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.
The Company has two business segments: publishing and broadcasting.
The publishing segment is focused on the home and family market. It consists
of 17 magazine brands, including Better Homes and Gardens, Ladies Home Journal,
and American Baby, as well as approximately 170 special interest publications;
book publishing with nearly 300 books in print; integrated marketing relationships
with some of Americas leading companies; a large consumer database; an extensive
Internet presence, including 24 web sites and strategic alliances with leading
Internet destinations; brand licensing relationships; and other related operations.
The broadcasting segment includes the operations of 11 network-affiliated television
stations located across the continental United States. These stations consist
of five CBS affiliates, four FOX affiliates, one NBC affiliate, and one UPN
affiliate.
The Companys largest revenue source is magazine and television advertising.
Television advertising is to some extent seasonal, traditionally generating
higher revenues in the second and fourth fiscal quarters and during key political
contests, major sporting events, etc.
Name recognition and the public image of the Companys trademarks (e.g., Better
Homes and Gardens and LadiesHome Journal) and television station call letters
are vital to the success of ongoing operations and to the introduction of new
business. The Company protects its interests by aggressively defending its trademarks
and call letters.
The major raw materials essential to the publishing segment are coated publication
and book-grade papers.
Competition
Publishing is a highly competitive business. The Companys magazines, books,
and related publishing products and services compete with other mass media,
including the Internet, and many other types of leisure-time activities. Competition
for readers is based principally on price, editorial content, marketing skills,
and customer service. Competition for advertising dollars is based primarily
on advertising rates, circulation levels, reader demographics, advertiser results,
and sales team effectiveness.
Gaining market share for newer magazines and specialty publications is extremely
competitive. Competition is also intense for established titles. Better Homes
and Gardens and Ladies Home Journal, for example, must compete for readers
and advertisers with other womens service magazines such as Family Circle',
Good Housekeeping', Redbook', and Womans Day' magazines, which are published
by other companies. According to the Publishers Information Bureau, the combined
fiscal 2003 advertising revenue market share of Better Homes and Gardens and
Ladies Home Journal magazines totaled approximately 43 percent of the womens
service magazine market.
Meredith television stations compete directly for advertising dollars and programming
in each of their markets with other television stations and cable television
providers. Other mass media providers such as newspapers, radio, web sites,
and direct broadcast satellite are also competitors. Advertisers compare market
share, audience demographics, and advertising rates and take into account audience
acceptance of a stations programming, whether local, network, or syndicated.
Some competing services have the potential of providing improved signal reception
and/or increased programming selection.
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