Modern Luxury adds 17 titles with acquisition of fellow upscale publisher GreenGale Publishing
The regional luxury magazine industry is feeling the pressures of low ad page rates, and intense competition – so consolidation and cost cutting is to be expected
The upscale regional magazine publisher Modern Luxury, owned by the Dickey family, will be acquiring GreenGale Publishing, formerly known as Niche Media Holdings.
GreenGale publishes Aspen Peak, Austin Way, Boston Common, Capitol File, Gotham, Hamptons, Los Angeles Confidential, Michigan Avenue, Ocean Drive, Philadelphia Style and Vegas magazines, and also produces the custom publishing titles Art Basel, Wynn, Maison&Objet Americas, The Mall at Short Hills and Mall of San Juan magazines.
The Nevada-based publisher was formed by Jane Greenspun Gale and her husband Jeff Gale when they were managing partners at Niche Media.
Luxury titles have performed better than other categories since the great recession, reflecting the shift in wealth upwards, even after the end of the recession. But regional titles are another matter. Ad pages generally are low, and there is intense competition for advertising between titles, calling into question whether the number of titles can continue to expand.
[Update: Alex Dorer, representing Modern Luxury, reaching out to say that “all existing Modern Luxury and Greengale titles are expected to continue publishing following the deal.” As a result, this story has been modified.]
An example of the saturation of luxury regional titles can be seen here in Chicago where Modern Luxury publishes CS, Modern Luxury Weddings Chicago, Modern Luxury Interiors Chicago, Men’s Book Chicago, NS, Modern Luxury Weddings North Shore, Charity and Social Datebook Chicago, and Modern Luxury City Guide Chicago.
GreenGale Publishing, meanwhile, publishes Michigan Avenue.
But despite the competition, the market to reach the rich is too alluring for many. Just today, Haute Media Group announced that it is launching a magazine in Chicago.
Regional luxury magazines generally are completely advertising based, promising advertisers that they can reach upscale readers who receive the magazines for free, and without having to request them. The national luxury lifestyle titles have a more balanced approach – but they, too, are running into headwinds as luxury brands and retailers get into the content publishing business.
Here is the press release from Modern Luxury on the acquisition sent to TNM:
NEW YORK, NY — April 17, 2017 — Modern Luxury announces the purchase of GreenGale Publishing, formerly known as Niche Media Holdings – expanding Modern Luxury’s market position as the largest luxury lifestyle publisher in the United States.
The acquisition of GreenGale Publishing adds 17 premiere lifestyle publications – including the iconic Ocean Drive, Hamptons and Vegas Magazine – to the Modern Luxury portfolio.
Modern Luxury will now publish 84 popular titles in 24 top markets. All existing titles are expected to continue publishing.
“This is a defining transaction for Modern Luxury as we build the country’s premier luxury media and brand activation platform,” said Lew Dickey, Chairman of Modern Luxury Media.
“We’re excited to be adding these iconic brands and important new luxury markets to our platform,” said Michael Dickey, CEO of Modern Luxury. “We now have true national reach with unparalleled local activation for luxury marketers.”
“It is with huge confidence and excitement for the future that the Gale family completes this transaction,” said Katherine Nicholls, CEO of GreenGale Publishing. “We have immense respect for the Dickey family and their vision to scale Modern Luxury to an impressive national media company made up of the strongest regional brands across the country. We are extremely proud of the achievement of our brands and people who now join a growing national organization that will offer unparalleled reach to our valued clients.”
In cities where Modern Luxury and GreenGale publications overlap, some titles will shift their focus to a combination of younger audiences and specific interest areas – such as weddings, lifestyle and interiors.
This acquisition follows a record-breaking year for Modern Luxury. The publisher’s recent success has been propelled by its expansion into new markets, including the launch of Silicon Valley magazine last year, as well as the newly rebranded Weddings magazines. The company also recently announced that Modern Luxury Palm Beach will launch in November.