The New York Times Co. announced its acquisition from Hollywood Media Corp of a film and television database called "Baseline StudioSystems" for $35 million in cash. Just to make it clear: the NY Times Co owns the famous newspaper but is a media empire that also owns so much more.

The Times Co. aims to increase the drawing power of the movie and TV sections of its Web site by offering broader and deeper content. Over the last year, they have focused especially on building up its Web-based movie and TV sections by adding video clips, blogs by Times critics, and user-contributed ratings and reviews. The Times plans to incorporate Baseline's syndicated data such as actor and other biographies, professional credits, and film and TV project histories.

I sum up the strategy this way: "More compelling content creates more user traffic which equates to happier advertisers and larger profits."

Hollywood studios are among the major advertisers for the company's entertainment sections. Because such companies are already familiar with the Baseline database, the acquisition would only help NYTimes.com to strengthen its business ties to the entertainment industry.

The New York Times Co. also gains a subscription-based information service used by Hollywood studios and production companies. The majority of Baseline's revenue currently comes from the subscription side of its business catering to Hollywood. Its overall revenues are expected to be about $6 million this year -- and its operations are "highly profitable," according to a joint press statement.