It's not a secret that the Magazine industry has been struggling for a number of years and Time Inc. wasn't impervious to the market declines in advertising revenue. They, like every other publisher struggled to figure out how get consumers to pay for content.Younger consumers, who enjoyed the "FREE"-dom of the internet - who learned about the value of content from the likes of Napster, Megaupload and limewire.
The split-off of Time Inc. magazines is a good thing for the publications and for the industry. If you remove the bureaucracy, take some risks, rethink the game plan and the players, and partner with the "enemy" -- you can redefine the brand and re-create a profitable business model again. In a company as large as Time Inc., this is also a great opportunity to tidy up a bit in terms of management, staff, technology, vision and mission. With an estimated $3 billion in annual revenue - I full expect to see the new company to make some aggressive moves in 2013 in terms of talent, partnerships, acquisitions and new products. Sure the deal with Meredith fell through - but once a few layers of the bureaucracy disappear there will be opportunities for other deals to emerge.
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