Time Magazine 2010 Annual Report Download - page 22

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 55 magazines as well as numerous special issues. IPC is organized into three
operating divisions, Connect, Inspire and SouthBank, which are aligned with its three core audience groups of mass-
market women, men and upscale women. This structure is intended to facilitate the delivery of highly targeted
audiences to IPC’s advertisers and bring focus and efficiency to IPC’s operations. IPC’s magazines include (i) in the
Connect division, What’s On TV and TV Times, television listing magazines, Chat,Woman and Woman’s Own,
magazines focused on women’s lifestyle, and Now, a celebrity magazine; (ii) in the Inspire division, Country Life
and Horse & Hound, magazines focused on leisure, and Nuts, a men’s lifestyle magazine; and (iii) in the SouthBank
division, Woman & Home,Ideal Home and Homes & Gardens, magazines focused on homes and gardens. 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; Mousebreaker.com, a U.K. free-to-play game
site; and goodtoknow.co.uk, an advice website for women.
In 2010, IPC sold 20 of its magazines that targeted niche audiences.
GEX publishes 13 magazines in Mexico including: Quién, a celebrity and personality magazine; Expansión,a
business magazine; IDC, a tax and accounting bulletin; InStyle Mexico, a fashion and lifestyle magazine for women;
and Chilango, a Mexico City listing guide. In addition, GEX publishes two magazines through an unconsolidated
joint venture with Hachette Filipacchi Presse S.A. GEX has licensing agreements with Mexicana Airlines to publish
Vuelo and Click Airlines to publish Loop, two in-flight magazines, but their publication is on hiatus due to the
airlines’ suspension of operations. GEX also owns and operates MedioTiempo.com, a leading sports website in
Mexico, 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. In addition, GEX and Turner formed a
joint venture to launch CNNMexico.com, a Spanish-language news site that provides local, national and
international news from a Mexican perspective, in February 2010.
Time Inc. derives approximately half of its revenues from the sale of advertising, primarily from its print
magazines with a smaller amount of advertising revenues from its websites and digital magazines for tablets. In
2010, Time Inc.’s U.S. magazines accounted for 20.7% 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 7, respectively, in terms of PIB-measured advertising revenues in 2010, 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. Subscriptions are sold primarily through direct mail and online solicitation, subscription sales
agents, marketing agreements with other companies and insert cards in Time Inc. magazines and other publications.
Subscribers to the print version of People magazine may also download the digital version of People through
Apple’s iTunes App Store for no additional fee. Most of Time Inc.’s international magazines are sold primarily at
newsstands.
Time Inc.’s Synapse Group, Inc. is a leading seller of domestic magazine subscriptions to Time Inc. magazines
and magazines of other U.S. publishers. Synapse sells magazine subscriptions principally through marketing
relationships with commercial airlines that have frequent flier programs, retailers, Internet businesses, consumer
catalog companies, and credit card issuers. Time Inc.’s school and youth group fundraising company business, QSP,
offers fundraising programs that help schools and youth groups raise money through the sale of 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
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