Ann began her discussion with a commentary on the relative simplicity of media in the past. Consumers are time starved and they are demanding content on their terms – when they want it and how they want it.
For example, fashion used to be dictated by magazines and it changed every year. 97% of women today prefer their own style.
People are making fewer trips to the super market, which means that Time has fewer opportunities to sell magazines. That’s why they are sending LIFE magazine along with newspapers.
Time spent reading magazines has decreased 37 minutes in the past 3 years. Time Inc. has adapted to a much more visual format with snippets that lend themselves to quick reads.
Subscriptions to magazines is low, particularly among men. In 2006, for the first time, there was more online advertising than magazine advertising.
America’s trust of publications, corporations and government is at an all time low. Consumers are seeking loyalty and integrity in their institutions. 72% of consumers think that wrong-doing is common among American businesses. They also think that journalists are sloppier and less trustful than in past decades.
Time Inc. has several trusted brands so the challenge is to become the consumer’s favorite bookmark. How do you do this? By differentiating your brands, analyzing the consumer and using that information to constantly improve your product.
Time Inc. has dramatically expanded its content across a wide variety of media, but it is online that presents the greatest opportunity. Time Inc is already the leader in many, many online categories. For example, CNN Money.com is an incredibly successful site that has leaped to fourth place among such sites. Time owns the top 2 spots among celebrity-oriented magazines. People.com is a huge push for the company.
SI.com also is a big success. The same columnists that write for the magazine also write for the web.
Some lessons learned:
- Transformation means hard choices – go to your strengths. Don’t fear cannibalization. Shift dollars from shrinking assets to growing assets.
- You can’t fear failure – need to test different concepts. When you don’t fail, you probably are not pushing the envelope enough.
- Consumers are at the center – build a product that consumers really like.
- Steering through change is hard – need to make sure you take care of yourself and maintain your internal compass. Take time for reflection.
Transformation demands that you have differing opinions on an ongoing basis. The process of transformation should never stop.
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