Some arguments point to “yes”
By now, most publishers are aware of Apple’s plan for digital publishing.
The plan has received mixed reviews so let’s take a look at what it will mean for publishers and consumers alike.
A recent article from Mike Elgan at the Cult of Mac shared some great insight on the topic.
The article discusses three assumptions that have been made within the industry since Apple announced its plan:
- Apple’s 30 percent cut is too high
- Apple gets between publishers and subscribers
- Apple will gain control of the industry
What are your thoughts on these three beliefs? Elgan thinks that the first two are false, and the third is “kinda” true.
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For instance, although Apple will get 30%, Elgan claims that is far less than publishers are currently paying for equivalent services within the print model – including payment processing, fulfillment, delivery, etc.
On first glimpse, it appears that Apple won’t necessarily be getting between publishers and subscribers. Instead, they will be acting as a fulfillment house – a service that many print publishers use anyways.
According to Elgan, Apple will succeed with this model. “The reason is that the combination of the Apple demographic, the ease of subscribing and the opt-in user data will mean iOS users will be by far the best audience. They will subscribe more, pay more for those subscriptions and respond more to advertising.”
iOS users will be looked at as a “premium audience”, who in turn will be treated accordingly in regards to titles offered and associated advertising.
Furthermore, Elgan shares our belief that tablets are the future of publishing. If publishers want to reach iPad users, they will have to accept the terms of Apple’s publishing plan.
What are your thoughts on this subject? Do you think Apple’s plan is reasonable after giving it some thought? I’d love to hear your opinions.
For more on the topic, take a look at Elgan’s article Why Apple Won’t Kill Print and Google Won’t Kill Apple.
One reply on “Will Apple’s Plan for Publishing Spell Success?”
I think Mike nailed it…
Apple takes 30% if they sell the subscription to their huge base of Apple Store customers who have credit cards on file that offer one-click purchasing. Apple is one of the largest media retailers on the planet and publishers will benefit from all that traffic. If the magazine sells even 10% of what the music industry sells, Mike will be right. And the Apple demographic are heavy media buyers of all types.
Apple also takes nothing for fulfilling via apps, digital magazine subscriptions and other digital subscriptions sold via the publishers’s website or other direct to publisher channels. This does mean every magazine publisher needs a subscription website ASAP to leverage this aspect of the deal.
Magazine publishers should be rushing to sign with Apple to sell digital magazine subscriptions under these terms… and building subscription websites as fast as they can.
Don