The model is as old as the magazine rack at the sporting goods store: a publisher inspires readers to buy gear, then collects a small tribute when they do. What is newer, and considerably less tested, is the notion that artificial intelligence can make this arrangement profitable for everyone involved.
Outdoor Life, which has been counseling hunters and anglers since William McKinley was running for president the first time, has been sold by Recurrent Ventures to a newly formed holding company called eFormed Ventures. The price was not disclosed. The buyer, based in Bend, Ore., plans to keep the magazine's approximately 10 employees and transform the brand into what it calls an AI-powered marketplace.
The strategy has a spotty track record. (What, you were expecting an unblemished one?) The Chernin Group's aggressive push into content-to-commerce resulted in costly retreats at Food52, Hodinkee, and The Pro's Closet. Recurrent itself raised $300 million to build an empire on the model before quietly stepping back from the affiliate business that once powered it.
Tom Beusse, a managing partner at eFormed, said the new owners were not starting from scratch. "We are not buying a commerce business that is about to start," Mr. Beusse said. "We are just directing it differently."
The company's proprietary technology platform, called Resonance, is meant to tailor product recommendations based on factors like location, seasonality, and shopping behavior. The artificial intelligence will not be used for editorial content, Mr. Beusse said, which should come as some relief to readers who prefer their fishing tips unoptimized.
Mike Morford, another managing partner, acknowledged the challenges that have bedeviled similar ventures. "Content to commerce works for the consumer," Mr. Morford said. "Just not the businesses."
The deal presents a tidy irony. Recurrent spent three years moving away from commerce and has now sold one of its most commerce-friendly properties to a buyer making precisely the opposite bet.
Whether the AI proves more reliable than the instincts of previous owners remains, for now, a matter of faith.
Original story published in Adweek: "Content-to-Commerce Publishers Have Struggled. Could Outdoor Life Be the Exception?"