Time Magazine 2011 Annual Report Download - page 25

The Sports business unit includes (i) Sports Illustrated, a weekly magazine that covers sports, Sports
Illustrated for Kids, a monthly sports magazine intended primarily for pre-teenagers, and SI.com, a leading sports
news website that provides up-to-the-minute scores and sports news 24/7, as well as statistics and analysis of
domestic and international professional sports and college and high school sports; and (ii) Golf, a leading
monthly golf magazine, and Golf.com, a related website that features user-friendly content designed to help
readers play their best golf and maximize their golfing experience.
Time Inc. also has responsibility under a management contract for the American Express Publishing
Corporation’s publishing operations, including its travel and epicurean magazines Departures,Food & Wine and
Travel & Leisure 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, TVTimes and What’s On TV, television listing magazines; Chat,Woman and
Woman’s Own, women’s lifestyle magazines; and Now, a celebrity magazine; (ii) in the Inspire division, Country
Life and Horse & Hound, magazines focused on leisure; and (iii) in the SouthBank division, Homes & Gardens;
Ideal Home; and woman&home, magazines focused on homes and gardens. In addition, IPC publishes four
magazines through three unconsolidated joint ventures with Groupe Marie Claire.
IPC websites include goodtoknow.co.uk, a website for women providing advice and tips on family and
health, entertainment and recipes; housetohome.co.uk, a home inspiration and decorating resource; and
NME.com, a contemporary music news and reviews website. In March 2011, IPC launched 25 mobile-optimized
websites for some of its magazines and by the end of 2011 had over 35 mobile-optimized websites. In July 2011,
Wallpaper*, an international design, fashion and lifestyle magazine published by IPC, launched a monthly tablet
edition of the magazine, available for no additional fee to all print subscribers.
GEX publishes 13 magazines in Mexico including: (i) Chilango, a Mexico City listing guide; (ii) Expansión,
a business magazine; (iii) IDC, a tax and accounting bulletin; (iv) InStyle Mexico, a fashion and lifestyle
magazine for women; and (v) Quién, a celebrity and personality magazine. In addition, GEX publishes two
magazines through an unconsolidated joint venture with Hearst Corporation. GEX also owns and operates (i)
CNNExpansíon.com, a leading business website in Mexico, (ii) MedioTiempo.com, a leading sports website in
Mexico, (iii) MetrosCúbicos.com, a leading website for classified real estate listings in Mexico, and (iv)
Quien.com, a leading celebrity website in Mexico. In addition, through a joint venture, GEX and Turner operate
CNNMexico.com, a Spanish-language news website that provides local, national and international news from a
Mexican perspective.
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 the tablet editions of its
magazines. In 2011, Time Inc.’s U.S. magazines accounted for 21.0% 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 5, respectively, in terms of PIB-measured advertising revenues in 2011, and Time Inc.
had 6 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 advertising revenues because
advertising rates are based on circulation and audience. Most of Time Inc.’s U.S. magazines are sold primarily by
subscription and delivered to subscribers through the mail. Most of Time Inc.’s international magazines are sold
primarily at newsstands. Subscriptions in the U.S. 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.
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. Synapse sells magazine subscriptions principally through
marketing relationships with commercial airlines that have frequent flier programs, brick and mortar retailers,
Internet retailers and consumer catalog companies.
11