Time Inc (NYSE:TIME) has been recently separated from the Time Warner Inc (NYSE:TWX) and both companies have been looking for a fresh start since then particularly Time Inc (NYSE:TIME) as it has to make newer decisions rapidly now.
Joe Ripp, CEO of Time Inc (NYSE:TIME) was being interviewed by Bloomberg’s Stephanie Ruhle and he began stating:
“I say I am the content industry. I am not saying I am the magazine industry anymore.”
He said that Time Inc (NYSE:TIME) has been thinking about itself as a magazine industry and by setting limitations like that, the company has put itself in a paper box. Ripp added that he has got over 2000 different types of content producers working for him all over the world and that the content can be produced and delivered in various formats like video, digital content and a lot more events.
Ripp has expertise in the private equity sector so he was asked how he is going to use that to take control of power from the editors who run stuff mostly in terms of creativity. He said the editors at Time Inc (NYSE:TIME) are really damn good at the creative process. He also said that as a private equity investor, he understands the value of the assets he has got in the form of creative editors.
Ripp also said that the company has a lot of cash to invest and he is asking himself what else Time Inc (NYSE:TIME) can do as a company to grow and delight the consumers. He also said that now that Time Inc (NYSE:TIME) is independent they can do a lot more exciting stuff than before. He said that with the new structure the editors need to think more on the business side. He said that the editors have more freedom to think on how to impress the consumers. Ripp went on saying that he loves trying new things and he has said this to his editors also.
He was then asked about the recent layoffs and how he plans to cut the budget with other options. He said that he keeps getting asked how the company plans to invest more and has layoffs hand to hand and his response was pretty clear. He said there are a lot of things that the company doesn’t need so Time Inc (NYSE:TIME) needs to stop investing in those things and look ahead to the future.
When he was asked if there are plans to sell products directly, Ripp said that a lot of his magazines sell products. On average readers buy 8 products recommended in each edition of Instyle magazine. He also said that they are looking forward to work things out in terms of sale without violating consumer interest.