Anyone who's interested in this sort of thing should check out Wired for a stellar example of a digital version of a magazine. In my opinion they've struck a perfect balance between the vanilla approach of creating just a plain PDF version of their magazine, and the all-to-easy-to-envision extreme approach of making the digital version a multimedia spectacle.
The layout and content is very similar to their paper issue, but it's been enhanced with things like internet links, ability to buy products from the advertisements, sample audio and video when the situation warrants it (like in an article about a band) and it's all presented very tastefully and unobtrusively.
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