In an effort to explore and add alternative revenue generating
channels through acquisitions or strategic alliances,
Meredith Corporation
(
MDP
) is trying to reduce its dependence on conventional
advertising.
Following this rationale, Meredith recently announced the
signing of agreements in Turkey and Italy to enhance the reach of
its renowned brands like
Better Homes and Gardens, Parents
and
More,
and
Allrecipes.com
.
In Turkey, Meredith through a licensing agreement with
Dinosaurs Yayincilik ve Dijital Medya Ltd. will be launching the
local editions of the
Better Homes and Gardens, Parents
and
More
. The titles, scheduled to be launched in Apr 2013, will be
disbursed through subscriptions and newsstands.
Moreover, in Italy,
Allrecipes.com
launched
Allrecipes.it
, a digital site dedicated to Italian cooks.
The sluggish economy prompted Meredith to diversify and add
significant revenue streams beyond traditional advertising by
leveraging its brands through strategic alliances. Brand
Licensing revenues supplement the sales of the company, thus MDP
extended its contract with
Wal-Mart Stores Inc
. (
WMT
) through 2016, which includes expanding the Better Homes and
Gardens branded home decor and garden program at Wal-Mart stores
across the United States and Canada.
Going forward, Meredith remains committed to making strategic
investments to increase its revenue generating capabilities while
enhancing its profitability. The company is aggressively
expanding its brands through online platforms, televisions,
videos, mobile applications and is expanding its reach of food
and lifestyle content across tablet products such as the iPad,
NOOK Color, Kindle Fire, and Samsung Galaxy.
Alongside, the company also renewed its long-term affiliation
agreements with
CBS Corporation
(
CBS
) and
News Corp
.'s (
NWSA
) Fox Broadcasting Co. Meredith is also aggressively expanding
its brands through online platforms, televisions, videos, mobile
applications, and broadening its reach of food and lifestyle
content.
Currently, shares of Meredith retain a Zacks Rank #2 (Buy) as
it continues to focus on bolstering advertising revenue,
primarily in the digital space, and enhancing online consumer
transactions, especially magazine subscription orders. Moreover,
the company's focus on brand licensing, marketing services and
e-Commerce is likely to drive revenues.
CBS CORP (CBS): Free Stock Analysis Report
MEREDITH CORP (MDP): Free Stock Analysis
Report
NEWS CORP INC-A (NWSA): Free Stock Analysis
Report
WAL-MART STORES (WMT): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research