Zinio: "Byting" into a Paper World

In mid 2006, executives from Spain's prominent news clipping company, AccesoGroup, are talking about how they can make a recently acquired franchise for Zinio a profitable and viable business in Spain. Zinio is a solution to digitalize print-based media. Its major business in the U.S. is conducted by automatically delivering digital versions of mainstream magazines to subscribers. In looking at the potential of the Zinio software, the team is asking whether they should aim to become a digital newsstand for magazines or whether they should license the technology for another use such as catalogues and brochures. The case provides an excellent basis to discuss the traditional magazine publishing value chain as it shifts to a digital world.