Time Inc Increases Investment In Video As Print Declines
Magazines publisher Time Inc is increasingly shifting towards video content in a bid to bolster revenues as a result of a decline in print advertising. Some of the magazines that Time Inc publishes include Sports Illustrated, People, Time and Fortune.
The digital video executive director of Time Inc, David Flumenbaum, revealed that a new cooking-competition show known as ‘Homemade vs. The Internet’ will be launched in the Watch video service of Facebook. Additionally deals have been inked for longer shows on streaming services such as DirecTV Now, Netflix as well as others.
Traditional broadcaster deals
The magazines publisher has also entered into deals with traditional broadcasters such as Oprah Winfrey Network and PBS. In this regard Time will produce approximately 40 hours of television programming and this will be licensed to digital, cable and broadcast networks. This is a huge increase from three years ago when the magazine produced five hours of programming.
As a spinoff from Time Warner, Time Inc lacks many choices with regards to diversification of revenues. Earlier in the month Time indicated that revenue had fallen by 10% following declines in circulation and advertising. As a result of intense competition on the web, the shares of the magazine publisher have fallen by about half since their peak two years ago. A transformation program was announced last month which will see more investment directed towards branded content and video.
According to the magazines publisher, it will be possible to produce content at low cost if there is a focus on topics and subjects that its magazine brands cover. As an example Time revealed that documentary based on Princess Diana’s life used content that was pulled from the archive of its People magazine and this include videos, magazine spreads and photos. The documentary was televised on ABC in August.
Time Inc’s rival, Conde Nast, has already moved aggressively in this direction. Conde Nast started an entertainment division six years ago with the aim of producing video content for Netflix as well as networks such as Investigation Discovery. In all these undertakings content from its various brands such as Vanity Fair and Vogue was used.
Currently there are about 75 long-form and television projects that Time is developing. This includes a feature-length documentary and a sports documentary. But even if growth in viewership results, it will take some time before it has an impact on Time’s earnings.
“I don’t see financial daylight until 2019 or 2020; it’s a long way out,” said a Huber Research Partners’ analyst Douglas Arthur.