JPG Magazine
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
JPG Magazine was a San Francisco-based photography magazine built on user-submitted photographs, with its readers included in the editing process. Founded by Derek Powazek and Heather Champ and originally self-published through Lulu, it relaunched in 2006 as an offset-printed magazine with retail distribution after venture funding from CNET founder Halsey Minor — publishing six times a year, with a first print run of about 20,000 copies and 1.5 million website page views in its first month. Nearly 200,000 photographers submitted photos, many via Flickr. On January 2, 2009 the publisher 8020 Media announced it would shut down operations on January 5 over cash-flow problems; a grassroots savejpg.com campaign led to an investor acquisition and revival in February 2009.
02 / JPG Magazine FAILURE REASONS
Failure reasons
JPG's business model relied on selling print ads, and despite nearly 200,000 contributing photographers and 300,000 monthly US site visitors, the company could not turn the corner on revenue in the down economy — CEO Mitchell Fox said they were close to profitable before the downturn but 'the negative marketplace forces are too strong to overcome.' The parent company 8020 Media ran out of money and unsuccessfully sought buyers before announcing the shutdown. An earlier power struggle had already driven out founding editors Derek Powazek and Heather Champ in May 2007, followed by 8020 Publishing CEO Paul Cloutier in 2008.
03 / EVENT HISTORY
Events in the structured record
- Self-published launch
Derek Powazek and Heather Champ self-publish JPG through Lulu as a photography magazine built on user-submitted photos.
- Print relaunch with VC funding
After venture capital funding from Halsey Minor, JPG relaunches as an offset-printed magazine with retail distribution, publishing six times a year.
- Founders depart
Founding editors Derek Powazek and Heather Champ leave after a power struggle with 8020 Publishing CEO Paul Cloutier.
- Shutdown announced
On January 2, 2009, 8020 Media announces JPG will shut down operations on January 5 after running into cash-flow problems.
- Acquired and revived
In February 2009 a group of new investors acquires JPG's assets and relaunches the print magazine, website and associated assets, though no printed issue appears by May.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
On January 2, 2009, 8020 Media announced it would shut down JPG Magazine on January 5 after running into cash-flow problems; employees were laid off.
- 02
A grassroots effort at savejpg.com drew investor interest; bidders including Flickr, SmugMug and Alexander Muse expressed interest, with 8020 Media fielding cash offers.
- 03
In February 2009 a group of new investors acquired JPG's assets and announced a relaunch of the print magazine, website and assets, hiring back some staff — but by May 2009 no printed magazine had appeared.