Question-and-Answer Session
Thank you. [Operator Instruction] Our first question comes from the line of Matt Chesler. Please go ahead.
Matthew Chesler - Deutsche Bank
Good morning. Thanks for taking my call. Just wanted to ask you to drill down into part of your new three-pronged performance improvement plans. First of all, what was the net per page in the fourth quarter?
Stephen M. Lacy - President and Chief Executive Officer
The improvement Matt, you are asking in the net per page in the fourth quarter was about 3%.
Matthew Chesler - Deutsche Bank
In the fourth quarter was 3%, okay. Just wanted to understand the philosophy in your approach to selling in this environment, is it your view that you preferred to preserve the long-term relationship rather than haggle over a couple of points of increase in the rate such that for the time being we might actually see that net first page go swing in the opposite direction until the environment improves?
Stephen M. Lacy - President and Chief Executive Officer
I don't think Matt you will see a radical change in net per page at least based on what we know about the first quarter of '09, but I would ask Jack to speak to the philosophy and how the pricing mechanism works inside the magazine activity.
Jack Griffin - President, Meredith Publishing Group
Sure. There is no question that this is a very difficult environment and the way that our team operates in an environment like this is to always be focused on listening to the marketplace and being agile with respect to decision-making. If you look back now over a multi-year period, we have at Meredith been able to achieve pricing gains and margin improvement in the magazine business through a very vigilant detailed planning and analysis activity. In the current period we are doing everything possible and necessary to continue and maintain that while being sensitive to and responsive to what is a different demand environment and also a level of competitive activity that reflects lower demand overall by advertisers. So our people and our leadership are very sensitive to changes in the marketplace, has clearly been one over the past couple of months and we are modifying our strategies and tactics accordingly but I stressed the word modify and what you'll not see as Steve said, is a market change in that respect.
Matthew Chesler - Deutsche Bank
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