The main reason for this is to offer terms that they don't need to offer to AppStore developers. More ability to compromise on revenue sharing and advertising. Ability to offer content hosting for in-app purchase. This could also make things more restrictive for the periodicals because they will need to use Apple's publishing platform instead of building their own.
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More on Apple's Plans for a 'Digital Newsstand' for Newspaper Content
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I too would pay a SMALL subscription charge, however the New York Times is currently asking $4.62 per week for this. Now if I were to add USA Today, a regional paper, and the L.A. Times, I couldn't afford the subscriptions at that price each.
I'm thinking $1 per week each is more what I think of as SMALL.
Apple DID approach the print media with the idea before launching the iPad, and while they got a favorable response, the idea was too radical for immediate embrasure without ironing out a lot of wrinkles.
Now that Apple has 5 million units out in user's hands, the road forward is clearer but still very murky. To expect Apple to have put together a program for newspapers and magazine subscriptions before getting a lot of media feedback is really more shocking.
The whole print media model is falling apart rapidly in the face of the public's changing access of news and reading entertainment. About all that is for certain is that the reader will get the content wirelessly; how subscription costs are covered, and all the details of advertising revenue is still up for grabs. Those points will likely undergo revision even after a deal is initially struck.
The price for Kindle newspaper subscriptions run between $10-$20/month per newspaper. (USA Today, $11.99; WSJ $14.99; IHT $9.99; Boston Globe $9.99, etc.) I don't think that the iPad prices will be any cheaper. Consequently, I don't think that this will be very successful at all.
@Piggie - Amazon has thousands of self-published authors in the Kindle store whose work you can buy for (generally) between $.99-$2.99. http://tinyurl.com/cgebkf
+1. Both have advantages and disadvantages. Ink and paper consumption is already through the roof.
Perhaps for content layout?
A number of the magazines I subscribe to look better in their print editions than their web editions. Same with many newspapers.
Couple that with a Retina display and I think "electronic print" editions could prove popular. Pricing should be cheaper since you'd just be paying the salaries of the content creators and editors plus digital distribution vs. physical production (which really requires scale to drive costs down).
Don't see what this would give me over my current install of pressreader on ipad ?
For me pressreader and zinio have it pretty much perfect already
(but zinio's prices are too high - but that's the publishers' fault)
For me pressreader and zinio have it pretty much perfect already
(but zinio's prices are too high - but that's the publishers' fault)
Agreed. Pressreader is amazing on the iPad since it provides the exact same content, layout and ads as the printed newspapers (like a pdf version of the printed paper). I've been using it for months to read papers from around the world. I really like being able to avoid subscriptions and just buy single issues for 99 cents (charged to my iTunes acct) whenever I've got the time to read one.
Right now it looks like they're offering seven free newspaper downloads. Worth a shot, yes?
http://itunes.apple.com/us/app/pressreader/id313904711?mt=8
Ah, Steve Jobs. Driving the costs down of all media. Soon it won't be profitable to even make media (except for a few huge conglomerates) because it will sell for so little.
Thanks, Steve-O. Cheap books, cheap magazines, cheap comics, cheap apps, cheap TV, cheap movies - and all of them with advertising embedded in it more than ever, behind a walled garden, or both.
He's got people trained to hate spending more than 99 cents. Who knew the future would look so much like a dollar store?
Thanks, Steve-O. Cheap books, cheap magazines, cheap comics, cheap apps, cheap TV, cheap movies - and all of them with advertising embedded in it more than ever, behind a walled garden, or both.
He's got people trained to hate spending more than 99 cents. Who knew the future would look so much like a dollar store?
The sad part is so many people... mostly the younger crowd... think content (i.e. music, books, magazines, etc...) should be free and doesn't stop to think that the artist, writers, directors, musicians, photographers, etc... all need to get paid. They love the content but rather pirate them than pay. Sooner or later something has to give.
First, I told you in what way. I provided a whole list of ways in which it is inferior.
Second, i am a developer who backed out of a deal with a content provider because the content provider didn't want to allow printing or copying to the clipboard of content. This isot mere conjecture.
I think the print and distribution part is more than 5%.
