Successfully Transforming
DIY Media for the Digital Age
Content + Community + eCommerce
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Introduction to Interweave
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Introduction to Interweave
Executive Summary
• Exceptional franchises and brand names in growing, recession-resistant markets
• Must-have content for passionate enthusiasts with life-long interests
• Evergreen content that is repurposed across products and distribution channels
• Multi-platform portfolio that generates revenue primarily from consumers – not from advertising
• Superior editorial, marketing, financial and administrative talent
• Transformed business model focused on digital products and distribution channels
• Market leader in anticipating and responding to changing market dynamics
• Integrated digital content, database-driven marketing and eCommerce distribution
• Digital content development prowess has increased customer base for new and existing
products without cannibalizing sales
• History of transformation through integration of strategic acquisitions
• Significant organic and acquisition growth prospects to execute Interweave’s plan
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Introduction to Interweave
Interweave’s Markets & Brands
The Leading Online & Offline Resource for Crafters & Artists
• Knitting, Crochet, Spinning and Weaving
• Art Quilting, Mixed Media and Sewing
• Jewelry Making and Beading
• Painting and Drawing
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Introduction to Interweave
Do-It-Yourself (DIY) Content
• Premium-Priced and Must-Have Content
Like blueprints to a builder
• Life-long Interests
Enduring customer base
• Consumer (Not Advertising) Driven Revenue
Recession resistant
• Insatiable Customer Appetites
Ready markets for new content products
• Community Focused
Offline community focused for centuries
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Introduction to Interweave
Free Affinity and Paid Premium Content
Free Affinity Content
Blogs
Email Newsletters
Forums
Freemiums
Online Communities
Pattern Downloads
Video Tutorials
Television
Websites
Social Media
Affinity Apps
Paid Premium Content
Books
Bookazines
eBooks
Utility Apps
Magazines
Events
Magazine Apps
Videos
Workshops
ePatterns
CD Compilations
Pattern Downloads
Digital Magazines
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Introduction to Interweave
Repurpose Evergreen Content for Use Across
Multiple Channels
Online
Communities
Television
Print &
Digital
Magazines
Email
Newsletters
Magazine
Apps
Social Media
Books
Affinity Apps
Content
Paid Premium
Free Affinity
eBooks
Downloads
Instructional
Videos
Freemiums
Utility Apps
Events
Workshops
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Introduction to Interweave
Business Transformation: Acquired vs. Started
Online
Communities
Television
Digital
Magazines &
Apps
Email
Newsletters
Print
Magazines
Social Media
Books
Content
Downloads
Events
Workshops
Freemiums
Apps
eBooks
Instructional
Videos
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Introduction to Interweave
Interweave History 2005-Today
• Aspire acquires
Interweave
2005
• Launched online
communities and daily
email blogs/newsletters
• Built ePattern download
business from
disaggregated content
• Launched new PBS
television programming
• Acquired Quilting Arts,
Cloth Paper Scissors and
NeedleArts Studio
• Built video studio
2006
2007
• Acquired Gems Division
2008
2009
• Built eCommerce store
• Launched lines of
instructional videos
• Acquired American Artist
Group
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• Launched apps for books
and magazines
• Launched affinity and utility
apps
2010
2011
• Launched eBooks and
eMags
• Acquired Quilting Arts TV
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Interweave Market Dynamics
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Interweave Market Dynamics
Interweave Creatives: the Heart of the Craft Market
*Enthusiasts whose favorite activities are Interweave segments: knitting, crochet, quilting, sewing, jewelry/beading, painting, drawing, mixed media, or fiber arts.
Data sources: Number of Interweave creatives and spending are Hart estimates based upon Interweave internal data. Enthusiasts at large data is from Hart
analysis. Crafter data is from the Craft and Hobby Association (CHA) Attitude & Usage Study.
Data is approximately for the year ending June 30, 2011.
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Interweave Market Dynamics
Interweave Creatives Active Across Multiple Platforms
Interweave Customer Types
Content Consumed
Interweave
Interweave
Magazines
Websites
Interweave ENewsletters
Interweave
Online Store
Interweave
Subscribe
Knitters
84%
83%
73%
51%
49%
Crocheters
66%
78%
67%
34%
40%
Quilters
79%
79%
72%
57%
59%
Sewers
72%
75%
70%
43%
40%
Jewelry Makers
81%
80%
70%
54%
58%
Beaders
84%
82%
72%
55%
63%
Artists
76%
76%
66%
49%
50%
Note: Interweave customers’ responses to the question: “Which of the following Interweave media have you read or used in the past two years?”
