profits would probably be handled under a revenue-share model, with licensors and licensees dividing advertising income in what Mr Llewellyn says is the most common of magazine licensing arrangements.
Mr Nahawi expresses concern that a paucity of "high-quality niche journalism" in the region could be a drawback for international magazine brands. "I fear publishing under licence is giving these great quality brands a make-or-break position among the public here. If it's not done properly, it may ruin their reputation with the Middle East audience," he says. "Supervision and due diligence should not be limited to the setting up of a magazine. It's about the hard and gritty process of day-to-day journalism."
bflanagan@thenational.ae