The smart phone app possibility is intriguing in that we now have a 2,000,000 + data base to market to.
I believe it's easy to underestimate the value of a coveted and (growing) demographic of users.
Adding 55-65K users per month is undoubtedly a challenge in itself.
That being said, this co. should have an opportunity to succeed where other Web properties have failed.
Cross-selling is vital in that it could be the engine $$$$$$$$ for site maintenance/enhancements as well as open the door to non-organic marketing efforts.