Featured Posts

5 ways to embed your tweet5 ways to embed your tweet The Twitter Media blog announced Monday that it would release a tool that would enable users embed tweets more easily. Today it released a script that isn't perfect called...

Read more

10 Commandments of Twitter Etiquette10 Commandments of Twitter Etiquette In a lot of ways, millions of users have found Twitter as a useful tool. Take journalists, for example. According to a recent survey, 37 percent of journalists said they...

Read more

A killer feature Facebook needs now: Video ChatA killer feature Facebook needs now: Video Chat Facebook is quickly becoming the primary social communication channel in our everyday lives. Yes, primary. We spend much more time obsessively interacting with people on Facebook...

Read more

Socially Edible: Let's roll location-based gaming, restaurant reviews and online ordering into oneSocially Edible: Let's roll location-based gaming,... Here's an idea that Shane Snow and I have had for a site and I've been meaning to share it for quite some time. The basic idea is to solve a problem in location-based restaurant...

Read more

Let's not get too excited about Google Buzz just yetLet's not get too excited about Google Buzz just yet Update: Here is a Mashable post that highlights the release of the new feature. Google is making a move into social media with a new status feature that it will launch...

Read more

Vadim Lavrusik Rss

News organizations seek new revenue in wine clubs

Posted on : 09-28-2009 | By : Vadim Lavrusik | In : Business

Tags: , , , , , , , ,

View Comments

This post is also appearing on a Columbia Journalism School website I write for, which is still currently under construction but will launch some time this week.

USA Today launched a Wine Club earlier this month, joining the list of publications hoping to entice readers to an online community of wine drinkers who buy wines directly from them.

The national newspaper partnered with My Wines Direct to create a Web site wine club where readers can learn about wines that are selected by a tasting panel. Members can then purchase six bottles quarterly online for $69.99 plus shipping.

People gather to taste various wines at Slate's Wine Tasting at Sotheby's Aulden Cellars in August (Photo: Vadim Lavrusik)

People at Slate’s Wine Tasting at Sotheby’s Aulden Cellars in August. (Photo: Vadim Lavrusik)

Large publications are launching similar wine clubs and attaching their publications’ brands to the clubs as part of their exploration of new revenue to help close the gap from a decline in ad spending.

The New York Times launched its wine club in mid-August and other publications, including Forbes and The San Francisco Chronicle, have started their own clubs as well. The Wall Street Journal has had a wine club since last September, while online publications such as Slate are hosting wine tastings.

USA Today had been considering getting into the wine business for some time, said Christy Hartsell, director of brand licensing at USA Today, in an e-mail. The project was in the works for several months and the paper even held various tasting events before the launch, Hartsell said.

“Seeing other publications entering the same arena just shows that there is active interest in the space,” Hartsell said.

All the publications have been quiet on their revenue projections and levels of membership.

Alice Ting, executive director for brand development at The New York Times, would not disclose revenue from the new club but in an e-mail she said the company is pleased with the response.

“As we all know, all media companies are facing tough challenges with advertising revenues,” Ting said. “Pursuing other revenue streams helps diversify the types of revenues we realize.”

Because both the USA Today Wine Club and The New York Times Wine Club sites launched recently, numbers for Web site visits were unavailable. The Wall Street Journal wine club site peaked in August with 44,000 unique visits, with more than 20,000 in June and July, according to Compete.com statistics. The numbers, however, don’t show how many of the visitors actually join the clubs.

MyWinesDirect.com, which operates The USA Today Wine Club Web site, received some 57,000 unique visits in August.

USA Today Wine Club

The USA Today Wine Club Web site.

That makes Bryan Dougherty, president and CEO of My Wines Direct, optimistic. The appeal is that the 10 people who make up panels that select the wines for the club consist of regular people, said Dougherty.

“You don’t have to be an expert,” Dougherty said. “It’s not hard to know whether you like the wine or not.”

He said the wine business has always been driven by “expert” opinions, but the panel process gives it more of a consumer opinions focus, which he said people tend to value more. Dougherty gave the example of when he looks for a hotel: People’s reviews on the site make a big difference on whether he picks the hotel or not, he said.

But even if readers value the opinion of the panels and the name of the publication attached, it doesn’t necessarily mean they are willing to join the club.

At least not Pete Dybdahl, a Long Island wine enthusiast who attended Slate’s wine tasting at Aulden Cellars at Sotheby’s in Manhattan on Aug. 26.

Though the credibility of a wine recommendation and the source of it matters to Dybdahl, a former newspaper reporter, he said he still wouldn’t join a publication’s wine club because clubs aren’t really appealing to him. That doesn’t mean he’s not sympathetic toward a publication “doing what it has to do to stay afloat,” he said.

Slate’s wine tasting was free, which was one of the draws for the roughly 120 people who attended. The magazine’s wine critic, Mike Steinberger, led the tasting of several wines and discussed the opinions of readers in attendance, as well as those tweeting their critiques from home. The event included its own Twitter hashtag and account, allowing readers from across the country to participate in the event by following the feed and offering their own two cents.

Slate group chairman Jacob Weisberg said the event was aimed at engaging readers.

“A publication is a kind of club and so an event like this creates that idea,” Weisberg said.

The chairman’s assistant, Julia Felsenthal, said the magazine isn’t pursuing a wine club at the moment, but still hopes to host future tasting events.

Weisberg said the magazine didn’t make any money from the event, though attendees were welcome to buy wines from Aulden Cellars, which provided the wines.

Ben Bradford, assistant manager at Aulden Cellars, said that for the size of the event, sales from attendees were “decent,” but would not give specifics. Bradford said Aulden has considered partnering with a publication for a wine club, but said the store is looking to grow more and establish itself.

“I think a publication’s name attached matters,” Bradford said. “It adds credibility.”

  • Share/Bookmark

Related posts:

  1. What traditional news organizations can learn from online magazine FLYP
  2. 4 ways news organizations are using Twitter Lists
  3. A case for innovation to news organizations
  4. New economic models for news…without the new
  5. 18 news media content and business trends for 2010

blog comments powered by Disqus
Get Adobe Flash playerPlugin by wpburn.com wordpress themes