Maghound: Business Model Innovation in the Magazine Industry?
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
Case Code |
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BSTR343 |
For delivery in electronic format: Rs.
400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extraThemes
Business Model Innovation / Industry analysis |
Case Length |
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23 Pages |
Period |
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2007-2009 |
Pub Date |
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2009 |
Teaching Note |
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Not Available |
Organization |
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Time, Inc. |
Industry |
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Magazine |
Countries
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USA |
Abstract:
In September 2008, Maghound Enterprises, Inc., (Maghound
Enterprises.) a subsidiary of Time Inc. (Time), launched a beta version of its
Internet-based magazine distribution model called 'Maghound'. Maghound allowed
customers to choose titles from different publishers by paying a monthly
subscription fee, with the option to switch to other titles any time. The
service was not limited to Time's publications but included competing publishers
that chose to participate. The Maghound initiative was hailed by some industry
analysts as a business model innovation in the magazine industry and an example
of how traditional media providers were trying to reinvent their business models
in response to new developments in the market.
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With the rising popularity of the Internet, the magazine
industry was facing some serious challenges and some analysts felt that models
such as Maghound could give the whole industry a boost. However, others felt
that the Maghound model was flawed and that it had to overcome some serious
challenges if it wanted to achieve its objective. Almost one year after its
launch, sales from this channel continued to be negligible. The challenge for
Dave Ventresca (Ventresca), President, Maghound Enterprises, was to achieve the
objective of building Maghound up as a scalable circulation source for the whole
industry.
Issues:
» To study the Maghound model and discuss and debate whether it is a business
model innovation in the magazine industry. » To study the magazine industry
and understand the issues and challenges faced by companies operating in this
industry.
» Discuss the pros and cons of the Maghound model.
» Explore strategies that Time could follow to refine its Maghound model and
build it up as a scalable circulation source for the whole industry.
Contents:
Keywords:
Business Model, Business model innovation, Innovation, Online magazine distribution channel, Marketing strategy, Distribution, Publishing industry, Magazine industry, Time, Maghound, Netflix
Maghound: Business Model Innovation in the Magazine Industry?
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