Time Warner Inc. is consolidating the online operations of its
Sports Illustrated magazine and Turner Sports to challenge Internet sports destination
ESPN.com.
Sports Illustrated will continue to create all editorial content, and Turner Sports will handle the technical operations, ad sales and marketing for SI.com, New York-based Time Warner announced in a July 12 statement.
Lackluster ad sales for Sports Illustrated's website,
SI.com, and
Golf.com appear to be one of the key reasons why Turner Sports is taking over advertising sales, marketing, and other digital operations for those Time Inc. properties. A dearth of video content, and related lack of pre-roll ad sales on sites like SI.com could have contributed to the decision.
Under the deal, Turner will sell digital and television to advertisers, while Time Inc./SI will sell print and some digital. In essence, Time Inc.'s SI.com and Golf.com will be added to Turner's portfolio of 19 digital sports (NBA.com, NASCAR.com, PGA.com, and PGATour.com) and entertainment sites (TBS.com, TNT.tv, and TruTV.com). The agreement was first reported by
The Wall Street Journal.
SI.com has trailed rivals Yahoo Sports, ESPN, and Fox Sports in terms of unique visitors for every month since May 2009, according to Compete's most recent data. Indeed, Time Inc. executives reportedly told the Journal that SI.com hasn't attracted enough traffic to lure big brand marketers.
Time Inc. and SI have formally announced the deal (SI is listed first in the headline but Turner’s David Levy goes first in the release for those who track PR politics). From the rather brief announcement:
>>The combination marries the wealth of stories, perspective and photos from SI with Turner’s digital media and sales expertise, resources, video sports rights and video production. Sports Illustrated will create all editorial content across each of its platforms: the flagship magazine, its websites, mobile and the recently launched —and widely acclaimed—tablet version of the magazine.
Under the new agreement, Turner Sports will be responsible for business and technical operations, ad sales, product management and marketing for SI.com and Golf.com, which will be added to Turner’s portfolio of 19 digital sports and entertainment sites. The two organizations will collaborate on multiplatform sales across their collective properties. Additionally, Turner and Sports Illustrated will collaborate on the production of new mobile products and applications.
From McDonell’s statement: “Our brands will click naturally and strategically into place and everyone will win.”
The partnership between the Time Inc. magazine and Turner Broadcasting cable-television units further cements Time Warner’s grab for more of the sports entertainment market. In April, Turner and CBS Corp. agreed to a $10.8 billion, 14-year contract for the broadcast, Internet and wireless rights to the men’s college basketball championship tournament. New York-based CBS and Turner outbid Walt Disney Co.’s ESPN.
Time Warner said the partnership will create new revenue and marketing opportunities for SI.com, Golf.com and Turner’s 19 sports and entertainment websites, including those for Nascar racing and professional baseball and basketball. The units will also work together to produce new mobile products and applications.
Sports Illustrated already produces a tablet version of its content for Apple Inc.’s iPad.