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July 21st, 2009

Vibe magazine publisher feels reader backlash

Posted by: Christine Kearney

At least one subscriber of defunct hip-hop culture magazine Vibe wants to know why he’s not getting a refund — and is willing to go to court to get it.

In a lawsuit filed Tuesday in federal court in Manhattan, Alabama resident Kenneth Rogers said he purchased a one year subscription three months before the shock announcement and wants all subscribers to get their money back. Rogers sued for breach of contract and unjust enrichment for a lost subscription and is seeking class action status to allow others to join in the fight.

“As the magazine was quietly closing up the shop, the Vibe website continued to contain links to advertisements enticing customers to purchase subscriptions to the magazine,” the lawsuit says, naming Vibe Media Group as a defendant along with unnamed people associated with the magazine. Vibe should have “publicly disclosed to subscribers that it was teetering on the brink of insolvency,” it says.

It said a one-year subscription cost between $9.95 and $14.95, and Vibe, the baby of acclaimed music producer Quincy Jones (Michael Jackson’s “Thriller” and “Off the Wall” albums included), had more than 800,000 subscribers.

July 2nd, 2009

Did Vibe miss the online vibe?

Posted by: Robert MacMillan

Here’s an entry from our very own Reuters New York equities team summer intern Chavon Sutton. (Thanks, Chavon!)

Did Vibe magazine, the print ambassador of hip-hop culture, voice and style, pass up a chance to survive last year?

Vibe, the baby of acclaimed producer Quincy Jones (the composer who produced the late Michael Jackson’s mega-hit albums, “Thriller” and “Off the Wall,”), said earlier this week that it was shutting down immediately.

A partnership with an online gossip website serving African-American readers, might have given it room to keep producing, according to the site’s founder and editor.

Fred Mwangaguhunga, who runs Mediatakeout.com, told us that in the year before Vibe’s collapse, it offered the magazine a revenue-share deal, but Vibe refused.

“We came to Vibe and offered it a deal where they’d sell our ads and in return, they’d get a stake in the ads they sold,” Mwangagunhunga said.

The partnership could have given Vibe “$1 million a month, but they didn’t want it,” he said.
$1 million a month? Hard to say. (For what it’s worth, Mwangaguhunga says Mediatakeout.com gets 3 to 5 million unique viewers and 150 million page impressions per month.)

We tried to reach Vibe, or whatever is left of it, but a computerized voicemail message at the magazine’s office said: “Message quota exceeded. Goodbye.”

Did Vibe take a wise pass in the hopes of striking a better online deal? Or do its actions suggest that it is another example of entrenched print types avoiding imminent change?

It could be a pointless question. Jones told EbonyJet.com that he plans to buy back the magazine, which had a circulation of over 800,000, according to The New York Times.

Incidentally, Ebony apparently isn’t interested in working with Mediatakeout either.

“We made the same proposal to Ebony [magazine] which is facing pressure now,” he said.  “I’m not sure why they’re saying no.”

(Photo: Reuters)