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http://www.sfnblog.com/industry_trends/2010/02/sfn_report_materials_printing_administra-print.html
mentions a global study on the future of newspapers,
"Cost reductions planned for the next year are led by the five most expensive costs to newspapers: materials, including paper, printing, administration, distribution and content generation. Paper, printing and distribution alone typically represent 65 to 70 percent of the costs of a newspaper operation."
http://themoderatevoice.com/63153/why-digital-editions-ipad-kindle-need-subscription-fees/
mentions data from Media Economics (book) of 40% for print and dist.
http://www.wired.com/epicenter/2008/01/nyt/
mentions
"as a general rule, roughly 20 percent of a newspaper’s expenses go toward print and distribution ... "
finally,
The New York Times 10-Q filing to the SEC has (Raw materials costs / circulation revenue) ratio at around 25-27% alone, and this is _excludes_ logistics costs, wages and benefits. (which lends support to some of the above figures)
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I'm not sure what the numbers are but 5% sounds kinda low.
Apple's 30% may or may not be "fair" but it's in the 'ball park' with the above numbers.
P.
I think the wide variety of numbers comes from if they include labor, equipment capitalization and depreciation (presses are expensive), utilities and facilities costs, etc.... The 5% number might be paper only... newsprint is cheap, but the rest adds up. The NY Times number talks about materials cost only being 25-27%.... now add in the rest and you're well above 30%, probably more like 40-50%. That's just a guess. I know commercial print really well, and sell to Newspapers, but I don't know the financial model of a newspaper.
Few points:
1: I love eVersions of printed media
2: Whilst it's the best we have right now, I'm sure other better devices than the iPad will come along in time. Perhaps larger flexi dieplays?
3: I think media you buy now should be tied to YOU not the device, so in a couple of years when you buy the Microsoft flexi display book reader, you can again enjoy your book you buy now on the new display.
4: I do not believe off the cuff comments about how little making, transporting and other mark-ups of physical book are so small an amount as to make no difference.
We're heard for years how expansive this side of things is, and how eVersions would reduce the cost, but now we are here suddenly that old argument is forgotten and now it's expensive to host on servers and printing presses, lorries etc cos nothing. (funny that isn't it)
5: For this above reason I think most people will expect an eVersion to be cheaper, especially due to the drawbacks mentioned in earlier posts.
6: I don't expect something for nothing, but with the easy mass audience right there, without any effort, if priced right they will sell loads. If they price them high then I hope they will fail.
As with apps, the captive market is massive and growing all the time with virtually no outlay on advertising needed. Set the price low, get people onboard who are happy with the low price and make lots of money and people happy.
A UK Newspaper sells it's eVersion for around half the printed version.
Ok, you can't use coupons, you can't do the crossword, but the price is right so it's very popular.
1: I love eVersions of printed media
2: Whilst it's the best we have right now, I'm sure other better devices than the iPad will come along in time. Perhaps larger flexi dieplays?
3: I think media you buy now should be tied to YOU not the device, so in a couple of years when you buy the Microsoft flexi display book reader, you can again enjoy your book you buy now on the new display.
4: I do not believe off the cuff comments about how little making, transporting and other mark-ups of physical book are so small an amount as to make no difference.
We're heard for years how expansive this side of things is, and how eVersions would reduce the cost, but now we are here suddenly that old argument is forgotten and now it's expensive to host on servers and printing presses, lorries etc cos nothing. (funny that isn't it)
5: For this above reason I think most people will expect an eVersion to be cheaper, especially due to the drawbacks mentioned in earlier posts.
6: I don't expect something for nothing, but with the easy mass audience right there, without any effort, if priced right they will sell loads. If they price them high then I hope they will fail.
As with apps, the captive market is massive and growing all the time with virtually no outlay on advertising needed. Set the price low, get people onboard who are happy with the low price and make lots of money and people happy.
A UK Newspaper sells it's eVersion for around half the printed version.
Ok, you can't use coupons, you can't do the crossword, but the price is right so it's very popular.
If Apple handle this like all the other store rolls outs from an international perspective it will be a real shame. It's not like music or books if various rights holders around the world. Newspapers and mags are like Apps one rights holder who controls all international distribution.
If apple launch there need to set rules like the App store and open it up to everyone in all the itunes counties on day one.
