Time Inc. has invested in a new online sports network, part of a
broader effort to expand the publisher's presence in the
fast-growing market for Web video ahead of a spinoff from its
corporate parent.
The online channel, dubbed 120 Sports, will include content such
as game highlights and commentary in two-minute segments, Time Inc.
said Thursday. Sports leagues including the National Hockey League,
National Basketball Association, Major League Baseball, Nascar and
collegiate sports conferences will serve as initial content
partners.
The network, which is slated to launch this spring, will be
aired on its own website and app but its content could also appear
on third-party sites. Content from the network will also be
available through Time Inc.'s Sports Illustrated, which will handle
ad sales for the venture through a partnership with Silver Chalice,
a Chicago-based digital-video production company that is one of
several other investors in the network.
The investment in 120 Sports is one of several steps Time Inc.
has taken to ramp up online video, where changing consumer viewing
habits have fueled hopes that more ad dollars will flow to the
medium. Time's publishing rivals, including Condé Nast and Hearst
Corp., have taken a similar approach.
The foray is particularly timely for Time Inc. as it attempts to
position itself to potential investors as a multimedia company
poised for growth, rather than a traditional magazine publisher
suffering from industrywide declines in print advertising. Time
Inc. is due to be spun out from Time Warner Inc., its corporate
parent, in the second quarter.
Time Inc. didn't disclose the exact amount of money to be
invested in the new venture, which in addition to Time and Silver
Chalice is backed by the NHL and Major League Advanced Media, which
operates MLB.com and supports other online media ventures from
World Wrestling Entertainment Inc., ESPN and Sony Corp.
120 Sports will initially be free to consumers. It is eventually
expected to make money through a combination of possible
advertising sponsorships, licensing and premium subscription
services over time, Bob Bowman, the CEO of Major-league Advanced
Media, said during a conference call with reporters Thursday.
The 120 Sports investment is "one of many we hope to invest in
as part of our plan to turn our brands into cross-platform
powerhouses," Todd Larson, executive vice president at Time Inc.,
wrote Thursday in a note to staff announcing the investment. His
comments were echoed by Time Inc.'s CEO Joe Ripp, who in a meeting
with Time Inc. employees Thursday highlighted the investment and
online video in general as important growth areas for the
company.
Last year, Time Inc. hired its first senior executive dedicated
to growing its online video operations. And this spring, Time Inc.
will for the first time present at the annual "NewFronts" -- a
digital version of the TV industry's "upfront" presentations to ad
buyers held each spring.
Time Inc. is venturing into a crowded market for sports content,
where Sports Illustrated years ago ceded its role as a leading
source for sports coverage outside of television.
For January, Sports Illustrated drew 12.5 million desktop
viewers, according to data from comScore, making it the ninth
largest sports-related site behind giants like Yahoo Sports, Walt
Disney Co.'s ESPN.com, as well as newer online sites like Vox
Media's SB Nation. And many of its competitors already offer a
comparable mix of online highlights and commentary.
Noticeably absent from the list of partner leagues is the
National Football League. The league last month unveiled plans for
a new online video app that will tailor programming according to
each user's interests, part of an independent effort by the league
to extend its reach on digital platforms.
Mr. Bowman signaled that 120 Sports was interested in including
other sports content and leagues, such as the NFL. "Obviously we'd
love to have all sports participate in this," he said.
Time Inc. Invests in New Online Sports Network
Time Inc. has invested in 120 Sports, a new online sports
network, as part of a broader effort to expand the publisher's
presence in the fast-growing market for Web video.
Write to William Launder at william.launder@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires