If this company won't give you the Time, who will? Time Warner's publishing operations are conducted primarily through Time Inc., a leading consumer magazine publisher with more than 20 US magazines and 45 corresponding websites. In addition to Time, its titles include Entertainment Weekly, Food & Wine, People, Fortune, Travel & Leisure, and Sports Illustrated. Subsidiary Essence Communications publishes Essence magazine, while IPC Group Limited is the UK's top magazine publisher (Now, Look). The publisher accounts for nearly 15% of revenue for Time Warner, which in 2013 announced plans to spin off the unit into a separate publicly traded company.
Change in Company Type
Time Warner announced in 2013, after ending talks with Meredith Corporation about combining some Time and Meredith publications, that it would spin off Time Inc. in 2014. Amid intense pressure in the publishing industry, Time Warner is looking for a way to focus its energy and resources on the fast-growing areas of its business, primarily cable television.
Time Inc. is organized through three groups: Style & Entertainment, Lifestyle, and News & Sports. Style & Entertainment is anchored by flagship title People magazine, while the Lifestyle Group includes Real Simple, Travel & Leisure, and Southern Living, among other titles. Its News & Sports Group includes Time, Sports Illustrated, and Golf, as well as the Fortune and Money brands and the CNNMoney.com and Life.com websites.
Internationally, Time Inc. licenses some 70 editions of its magazines for publication outside the US. It publishes more than a dozen magazines in Mexico, including business title Expansión and celebrity magazine Quién, through its Grupo Expansión (GEX) unit. Among the some 55 UK titles from IPC are What's On TV and Woman.
The economic recession in the US has had a significant impact on Time Inc, part of an industry that was already struggling to compete with the increasing amount of free or low-cost content made available by the explosion of digital publishing. Since 2008 revenue has fallen 25% to $3.4 billion (it fell about 8% between 2011 and 2012).
Time Inc. is dealing with a massive shift of readers and marketers to the Internet and digital readers. In 2010 the company launched versions of some of its magazines for Apple's iPad, including iPad apps for Time, People, Sports Illustrated, and Fortune. The issues are available through Apple's iTunes App Store for download, a single issue at a time. At this point it offers all of US titles on multiple digital devices and platforms, allowing subscribers to the print edition free digital access.
In other digital efforts, Time Inc. formed Next Issue Media, a joint venture with leading publishers Advance Magazine Publishers (doing business as Condé Nast), Hearst, Meredith, and News Corporation, to develop a new digital storefront and related technology that lets consumers access content on portable digital readers, smart phones, and laptops. The consortium is working to make digital versions of magazines compatible on multiple platforms, such as Android, BlackBerry, and other hardware devices. The digital store opened for business in 2011, first making digital titles available on the Android-powered Samsung Galaxy tablet.
Mergers and Acquisitions
In 2013 the company acquired American Express Publishing Corporation, the former publishing operations of American Express. The deal came after a 20-year partnership under which Time Inc. managed those publishing operations.