The Transformation of

Joe Ripp | CHAIRMAN & CEO

Time Inc. has one of the most powerful portfolios

of media brandsthose you know and trust

Each and every day Time Inc. creates cultural moments that
get people to stop, take a break from scanning and engage
with the content and marketing messages

Our journalism, creativity and narration

through the written word, imagery and powerful
experiences are at the center of everything we do.

Engaging Passionate Audiences at Scale

120 MM+

155 MM+

600+

PRINT MONTHLY

DIGITAL
MONTHLY

ANNUAL EVENTS

168 MM+

150 MM

1 BN+

TOTAL SOCIAL

TOTAL
DATABASE

VIDEO
5

Industry in Transition

Global media resides in an unpredictable world

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(Average error in EPS
forecasts over past 10
years)

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Household Products
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Low

Slow

Industry rate of change

Over the past

decade, media has
moved from lower
left to upper right
(Difference in Gross Margin of top
10th and 25th percentile
performers)
High
Medium
Low

+2%3#2A:3$#%)

Fast

(Time to move up or down one quartile)

Note: Based on ordinal rankings along each dimension. Does not include Marine, Transportation Infrastructure, Water Utilities
Source: BCG analysis

7.2 billion people on the planet

6.1 BILLION have cell phones
(4.5 billion have running water & toilets)

Average mobile phone user

checks their phone
100 TIMES Per Day
9

Average Attention Span Has Dropped

From 12 Seconds in 2000 to

8 SECONDS in 2013

(this is 1 second less than a goldfish)

10

11

Time Inc. Transformation

Strategy

12

Our strategic framework recognizes that media

companies now reside in an unpredictable world
of continuous turbulence, disruption and
change. And, that there is no silver bullet.
13

Time Inc.s Transformation Strategy

To enhance our core business

Our core products are well defined leaders. We commit to continuously

reviewing and challenging our practices and approaches. We invest to support
creative solutions.

To extend our brands, content and audiences

Time Inc. is serving passions wherever they are. We invest in a media and
advertising world that is becoming more targeted, personalized and global.

To invest and grow profitably

To grow the company requires intelligent risk-taking and investment. To

reinvest,
we must protect our cash flows.

To empower our teams to win

We promote and support a collaborative environment in which people can work

together to succeed.

14

Revenue Transformation Advertising

Selling One Time
Inc.
Native and Custom
Content

Programmatic

Building Digital
Audience

Reinvented central sales team to leverage collective strength of Time

Inc.
Elevates conversations to the CMO level; through these relationships,
we can promote ideas, premium content, and influence the overall
media mix
In-house think-tank (The Foundry) supports advertising sales
Brings custom solutions to our advertising partners, i.e. The Drive
Collaborates with edit to integrate marketing across our brand
portfolio
Participate in private marketplaces and premium programmatic where
we earn higher CPMs for quality, including hyper-targeted print
programmatic
Offer advertising partners the automation to connect directly with our
scale audiences, safe environments and data assets
Move toward a modern content strategy of lower cost, higher volume
and optimization for mobile, video, social and search
During 2014, video production increased by more than one-third, and
user initiated video streams rose by a triple digit percentage YOY
15

Revenue Transformation Consumer Marketing

Move Time Inc. towards being a more data-driven organization

Data Initiative

Paid Content
Strategy
Optimize Pricing,
Channels, Offers
and Partnerships

Invest in CRM technologies and data science competency

Personalize the audience experience; more effectively target consumers at all stages of
the marketing funnel; and offer data and insights to advertising partners
Testing metered paywall technology EW.com, Health.com and RealSimple.com
launched in 2Q 2015 across our US brands
Drive anonymous visitors to become registered users; convert into brand product
purchasers; and promote other products and services
Analyzing price elasticity, and ability to boost subscription profitability at various price
levels
Build non-traditional channels and unique offers
E.G.: Cross brand promotions (Summer Sale and Black Friday); on cover couponing;
NME conversion to a free weekly magazine
Launch partner for Apples iOS 9 News App

Mobile

Next Issue Media (NIM), is an all-you-can-eat digital subscription provider of 140+

magazines
Could improve the performance of our digital circulation revenues

16

DA

Offline: 150 million For Insights

Online: millions more For Targeting

Affinity for Time Inc. brands For Measurement

Across Platforms

AL

Trusted Brands
Relevant Environments
Diverse Genres

XT

Across Audiences
Across Brands

SC

We have enormous data

assets which reach and
target the vast majority
of U.S. adults.

TA

APP
LIC

N
IO
AT

Time Inc. is
aggressively
investing in data
targeting
capabilities.

T
ON

17

Revenue Transformation Adjacent Opportunities

We are expanding our development of short-form and long-form video production

Video/TV

Sports Illustrated Play

(SI Play)

Live Events
inVNT & UKCE
New Products and
Services

Risk-averse approach will include co-financing; third-party distribution; production in

niche categories; and exploration of SVOD
Entirely devoted to youth and amateur sports, the SI Play platform will provide a robust
suite of digital tools and mobile applications
Current offerings include digital management tools for communication, managing
rosters and schedules, posting standing room scores and sharing photo galleries,
team news and websites
Time Inc. has a portfolio of leading events and tent-pole franchises
We are exploring opportunities to transform these individual brand-led events into a
centralized function to leverage the opportunities within and across our brands
Time Inc. Style Network is a content, services and commerce platform featuring all of
our premium fashion and beauty brands
It will also include utilities such as online personal shopping, beauty boxes and ecommerce

18

A Few Final Thoughts

on Culture
One Time Inc.

19

One Time Inc. is about bringing us together to

compete and operate as one company. It is
about buying into a mindset of collaboration
across the organization.

20

Our Vision
To become the worlds most
influential media network by
igniting, elevating and fulfilling
its passions.
21

Until our separation, Time Inc. was defined as the

magazine division of Time Warner. That identity (or
North Star) was far too limiting. Our broader identity
allows us to reinvent ourselves and to explore new
offerings and products.

22

Were open for business

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