WeightWatchers 2007 Annual Report Download - page 18

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Please find page 18 of the 2007 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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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
We believe men represent an important market opportunity for us and we launched a version of our Internet
subscription products customized for men in March 2007. 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, are well suited for men. Since the launch of this
initiative, we have seen encouraging growth in our male subscribers.
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 further increase our Internet advertising sales.
Licensing and Publishing
Licensing
We license the Weight Watchers brand and other intellectual property in certain categories of food and other
consumer products to carefully selected partners. We seek to increase our licensing revenues by targeting
sizeable product categories where the Weight Watchers brand can add real value. We have expanded our global
licensing team in order to focus on increasing the number of categories and geographies of our licensed products.
We typically partner with licensees that excel at new product development and have strong marketing and
sales expertise, manufacturing and distribution capabilities, financial strength, prior performance in previous
licensing deals and senior management commitment to building the Weight Watchers brand. In addition, in
connection with our acquisition from the H.J. Heinz Company, or Heinz, in September 1999, Heinz received a
perpetual royalty-free license to continue using our brand in its core food categories. We plan to continue to
choose our licensing partners carefully after identifying and prioritizing categories that enhance the Weight
Watchers brand and have long-term growth potential.
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