1-1

© 2005 UMFK.

iVillage.com

internet business models

text and cases

Kristin Belanger

1-2

© 2005 UMFK.

Overview

• Introduction

• History

• Management Structure

• Challenges

• Stakeholders

• Get Big Fast!

• Success? Failure?

1-3

© 2005 UMFK.

History

• Began in 1995

• Publishing and Periodical Industry

• Different properties including:– Women.com, gURL.com, Astrology.com,

Substance.com, Promotions.com, Healthology.com, Gardenweb.com

• Ranked 39th in Digital Media Properties

1-4

© 2005 UMFK.

Management Structure

• Douglas McCormick Chairman & CEO– Since 2000

• Previous employment– Lifetime for over 20 years

• Six other Vice Presidents– In charge of different departments

• Board of Directors– Responsible for larger decisions, policies, and

principals

1-5

© 2005 UMFK.

Chief Competitors

• Lifetime

• Martha Stewart Living

• Oxygen Media– All target women from different perspectives

1-6

© 2005 UMFK.

Challenges

• Annual Loss• Last known positive revenue was in June

2004• Accumulative deficit of $494.6 million• Small amount of advertising customers

(some have decided to leave iVillage)• Extend content

– Can’t because of deal with Hearst Magazines

1-7

© 2005 UMFK.

Value Proposition

• Become apart of a community tailored to women

• Having a one stop shop for women including:– Love, Children, Health, Pregnancy, Gossip,

Astrology, Recipes, etc.

1-8

© 2005 UMFK.

Stakeholders

• Customers

• Potential customers

• Employees

• Board of Directors

• Shareholders

• Members

1-9

© 2005 UMFK.

GBF?!

• Network Effects– Low to moderate– Hard time maintaining customers and having content from signed

up members

• Scales of Economies– Low – Strong economies = increased profits – Have a hard time making any revenue

• Customer Retention– Low – Customers are leaving and having a hard time to replace existing

ones

1-10

© 2005 UMFK.

Success or Failure?

• Success. . . For now– As of now iVillage is holding, but there is no

way to tell how long iVillage will last.– They need to acquire more customers– Revise the business plan– Need more revenue

1-11

© 2005 UMFK.

Questions??

1-12

© 2005 UMFK.

Do you think that iVillage can be looked at as an online content provider and a portal?

Is there another way for iVillage to be able to get more revenue?

Do you think that the business plan is sufficient, and the objectives are clear?