Meredith's Business Segments

Meredith Corporation, one of the nations leading media and marketing companies, is engaged in magazine and book publishing, television broadcasting, integrated marketing, and interactive media. Virtually all of the Companys revenues are generated in and assets reside within the United States.

Meredith Corporation is a diversified media and marketing company that operates across two primary business segments: publishing and broadcasting. Each segment encompasses a variety of products and services, reflecting the companys versatility in the media landscape.

Publishing

Magazines
At the heart of Merediths publishing segment is its robust portfolio of magazines, with Better Homes and Gardens serving as the flagship publication. This magazine plays a crucial role in driving both revenues and operating profits for the publishing segment and the company as a whole. Besides Better Homes and Gardens, Meredith publishes several other magazine titles that cater to specific interests, including:

- Country Gardens
- Renovation Style
- Creative Home
- Decorating
- Do It Yourself
- Garden, Deck & Landscape
- Garden Shed
- American Patchwork & Quilting

Furthermore, Meredith holds a 50 percent interest in a monthly Australian edition of Better Homes and Gardens.

Meredith also publishes Special Interest Publications, which are released one to six times a year and mainly sold on newsstands. These titles are primarily centered around home improvement, decorating, and gardening, and include:

- Beautiful New Homes
- Bedroom & Bath
- Home Planning Ideas
- Kitchen and Bath Ideas
- 100 Ideas series
- Paint Decor
- Quick & Easy Decorating
- Remodeling Ideas
- Scrapbooks, etc.
- Window & Wall Ideas

Interactive Media
The companys digital presence through Meredith Interactive Media extends the reach of its magazine brands online. The primary website, bhg.com, stands out as a leader in its niche, offering rich content and applications related to home improvement, cooking, and decorating. Meredith has forged multi-year alliances with leading internet providers to increase site traffic, providing additional advertising revenue and facilitating online subscriptions, which leads to potential costs savings.

Advertising
Meredith generates advertising revenues mainly from partnerships with consumer marketing clients. The company offers various regional and demographic editions of its magazines, allowing advertisers to target specific audiences. There are primarily two types of magazine advertising that Meredith sells:

1. Display Advertising (run-of-press or inserts)
2. Direct-Response Advertising

Most advertising revenues in the publishing segment stem from run-of-press display ads. To further enhance advertising effectiveness, Meredith Corporate Solutions combines the companys diverse resources to create tailored multi-platform marketing programs for clients.

Circulation
Meredith utilizes multifaceted strategies to boost circulation revenues, primarily from subscriptions acquired through direct mail, agencies, insert cards, and the Internet. While single-copy sales are important for many magazines, subscriptions remain the largest source of circulation revenue for the company.

Key to Merediths integrated marketing strategy is Meredith Integrated Marketing, which crafts promotional strategies that leverage the companys custom capabilities. This segment also relies on a robust consumer database with over 75 million names, allowing magazine and television advertisers targeted marketing opportunities.

Broadcasting

Operations
The broadcasting segments primary source of revenue is advertising, with stations selling commercial time to both local and national advertisers. Rates for spot advertising depend on several factors: market size, in-market competition, audience demographics, and viewing trends. Higher audience shares allow stations to exert more influence over advertising rates.

Local news programming is particularly lucrative, contributing 25 to 35 percent of a markets television advertising revenues. Meredith has significantly increased its local news programming hours over the years, consistently working to enhance news quality and ratings.

The company operates 11 television stations, each affiliated with major networks (including FOX, CBS, and NBC) that affect advertising revenues. Typically, affiliation agreements grant local stations exclusive rights to broadcast network programming, while networks sell the majority of commercial spots during their broadcasts. Depending on the terms of the agreements, local stations may pay networks for specific programming or receive compensation in return for airing network ads.

Merediths strategic moves, such as shifting FOX affiliations between stations and adapting to changes in affiliate agreement expirations, showcase the companys engagement in maintaining its broadcasting relationships.

Cost management is critical in producing local and syndicated programming, as these expenses are tied to market demand. In response, Meredith emphasizes producing original content to maintain advertising attractiveness and manage content control.

Digital Initiatives and Wireless Infrastructure
In an effort to adapt to the evolving media landscape, Meredith, in collaboration with other broadcasters, has committed a portion of its digital spectrum to create a wireless infrastructure for delivering content. The venture, iBlast Networks, has positioned itself to test content distribution via selected Meredith television stations in major U.S. markets, potentially setting the stage for future revenue opportunities.

Conclusion
Overall, Meredith Corporation has established a comprehensive and diversified portfolio within its publishing and broadcasting segments. The company has adeptly leveraged both traditional print media and modern digital platforms to create engaging content and advertising opportunities, positioning itself as a formidable player in the media industry. The integration of their media capabilities, extensive reach through various platforms, and commitment to excellence in both segments contribute significantly to their long-term success and adaptability in a rapidly changing marketplace.