Published in Nacional number 360, 2002-10-06

Autor: Sina Karli

Exclusive

Hubert Burda: “We are expecting a lot from Nacional as a partner and we hope to get a good start.”

The German publishing house Hubert Burda Media, which publishes magazines such as Bunte, Burda Moden, Lisa and Focus, has founded a joint company with Nacional and will publish a series of its magazines in Croatia.

Hubert Burda, as the only shareholder and the CEO of the publishing giant Hubert Burda Media Holding, is one of the most important people in the world of publishing. His international publishing house, which boasts over 200 publications throughout the world, founded a joint company with Nacional on September 24. This new company is called Burda Nacional, and will publish a series of magazines on the Croatian market, the first of which is to appear on newsstands in a matter of days.

In this exclusive interview for Nacional, CEO and only shareholder of Burda, Hubert Burda, says, “We are expecting a lot from Nacional as a partner and we hope to get a good start.”Hubert Burda comes from a well known publishing family, which entered the business at the end of the 19th century. His grandfather, Franz Burda purchased his first printing press in 1902, and began publishing the Philipsburger Zeitung the following year. The Burda family launched the business in 1917, opening another printing press in Offenburg, where Hubert Burda today owns five printing facilities.

Family Owned Business

Ten year’s later, Franz Burda Jr., Hubert’s father, launches the first issue of the Burda, a magazine containing the schedule for the radio program of Surag. Hubert Burda was born into this publishing family in 1940. When he was five years old, at the end of World War II, his father began raising the family business out of the ashes, printing schoolbooks and stamps for the French occupation zone. Soon the Burda company stood on its own two legs, and in 1948, the first issue of Das Ufer was published, the predecessor of today’s Bunte. The following year, Surag returned, and Burda issued a new magazine, on modern home decorating.

In 1950, Burda Moden appeared on newsstands, the most popular fashion magazine ever, founded by Hubert’s mother Aenne. The period of Germany’s economic boom followed, and the Burda publishing company advanced and grew. In 1954, Das Ufer became Bunte Illustrierte, and in 1962, Burda purchased the magazines Freundin and Die Film Revue.

In 1966, Franz Burda handed control of a new media company in Munich to son Hubert, and later appointed Hubert to editor-in-chief of Bunte in 1976. Franz died in 1986, with his sons taking over the family business. Hubert Burda took over the basic, publishing part of the business and the printing presses in Germany and France.

Hubert Burda achieved one of the world’s best publishing success stories with the magazine Focus, which was founded in 1993. In only a few years, Focus caught up to and surpassed Speigel, which was Germany’s favorite for decades, thus taking over the leading position in the Germany political weekly market.

Outside of his company, Hubert Burda is very active socially. He is president of the German Magazine Publisher’s Association (VDZ) and co-founder of the European Publishing Council (EPC). Furthermore, Hubert Burda annually grants the Hermann-Lenz literary award (formerly the Petrarcin award) and the Award for Corporate Art. He founded the Academy for the Third Millennium, which promotes the interdisciplinary exchange of knowledge and ideas on futuristic topics.

Hubert Burda has received the European Award for Printed Media, he has been recognized by the Order of the Federal Republic of Germany and on his 60th birthday, February 6, 2000, he received the title of honorary professor from the Baden-Wurtemberg. This title was awarded to him at the official opening of the media park, the most modern printing and publishing facility in Offenberg.

NACIONAL: The dramatic events of 2001 meant hard times for the business world, and Hubert Burda’s advertising revenues dropped by 1.5%. How did 2001 impact publishers and what do you expect from 2002?

It was a year of dramatic events, including the terrorist attacks on the US. Also, we saw a dramatic drop in the number of IPO, initial public offers, in the new economy. The media is frequently the point where such changes crystallize, and 2001 was the most difficult year for the publishing industry since World War II.

Hubert Burda Media is still stronger than the market average, in spite of the shocks seen with the implementation of the Euro, the economic crisis, and the structural crisis with the drops in domestic sales and advertising. As advertising and sales continue to drop, there will be a need for strict discipline in spending and in consistent economic measures, through which we will attain the goals planned for this year. In the future, our recipe for success will be creativity and efficiency.