If apple launch there need to set rules like the App store and open it up to everyone in all the itunes counties on day one.
fantastic news!
this means we can pay $10 a newspaper just so we can read them on our iPads
Of course, how else would Steve Jobs afford to pay his parking tickets for parking in handicap parking spots?
Can you say another iRipOff?
You bet ya.
5%? Just don't believe it! Paper, press maintenance and depreciation, delivery, truck maintenance and depreciation, delivery wages, pick up of unsold, managing newsstands.
If I could get my local and selected 'other' newspapers of choice....
I would be willing to pay the dead tree price, IF
1) If I so desire, I can archive my copies for as long as I want - in a drm free format.
2) It will include at least ALl of the material in the earliest shipping version of said dead tree product.
3) I can print any portion I want for personal, archival reasons.
4) Free, on demand or automated delivery of said publications.
5) To be able to display any, and or all portion of either the digital version or printed out physical copy to any number of persons at any time.
That's it. that's all I want. Give me that, and not only will I pay you what you are getting now, but I will buy MORE publications. I'm not asking for the moon; anyone has done this for school projects for over 60 years.
Bottom line to the publishers; it ain't your market any more.
Tom
I would be willing to pay the dead tree price, IF
1) If I so desire, I can archive my copies for as long as I want - in a drm free format.
2) It will include at least ALl of the material in the earliest shipping version of said dead tree product.
3) I can print any portion I want for personal, archival reasons.
4) Free, on demand or automated delivery of said publications.
5) To be able to display any, and or all portion of either the digital version or printed out physical copy to any number of persons at any time.
That's it. that's all I want. Give me that, and not only will I pay you what you are getting now, but I will buy MORE publications. I'm not asking for the moon; anyone has done this for school projects for over 60 years.
Bottom line to the publishers; it ain't your market any more.
Tom
You, sir, are mistaken. Publishers will always be around and the publishing industry has always been a mainstay. Publishing will always be their market whether you like it or not. It's their JOB to bring content out to the bookstores, online or physical.
Tools will always change, but their market has always been one thing---publishing. Your MONEY goes to their professional publishing efforts, promotional/advertisement, staff, and also royalties to go to the author(s). I'm sure there are other aspects they need to make a living on.
Publishing is'nt about a "Wham, Bam, Thank you Ma'am" kind of industry with the McDonalization of product servitude to impatient sheep.
Steve Jobs programs you the lingo of saying "Apps. Say A-a-a-apps".
In turn, the people say "B-a-a-aaaa". Apple is NOT Starbucks, nor the other way around in such brainwashing of the masses of product and corporate worship.
Respectfully Disagree... iPad is one more outlet for publishers for sure. However, just as I don't want management at tv networks to not allow me choice of tv show rentals for .99¢ because, in their view, it is too low value priced and would hurt sales of Season Box Sets, would I want Apple creating a News outlet store telling me I have to subscribe. Just as I don't purchase Full Season Box Sets of tv shows, do I subscribe to News Print now, because been there, done that with a few of the "print" magazine and newspapers. I now want to be able to pick up a newspaper or magazine on my terms at a reasonable price. Price is exactly why I haven't "purchased" any digital published news or magazine to date available on the iPad. Why buy digital when you can get the print version cheaper? Until Apple and the newspapers and magazine publishers realize that, they can have all the 'stores' in the world they want, but if it is a choice between overpriced single versions, all or nothing subscriptions, or no sale... I'll choose "no sale" all the time!
Regarding "could make the iPad absolutely indispensable, versus today where I consider the device a "nice-to-have" and not yet a "need-to-have"."...
Curious, do you own an iPad or have you just played with it for short periods at the Apple store or Best Buy store? If you do own one and have the feelings you do, you are entitled to your opinion, obviously. However, "need to have" and "nice to have" are not the phrases I would use to characterize my iPad... Rather "How did I ever get along without?!" is the phrase that comes to mind ever since my computer habits changed on June 1st with the purchase of my 3G iPad. Thanks
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But THAT is exactly how I would characterize the publishers of today, be it magazines, newspapers, school text books... and 24 hour cable news stations! Except they just do the 'Wham-Bam' part... they are not courteous.
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