• Interweave is a leader in understanding the digital content needs of creative people,
providing both traditional and digital resources to creatives
• Interweave magazines and websites are highly rated by customers and enthusiasts
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Interweave Market Dynamics
Digital Magazine Subscribers are Expanding the Audience for
Interweave’s Magazines
• 80% of digital subscribers do not match an existing Interweave magazine active
subscriber record
• 40% of digital subscribers do not match any active subscriber or eCommerce buyer
record in the Interweave database
• 22% of subscribers are completely “new-to-file” – they do not match any record in the
Interweave database (subscribers, eCommerce buyers or any affinity newsletter list)
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Content + Communities + eCommerce
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Content + Community + eCommerce
Multi-Pronged Approach to Fueling Creatives' Interests
Content
(Inspiration
&
Instruction)
Communities
(Engagement)
eCommerce
(Monetization)
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Content + Community + eCommerce
Platform Agnostic
Interweave provides both digital and traditional media to serve enthusiast needs
• eCommerce and traditional wholesale channels
• Digital content products and physical content products
• Free content and paid content
• Original content and repurposed content
• Professional content and user content
• Commissioned content and curated content
• Online and offline communities
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Content + Community + eCommerce
Communities
Offline Communities in Existence for Generations
• Quilting Bees have been around since the Revolutionary War
• Knit nights have been around for decades
• Artists and crafters are predisposed to engage in online communities
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Content + Community + eCommerce
Communities
More than 1.4 million artists and crafters engaged with each other and with Interweave
through Online Communities
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Content + Community + eCommerce
Communities
Who are they?
• Mainly women age 35+
• Pro-am markets (art and jewelry making)
also attract men
• Women focused on creative self-expression
• Crafters and artists with life-long interests
• Seeking inspiration, original designs,
technical instruction, peer-to-peer
engagement, and content products
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Content + Community + eCommerce
eCommerce
Interweave’s Fastest-Growing Channel
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Content + Community + eCommerce
eCommerce
Interweavestore.com
• 10 niche stores-within-a-store
• Product offering includes both digital and physical content
• Customers can access the InterweaveStore directly or via the “Shop” tab on each
of Interweave’s online community pages
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Interweave by the Numbers
Free Affinity Content
Websites - 2011
23
Websites
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Interweave by the Numbers
Free Affinity Content
Email Newsletters - 2011
10
Online Communities
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Interweave by the Numbers
Free Affinity Content
Television Programs - 2011
3
71%
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TV Programs reaching
of PBS Markets
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Interweave by the Numbers
Free Affinity Content
Free ePattern/Project Downloads - 2011
1,600
Free Patterns
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Interweave by the Numbers
Free Affinity & Paid Premium Content
iPad & iPhone Apps in market - 2011
3
5
13
Affinity Apps – free apps that are developed to build relationships and drive registered users;
Utility Apps – paid apps (low priced) that provide users with tools to solve specific problems and objectives; and
Magazine & Book Apps – apps that contain digital replicas of magazine and books and original rich content products (eMags) –
some sold through Zinio and others sold through iNewsstand and iTunes stores.
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Affinity Apps
Utility Apps
Magazine Apps
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Interweave by the Numbers
Paid Premium Content
eCommerce Interweave Store - 2011
11
eCommerce Stores
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Interweave by the Numbers
Paid Premium Content
Magazines, Bookazines & eMags - 2011
48
11
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Magazines and Bookazines
eMags
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Interweave by the Numbers
Paid Premium Content
375+ Books
Books & eBooks in market - 2011
100+ eBooks
35-45
New Books & eBooks Annually
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Interweave by the Numbers
Paid Premium Content
11
Events & Workshops - 2011
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Consumer Events
30
Interweave by the Numbers
Paid Premium Content
Instructional Video & Digital Compilations - 2011
159
Instructional Videos
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Executive Team
Talented & Successful Operators
Bob Kaslik
Senior V.P.
John Bolton
Senior V.P.
David Dunn
V.P. eCommerce
Jamie Bogner
V.P. Content
Julie Macdonald
V.P. Media Sales
Sara Dumford
V.P. Events
• V.P. Consumer Marketing Rodale
• Publisher F+W Media
• President & Publisher Leman Publications
• Owner/Publisher Quilting Arts, Cloth Paper Scissors
• Attorney
• V.P. eCommerce Webroot Software
• Director of Product Marketing Rally Software
• Art Director Nielsen
• Editor-in-Chief MCO Magazine
• Editor-in-Chief/Publisher Art Business News
• Sales Director Louise Blouin Media
• Director of Events F+W Media
• Director of Book Production F+W Media
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Executive Team
Experienced Support Teams
Linda Ligon
Founder
T.J. Harty
V.P. Technology
Trish Faubion
V.P. Production
Aaron Wilmot
V.P. People Operations
• Owner/Publisher Natural Home, Herbs for Health,
Herb Companion
• Publisher Ready Made
• Director of eMedia Technology
Penton Technology
• Senior Editor Duke Communications International
• Managing Editor Penton Technology & Lifestyle Media
• Senior Director of HR Westwood College
• Director of HR IAS
Dawn Stewart
V.P. Financial Planning &
Analysis and Operations
• Manager of Financial Planning and Analysis Coca-Cola
North America
• Senior Financial Analyst Hyundai Motor America
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Executive Team
Capable Corporate Executives
Clay Hall
C.E.O.
Troy Wells
C.F.O.
• V.P./Group Publisher Cowles Enthusiast Media
• C.E.O./Owner Southwest Art Magazine
• Controller Meredith Corporation Publishing Group
• Business Director Meredith Corporation
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