CONFIDENTIAL Successfully Transforming DIY Media for the Digital Age Content + Community +...
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CONFIDENTIAL
Successfully Transforming DIY Media for the Digital Age
Content + Community + eCommerce
• Exceptional franchises and brand names in growing, recession-resistant markets
• Must-have content for passionate enthusiasts with life-long interests
• Evergreen content that is repurposed across products and distribution channels
• Multi-platform portfolio that generates revenue primarily from consumers – not from advertising
• Superior editorial, marketing, financial and administrative talent
• Transformed business model focused on digital products and distribution channels
• Market leader in anticipating and responding to changing market dynamics
• Integrated digital content, database-driven marketing and eCommerce distribution
• Digital content development prowess has increased customer base for new and existing products without cannibalizing sales
• History of transformation through integration of strategic acquisitions
• Significant organic and acquisition growth prospects to execute Interweave’s plan
3CONFIDENTIAL
Introduction to InterweaveExecutive Summary
Introduction to InterweaveInterweave’s Markets & BrandsThe Leading Online & Offline Resource for Crafters & Artists
• Knitting, Crochet, Spinning and Weaving
• Art Quilting, Mixed Media and Sewing
• Jewelry Making and Beading
• Painting and Drawing
4CONFIDENTIAL
Introduction to InterweaveDo-It-Yourself (DIY) Content
• Premium-Priced and Must-Have Content
Like blueprints to a builder
• Life-long Interests
Enduring customer base
• Consumer (Not Advertising) Driven Revenue
Recession resistant
• Insatiable Customer Appetites
Ready markets for new content products
• Community Focused
Offline community focused for centuries
5CONFIDENTIAL
Introduction to InterweaveFree Affinity and Paid Premium Content
6CONFIDENTIAL
Free Affinity ContentBlogs Email Newsletters ForumsFreemiums Online Communities Pattern DownloadsVideo Tutorials Television WebsitesSocial Media Affinity Apps
Paid Premium ContentBooks Bookazines eBooks
Utility Apps Magazines Events
Magazine Apps Videos Workshops
ePatterns CD Compilations Pattern Downloads
Digital Magazines
Introduction to InterweaveRepurpose Evergreen Content for Use Across
Multiple Channels
7CONFIDENTIAL
Content
Television Print & Digital
Magazines
Magazine Apps
Books
eBooks
Instructional Videos
Events
Workshops
Utility Apps
Freemiums
Downloads
Social Media
Email Newsletters
Online Communitie
s
Affinity Apps
Free Affinity
Paid Premium
Introduction to InterweaveBusiness Transformation: Acquired vs. Started
8CONFIDENTIAL
Content
Television Digital Magazines &
Apps
Print Magazines
Books
Events
Workshops
eBooksInstructional
Videos
Apps
Freemiums
Downloads
Social Media
Email Newsletters
Online Communitie
s
Introduction to InterweaveInterweave History 2005-Today
9CONFIDENTIAL
• Launched apps for books and magazines
• Launched affinity and utility apps
• Launched eBooks and eMags
• Acquired Quilting Arts TV
• Built video studio
• Built eCommerce store• Launched lines of
instructional videos• Acquired American Artist
Group
• Launched online communities and daily email blogs/newsletters
• Built ePattern download business from disaggregated content
• Launched new PBS television programming
• Acquired Quilting Arts, Cloth Paper Scissors and NeedleArts Studio
• Aspire acquires Interweave
• Acquired Gems Division
2005 2006 2007 2008 2009 2010 2011
Interweave Market DynamicsInterweave Creatives: the Heart of the Craft Market
*Enthusiasts whose favorite activities are Interweave segments: knitting, crochet, quilting, sewing, jewelry/beading, painting, drawing, mixed media, or fiber arts.
Data sources: Number of Interweave creatives and spending are Hart estimates based upon Interweave internal data. Enthusiasts at large data is from Hart
analysis. Crafter data is from the Craft and Hobby Association (CHA) Attitude & Usage Study.
Data is approximately for the year ending June 30, 2011.
11CONFIDENTIAL
Interweave Market DynamicsInterweave Creatives Active Across Multiple Platforms
12CONFIDENTIAL
Content Consumed
Interweave Customer Types
Interweave Magazines
Interweave Websites
Interweave E-
NewslettersInterweave
Online StoreInterweave
Subscribe
Knitters 84% 83% 73% 51% 49%
Crocheters 66% 78% 67% 34% 40%
Quilters 79% 79% 72% 57% 59%
Sewers 72% 75% 70% 43% 40%
Jewelry Makers 81% 80% 70% 54% 58%
Beaders 84% 82% 72% 55% 63%
Artists 76% 76% 66% 49% 50%
• Interweave is a leader in understanding the digital content needs of creative people,
providing both traditional and digital resources to creatives
• Interweave magazines and websites are highly rated by customers and enthusiasts
Note: Interweave customers’ responses to the question: “Which of the following Interweave media have you read or used in the past two years?”
