Martha Stewart Living Omnimedia Restructures Media Portfolio
Strategic Plan to Deliver Signature Content Across Digital, Mobile and Video
PlatformsReduces Annual Operating Costs by $33-35 Million
NEW YORK, Nov. 1, 2012
NEW YORK, Nov. 1, 2012 /PRNewswire/ -- Martha Stewart Living Omnimedia, Inc.
(NYSE: MSO) today announced that it has taken further steps to restructure its
portfolio of popular media brands. The new actions include transitioning
Everyday Food from a print publication to a digitally-focused brand and
exiting Whole Living. Following the reorganization of the Company's Broadcast
TV group earlier this year and its recently announced partnerships with Hulu,
The AOL On Network and FremantleMedia, these initiatives accelerate the
Company's strategic plan to deliver its expert lifestyle offerings via
digital, mobile and video platforms in response to strong, sustained trends in
how audiences consume and engage with media content, while streamlining its
approach to broadcast and print distribution. The Company expects the new
actions announced today to result in substantial efficiencies, new revenue
opportunities, and approximately $33-35 million in annualized cost savings.
The Company's media portfolio restructuring actions include:
+Expanding the reach, frequency and audience of the Everyday Food brand
across multiple digital platforms. Beginning in 2013, more Everyday Food
content will be available online at www.marthastewart.com/everydayfood, on
the Everyday Food YouTube channel and via the popular daily video
newsletter, "Everyday Food with Sarah Carey."
+Publishing the Company's Everyday Food print publication as a supplement
five times per year in the Company's Martha Stewart Living flagship
magazine rather than as a stand-alone monthly.
+Exiting Whole Living either via a sale, regarding which the Company is in
discussions, or, if a sale is not completed, by folding its content into
Martha Stewart Living in order to sharpen the Company's focus on
delivering exceptional lifestyle content across the Company's more
+Partnering with The AOL On Network and Hulu to deliver popular video
content – in both full episodes and short-form video – across new
+Reorganizing the Company's Broadcast group to expand beyond the TV
platform and create and distribute premiere multi-platform digital video
content, including the recently announced venture with FremantleMedia, a
key player in the global content and brand space, to co-develop
programming featuring contemporary lifestyle personalities.
+Launching "Martha Stewart's Cooking School" on PBS, bringing a Master
Class in culinary basics and classics to more than 92% of US households,
with viewership trending steadily upward to more than 1 million viewers
+Introducing several exciting new digital video series made for the web,
including the upcoming "Countdown to Christmas," the first web-focused
series featuring Martha Stewart.
+Unveiling the Martha Stewart Living Apple iTunes storefront for iPad – a
branded digital storefront for the presentation of all Company magazine
content and the cross-sale of popular Martha Stewart Living utility
products like Martha Stewart Craft Studio, Cookies and Cocktail Apps. In
addition, last week the Company launched an Everyday Food app in
conjunction with the launch of the Windows 8 platform, for PCs and tablet
Lisa Gersh, President and Chief Executive Officer, said "We have taken
decisive action to drive the Company's return to sustainable profitability, in
part by reducing our costs for production and distribution and in part by
creating even more engagement with our audiences, and better and more valuable
opportunities for our advertisers. The initiatives announced today, coupled
with those we've taken over the past year, further the emphasis we have been
placing on digital, mobile and video platforms, reflecting our commitment to
put our expert lifestyle content in closer reach of consumers, with greater
frequency and in the ways they demand today and will expect even more in the
Martha Stewart, Founder and Non-Executive Chairman, said, "All of these
initiatives underscore the natural evolution of our great brands and of Martha
Stewart Living Omnimedia as a company. Our goal has always been to
continually enhance and improve the way we provide our audience with our
unique and engaging content. We have long embraced technology as a driver of
innovation and creativity, and by expanding our digital presence, we are able
to connect with our audiences and share all that we do in wonderfully rich new
Gersh continued, "We have unique, expert lifestyle content and products that
speak to the hearts of consumers – we simply need to continue to innovate in
the ways we reach them. As a whole, MSLO's total digital audience has grown
an average of 20-25 percent year over year every month since January 2012.
