WeightWatchers 2008 Annual Report Download - page 18

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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.
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 a more active lifestyle, and provide guidance
toward healthier eating habits by offering the following interactive resources:
•POINTS Tracker
•POINTS Calculators
• Filling Foods list
• Weight Tracker and Progress Charts
• Nutritional Guidelines
• Hunger Tracker
• Fitness Workouts and Videos
• 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.
Revenues from our WeightWatchers.com business contributed 12.3% of our total revenues in fiscal 2008,
10.5% of our total revenues in fiscal 2007 and 10.6% of our total revenues in fiscal 2006.
Licensing and Publishing
Licensing
We license the Weight Watchers brand and our other intellectual property in certain categories of food and
other relevant 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. In order to achieve
this goal, our global licensing team focuses on strategically 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
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