News International Set To Close Magazines Unit

News International will shut its News Magazines unit that loses £10 million a year as the first step of widespread changes due to take place in the company.The News Magazines unit was launched by News International in 2005 and currently publishes the free monthly magazine SkyMag and The Sunday Times Travel Magazine.

James Murdoch, who was appointed as head of company in December last year, has initiated the developments, according to a report by The Guardian.

News Magazines’ titles will either be sold to rival companies or brought in-house to News International.

The weekly real-life title Love It! will be sold to another publisher, while The Sunday Times Travel magazine will move in-house.

Love it! was the first and most successful magazine to be launched by News Magazines in February 2006 and has a circulation of 367,199 according to the latest ABC figures.

News Magazines’ had planned to launch four similar new titles following the initial success with Love it! but failed to attract advertising revenue.

The unit was the third attempt by News International to gain a foothold in the magazine publishing world.

80 staff learnt of the plans yesterday and although most are likely to go with the magazines, some job losses are expected.

An external company, Boston Consulting Group, has been hired by Murdoch to streamline the UK’s publisher’s operations and its report this week is likely to bring about more changes in the company.