Mygazines.com was a social network that was launched in June this year and lasted only 5 months online. Yesterday its closure was announced.
Mygazines allowed users to share online their favourite publications (especially magazines). In addition, they were rewarded with a part of the benefits of the advertising displayed on the site. It had the typical social features of a network and used a special browser that didn't allow the downloading of magazines.
In their servers, they hosted all type of publications, with the Creative Commons licence (when they were originals provided by users) and those with copyright. They had several complete issues of lots of magazines such as MacWorld, Business Week, Forbes, etc.
As you can imagine, the success was absolute -online magazines for free! That was precisely the reason of its closure, the violation of magazines's copyright.
Publishers soon came down on them, pressing them for the immediate closure. Mygazines advertisers quit contracting advertising and the first serious legal actions arrived.
From the user's point of view, the idea was great, but this was a project doomed to failure. A distribution agreement with publishers might be a good business model, although maybe not profitable, at least legal.