Yudu Store will allow publishers to host publications online. The new service will include subscribers' clubs, forums and polls, alongside access to magazines' back catalogues.
Yudu will also offer a 75/25 revenue share with publishers.
Yudu Store will launch The Big Issue's first digital issue and a share of revenue generated from online sales will be given back to street vendors in the area the online copies were sold.
In addition, Yudu Store will sell a print and online package from up to 40 news-stand titles including Nuts, Zoo, Inside Soap, Closer and Heat.
Former Times head of online marketing Robert Elding has been hired to lead the team.
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