[OPLIN 4cast] OPLIN 4Cast #212: Changes coming for tablet periodicals

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OPLIN 4Cast

OPLIN 4Cast #212: Changes coming for tablet periodicals
January 12th, 2011

newspaper over tablet computer 
<http://www.oplin.org/4cast/wp-content/uploads/2011/01/digital_newspaper31.png>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 some time now 
<http://www.oplin.org/4cast/index.php/?p=1365>, those sales 
are beginning to decline 
<http://nymag.com/daily/intel/2010/12/people_just_arent_buying_magaz.html>. 
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.

    * Google Digital Newsstand aims to muscle in on Apple
      <http://online.wsj.com/article/SB10001424052748704543004576051800714082180.html>
      (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."
    * What those low iPad magazine sales numbers really mean
      <http://thenextweb.com/media/2010/12/29/what-those-low-ipad-magazine-sales-numbers-really-mean/>
      (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."
    * Who is more willing to trick users, Apple or Google?
      <http://techcrunch.com/2011/01/02/apple-google-newsstand/>
      (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.
      /Of course/ 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 currently works
      <http://techcrunch.com/2009/12/08/magazine-app-store-data/>.
      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."
    * Rupert Murdoch's "Daily" iPad newspaper set for
      January launch
      <http://mediamemo.allthingsd.com/20101217/rupert-murdochs-daily-ipad-newspaper-set-for-january-launch/>
      (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."

*/Revenue fact:/*

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.
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