Readbug

Idea

Introduction

Readbug is the Spotify or Netflix for magazines, delivering unlimited newsstand content for a low monthly subscription fee.

Readbug will be available to download via app stores and will give users access to the whole newsstand - rich, premium content delivered straight to their tablet or mobile device, enabling them to read, share and archive magazines seamlessly and immediately all from one app.

We believe that Readbug will change the way digital magazines are consumed, driving deeper user engagement with both editorial and advertising, creating greater perceived consumer value for money and generating new revenue for the publisher.

The magazines you love, in one amazing app.

Readbug - get the bug.

Intended impact

Firstly, publishers have adopted an “analogue” method for selling digital magazines by charging printed magazine cover prices for individual purchases.

Secondly, discoverability of new content is problematic. Magazines are hidden behind cover prices, and buried within container apps that are themselves buried within a newsstand or app store.

For this reason the current newsstand platform diverts many consumers away from digital purchases.

Readbug disrupts this by removing the barrier of a cover price, providing a value for money solution through a simple and seamless platform.

Once subscribed, users would have access to a library of diverse content customised to their own interests and reading habits, discovering magazines and articles that are of interest to them and that they may not traditionally have paid for or read. All for the same price as a couple of magazines.

Features will include:

- What’s new - the latest and best of the newsstand
- Trending - what other people are reading
- “You might like” - suggested reading based on user habits
- Push features / notifications - based on user interests
- Social media linking of reading habits.

This new digital magazine ecosystem would create a much deeper level of reader engagement and interaction than the current newsstand model allows, tapping into user habits and social media virality, and shifting the focus from the cover price to the quality of the content contained within the magazine.

Substantial accomplishments to date

Over the course of a six month first round seed stage we have invested £22,000 of cash, time and other resources into Readbug, working with senior and established business people at the highest levels of the publishing industry. We have conducted an extensive feasibility and viability study and analysis of competition globally as well as building relationships with key publishing and development partners.

Key achievements include:

- Design and wire framing of interface and working prototype.
- Partnering with an established app development company.
- Incorporation and applications made for trademarks.
- Development of branding and identity, including consumer market research.
- Acquisition of the .co.uk and .com domain names.
- Face to face meetings with leading publishers.

Monetisation strategy

With our experience in the publishing industry we have witnessed first-hand the shifting tide in consumer habits and the move from print to digital formats.

We believe that, in conjunction with growing the potential revenue available from £36 per person per annum to £120 through the Readbug subscription model, there is also potential for rapid growth of the digital magazine consumer base on the back of increased tablet and smartphone adoption. We aim to capitalise on this digital growth by delivering exceptional value, unlimited content and unbeatable convenience.

We plan to offer a two tier subscription service for accessing the magazine newsstand with a feature dependent pricing structure, similar to the business model used by Spotify and Netflix. This should generate a recurring monthly revenue stream.

The pricing structure is expected to be as follows:

Readbug Premium

- £6.99 per month
- access to all current issues.

Back issues will be available to purchase as digital downloads at standard cover price.

Readbug Unlimited

- £9.99 per month
- unlimited access to all current and back issue content.

Growth areas would include the potential addition of magazines available to read through a free subscription tier that will be paid for through targeted advertising, as well as the potential addition of targeted advertising to the other subscription tiers to supplement revenues.

Use of proceeds

Readbug intends to use the proceeds of this round as follows over the next 3 months:

- 60% 12 week platform and backend development
- 20% marketing and social drive
- 10% legal and professional fees
- 10% team development

During this 3 months, time will also be spent expanding the team. We are in the process of discussions with potential co-founders and/or technical employees.

At the end of the 3 months, we plan to go for another round of funding to provide us with a 12 month operational runway.