WeightWatchers 2008 Annual Report Download - page 17

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We sell our products primarily through our meeting operations and to our franchisees. We have grown our
product sales per attendee in our meeting operations by updating our selection of products. In fiscal 2008, sales
of our proprietary products represented approximately 22% of our revenues. We intend to continue to optimize
our product offerings by updating existing products, selectively introducing new products and sharing best
practices across geographies.
Revenues from WWI’s business, including revenues from meetings and products, comprised 87.7% of our
total revenues in fiscal 2008, 89.5% of our total revenues in fiscal 2007 and 89.4% of our total revenues in fiscal
2006.
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 of consumers 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 almost tripled between 2001 and
2005, increasing from $700.0 million in 2001 to $2.0 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 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 plans 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. WeightWatchers.com launched its Internet subscription products on our German
website in January 2004, on our Australian website in December 2005, on our French website in December 2007
and on our Dutch website in February 2008. 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 2008, WeightWatchers.com had approximately 679,000 active Weight Watchers
Online subscribers.
As Weight Watchers Online and Weight Watchers eTools reflect different value propositions, the
subscription products 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
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