What Netflix and Spotify did for movies and music, Magzter hopes to do for magazines, reports Joshua Brustein in Bloomberg Businessweek (1/19/15). So far, "the idea of paying a flat fee for unlimited access" to magazines "hasn’t caught on," however Next Issue Media has been attempting such a model since 2011, but to date has attracted only "hundreds of thousands" of subscribers willing to pay "$15 a month for access to about 140 magazines." Netflix, by comparison, has "50 million" subscribers and Spotify "12.5 million."
Magzter, meanwhile, is trying a different approach. Magzter’s plan is just $10 a month, and it "thinks it can gain traction where Next Issue hasn’t by offering a larger selection of more obscure titles and by selling subscriptions internationally." About 5,000 publishers are using Magzter to sell standalone issues, and 2,000 are participating in its "all-access subscription service." "It’s the last great white space in streaming media," says Magzter CEO Girish Ramdas. "Everyone else has made the jump."
The opportunity might seem ripe, especially since "drawing readers to single-title magazine apps that mimic the print experience" hasn’t caught on — "app subscribers make up less than 4 percent of overall magazine circulation." However, "it’s not clear that anyone but the most voracious readers will save money … If a Netflix for magazines ever does catch on, it would preserve one consistent aspect of the magazine industry: relying on readers to subscribe to far more material than they have time to read."