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 Contd...
The Other View
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Some analysts, however, said that more than anything, Maghound aimed to salvage Time's own flagship publications, which had been showing flat sales performance since 2006. Analysts debated over the viability of the Maghound business model and raised several issues in this connection...
The Company's Response
According to the company, cannibalization would not be an issue and competing publishers would also join the initiative as Maghound would be more concerned about its own bottom line and thus not play favorites...
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Looking Ahead
While discussing the concept of Maghound, some analysts said that while it looked good theoretically, it was not really a practical approach, considering the long-term prospects. Though some analysts were skeptical about the sustainability of the business, most of them said that it was too early to write off the concept...
Exhibits
Exhibit I: The Maghound Logo
Exhibit II: Time Inc.: A Timeline
Exhibit III: Some Key Statistics about Time Inc.
Exhibit IV: Selected Financials of Time Warner
Exhibit V: A Brief Note on the Magazine Industry in the US
Exhibit VI: A Brief Note on Netflix
Exhibit VII: Other New Models for Selling Magazines
Exhibit VIII: Top Competitors of Time Inc.
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