Today's initiative has been variously billed as "iTunes for Magazines" (correct philosophically, but wildly overstated) and "Hulu for Magazines" (incorrect, since Hulu is free). Basically you can now go to this digital storefront and buy all your favorite Conde Nast, Meredith, Hearst, Time Inc., and News Corp publications, to read on your "portable digital device" of choice. Your crappy mobile phone, or iPhone, or upcoming Apple tablet, or, hey, Time Inc. is making its very own tablet, & ad infinitum.

And, of course, this is not the only "digital storefront" thing—Hearst, a partner in this venture, is also going forward with its own personal digital storefront called Skiff , and there are similar services already operating, although, hey, there's not dominant iTunes-type player yet, so you never know.

This could be a successful venture. Then again, it could fade into irrelevance in months. Somebody will make the dominant digital storefront for content like this, just like someone will make the dominant digital reader. Magazine publishing companies, one would think, are likely to get smoked by someone like Apple in this particular sector. But they think it's worth the gamble, after watching what happened to the music industry.

But it'll take a few years. How much would you pay to read Sports Illustrated on your E-reader right now? You don't have an E-reader. And you can read Deadspin for free. So, you'd pay nothing. Changing that dynamic is what media companies need to worry about.

And here's Time Inc's announcement to employees, just because we have it:

December 8, 2009
To: Time Inc. Employees
From: Ann Moore
Re: New Digital Venture

Today, five leading publishers including Time Inc., Conde Nast, Meredith, Hearst and News Corporation announced the formation of a new venture to develop a digital storefront and a common reading application that will allow consumers to enjoy their favorite magazine and newspaper content on any platform they choose.

We already know that the next generation of mobile devices will be loaded with color touchscreens, flexible displays, video capabilities and other features that will make them ideal for consuming rich content and an appealing environment for advertisers. These devices will allow us to combine the best of what consumers love about magazines – quality, curated journalism, engaging content and beautiful photography – with the speed, convenience and portability of the latest technology.

While Time Inc. is pursuing a number of initiatives that will help us expand our current digital businesses and develop new products and revenue streams, our participation in this venture is an important part of our efforts. You'll be hearing more about it in the coming weeks and months.

In the meantime, for a look at some of the work Time Inc. is doing around portable devices, check out the demo Sports Illustrated developed, which will give you an idea of how our digital content might be enjoyed in the near future.

www.si.com/tablet

A.M.

Armstrong, the former golden boy of Google's advertising side, was hired just this past spring and has long been expected to initiate a massive restructuring. In his memo, he discusses a strategy session that nailed down where, exactly, the company is going. He also confirms his first two firings, reported previously by Business Insider: longtime company execs Kim Partoll, the COO, and Local, Mapping and Search boss John Kannapell. Both were hired shortly after AOL's disastrous merger with Time Warner.



He also mentions a "Project Everest:"

We have a strong strategy and we need to be laser focused on execution. We are planning another video update next week with a progress report on Project Everest, and I look forward to seeing you all then.

We look forward to that video, too! Full memo:

Bartz would certainly like to know. In her weekly all-company email, sent out early, she asked why her workers "seem they're waiting for something," and demanded that "we stop waiting and get moving."

Uh, OK, but doing what? Shouldn't Bartz be, like, more specific? As out tipster put it: '

Q: Why are people "waiting for something"?

A: Because there's no freaking direction from managment to the troops. Isn't that *her* job?

Most of the email:

Surprise! You're getting my Friday message a bit early this week - I'll be out for two weeks or so starting today for knee replacement surgery. :(

I've got lots to cover before I go under the knife, so let's dive right in:

we're going to take a new approach to my weekly emails. You'll now hear from me every few weeks, but in-between will hear more from my staff. I'm not the only person with interesting things to say, and it's important that you hear from others that are running the business. And when I say my staff, I mean all my staff. Even Judy. I'm sure she can't wait to tell you what it's like working for me day-in and day-out.

One last thing before I go. I've noticed that since the reorg, people seem like they're waiting for something. I'm not sure if it's a sugar-low or what, but we need to stop waiting and get moving. Good things do not come to those who wait, they come to those who make things happen.

Oh, goodie: We can't wait for Eric Brown's turn as Bartz's email guest host!

(Pic: Via All Things D)

Date: Fri, 27 Mar 2009 13:30:57 -0400
Subject: To all edit from Bill Baldwin

After nearly 20 years at Forbes, most recently as Managing Editor, Stewart Pinkerton has decided to retire next month after the completion of the edit staff merger, a process he's been deeply involved in for the past few months.

For a long time we have depended on Stew in many areas: getting the magazine out on time and under budget, recruiting new talent to the editorial staff and overseeing foreign licensee editions. In recent years he was also the bridge between magazine and online editorial staffs, smoothing the way for this year's integration.

Prior to Forbes, he spent 24 years at the Wall Street Journal, part of that as Deputy Managing Editor. There are a lot of great journalists who owe a first or an important stepping stone in their careers to a hiring decision by Stew. Among them: Mary Ellen Egan, Dan Hertzberg, Dennis Kneale, Laura Landro, Jane Mayer and Jim Stewart.

