Nestled in the umpteenth story about impending Time Inc. layoffs, the NYT offers a tantalizing number related to the Time Warner unit’s digital front. Also, we once again hear how Time is shifting resources to digital media as it cuts costs to prepare for the future. Mind you—as is the case with most newspapers—when we talk about magazines in trouble at Time Inc., we’re still talking 18 percent margins on average. It’s a lack of growth in print revenue that is causing all the consternation and the growth of online revenue that makes digital all the rage. (Favorite quote: referring to ad pages, “flat is the new up.”)
Back to those numbers: at an annual senior TW retreat last November, Time Inc. Chairman Ann Moore told fellow execs she expected SI’s digital operations to contribute 13 percent of SI’s profits—and that it was projected to be 18 percent in 2007. For a little context, the month before that appearance, Moore projected internet revenue to contribute about 15 percent of net income at SI and 25 percent at the business titles thanks to the relaunch of CNNMoney.com as a central site.
On the editorial front, SI will have most of its print reporters and photographers writing for the internet, cutting down arbitrary barriers and costs at the same time. Terry McDonnell, editor of the SI group, told the Times the growth stems from increased online customization and constantly updating news. SI’s cuts will come from stretching the staff across platforms. McDonnell: “It’s all about being more efficient across all the platforms in the S.I. group.”
Related:
—SI.com’s MySI Looks At The Big Picture; Swimsuits Optional
—Earnings: Time Warner 3Q Disappoints; AOL Makes Ad Gains; SI.com, CNNMoney.com Help Time Inc.