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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Excerpts

Background Note

Time magazine, the first US weekly magazine, was started by Briton Hadden (Hadden) and Henry Luce (Luce), who left their jobs at Baltimore News to start Time. On November 28, 1922, the company was incorporated with the support of 70 stockholders who had invested US$85,675 to launch Time...

The Challenge

Maghound, Time's innovative online magazine distribution channel, was developed at a time when newspapers and magazines were showing a continuous drop in sales and publishers had failed to formulate any new channel that could boost the sales...

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The Birth of Maghound

In such a scenario, where traditional channels of magazine distribution were deeply impacted by the Internet, Time started to look for an innovative way to market its magazine harnessing the power of the Internet...

The Business Model

Under the system, Maghound allowed readers to choose one subscription plan in a month and the magazine titles that they wanted...

Is Maghound A Viable Model?

Most analysts welcomed the new concept of magazine distribution developed by Time. While it allowed customers to pick and select from a wide range of titles at three different affordable package prices, it also did not carry the baggage of commitment to continue with the the same subscription throughout the period of the plan...

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