PopularScience+ on the soon to be launched Motorola Xoom
For many, many months the media has been speculating on different digital magazine subscription solutions and when and how publishers will start using them. During the last two days, both Apple and Google have announced their new subscription offers, and surprisingly, we are the only publishers who have signed both agreements (so far). Why is that?
Before the iPad was launched, our experience was that the industry kept discussing what technical platforms each publishing company would use and who would build an app store. But not many talked about what kind of experience we'd need to provide to make digital magazines really attractive to consumers. A discussion very far from being user-centric.
Now one year has passed. Still, the industry keeps on discussing, well, industry issues, as for example positions in the value chain, revenue splits and who will build a magazine newsstand. For some reason, the consumer is still not part of the equation.
Since the launch of digital magazines, there has been one MAJOR request from consumers: they want subscriptions. For our magazine applications in the Apple App Store, the lack of subscriptions was the number one complaint.
It is our firm belief that the consumer should not be penalized while our industry continues to debate issues of data- and revenue-sharing. We want to make sure our readers and users are happy, and they will only be happy with us if we give them a subscription solution. Thereafter, we can continue to discuss business terms until the stakeholders are also satisfied.
Our readers are very pleased with their iPads and consumer research suggests they're also satisfied with the magazine experience we can provide on that device. Apple has proven that they can build a cohesive experience and a seamless purchasing experience that consumers appreciate, and we want to be a part of that ecosystem selling our subscriptions.
The long-term possibilities with Google One Pass are obviously also very interesting. The cross-platform experience will allow us to identify users on our websites and possibly even in other app stores, getting us closer to the dream of offering our users a "buy once, read anywhere" experience through a single sign-on.
We prefer to play the game and try to influence it while playing. We have an ongoing and very good relationship with both Apple and Google and we see no reason to stand outside the playing field being angry. We are all just different entities trying to find our position in the value chain. And while we do that, let's keep our users as happy as possible.
Read more about our subscription offers via Apple and Google here:
http://www.nytimes.com/2011/02/17/business/media/17google.html?_r=1&ref=business
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=145169
http://online.wsj.com/article/SB10001424052748703373404576148142926860706.html?mod=WSJ_business_whatsNews
http://googleblog.blogspot.com/2011/02/simple-way-for-publishers-to-manage.html
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Comments
Tim: The statement about consumer demand for subscription was based on three things: 1) comments associated with App Store ratings 2) feedback sent by users to the general help email address, and 3) three separate consumer behavior studies conducted by Bonnier R&D to evaluate the success of the Mag+ platform. It's easy to understand where consumers are coming from: if you're a loyal reader who plans to buy the issue every month, you expect a discount off the single-issue newsstand price, and this is what paying a once-yearly subscription fee offers. —Megan Miller, Program Director Bonnier R&D
Megan Miller, February 18, 2011
I am eager to read more about the "buy once, read anywhere" experience. I absolutely agree that, currently, a lot of discussions are going on about different operating systems, different app stores therein that try to compete with and exclude each other. These efforts of trying to monopolise the digital offers on the market are not consumer friendly. For me as a consumer I would like to see cross-platform offers so that I don't have to always ask myself whether I've made the wrong purchase buying that specific device and now am almost made to use its adherent apps / subscriptions.
Anne, February 18, 2011
"Since the launch of digital magazines, there has been one MAJOR request from consumers: they want subscriptions. " Proof for such a sweeping statement? That’s not true, that’s pure assumption and speculation based on pre-determined parameters, fore mostly the one where the answer has already been decided (we need subsriptions) and the research gets bent to fit the answer. (and music to managements ears) What is subscription? And to what? Am I a subscriber to my electricity bill because I pay it every month? Or because I buy a month ticket on the NY subway? How many consumers? Is it the number of consumers that are currently buying the magazine? Is it a percentage? So if a 1000 bought Pop Sci and 20 want to be subscribers is it a business model? I don’t believe that that statement is true though, not according to Mary Meeker’s research Stephen Colberts take on the Digital Subscriptions and Magazines. He is a comedian but he is hitting very close to the truth here. http://www.businessinsider.com/stephen-colbert-destroys-the-daily-and-it...
Tim O'Bannion, February 18, 2011
Agree with Gustaf and even though a good relationship with Apple they still want their 30% cut right.
Johan, February 18, 2011
I must say that I am a bit surprised that you have no ambition what so ever to at least try to be near the driving seat and shape your own future, rather than being in the hands of partners that may have the most awesome devices but who you obviously can not trust in the most crucial matters. It's too much of a bend-over for my taste and probably for the good of your business. ::g
Gustaf, February 18, 2011
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