SOURCE INTERLINK COMPANIES, INC.

Whether you relax by reading The Economist or watching Hot Rod TV, Source Interlink Companies wants to have a hand in the transaction. The vertically-integrated firm produces and distributes its own content and that of other publishers through two divisions. Its Sales and Logistics division is a major distributor of magazines in the US (with more than a 30% share of the single-copy magazine distribution market) and abroad, and it also maintains retail store fixtures and displays, calculates sales data, and processes rebates. The Media division publishes more than 70 special-interest magazines (such as Motor Trend and ATV Rider), produces TV and radio programs, and provides content for more than 100 websites.

Geographic Reach

Source Interlink Companies distributes magazine throughout the US and abroad. It is also a leading importer of international publications, accounting for more than 90% of magazine import sales in the US. The company also provides export distribution and marketing services for some 800 titles in more than 100 countries.

Operations

Source Interlink operates through two divisions: Media, and Sales and Logistics. Its Sales and Logistics arm is comprised of four operating divisions: distribution, retail/publisher services, manufacturing, and international. The company is the nation's largest manufacturer of custom wire fixtures (magazine racks) for retail stores. Source Interlink Media is a top supplier of special interest media in the US, with more than 70 publications, 100-plus websites, 800 branded products, as well as TV and radio programs, and mobile device applications. It targets 18-to-34 year old males such titles as Motor Trend, Hot Rod, Motorcyclist, and 4-Wheel & Off-Road. It also produces TV programming through SIM Television. Programming includes Hot Rod Television, and Top Truck Challenge TV.

Financial Performance

Source Interlink generates more than $1.1 billion in revenue annually through its Media and Sales and Logistics divisions.

Strategy

Since exiting bankruptcy in 2009, Source Interlink has reorganized and enlisted new management. Still, technological change in the magazine industry is forcing the company to rethink its business. The assessment prompted Source Interlink to sell its Alliance Entertainment subsidiary to investment firms Platinum Equity and The Gores Group in late 2010. (Alliance markets CDs, DVDs, video games, and books to retailers.) The disposal of Alliance enabled Source Interlink to concentrate on delivering its core products: magazines and programming. To that end, the Media division acquired a majority interest in Carazoo India, which operates a consumer website and platform for dealer marketing in India, in 2012. Previously, in 2011it bought Mind Over Eye, a digital marketing and visual effect studio based in California and ATV Magazine, which included ATV Rider with a circulation of around 30,000 subscribers. 

Content diversification has been instrumental in driving traffic (and revenues) to Source Interlink's online channels. The company has broadened its Web content formats, introducing smart phone-friendly versions of its lifestyle magazines. Also, in 2010 Source Interlink expanded its slate of Web properties, acquiring action sports content provider Grind Networks, and allowed Motor Trend and Dirt Rider videos to be viewed through video search engine blinkx, with which it shares advertising revenue.

To give its costly distribution business a boost, Source Interlink in 2012 partnered with Retail Marketing Professionals, a national in-store merchandising firm to form Source Interlink Retail Services. The new venture will allow the company to compete as a full-service in-store merchandising company nationwide and compliment its direct-store-delivery business.

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SOURCE INTERLINK COMPANIES, INC.


27500 Riverview Center Blvd
Bonita Springs, FL 34134-4325
Phone: 1 (866) 276-5584
Fax: 1 (239) 9497623
www.sourceinterlink.com

STATS


  • Employer Type: Private
  • President and CEO: Michael Sullivan
  • EVP and Chief Administrative Officer: Stephanie Justice
  • President and CEO: Michael Sullivan

Major Office Locations

  • Bonita Springs, FL

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