Hearst closes digital-only magazine
[StrategyEye - 14 Aug 2007 09:55 BST]
Hearst is slashing its digital-only magazine, Jellyfish, after just five months. The UK branch of the National Magazine Company publishing group says the cut is due to "distribution challenges," according to the Guardian. The newspaper suggests corporate firewalls and anti-spam impacted heavily on the teen title.
Jellyfish included celebrity news and articles on current fashion, which encouraged readers to buy featured items through online links, providing the magazine with its only source of revenue. With reduced distribution, the amount of potential buyers was also reduced, directly affecting the magazine's revenue. Analysts criticised this commission-based business model, as alternative options, such as display ads could have provided further revenue to support the project. Had Jellyfish proved more successful, the title would have been launched properly in Sep.
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