WeightWatchers 2009 Annual Report Download - page 20

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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 2009, sales
of our proprietary products represented approximately 20.9% 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, including revenues from meetings and products, comprised 85.9% of our total
revenues in fiscal 2009, 87.7% of our total revenues in fiscal 2008 and 89.5% of our total revenues in fiscal 2007.
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 global 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 the U.S. Census Bureau, U.S. retail eCommerce sales as a percent of total U.S.
retail sales more than tripled between the second quarter of 2000 and the second quarter of 2009. 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 subsequently launched its two Internet subscription products
on our websites in six other countries, including Germany, France and Australia. 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 2009, WeightWatchers.com had approximately 763,000 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 $47.90 for
the initial one-month term. The ongoing monthly fee for Weight Watchers Online is $17.95. 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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