Let me get this straight. You are saying a paltry $10,000 fee is going to be the deal breaker for digital publishing? Are you even aware of how much it costs to actually print a magazine? The equipment alone makes that little 10K laughably cheap. And that's before you get into all the other stuff involved in publishing a print edition and all the middle players involved getting their cuts.
The only thing holding digital publishing of magazines back right now is an effective distribution system and Newstand as the distribution system combined with Adobe's Digital Publishing Suite tightly integrated is like manna from heaven for publishers wanting to make the jump.
Really the only thing left is for Apple to continue selling more iPads to continue growing the addressable market.
I was the production director at a magazine that had a 15 year publishing run. You don't buy printing equipment. You send your job to a printer (like RR Donnelley, for example), and they print it. You don't even need to visit for press checks anymore. Log in, upload PDFs of each page, and approve a virtual proof.
The largest cost in magazine printing is, paper, followed by mailing.
That said, the bigger publishers aren't going to use Adobe's system, because it is too constraining, and Adobe is asking for too much money on top of what Apple is asking for.
The concept would actually be a really good one for very small indie publishers, except that it costs WAY too much for them.
Our magazine shut down because it didn't make sense to pay postage and paper costs for a slowly-decreasing subscriber base (~70K at the peak). There was talk of moving all digital (this was 3 years ago) and continuing on, but advertisers will not pay $3000-$5000 per page for a magazine with XXK digital "subscribers," and people just won't pay for a digital version of most magazines like they will a physical version.
Maybe someday, but I can tell you that it makes more sense at this point to sell individual articles for 1-2 dollars as a secure PDF on a website than it does to buy in to Adobe and Apple's publishing schema.
If someone wants to read an indepth article on making salsa, or salsa dancing, or some guy named Ortego Salsa, they are more likely to pay 2 dollars for one article download than they are to pay 20 dollars for a subscription to a magazine they've never heard of that happens to have an article they might want to read.
And people don't give gift subscriptions to digital magazines because there is no incentive...anyone who would do that is smart enough to know that they should just give someone an iTunes or Amazon gift card, instead.
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I am a New Yorker subscriber (one of those DPS using Conde Nast publications) and the thing is PATHETIC. Huge file sizes (~150 MB) for issues that are 90% text, crashes constantly, stalls while loading new issues and you can't change the font size(!!!) because all the text is actually a bunch of JPEGs of text...
Dear magazine publishers -- please avoid Adobe's tools like the plague and hire some highly competent Cocoa Touch programmers to make a native iPad app. for you.
The problem isn't actually the DPS, it's the way the New Yorker has been using it. They are afraid of people ripping their text out and posting it all over the internet, so they are converting their indesign pages to images, then importing them into a new document for DPS. That results in huge file sizes and slow loading times.
Basically, they don't want to use DPS, but they are being forced to by their parent company, so they are fine with seeing it fail, as long as it doesn't cost them too much money, and doesn't let their content get out for free.