Following a careful evaluation of our media portfolio, we are responding to
clear trends we are seeing across the industry to give our consumers what they
are telling us they want: more video, more of the inspiration, solutions and
expert advice and how-to content our brands offer in digital formats, across
more platforms and on a more frequent basis. As these initiatives take hold,
we believe we can create more value for our stockholders."
As part of the new restructuring initiatives, the Company will eliminate
certain positions within the Publishing segment. Including the annualized
cost savings of approximately $12.5 million associated with the Broadcast TV
reorganization earlier this year, the Company is now removing an estimated
$45-47 million of annual costs from its media businesses overall on a go
forward basis. The Company will provide additional details regarding the
financial impacts associated with these actions when it reports its earnings
for the third quarter.
About Martha Stewart Living Omnimedia, Inc.
Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) is a diversified media and
merchandising company, inspiring and engaging consumers with unique lifestyle
content and distinctive products. The Company reaches approximately 66 million
consumers across all media platforms each month and has a growing retail
presence with 8,500 products in thousands of retail locations. MSLO's media
brands, available across multiple platforms, include Martha Stewart Living,
Martha Stewart Weddings, Everyday Food, Whole Living; the Company also offers
books and utility Apps. MSLO's television and video programming includes the
new "Martha Stewart's Cooking School" series, in addition to new
made-for-the-web video and a vast library of how-to content available
online. Martha Stewart Living Radio is available on SIRIUS XM Channel 110.
MSLO also designs high-quality Martha Stewart products in a range of lifestyle
categories available through select retailers, including The Home Depot,
Macy's, Staples (together with Avery), PetSmart, Michaels and Jo-Ann Fabric &
Craft Stores. The Company entered into a strategic alliance with J.C. Penney
Company, Inc., and will jointly develop an e-commerce site, for a 2013 launch.
The MSLO family of brands also includes Chef Emeril Lagasse's media and
merchandising properties. Additional information about MSLO is at
We have included in this press release certain "forward-looking statements,"
as that term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements are not historical facts but instead
represent only our current beliefs regarding future events, many of which, by
their nature, are inherently uncertain and outside of our control. These
statements include the success of our strategic plans, estimates of future
financial performance and cost savings, potential opportunities, expected
product line changes, future acceptability of our content and our businesses,
industry trends, anticipated growth, including particularly statements with
respect to our digital presence, the success of our various media alliances
and benefits from aligning our sales and marketing team, and other statements
that can be identified by terminology such as "may," "will," "should,"
"could," "position," "expects," "intends," "plans," "thinks," "believes,"
"estimates," "potential," "seem," "counting" or "continue" or the negative of
these terms or other comparable terminology. The Company's actual results may
differ materially from those projected in these statements, and factors that
could cause such differences include: adverse reactions to publicity relating
to Martha Stewart or Emeril Lagasse by consumers, advertisers and business
partners; the failure of national and/or local economies to improve or renewed
deterioration of such economies; shifts in our business strategies; a loss of
the services of Ms. Stewart or Mr. Lagasse; a loss of the services of other
key personnel; a renewed softening of the domestic advertising market; changes
in consumer reading, purchasing and/or television viewing patterns to which
our offerings are unable to respond; unanticipated increases in paper, postage
or printing costs; operational or financial problems at any of our contractual
business partners; the receptivity of consumers to our new product
introductions; the inability to add to our partnerships or capitalize on
existing partnerships; legal actions taken against us; and changes in
government regulations affecting the Company's industries.
Certain of these and other factors are discussed in more detail in the
Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q filed with the Securities and Exchange Commission, especially under the
heading "Risk Factors," which may be accessed through the SEC's World Wide Web
site at http://www.sec.gov/. The Company is under no obligation to update any
forward-looking statements after the date of this release.
SOURCE Martha Stewart Living Omnimedia, Inc.
Contact: Investors: Katherine Nash, Martha Stewart Living Omnimedia, Inc.
Corporate Communications, +1-212-827-8722, email@example.com or Media:
Jeanne Meyer, Martha Stewart Living Omnimedia, Inc. Corporate Communications,
+1-212-827-8246, firstname.lastname@example.org or Matthew Benson, Sard Verbinnen &
Co., +1-212-687-8080, email@example.com
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