May 17, 2011
In February of this year, Apple announced its subscription model for content publishers, unveiling a 70/30 revenue sharing plan that has since become a topic of debate both in the media a...
In February of this year, Apple announced its subscription model for content publishers, unveiling a 70/30 revenue sharing plan that has since become a topic of debate both in the media and behind doors at major publishing companies. As a company that works closely with both entities, we at Zumobi were curious to hear how Apple’s subscription plan has since fit into publishers’ current and future plans for content distribution.
Gregg Hano, VP and Group Publisher of the Bonnier Technology Group, who has worked closely with Zumobi to bring Bonnier’s Popular Science Magazine to iPhone and Android platforms, recently sat down with us to discuss his thoughts around this topic. His outlook? Keep in mind the bigger picture of evolving publishing channels and remember a publisher’s ultimate responsibility to its readers. Read on for more of his insights.
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Q: Does your media company currently host content on iPad? Android tablet? If so, is it subscription-based?
A: Last April, immediately as the first iPad went on sale in the US, we were the first company to introduce a digital edition of one of our magazines--Popular Science--designed especially for the device.
Initially, we offered Popular Science as a single-copy purchase in the iTunes store. Our readers--most of whom are early-adopters--responded enthusiastically, with one caveat: they kept telling us they wished they could subscribe online instead of purchasing single copies each month. Earlier this year, Bonnier was the first to offer subscriptions to our magazines--leading with Popular Science and now Popular Photography--in the iTunes store. We sold over 10,000 subscriptions in the first month, and that's a terrific beginning. Beyond the iPad, we're also developing digital versions for Android tablets.
Q: Do you believe that Apple's 30% cut of subscription transactions is justifiable at this point in time given the strength of the iOS platform? Or do you believe Apple's move will prompt media to focus more of their efforts on the Android platform?
A: Apple's subscription model is a great first step--this is a truly transformative time in publishing, and it's clear that we're in the early stages of an evolving process. Our priority is our readers--we know they want our content to be available digitally, and since they're happy to seek it out--and pay for it--on the iTunes store, we're happy to offer it to them and we have a great partner in Apple.
Interest in tablets, whether it's an iPad or an Android-based device, only has one way to go-- up--and I expect that publishers, including Bonnier, will increase their digital offerings to keep pace with our readers. We don't want to dictate which device our readers should use--some are iPad fans, others are using Android tablets, and ultimately, we'll be successful by being available whenever and wherever our readers look for our magazines.
Q: Final thoughts?
A: We are so excited to be pioneers in this space, both for the sake of our readers and our advertisers. We're participating in a monumental area of growth and innovation in publishing, and we can't wait to see what happens next.