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<span style="font-size: 20px; font-weight: bold;
color: rgb(0, 0, 0); font-family: arial;
line-height: 110%;">OPLIN 4Cast #212: Changes
coming for tablet periodicals</span><br>
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<span style="font-size: 11px; font-weight: normal;
color: rgb(102, 102, 102); font-style: italic;
font-family: arial;">January 12th, 2011</span></p>
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<p style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;"><a
href="http://www.oplin.org/4cast/wp-content/uploads/2011/01/digital_newspaper31.png"><img
class="alignleft size-full wp-image-1585"
title="digital_newspaper3"
src="cid:part2.06000105.04010200@oplin.org"
alt="newspaper over tablet computer"
height="115" width="115"></a>There's a battle
shaping up over the business of selling digital
newspapers and magazines to users of tablet
devices, like the iPad. While Apple has been
selling single issues of magazines and newspapers
through iTunes for <a
href="http://www.oplin.org/4cast/index.php/?p=1365">some
time now</a>, those sales are <a
href="http://nymag.com/daily/intel/2010/12/people_just_arent_buying_magaz.html">beginning
to decline</a>. That leaves an opportunity for
competitors (i.e., Google) to think about rival
services, and how to "do it right" when it comes
to selling periodicals for tablets. And that also
leaves room for publishers to try to negotiate a
change to the current online periodicals business
model to one that is more akin to the current
printed periodicals business model, namely selling
subscriptions instead of issues and gathering
personal information about buyers. </p>
<div> </div>
<ul style="text-align: left;">
<li style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;"><a
href="http://online.wsj.com/article/SB10001424052748704543004576051800714082180.html">Google
Digital Newsstand aims to muscle in on Apple</a>
(Wall Street Journal/Russell Adams and Jessica
E. Vascellaro) "The remaining rivalries could
speed up the migration of periodicals to
tablets, providing publishers with more ways to
sell their titles and more control over the
sales. A similar battle between Google, Amazon,
Apple and Barnes & Noble has already begun
to reshape the burgeoning market for digital
books, helping publishers win more flexibility
in pricing their titles. While many media
companies have rushed to build apps for iPads
and Android tablets, they say their current
inability to sell standard subscriptions through
iTunes, a shortage of data about app buyers and
tough business terms are keeping them from
investing more in the effort."</li>
<li style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;"><a
href="http://thenextweb.com/media/2010/12/29/what-those-low-ipad-magazine-sales-numbers-really-mean/">What
those low iPad magazine sales numbers really
mean</a> (The Next Web/Alex Wilhelm) "Ask
anyone in online sales: limiting the number of
steps is the key to higher conversion rates.
Therefore, to truly juice digital sales, all we
need to see is an industry wide 20% price cut
(from current levels), and a new method of
sales. Fortunately, Apple is likely working on
the second bit, with their much fabled
'iNewsstand' that will make it much simpler to
actually pick up a magazine. It will also
encourage browsing, something that will boost
drive by sales."</li>
<li style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;"><a
href="http://techcrunch.com/2011/01/02/apple-google-newsstand/">Who
is more willing to trick users, Apple or
Google?</a> (TechCrunch/MG Siegler) "So what
the publishers seem to be demanding is that
Apple opts users into sharing information
without telling them. Or, to put it another way,
'make it opt-out or we opt-out'. Classy. <em>Of
course</em> few customers would opt-in to
sharing such data. Because who the hell wants to
be marketed to relentlessly just because they
signed up for a magazine subscription? No one.
Except that's the way the magazine subscription
model <a
href="http://techcrunch.com/2009/12/08/magazine-app-store-data/">currently
works</a>. Not because it's a good model, but
because in the days before technology started
destroying print, people were naive enough not
to realize what was going on. Obviously, the
publishers would like to transition that
happiness in slavery to the tablet space."</li>
<li style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;"><a
href="http://mediamemo.allthingsd.com/20101217/rupert-murdochs-daily-ipad-newspaper-set-for-january-launch/">Rupert
Murdoch's "Daily" iPad newspaper set for
January launch</a> (All Things D/Peter Kafka)
"It will come out daily, it will sell for 99
cents a week, it will use lots of video and it
will have cool multimedia bells and whistles,
including some kind of 3-D effect that lots of
people are very excited about. And Apple CEO
Steve Jobs may or may not participate in a
launch event. Most important for other media
companies: The Daily is supposed to use a new
"push" subscription feature from Apple, where
iTunes automatically bills customers on a weekly
or monthly basis, and a new edition shows up on
customers' iPads every morning."</li>
</ul>
<div style="text-align: left;"> </div>
<p style="text-align: left; font-size: 20px;
font-family: arial; line-height: 110%;"><small><strong><em>Revenue
fact:</em></strong></small><br>
</p>
<div style="text-align: justify; font-size: 16px;
font-family: arial; line-height: 110%;">Apple
typically keeps 30% of the sales of apps through
the iTunes store, including single issues of
periodicals, and passes the rest to the publisher.
</div>
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4cast</em></strong>
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