Stew has been an important colleague, and we are grateful that he'll continue his association with Forbes as a Contributing Editor. Please join me in thanking Stewart for his many contributions over the years. We wish him all the best in the years to come.

Bill Baldwin

We are considering a transaction with Yahoo!, not a full acquisition, but we reserve the right to reconsider that alternative. We are not where we want to be. We are better with algorithmic search and we are investing to differentiate in vertical experiences. Hear more Wednesday. Actions we are taking: With search, we are ready to throttle up distribution initiatives. We are building new releases of Windows, Windows Live, Windows Mobile, Internet Explorer, Search and MSN with an eye towards optimizing and unifying. Fix our online branding-Our brands are fragmented and confusing. we need to clarify. In display advertising, we will increase engineering resources. Build on our strengths in Europe. Expand strategic partnerships. Pursue small, targeted acquisitions.

From: Kevin Johnson
Sent: Sunday, May 18, 2008 1:30 PM
To: Platforms & Services Division
Subject: Online Services Strategy Update


We have been executing against the core strategy I first presented at our Financial Analyst Meeting in July 2007 to go after the growing opportunity in online services and advertising. Four pillars have formed the basis of our strategy:

1. Consolidate ad platform and win in display
2. Innovate and disrupt in search
3. Deliver end-to-end user experiences across PC, phone, and Web
4. Reinvent portal and social media experiences

We have many options that support acceleration of our strategy. As announced earlier today, we are also considering new alternatives for a transaction with Yahoo! which do not involve a full acquisition. At this time, we have not made a new bid to acquire all of Yahoo!, but we reserve the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo!, shareholders of Yahoo! or Microsoft, or with other third parties.

Regardless of the outcome of any new discussions, it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we've been in this position longer than we'd all like. To that end, we will be accelerating elements of our core strategy, and breaking ground in new areas.

On Tuesday, Brian McAndrews is hosting advance08, our annual advertising conference here in Redmond. Over 400 leaders from across the media, technology and advertising landscape will be here for two days to engage in dialogue on industry trends and opportunities. These leaders are some of our closest partners in the digital transformation of the advertising industry, and they recognize the increasingly important role Microsoft plays in this transformation. We are very excited to have these customers and partners on campus.

Brian's keynote will highlight our unique position in the advertising industry. It's amazing to see how far we've come with the aQuantive acquisition in differentiating our advertising platform. This foundation is paying off, with Q3 advertising revenue growth of nearly 40 percent, a rate that has accelerated over the past two quarters while growth rates at Google, Yahoo and AOL have slowed.

On Wednesday, we will be announcing a major new initiative that our search teams have been driving. We are getting better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model. You'll hear more about our plans Wednesday.

advance08 will underscore our commitment to search and online advertising, and you'll continue to see announcements demonstrating our progress in this space. Earlier this week, I spoke to leaders across our online services business about our core strategy, the importance of acceleration and a set of actions we are taking, including:

1. Innovate and disrupt in search-We will disclose some elements of our plans with this week's release of search and sharpen our focus on user experience and business model innovation. The work we have done over the last four years on search has established a solid foundation to build upon.
2. Win targeted distribution-With this release of search, we are now ready to throttle up broader distribution initiatives.
3. Reinvent portal and deliver new experiences across PC, phone and Web-We are building our new releases of Windows 7, Windows Live wave 3, Windows Mobile 7, Internet Explorer 8, Search and MSN with an eye towards optimizing and unifying experiences and scenarios.
4. Fix our online branding-Our brands are fragmented and confusing today, and we recognize a need to clarify and align our online branding . We are now driving forward to address this opportunity.
5. Win in display advertising-We have an advantage in tools, agency assets/relationships and a team laser-focused on capturing the display ad platform opportunity. As we build from a position of strength, we will increase engineering resources to drive even more innovation.
6. Build on our strengths in Europe-As measured by comScore in March, our online business in Europe is doing well. We have over three times the page view volume and nearly seven times the minutes of usage compared to Yahoo!, and 68% reach to internet users throughout Europe. We will double down on our investments in Europe and expand on this strong position.
7. Expand strategic partnerships-In addition to our organic innovation agenda, we will expand strategic partnerships that increase inventory on our display ad platform, enable new paradigms in search and accelerate growth in key geographies.
8. Pursue small, targeted acquisitions-Looking forward, we will focus on small, targeted acquisitions that support our work in search, complement our value in the ad platform and help us grow scale in key geographies. Recent acquisitions including Rapt and YaData are examples of these types of acquisitions.

The PSD leadership team is actively working on the FY09 budget, including resources and investments to support the actions above. Additional elements of our work will be revealed in the coming weeks, leading to our Financial Analyst Meeting in July where I will share more details on our strategy and business/financial outlook.

As we move forward, I want to remind everyone that we are well positioned to compete. We have some of the industry's best assets on our side: technical and business talent, global scale, a culture of self-criticism and tenaciousness, a healthy balance sheet and an unparalleled product portfolio. It's time for us to seize the opportunity.

Thanks again for your continued leadership and focus on our business.

Regards,

Kevin Johnson l President Microsoft Platforms & Services Division