August 6, 2010 | Read Time: 1 minute
How does a magazine that lost $30-million last year turn its fortunes around?
That’s the question Sidney Harman, electronics mogul and philanthropist, is facing after buying the venerable but decidedly unprofitable Newsweek magazine this week.
Rick Edmonds, a writer for the Poynter Institute, speculates that Mr. Harman may be considering turning the publication into a nonprofit group. There are a few signs that suggest this could be the case, Mr. Edmonds writes, including Mr. Harman’s statement that he doesn’t think of the Newsweek acquisition in “traditional business terms” and that he’ll consider breaking even to be a victory.
In an interview with Mr. Edmonds, the Duke University professor James (Jay) Hamilton suggested that the idea of Newsweek going nonprofit isn’t too far-fetched. But he said the magazine would need to tone down its coverage of frothy topics in favor of ones with an educational purpose.
Also, Time and other Newsweek competitors might object, said Mr. Hamilton. And it’s not clear how the growing number of ways to make money on digital products, like the iPad, would jibe with nonprofit status.
What do you think? Will — or should — Newsweek explore nonprofit status?
