Meredith Corp. has partnered with New York-based media company Interactivation to get wider distribution for videos from its well-known brands like Better Homes and Gardens and Family Circle.
Under the deal, Meredith will share ad and sponsorship revenues with Interactivation. It also will sell ads and sponsorships and share revenue with Mag Rack, Interactivation’s free, video-on-demand TV network reaching 25 million homes.
Both companies also agreed to promote the arrangement across their media platforms.
Meredith began looking for ways to leverage its video content back in 2006, when it created Meredith Video Solutions. In 2007, it launched digital channel Parents TV on Comcast, an arrangement that continues. In that arrangement, as with the Interactivation deal, both parties sell ads on the channel and share the revenue.
The current deal focuses on distributing the video that’s shown on Meredith’s Better TV, which is currently syndicated to 55 broadcast TV stations and on BetterTV.com; and covers topics including health and wellness, family, food and travel. Six to 10 hours of content per month will be distributed on top of the 40 hours per month Mag Rack currently distributes.
VOD has been slow to take off with audiences and advertisers, but Kieran Clarke, executive vp, general manager of Meredith Video Solutions, Meredith’s video creation and distribution arm, said the deal is significant for Meredith for a few reasons.
“It’s a tremendous opportunity for us,” he said. “There’s the power of their reach—25 million homes. These are lifestyle categories for women, so they’re high-visibility categories. We have the promotional and marketing component, where Meredith will be driving viewers there.”
Comcast, AT&T U-verse, Cablevision’s digital cable, Verizon’s FiOS, Dish Network and DirecTV are among the cable companies carrying Mag Rack, that Interactivation bought from Cablevision last October.