WeightWatchers 2006 Annual Report Download - page 18

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Please find page 18 of the 2006 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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products on our Australia/New Zealand website. These products have similar functionality to the existing U.S.
products, but are tailored specifically to each of our local markets.
As of the end of fiscal 2006, WeightWatchers.com had approximately 460,000 active Weight Watchers
Online subscribers.
As Weight Watchers Online and Weight Watchers eTools reflect different value propositions, the
subscriptions are priced differently. Both subscription products currently offer an initial pre-paid subscription
term of one or three months, continuing thereafter on a pre-paid month-to-month basis until canceled. In the
United States, Weight Watchers Online costs $65.00 for the initial 3-month term or $46.90 for the initial
one-month term. The ongoing monthly fee for Weight Watchers Online is $16.95. In the United States, Weight
Watchers eTools costs $29.95 for the initial 3-month term or $12.95 for the initial one-month term. The ongoing
monthly fee for Weight Watchers eTools is $12.95. In addition, beginning with the fall diet season in 2006,
Weight Watchers eTools has been included for free in purchases by meetings members of the Monthly Pass
commitment plan.
We believe WeightWatchers.com’s personalized and interactive Internet subscription products provide
consumers with an engaging weight management experience. Our Internet subscription products help customers
monitor their weight management efforts, encourage exercise and healthier living, and provide guidance toward
healthier eating habits by offering the following interactive resources:
• POINTS Tracker
• POINTS Calculators
• Weight Tracker and Progress Charts
• Recipe Database
• Recipe Builder
• Meal Ideas
• Restaurant Guides
In July 2004, WeightWatchers.com launched its first mobile subscription product—Weight Watchers
On-the-Go—which is available as an add-on product for subscribers to our Internet products. Weight Watchers
On-the-Go offers software tools and features for Palm-based handheld devices. Through a two-way
synchronization, subscribers can track their POINTS value, food consumption or physical activities either on
their handheld device or through the website and have their results automatically uploaded to their Internet
subscription account or downloaded to their handheld device. Weight Watchers On-the-Go is currently only
offered in the United States and is free for Weight Watchers eTools subscribers. Weight Watchers Online
subscribers can currently purchase Weight Watchers On-the-Go for an additional $5 per month.
We believe men represent an important market opportunity for us and we are developing a version of our
Internet subscription products customized for men. Based on our internal research, we believe many men trust
the Weight Watchers brand as a source of sensible weight management advice. We believe web-based offerings,
combined with appropriate content and imagery will be well suited for men.
We believe we can continue to expand our Internet revenues from sources other than our Internet
subscription products. For example, in December 2005 we launched in the United States an online store that sells
our products (such as bars, snacks and POINTS calculators) to our Weight Watchers Online subscribers. We are
also exploring options to increase our Internet advertising sales.
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