With annual revenues exceeding $245 million, Angie’s List (NASDAQ: ANGI) has added another revenue stream with its latest product, Angie’s List Weekly, a digital-only weekly magazine designed for the iPhone, iPad and iPod. Created for Angie’s List members and prospective members, the new magazine complements other Angie’s List apps, its email newsletter and a monthly print magazine.
What’s different about Angie’s List Weekly? First, nonmembers can download their first issue of Angie’s List Weekly free. Thereafter, issues can be downloaded for $0.99 each, or subscriptions can be purchased monthly for $1.99 or yearly for $9.99. Renewals are automatic unless the auto-renew option is turned off. Angie’s List members, however, receive free instant access to each issue of the publication.
Second, the iPhone and iPad editions of Angie’s List Weekly are each designed exclusively for that device, using the Adobe Digital Publishing Suite. According to D. B. Hebberd of Talking New Media, these custom, native designs are superior to those from other publishers where digital magazines are often designed for the iPad first and then shrunken down to fit the iPhone.
According to the iTunes description, the publication features exclusive articles, tips on improving home and health, top trends for home improvement, decorating and landscaping, information on auto, pets and fitness, as well as interactive content. According to one iTunes reviewer, the online magazine is a vast improvement over the print publication with top-notch layout and design. Another said Angie’s List Weekly was a “pretty fun read.”
As we discussed in our August 2010 case study on Angie’s List (subscribers, please log in to access this premium content), this company uses a subscription business model with multiple revenue streams, a strong, in-house PR team and a good mix of marketing tactics. It has all the makings of a successful company, but it has had its challenges, including competition from free review services like Yelp! To date, Angie’s List has not shown a profit. In 2013, for example, the company reported a net loss of nearly $33 million. In 2012, the company’s net loss was almost $53 million.
Subscription Site Insider Analysis: Angie’s List Weekly may attract new subscribers to the digital-only magazine, who may go on to become Angie’s List members, but it will take millions of new members and subscribers to compensate for eight-figure operating losses. In business since 1995, Angie’s List has the brand awareness and marketing savvy to drive members and nonmembers alike to its new app, but it will be an uphill battle to drive downloads and convert prospects to paying subscribers. Another possible obstacle: Angie’s List Weekly isn’t available in Android yet.
Overall, we like the additional revenue stream and interactive app, but Angie’s List has some big hurdles to jump to make Angie’s List Weekly a solid money maker and a reliable source of new business. We’ll keep an eye on this to see how it all plays out. Stay tuned for updates!
