Maghound: Business Model Innovation in the Magazine Industry?

            
 
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Case Details:

Case Code : BSTR343
Case Length : 23 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Time, Inc.
Industry : Magazine
Countries : USA

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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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"While magazine circulation is strong, there is a need for new and innovative ways to reach consumers, particularly online. Maghound is a novel approach that begins with the consumer's needs, provides them with unlimited choices, and delivers highly engaged readers to advertisers. It's an idea that will be a winner for consumers, publishers, and readers." 1

- John Squires, Executive Vice President of Time Inc., in 2008.

"There has been this major paradigm shift in the way consumers shop, pay for, and manage the services they choose. And this shift has occurred everywhere except for magazines. We still sell on a fixed-term subscription or by single copy with no innovation. And [Maghound] is hoping to change that."2

- Dave Ventresca, President, Maghound Enterprises, in 2008.

Introduction

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'.

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1] "Time Inc. Launches Maghound," www.pubexec.com, September 19, 2008.
2] Chandra Johnson-Greene, "Time Inc.'s Maghound Set to Debut in September," www.foliomag.com, June 6, 2008.


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