Company: Dow Jones & Co.
Comment: Zannino is transforming Dow Jones for the digital age. His most signficant moves were reorganizing the company around markets, rather than media channels, and taking full ownership of Factiva, a news database known for innovation
In a speech at the Software Information Industry Association summit in New York in January, Richard Zannino, CEO of Dow Jones & Co., discussed the financial shape of things to come for the 125-year-old business publishing icon.
This year, print revenue will account for 60% of overall revenue, Zannino said. By 2010, he wants that share to shrink to 50%, with online generating the other half.
"If we add more digital media and more business information services, which tend to be much less cyclical and also faster growing than print, we take some volatility out of our business and put additional growth in," Zannino recently told Media Business.
Zannino joined Dow Jones in 2001 as exec VP-CFO, was named COO in 2002 and became CEO in February 2006. Soon after taking the helm, he established a new organizational structure around three markets: consumer media, enterprise media and community media.
Another significant move was the acquisition last December of Reuters' 50% stake in the Factiva news database business, giving Dow Jones full ownership. The Factiva acquisition will raise Dow Jones' annual b-to-b revenue to $700 million, from $400 million.
Zannino quickly integrated Factiva with Dow Jones Newswires and Dow Jones Licensing Services to form a new unit, Dow Jones Content Technology Solutions.
"When you take the rich product set from Factiva—tens of thousands of news sources—put it into workflow-based applications, add exclusive content from Dow Jones Newswires and toss in our licensing—charts, graphs, market data—our ability to sell those products across customers becomes much richer."
In January, the Journal (1.7 million circ.) underwent a comprehensive redesign in which it shrunk by a column. The redesign, which will save $18 million annually, features more analysis, additional links to WSJ.com and new ad units.
Dow Jones continues to add more vertical coverage to the Journal and will expand color advertising by 17% starting in January 2009. Zannino is also looking into using high-bright paper for advertising. The paper type enables "color or black-and-white ads to really pop," he said, "and give advertisers more visibility for their creative."