NYT: Weather Channel’s Parent Company Renamed
From Brian Stelter, NYtimes
In a move it compared to Apple Computer’s shedding of the
word computer, the Weather Channel Companies has dropped “channel” from its
name.
It’s not ridding itself of the actual Weather Channel, a
staple of cable lineups across the country. The channel’s name will remain the
same. But the corporate re-branding reflects the fact that most of the Weather
Company’s growth is coming from the Web and from specialized products for
businesses, not from television. It senses huge opportunities in international
markets where it will not have a television channel, but will have apps and Web
sites.
“The word ‘channel’ is too limiting. The Weather Company better
defines who we are,” said David Kenny, who was named the chairman and chief
executive of the company in January.
The flagship Weather Channel, available in 100 million homes
in the United States, still accounts for more than half of the Weather
Company’s revenue, thanks in large part to the per-home fee it receives from
cable and satellite distributors. But the channel business has been slowing
significantly, Mr. Kenny said. Already the company’s advertising revenues are
fairly evenly split between television and digital media. He expects digital
media (including mobile devices, an area of focus) to overtake television in
that category.
Last week, just before the new name was announced
internally, the company laid off about 75 people, 7 percent of its work force.
The layoffs were attributed to a reorganization, partly necessitated by the
recent acquisitions. Additionally, Mr. Kenny said the television division
wasn’t “altogether efficient” in its production, suggesting it was overstaffed.
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