It is no secret or shock that many traditional publishing companies that are rooted in print are moving aggressively into the current it thing which is video. Companies have altered their entire business models and growth strategy to focus on video. Some companies even launched their own video platforms but not all of them survived. Time Inc which has been running away from its print heritage for years now and for good reason, is diving deeper into digital video and TV with the planned launch of a new cooking competition show called “Homemade vs. The Internet” to be aired on Facebook’s new video platform called “Watch”. But that’s not all, the company has also entered deals with streaming giants like Netflix and traditional broadcasters like OWN with plans to produce 40 hours of TV programming. Time Inc currently has 75 TV and long-form projects in development. The move signals Time Inc’s seriousness about being seen as not a magazine publisher, but as a multi media, multi platform media company, and the effort seems to be gaining some traction.
The company is still in the process of unloading some of its print brands like Coastal Living, Sunset and Golf as well as a majority stake in Essence Communications which publishes Essence Magazine and produces the growing Essence Festival. Since deciding not to move forward with a sale of the company, CEO Rich Battista has been cutting costs where he can with an eye on $400 million in cost savings over the next 18 months. The effort would allow Time Inc to bolster its digital efforts and beef up its Brooklyn based digital content agency The Foundry. The company recently put Christian Schmitz a partner at the notorious McKinsey & Co consulting firm to oversee the transition which also includes the planned sale of Time Inc’s Tampa, Fla. based customer service center which is said to have generated some bids. Time Inc hopes to pocket $300 million from a sale. The bad news about this potential sale is that it will likely lead to a massive round of layoffs as many of the potential suitors for the division are based in India.