• 80% of digital subscribers do not match an existing Interweave magazine active
subscriber record
• 40% of digital subscribers do not match any active subscriber or eCommerce buyer
record in the Interweave database
• 22% of subscribers are completely “new-to-file” – they do not match any record in the
Interweave database (subscribers, eCommerce buyers or any affinity newsletter list)
Digital Magazine Subscribers are Expanding the Audience for
Interweave’s Magazines
13CONFIDENTIAL
Interweave Market Dynamics
Content + Community + eCommerceMulti-Pronged Approach to Fueling Creatives' Interests
15CONFIDENTIAL
Content(Inspiration
& Instruction)
Communities(Engagement)
eCommerce(Monetization)
• eCommerce and traditional wholesale channels
• Digital content products and physical content products
• Free content and paid content
• Original content and repurposed content
• Professional content and user content
• Commissioned content and curated content
• Online and offline communities
Content + Community + eCommercePlatform AgnosticInterweave provides both digital and traditional media to serve enthusiast needs
16CONFIDENTIAL
Content + Community + eCommerceCommunities Offline Communities in Existence for Generations
• Quilting Bees have been around since the Revolutionary War
• Knit nights have been around for decades
• Artists and crafters are predisposed to engage in online communities
17CONFIDENTIAL
Content + Community + eCommerceCommunities More than 1.4 million artists and crafters engaged with each other and with Interweave
through Online Communities
18CONFIDENTIAL
Content + Community + eCommerceCommunities Who are they?
• Mainly women age 35+
• Pro-am markets (art and jewelry making)
also attract men
• Women focused on creative self-expression
• Crafters and artists with life-long interests
• Seeking inspiration, original designs,
technical instruction, peer-to-peer
engagement, and content products
19CONFIDENTIAL
Content + Community + eCommerceeCommerceInterweavestore.com
21CONFIDENTIAL
• 10 niche stores-within-a-store
• Product offering includes both digital and physical content
• Customers can access the InterweaveStore directly or via the “Shop” tab on each
of Interweave’s online community pages
Interweave by the NumbersFree Affinity Content Email Newsletters - 2011
10Online Communities
23CONFIDENTIAL
Interweave by the NumbersFree Affinity Content Television Programs - 2011
3 TV Programs reaching
71% of PBS Markets
24CONFIDENTIAL
Interweave by the NumbersFree Affinity Content Free ePattern/Project Downloads - 2011
1,600 Free Patterns
25CONFIDENTIAL
Interweave by the NumbersFree Affinity & Paid Premium Content iPad & iPhone Apps in market - 2011
5 Utility Apps
13 Magazine Apps
3 Affinity Apps
26CONFIDENTIAL
Affinity Apps – free apps that are developed to build relationships and drive registered users;Utility Apps – paid apps (low priced) that provide users with tools to solve specific problems and objectives; andMagazine & Book Apps – apps that contain digital replicas of magazine and books and original rich content products (eMags) – some sold through Zinio and others sold through iNewsstand and iTunes stores.
Interweave by the NumbersPaid Premium Content eCommerce Interweave Store - 2011
11 eCommerce Stores
27CONFIDENTIAL
Interweave by the NumbersPaid Premium Content Magazines, Bookazines & eMags - 2011
48 Magazines and Bookazines
11 eMags
28CONFIDENTIAL
Interweave by the NumbersPaid Premium Content Books & eBooks in market - 2011
35-45New Books & eBooks Annually
100+ eBooks
375+ Books
29CONFIDENTIAL
Interweave by the NumbersPaid Premium Content Events & Workshops - 2011 11 Consumer Events
30CONFIDENTIAL
Interweave by the NumbersPaid Premium Content Instructional Video & Digital Compilations - 2011
159Instructional Videos
31CONFIDENTIAL
Executive TeamTalented & Successful Operators
• V.P. Consumer Marketing Rodale
• Publisher F+W Media
• President & Publisher Leman Publications
• Director of Events F+W Media
• Director of Book Production F+W Media
• Owner/Publisher Quilting Arts, Cloth Paper Scissors
• Attorney
CONFIDENTIAL
Bob KaslikSenior V.P.
John BoltonSenior V.P.
Sara DumfordV.P. Events
David DunnV.P. eCommerceJamie BognerV.P. Content
Julie MacdonaldV.P. Media Sales
• V.P. eCommerce Webroot Software
• Director of Product Marketing Rally Software
• Art Director Nielsen
• Editor-in-Chief MCO Magazine
• Editor-in-Chief/Publisher Art Business News
• Sales Director Louise Blouin Media
32
Executive TeamExperienced Support Teams
• Senior Editor Duke Communications International
• Managing Editor Penton Technology & Lifestyle Media
• Senior Director of HR Westwood College
• Director of HR IAS
33CONFIDENTIAL
Trish FaubionV.P. Production
Aaron WilmotV.P. People OperationsDawn StewartV.P. Financial Planning & Analysis and Operations
• Manager of Financial Planning and Analysis Coca-Cola
North America
• Senior Financial Analyst Hyundai Motor America
• Owner/Publisher Natural Home, Herbs for Health,
Herb Companion
• Publisher Ready Made
• Director of eMedia Technology
Penton Technology
Linda LigonFounder
T.J. HartyV.P. Technology
• V.P./Group Publisher Cowles Enthusiast Media
• C.E.O./Owner Southwest Art Magazine
• Controller Meredith Corporation Publishing Group
• Business Director Meredith Corporation
Clay HallC.E.O.
Troy WellsC.F.O.
CONFIDENTIAL 34
Executive TeamCapable Corporate Executives