A Complete the gaps in the text with words from the box.
advertisements customers fewer pays margins online newspaper paper book revenue
Business Leaders on FT.com
before you watch
Traditionally, publishing companies sell ideas and information in the form of words printed on 1________. The paper may be sold in the form of a 2________, or it may be published as a 3________ or magazine. A customer who buys a book 4________ the full price for the intellectual property (ideas and information), printing, marketing and distribution. With newspapers and magazines, part of the publisher’s 5________ comes from the money paid by the buyer, and some from the 6________ in the newspaper or magazine. Today, it is difficult to sell advertising space and also 7________ do not want to pay more money for newspapers and magazines. There are also 8________ customers, because many people are getting access to ideas and information through radio, television and 9 ________. So, it is difficult for print publishers to get the revenue and profit 10________ they need.
Watch the video. Complete the interviewer’s questions. Choose the correct words.
1 What has ________ bought? (Choice Point / Reed Elsevier / Reed Business
2 Is this part of a ________ of the business? (underwriting / performance /
3 Has the company ________ well recently? (performed / done / profited) 4 What is the ________ for the company’s future? (future / news / forecast)
Watch the video again. Mark the statements true (T), false (F) or (?) if there is no information.
1 Choice Point is a large business in the USA. (T) (F) (?) 2 2.1 billion pounds is the same as 4.1 billion dollars. (T) (F) (?) 3 Choice Point is an insurance company. (T) (F) (?) 4 Reed Business Information is a print and advertising based publisher. (T) (F) (?) 5 Reed Business Information made good profits last year. (T) (F) (?) 6 Reed Elsevier has saved money by restructuring. (T) (F) (?) 7 They are going to reduce their profits by 100 million each year. (T) (F) (?) 8 Reed Elsevier want to sell Reed Business Information immediately. (T) (F) (?) 9 They can’t get a good price in current market conditions. (T) (F) (?) 10 Reed Elsevier are going to stop print publishing. (T) (F) (?)
Watch the video again and choose the best answers to the questions.
1 What is the main US business of Reed Elsevier?
a) publishing magazines about underwriting b) online publishing of information about restructuring businesses c) print publishing of risk management information
2 What sort of information does Choice Point publish?
a) information about insurance companies b) information about underwriting and claims risks c) information about advertising cycles
3 How does Choice Point sell this information?
a) through subscription websites online b) through subscriptions to printed magazines c) the answer is not given in the interview
4 Who are Choice Point’s main customers?
a) insurance companies b) people who are buying insurance c) Reed Business Information
5 How do Reed Elsevier want to change their business?
a) They want to sell business information through online subscriptions. b) They want to change the advertising cycle. c) They want to expand Reed Business Information.
6 Which part of their business have they decided to sell?
a) Reed Business Information b) Choice Point c) Elsevier Group
7 Which parts of the Elsevier Group made good profits last year?
a) online subscriptions for risk management b) advertising for insurance companies c) all different sectors of the business
8 Why doesn’t Reed Elsevier sell Reed Business Information immediately?
a) Because they’re prepared to be patient. b) Because market conditions are bad at the moment. c) Because the advertising cycle is volatile.
Look carefully at the words and phrases in italics. Choose the phrase which has the same meaning.
1 This fits in well with its US business.
a) is in competition to b) can easily be integrated with c) fills gaps in
2 The information enables insurance companies to assess risks.
a) tells insurance companies how to assess risks b) assesses risks for insurance companies c) helps insurance companies with risk assessment
3 We want to move the centre of gravity of the business.
a) make the business more solid and important b) make some people in the business less powerful c) change the central activity of the business
4 I have a subscription to the Financial Times newspaper.
a) I don’t need to pay for the newspaper every day. b) I pay for the newspaper before it is published. c) I pay for the newspaper after it is published.
5 We are tied to a traditional technology.
a) It is difficult to move to a better technology. b) We are safe and we don’t need to change our technology. c) We can easily change our technology.
6 The advertising industry follows cycles.
a) It is tied to old-fashioned technology. b) The changes are never predictable. c) The changes follow regular patterns.
7 The price changes are volatile.
a) They often move quickly from very high to very low. b) They follow a predictable pattern. c) They usually change slowly over a long period of time.
8 Furniture shops need to make good margins.
a) They need to sell large quantities in order to make a profit. b) Their selling price is much higher than their buying price. c) They need to have a lot of space to display the furniture.
9 My one concern is my daughter’s marriage.
a) The thing which worries me. b) The thing I’m looking forward to. c) The thing I’m happy about.
10 My brother is not a patient person.
a) He never does things quickly. b) He’s very healthy. c) He gets angry if people arrive late.