In order to reach out to more customers, Time Inc. TIME announced that it has entered into partnerships with Hulu, Yahoo! Inc. YHOO and Zealot Networks for digital video distribution. Time Inc. expects these partnerships to help it to launch original videos from its portfolio of brands across these blue-chip sites and platforms.
The popularity of premium quality videos from Time Inc. brands has increased over the years. The company seems to have taken this step in a bid to cater to the growing demand among consumers and advertisers. We note that, counting Hulu, Yahoo and Zealot, the company has as many as 18 partners across more than 4,000 U.S. sites and platforms.
Other video distribution partnerships include Amazon/Amazon Video Shorts, CBS Local Digital Media, Gannett/USA Today, Vessel’s Video Service and Nextstar Broadcasting to name a few. Apart from these, the company’s network launch partners include AOL/AOLon, Cinesport, Scripps/ULive and Tout. Further, Time Inc. disclosed that it has plans to expand the network internationally.
So far in 2015, video streams across the company’s network have crossed the 1 billion mark. Moreover, as per October comScore report, on a year-over-year basis, the company recorded an 86% increase in UVVs (16.2MM), a 388% rise in total views, a 98% gain in total time spent, and a 162% surge in videos count per visitor.
We note that, since Time Inc.’s spin-off from Time Warner Inc. TWX in 2014, the company has been expanding and diversifying its brands and content through partnerships and acquisitions. Earlier this year, the company acquired three digital sports companies to lay the foundation of Sports Illustrated Play. The new segment, which is an extension of Time’s prominent magazine, Sports Illustrated, will cover the youth and amateur sports sector.
Prior to this, the company had acquired FanSided, a Missouri-based sports, entertainment and lifestyle network company. Its other acquisitions include, UK Cycling Events, the leading organizer of top cycling events in the UK.
We believe that Time Inc. will continue to pursue acquisitions and deals to boost its portfolio.
Zacks Rank
Time Inc. currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Meredith Corporation MDP with a Zacks Rank #2 (Buy).
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