Mar
10
How Time Inc. Should Reinvent Itself as an Independent Publisher
Posted in: Uncategorized
When Time Warner spins off its magazine unit, the world’s biggest magazine company will become an anomaly: a publicly traded media company consisting entirely of magazines.
Time Inc. titles were once the crown jewels of media, generating nearly a billion in annual operating profit just a decade ago. By 2012 that had fallen to $420 million, a precipitous 25% drop from the year earlier. Despite recent cost cuts, that portfolio — and its infrastructure — was built for an era when ad dollars were plentiful.
Things have changed. “Magazines are still a great experience; they just haven’t been a great business,” said Michael Wolf, CEO of Activate, a consultancy that works with Cond Nast.
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