Online magazine store Magzter founded by Vijayakumar Radhakrishnan and Girish Ramdas has apparently found success in the formula & are working harder to add features & products to this venture. So far the web-company has managed to secure over 6 Million users & monthly downloads are crossing 1 Million, all within 9 months.
Headquartered in New York, the company recently expanded the operations to India & has immediately gained traction. The virtual library now boasts of a collection spanning multiple countries including India, Singapore, the UAE (Dubai), Malaysia, the US and the UK. Currently there are over 1500 different types of magazines. Apart from this dynamically growing collection, Magzter also supports publishers who wish to get their publications into ‘Digital’ form & then resell it across the globe.
How does the venture earn? Kalaari Capital formerly known as Indo-US Ventures has invested about US$ 3 – 5 Million in the venture. Though the exact amount has been kept under wraps, the growth of the company is proof enough about the quantum of investment & the practical aspect of this line of business.
Speaking about the endeavor, Radhakrishnan, Co-founder and President, Magzter Inc was very optimistic, “We should be able to launch two new additions to the portfolio, books and comics, by end of March this year”. Interestingly, the ‘digitization platform’ itself is free, but the revenue then has to be shared 50-50.
While selling virtual copies is a great idea, one of the most prominent problems faced by such a distribution channel is the rampant piracy. Digital copies can be easily traded off the net without having to pay a cent in royalties to the hardworking creative content generators. This puts a serious dampener on the otherwise great marketplace. Digital Rights Management or DRM can help to some extent. But such software protection techniques do require the support of hardware like Kindles or Barnes & Noble readers wherein the content stays safe.
Coincidentally the venture relies on Amazon’s Cloud platform for content aggregation & virtual distribution, apparently protecting the content along the way. Do you read comics or magazines online? Do share you experience.
Image Courtesy | indiaprwire