Time Inc.

Maghound Launches as New Magazine Membership Platform

September 15, 2008

NEW YORK, New York, September 15, 2008 - MAGHOUND Enterprises, Inc., a wholly-owned subsidiary of Time Inc., today announced the beta launch of MAGHOUND, a new online-based magazine membership service that will improve the way consumers purchase their magazines by incorporating flexibility, choice, and control.

The introduction of MAGHOUND will modernize the traditional circulation model by relieving the constraints of standard subscription contracts and empowering the consumer. On the MAGHOUND website (www.maghound.com), members can select up to 15 magazines from a broad range of titles represented by dozens of major publishers for one set monthly fee, with the ability to switch titles at any time. 

“While magazine circulation is strong, there is a need for new and innovative ways to reach consumers, particularly online,” said John Squires, Executive Vice President of Time Inc., MAGHOUND’s parent company.  “MAGHOUND is a novel approach that begins with the consumer’s needs, provides them with unlimited choices and delivers highly engaged readers to advertisers.  It’s an idea that will be a winner for consumers, publishers and readers.”

“We've witnessed consumer-friendly purchasing models develop in several other media categories,” said Dave Ventresca, President of MAGHOUND Enterprises, Inc. “MAGHOUND is our attempt to bring magazines more on par with music, DVD's, cable TV and satellite radio.”

At the time of the beta launch, the MAGHOUND service will feature over 240 titles, with plans to increase the roster of available magazines on an ongoing basis.  In addition to all major Time Inc. brands, the list will include Men’s Health, ELLE, Martha Stewart Living, Maxim, Ladies Home Journal, Parents, Better Homes & Gardens, Woman's Day, Best Life, Popular Science, Prevention, Runner’s World, Women’s Health, VIBE, Car and Driver, PC Magazine, Gardening and Bicycling

“It's vital for circulators even more so than ever in this economy to test innovative new ideas.  MAGHOUND has potential to be an important program for the industry and that is why Bonnier is in,” said Peter Winn, Director of Planning and Development, Consumer Marketing for Bonnier Corporation.

The membership pricing is tiered— three titles for $4.95 a month, five titles for $7.95, seven titles for $9.95, and $1 per title for eight titles or more.   Unlike traditional subscription programs, MAGHOUND is a monthly membership service that offers greater flexibility without long-term, annual contracts.  All monthly fees will be conveniently billed to a credit/debit card, eliminating the need for invoices and renewal notices. 

Memberships can be entirely managed online, as well as by email and phone, from changing magazine title selections to updating personal information and even placing magazine delivery on hold for a temporary period.  Additionally, MAGHOUND users will be able to view the titles that are available for a specific month and the expected date of arrival.  Since some magazines do not publish an issue every month, MAGHOUND offers its members the optional benefit of selecting “Substitute” titles, delivered whenever their primary titles are not available. 

From an ad sales and circulation tracking standpoint, all titles sold on MAGHOUND will be classified as single-copy sales.  From a revenue-sharing perspective, MAGHOUND will pay the publishers a fixed fee for every copy of each title that is sold.  To ensure that members do not receive direct promotional offers from multiple publishers at the same time, MAGHOUND will protect members’ privacy and prohibit marketing from publishers.

Enhancements to the Beta version of the site are expected in early 2009. “Looking towards the future, we're already planning and building enhanced features, such as digital content, member feedback tools and expanded delivery options.  Of course, we'll always be working to expand our roster of titles to offer the best selection possible,” said Ventresca.

About MAGHOUND

MAGHOUND Enterprises, Inc., is an online-based magazine membership service that features hundreds of magazine titles from many leading publishers.  MAGHOUND, the magazine lover’s best friend, has modernized the traditional magazine circulation model by incorporating greater flexibility, choice and control.  Launched in September 2008, MAGHOUND is a wholly-owned subsidiary of Time Inc., the publishers of TIME, PEOPLE and SPORTS ILLUSTRATED and is headquartered in New York City.  Additional information about MAGHOUND can be found online at www.maghound.com.

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