Will the Swedes once again succeed where many have tried? Readly, listed on the Stockholm Stock Exchange this autumn, aims to become the Spotify of the magazine market. With this concept, consumers get unlimited reading access to a wide selection of magazines for a monthly fee.
For the concept to succeed, the selection must include a sufficiently wide range of high-quality magazine publishers. Currently, there are 60 publishers and 600 magazines. The selection has grown steadily.
Many other players have tried to launch a similar concept without significant success, but Sweden has produced strong success stories before. Readly has already managed to gain a foothold in at least Sweden, Britain, and Germany, which is already a promising start.
Apparently, a business like Readly cannot be patented in any way, which is a shame. One must therefore prove to be better than others and spend a good deal of money on customer acquisition. The idea is good and works if the price can be made suitable for households’ shrinking post-pandemic disposable incomes. I can’t guess how much Readly competes with, for example, Netflix and the audiobook market, but it is pushing into a tight spot.
Thanks for this interesting opening, I’ll have to research and follow it!
My understanding is that Apple News+ hasn’t worked at all. Major publishers have grumbled that the revenue they’re getting is ridiculously low. I’d be surprised if Readly succeeds where Apple hasn’t, but you never know.
Interesting point, thanks.
Good idea, but will it really work? People want to hear a music track all the way through, but who nowadays wants to read a whole article anymore?? The media is full of information 24/7 for free, and even an old geezer like me clicks almost exclusively on these headlines
Uncle Masse, FA, based on gut feeling = not moving forward
A big reason for this, in my understanding, is publishers’ fear of being steamrolled by Apple. Because of this, publishers have been reluctant to provide their content to Apple’s service. In the same way, Spotify has been a more attractive partner for record labels than Apple Music. In the best-case scenario, an independent Spotify, which is weak compared to the FANG giants, is also a role model for Readly.
This is a valid argument, but glancing at the News+ catalog, it is very extensive, so I doubt this is the case. It should have good content and user experience, but paying customers are not coming. At the same time, the ad-funded side of Apple News is constantly gaining new customers. Perhaps it’s a difference in market areas.
Even though I might not invest in this company, it’s a good find. I didn’t know something like this existed, and I’ve been missing Forbes. Well, now I could get it. There were some magazines for juniors too, and of course, since sailing interests me, something related to that as well. Although I don’t know much about those sailing magazines, I’ve only read boating magazines before…
Inspired by this, I also looked into Apple News. It’s quite good since you can listen to something in the car, but if I ever switch away from an iPhone, it doesn’t seem to be available for Android
Edit: Tomorrow, the free weeks start, first for one and then for the other. Let’s see what those services are like.
" One of Germany’s biggest publishers, Axel Springer, is extending its partnership with Readly, the European category leader for digital magazines, by adding its three leading daily newspapers to the platform. Readly subscribers across markets can now access digital editions of B.Z., DIE WELT and BILD - Europe’s largest daily."
Well, this seems to be just the niche that interests me.
As someone noted earlier, Apple might be too strong to enter this field. A small player focused on this segment is likely the one who will push this through.
All magazines in the service can be read unlimited for €9.99/month, and one imported print magazine can easily cost more in a store. More specialized magazines are not always so easily available in stores either.
“Revenue growth is occurring in all markets, with the
three core markets of Germany, Sweden and the UK accounting for most.
Revenue grew 22.3 per cent in Germany to SEK 37.3 million (30.5), 22.6
per cent in Sweden to SEK 23.6 million (19.3), and 43.5 per cent in the UK
to SEK 21.7 million (15.1). Revenue in other markets grew 85.4 per cent to
SEK 15.3 million (8.3).”
“The positive movement in the margin is partly attributable to an im-
proved share of revenue distribution with publishers and lower transac-
tion costs along with higher revenue from currency effects.”
Ohjeistuksesta: “Readly does not issue any forecasts regarding future performance.”
STOCKHOLM (NyhetsbyrĂĄn Direkt) The placement of approximately 3 million shares in the digital magazine company Readly, which was announced after the Stockholm Stock Exchange closed on Tuesday, has been completed at a price of SEK 55 per share.
It appears from a press release.
This means a total sales proceeds of the order of SEK 165 million. The price corresponds to a discount of 13 percent compared to Tuesday’s closing price for the Readly share, which was SEK 62.95.
Buyers were qualified investors in Sweden and abroad.
Prior to the investment, Zouk Capital began a gradual distribution of approximately 7.1 million shares in Readly to its shareholders. A number of the unit holders commissioned Zouk Capital to arrange for a sale of the shares received.
"Zouk Capital acted solely on behalf of and in accordance with the sellers’ instructions in relation to the investment. Zouk Capital did not advise the sellers in their decision to sell shares, and they have not shared any information with the Sellers that has not been disclosed. Neither Zouk Capital nor its representatives sold shares in the investment ", it is emphasized.
Investment bank ABG Sundal Collier carried out the accelerated bookbuilding process.
If there are followers here, please tell me your opinion on a possible fundamental change or something else that would explain the constantly eroding valuation levels? Today, new ATL figures were released, and I don’t know what news I missed that would explain the trend. Yes, and I understand that “sometimes it goes up and sometimes it goes down” I still find the company’s business idea very attractive.
I still find the company’s business idea very attractive.