NACIONAL: How do you see the future of European media? Where do you see your company within that?

Pictures and communications have shaped our society and like more than ever in the past. The media which have attract attention and played the role of the network maker have strengthened. In this way, they have formed the motor which will force the world’s social knowledge to move forward. Europe is integrating due to the media. The media is not just newspaper, magazines and TV programs, but great events, such as Oktoberfest or the Champion’s League, which brings people together.

Hubert Burda Media has strengthened its leading position among the great German publishers. In 2001, our products succeeded in taking 67% of the over 14 market, a great feat for the competitive German market. Hubert Burda Media succeeded in increasing its market share and in strengthening its position as the second largest seller of advertising space among German publishers.

NACIONAL: In the late 1980s, Burda publications were introduced to the Russian market, which was the first entry by a Western publication company onto the eastern European market. How did that look?

Burda Moden is the world’s largest fashion magazine and is published in almost 90 countries. Fifteen years ago, my mother, Aenne Burda launched the first western magazine in the Russian language. The first issue, printed in 100,000 copies, was sold out on the first day, March 8, 1987. At that time, Burda Moden could not be purchased on the free market, rather it was distributed through the unions. Raisa Gorbacev announced at that time that Burda Moden was her contribution to the democratization of the women of the Soviet Union. The initiative by Raisa Gorbacev and Aenne Burda opened the doors of the Eastern European markets for Hubert Burda Media. After the spectacular growth to a circulation of 1 million copies, Burda Moden was also affected by the consequences of the catastrophic economic situation in Russia. Today, our branch office of Burda Eastern Europe holds the Russian edition with a stable circulation of 400,000 copies monthly.

NACIONAL: How do you comment on your entry onto the Croatian market, and your cooperation with Nacional?

The business environment in Croatia is just heating up, the cultural heritage is very rich, and I think that this is a promising market for a publishing house such as Hubert Burda Media. I am expecting much out of Nacional as a partner, and I hope that we will get a good start.

NACIONAL: Is the Croatian market similar to other Eastern European markets?

No, every market has its own peculiarities and rules. You have to adapt to the various legal system, the sales systems and the publishing practices of each country. That is why all our cover pages are specially tailored to individual markets. Every issue has to look different for every market. Of course, that also applies to Croatia.

NACIONAL: How many publications are you planning on launching in Croatia, and when can we expect to see them on newsstands?

We have a wide spectrum of very successful publications, and we will analyze the local market and see which magazines could fit in. In general, the skills and creativity in journalism are key to the development of an innovative product and a strong brand name. Our goal is to achieve economic growth of our products and services which are part of the Burda brand. Many titles from our portfolio could fit in to the Croatian market.

NACIONAL: Your weekly magazine Focus is one of Western Europe’s most successful products. It has existed for only 8 years, and it stands next to both Stern and Spiegel, which have both existed for 50 years. What is the key to the success of Focus, which is sold in 800,000 copies weekly and brings in over €100m in advertising revenues?

The news magazine Focus had a deciding impact on the media market. This publication changed the way which individuals perceived and processed information. Its innovative style, called “useful news”, is aimed at those who want to know a lot, but don’t have the time to read. The news magazine gives quick and current information, covering all the issues of social importance. Focus’s editorial concept and impact also convinced the advertising market. The magazine deals not only with the widest of topics, but also boasts the greatest number of advertising pages on the German market.

NACIONAL: Two very important publications in your company are Bunte and Lisa. What is the key to the success of these two products, which sell hundreds of thousands of copies in Germany?

Lisa is the best selling light women’s magazine in Germany. It is published in nine countries and sells over 2 million copies worldwide, thus making it one of the most significant publications in that sector. Every week, Lisa brings concise and current information about issues which interest young, employed women. The magazine is full of creative ideas for fashion, cosmetics, and the home and carries a lot of information about society.

Bunte is one of the most well known names in the German entertainment industry, and is a mix of creativity and emotion. 4.33 million people over the age of 14 read Bunte every week in order to learn more about the celebrity world. Even in difficult economic times, Bunte succeeded in increasing its advertising sales. The success of Bunte is due to the constant efforts to direct the publication towards the young readers, and the constant focus on entertainments as its central image.

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