NEW 'HOME PC' LINKS WITH TIME INC.

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Time Inc. and CMP Publications are teaming up in a publishing deal that means money for Time Inc. and potential subscribers for CMP.

Time Inc. will run a 12-page section based on CMP's new Home PC magazine in Time, Fortune and Sports Illustrated.

This is the first effort in a new "strategic relationship" between Time Warner's giant consumer magazine business and CMP, a fast-growing computer publishing company. CMP is the third of the Big 3 computer publishers to announce alliances with consumer publishers to go after the booming home computer market.

In the Time Inc.-CMP deal, Time Inc. sold and will keep all revenue from six pages of ads in the special section. VP-Corporate Accounts James Graham wouldn't disclose the page rate.

CMP is supplying six pages of editorial in the section, which features the cover of the first Home PC and articles about the basics of personal computing. In return, CMP gets access to 3.4 million Time Inc. readers.

The section will appear in selected May 16 issues of Time and Sports Illustrated, and the full run of Fortune's June 6 North American edition. The section will include a bound-in subscription card for Home PC, which CMP is introducing in May.

"This is a great relationship," said Home PC Publisher Daniel Schwartz. "They get all the money, and we get access to consumers who we want ... There is nothing more important [to Home PC] than for our message to reach as many new readers as possible."

Mr. Schwartz projected between 1% and 5% of the Time Inc. readers-or 34,000 to 170,000 people-will return the subscription card.

Mr. Graham said he approached CMP about the project after reading a story about Home PC in Advertising Age.

Compaq Computer Corp. has bought four of the six ad pages in the section, which technically is an advertorial under American Society of Magazine Editors rules because Time Inc. didn't produce the editorial.

Time Inc. and CMP haven't agreed on any other joint projects, but Mr. Schwartz said another insert is likely this fall. He "wouldn't rule out" jointly producing a magazine at some point.

Home PC is first in a flurry of new home computer magazines (AA, March 28), but Time Inc. and CMP are late to the alliance game.

International Data Group's PC World, the No. 2 computer magazine, has been producing inserts for Newsweek for two years and later this year will cooperate with The New York Times Co.'s Child and Hachette Filipacchi Magazines' Stereo Review and Audio on computer sections.

In a more ambitious alliance, Ziff-Davis Publishing Co., the No. 1 computer magazine publisher, and Walt Disney Co. are jointly creating Family PC, set for a June debut.

"Consumer publishers want more access to computer advertisers, and computer publishers want consumer expertise," Mr. Schwartz said. "I think that's why everyone in theory does these joint ventures."

But Mr. Schwartz contended some of the alliances will collapse because strong-willed publishing companies aren't accustomed to cooperation. Time Inc. and CMP are keeping their relationship flexible to avoid that problem, he said.

Tim Clark contributed to this story.

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