Time Magazine 2009 Annual Report Download - page 20

and wellness; (vii) This Old House magazine and ThisOldHouse.com; (viii) Coastal Living and CoastalLiving.com,
a monthly shelter and lifestyle magazine and a related website that focus on home design and lifestyles in coastal
areas of the U.S.; and (ix) MyRecipes.com and MyHomeIdeas.com, which feature original content and content from
other Time Inc. Lifestyle brands.
Time Inc. also has responsibility under a management contract for the American Express Publishing
Corporation’s publishing operations, including its travel and epicurean magazines Travel & Leisure, Food &
Wine and Departures and their related websites.
IPC publishes approximately 75 magazines as well as numerous special issues. Effective in January 2010, IPC
reorganized into three operating divisions that are aligned with its three core audience groups of men, mass-market
women and upscale women. This structure is intended to facilitate the delivery of highly targeted audiences to IPC’s
advertisers and bring greater focus and efficiency to IPC’s operations. IPC’s magazines include What’s On TV and
TV Times in the television listings sector, Chat, Woman and Woman’s Own in the women’s lifestyle sector, Now in
the celebrity sector, Woman & Home, Ideal Home and Homes & Gardens in the home and garden sector, Horse &
Hound and Country Life in the leisure sector, NME in the music sector and Nuts and Loaded in the men’s lifestyle
sector. In addition, IPC publishes four magazines through three unconsolidated joint ventures with Groupe Marie
Claire. IPC websites include ShopStyle, a shopping portal on instyle.co.uk, video channels on nme.com, nuts.co.uk,
trustedreviews.com and golfmonthly.co.uk, among other websites, and Mousebreaker.com, a U.K. free-to-play game
site.
GEE publishes 14 magazines in Mexico including: Quién, a celebrity and personality magazine; Expansión,a
business magazine; IDC, a tax and accounting bulletin; Vuelo and Loop, two in-flight magazines that it publishes
pursuant to a license agreement with Mexicana airlines; InStyle Mexico, a fashion and lifestyle magazine for
women; and Chilango, a Mexico City listing guide. In addition, GEE publishes two magazines through an
unconsolidated joint venture with Hachette Filipacchi Presse S.A. GEE also operates MetrosCúbicos.com, a leading
website for classified real estate listings in Mexico, CNNExpansíon.com, a leading business website in Mexico, and
Quien.com, a leading celebrity site, and it holds a majority interest in MedioTiempo.com, a leading sports website in
Mexico.
Time Inc. derives approximately half of its revenues from the sale of advertising, primarily from its magazines
with a smaller amount of advertising revenues from its websites. In 2009, Time Inc.’s U.S. magazines accounted for
20% (compared to 18.4% in 2008) of the total U.S. advertising revenues in consumer magazines, excluding
newspaper supplements, as measured by PIB. People,Sports Illustrated and Time were ranked 1, 3 and 6,
respectively, in terms of PIB-measured advertising revenues in 2009, and Time Inc. had six of the top 25 leading
magazines based on the same measure.
Through the sale of magazines to consumers, circulation generates significant revenues for Time Inc. In
addition, circulation is an important component in determining Time Inc.’s print advertising revenues because
advertising page rates are based on circulation and audience. Most of Time Inc.’s U.S. magazines are sold primarily
by subscription while most of Time Inc.’s international magazines are sold primarily at newsstands. Time Inc.’s
Synapse Group, Inc. (“Synapse”) is a leading seller of domestic magazine subscriptions to Time Inc. magazines and
magazines of other U.S. publishers. Time Inc.’s U.S.-based school and youth group fundraising company, QSP, Inc.
and its Canadian affiliate, Quality Service Programs Inc., offers fundraising programs that help schools and youth
groups raise money through the sale of magazine subscriptions to Time Inc. magazines and magazines of other
publishers, among other products.
Time/Warner Retail Sales & Marketing Inc. distributes and markets copies of Time Inc. magazines and books
and certain other publishers’ magazines and books through third-party wholesalers primarily in the U.S. and
Canada. Wholesalers, in turn, sell Time Inc. magazines and books to retailers. A small number of wholesalers are
responsible for a substantial portion of Time Inc.’s newsstand sales of magazines and books. IPC’s Marketforce
(U.K.) Limited distributes and markets copies of all IPC magazines, some international editions of Time Inc.’s
U.S. magazines and certain other publishers’ magazines outside of the U.S. through third-party wholesalers to retail
outlets.
In 2009, Time Inc. sold Southern Living At Home, its direct selling division which sells home décor products
through independent consultants.
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