Time Magazine 2012 Annual Report Download - page 29

GEX publishes 11 magazines in Mexico, including Chilango, a Mexico City listing guide; Expansión,a
business magazine; IDC, a tax and accounting bulletin; InStyle Mexico, a fashion and lifestyle magazine for
women; and 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 CNNExpansión.com,a
leading business website in Mexico, MedioTiempo.com, a leading sports website in Mexico, MetrosCúbicos.com,
a leading website for classified real estate listings in Mexico, and 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 2012, Time Inc.’s U.S. magazines accounted for 21.5% (compared to 21.0% in 2011) of the total
U.S. advertising revenues in consumer magazines, excluding newspaper supplements, as measured by PIB.
People,Sports Illustrated and InStyle were ranked 1, 3 and 5, respectively, in terms of PIB-measured advertising
revenues in 2012, 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. Additionally, digital-only subscriptions and single-copy digital issues of Time Inc.’s U.S.
magazines are sold through various app stores and other digital storefronts across multiple platforms.
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 sites and customer service and direct response call centers.
Time/Warner Retail Sales & Marketing Inc. distributes and markets copies of Time Inc. magazines and
certain other publishers’ magazines through third-party wholesalers primarily in the U.S. and Canada.
Wholesalers, in turn, sell Time Inc. magazines to retailers. 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.
Time Inc. has been experiencing declines in its print advertising and newsstand sales as a result of market
conditions in the magazine publishing industry as well as the current economic environment in the U.S. and
internationally. Time Inc. is pursuing a number of initiatives to help mitigate these declines, including conducting
additional brand marketing; developing innovative ways to sell branded magazine content outside of traditional
channels, including websites, tablets and other mobile devices; developing integrated advertising solutions that
will provide greater data insight and value to advertisers; developing a new cross-platform content management
system; and improving its operating efficiency through management of its cost structure.
In January 2012, Time Inc. sold the school fundraising business, QSP, which offers fundraising programs
that help schools and youth groups raise money through the sale of subscriptions to Time Inc.’s and other
publishers’ magazines, among other products.
Available Information and Website
The Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K
and any amendments to such reports filed with or furnished to the Securities and Exchange Commission (the
“SEC”) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), are available free of charge on the Company’s website at www.timewarner.com as soon as reasonably
practicable after such reports are electronically filed with or furnished to the SEC. The Company is providing the
address to its website solely for the information of investors. The Company does not intend the address to be an
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