WeightWatchers 2007 Annual Report Download - page 17

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We sell our products primarily through our meeting operations and to our franchisees. Recently, we have
grown our product sales per attendee by updating our selection of products. In fiscal 2007, sales of our
proprietary products represented approximately 23% of our revenues. We intend to continue to optimize our
product offerings by updating existing products and selectively introducing new products.
Our WeightWatchers.com Offerings
Through WeightWatchers.com, we are well positioned to benefit from the large self-help market as well as
several trends taking place in the Internet marketplace including an increased willingness to access and pay for
web content, the proliferation of broadband access and the growth of e-Commerce and Internet advertising.
According to comScore, the U.S. paid Internet content market has nearly quadrupled from 2001 to 2005,
increasing from $700 million in 2001 to over $2 billion in 2005, with over 78% of U.S. Internet content revenue
coming from subscriptions as opposed to individual sales.
Since 2001, we have offered two Internet subscription products in the United States—Weight Watchers
Online and Weight Watchers eTools.
Weight Watchers Online
Weight Watchers Online is a product based on the Weight Watchers approach to weight management and is
designed to attract self-help-inclined consumers. Weight Watchers Online helps consumers adopt a healthier
lifestyle, with a view toward long-term behavior modification—a key aspect of the Weight Watchers approach
toward sustainable weight loss. Weight Watchers Online allows consumers to learn how to make healthier food
choices and lead a more active lifestyle by providing them with online content, functionality, resources and
interactive web-based weight management plans.
Weight Watchers eTools
Weight Watchers eTools is an Internet weight management offering available only to consumers who are
Weight Watchers meetings members. Weight Watchers eTools allows users to interactively manage the
day-to-day aspects of their weight management plan online, discover different food options, stay informed and
motivated, and keep track of their weight management efforts.
In the third quarter of 2002, WeightWatchers.com launched its two Internet subscription products on our
U.K. and Canadian websites. In January 2004, WeightWatchers.com launched its Internet subscription products
on our German website, in December 2005, WeightWatchers.com launched its Internet subscription products on
our Australian website and in December 2007, WeightWatchers.com launched its Internet subscription products
on our French website. These products have similar functionality to the existing U.S. products, but are tailored
specifically to each of our local markets. Among other opportunities, the launch of subscription websites in each
new country facilitates our ability to launch Monthly Pass in that country.
As of the end of fiscal 2007, WeightWatchers.com had approximately 584,000 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 in 2006, Weight Watchers eTools has
been included for free in purchases by consumers of Monthly Pass.
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