Wednesday, December 1, 2010

Virgin Chief, Richard Branson Unveiled “Project” Magazine for iPad

Virgin Chief, Richard Branson Unveiled “Project” Magazine for iPad

An electronic magazine designed only for the iPad. So I decided to breakdown the possible chances of success.

What we know:
The app is free, Debut Issue $2.99, Product description - a revolution multimedia magazine packed with international culture, entertainment, design, business, travel. Projectmag.com. Product requires an iPad with iOS 4.2 or higher.

My thought:
This is a no different from running up an online web magazine. The cost of production and maintenance are very low. There are no distributions or printing cost. I believe the model is that Apple gets a percentage of sales through its app store which is likely where users would obtain the magazine.

The venture has access to Virgin’s resources, including talent, money, equipment, office space, inexpensive or recycled or republished content.
Based on the growth and success of iTunes and likely success of iPad, the possibility of success (profitability) is high. And revenues from selling the magazine app will likely result in breakeven situations but like most magazines the greatest source of revenue is advertising. The advertising revenues are huge only if the “Project” can attract stable loyal readers. Acquiring advertisers would be easy due to Mr Branson’s connections,

Now the ugly side:
The ease of entry, almost anyone can start an eMagazine without having the resources that Mr. Branson has. Very easy to imitate. Competition from well established magazine brands such as GQ, Esquire, Maxim, Forbes, Businessweek etc

Finalized:
Mr. Branson’s Virgin can afford this risk. If it fails it would be another learning experience. If it succeeds Mr Branson would likely launch other brands, expand into other Tablets, Mobile. Reach global markets.

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