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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Introduction Contd...

Maghound allowed customers to choose titles from different publishers by paying a monthly subscription fee, with the option of switching to other titles any time. Unlike traditional annual subscriptions, the customers were not locked for a whole year.

Speaking on the occasion, John Squires, Executive Vice President, Time, said, "While magazine circulation is strong, there is a need for new and innovative ways to reach consumers, particularly online."3

The website was promoted with the tagline, 'The magazine lover's best friend' (Refer to Exhibit I for Maghound Logo and Tagline).

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With the rising popularity of the Internet as an easily accessible and widely viewed form of media, the online version of most publications became available and the sales of printed copies sold through newsstands as well as through the subscription channel, started to show a decline. Other factors such as rising postal costs, high logistics expenses, increased TV viewership, closure of some direct marketing companies that sold discounted magazine subscriptions, etc, only added to the woes of the magazine industry. According to analysts, the publication houses, for a long time, also failed to come up with any innovative business models or marketing strategies to boost sales...

 Excerpts >>

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3] "Maghound Launches as New Magazine Membership Platform," www.timeinc.com, September 15, 2008.


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