Subscription Website Growth is Rising for The Sun

Digital Publishing News for December 11, 2013

It’s been interesting to see the successes associated with subscription websites. From digital newspapers to digital magazines, more and more publishers are considering paywall strategies. This even includes tabloids.

Robert Cookson writes, “The Sun has attracted more than 100,000 subscribers to its website and apps in the four months since it became the first tabloid newspaper in the UK to start charging for online content.”

Such quick growth shows that subscribers are willing to pay for the content they care about.

YouTube Nets Nearly $2 Billion in 2013

YouTube continues to bring in significant advertising dollars. According to eMarketer, YouTube will gross $5.60 billion this year, with a net of $1.96 billion – which is an increase of 65.5% from 2012.

The eMarketer article, which details their first-ever analysis of how advertisers spend on YouTube, also discusses the predicted future of YouTube’s advertising efforts. It states, “Video ad revenues are expected to increase significantly in coming years for YouTube’s US operations, particularly as mobile video viewership grows. eMarketer estimates the company’s revenues from video ad formats will hit $1.22 billion next year, claiming a 21.1% share of all US video ad revenues.”

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The Magazine’s Business Model is One to Watch

Joe Wikert has an interesting article on Publishing Executives Industry Insiders Blog. In his post he talks about The Magazine, a digital only publication for iOS devices. Wikert writes, “The Magazine is all about highly curated content. Each edition leaves the reader looking for more. So many publishers are focused on heft these days. They want to provide more and more content to their readers. The Magazine shows that less definitely is more. What are you doing with and for the biggest names you work with (e.g., writers, editors, etc.)? Have you ever thought about how their work simply blends in with everything else you produce? How about creating a digital product that contains only the best of the best from your business?  How valuable would that be for your readers?”

For $1.99 a month or $19.99 a year it’s almost a no brainer. Wikert talks about why The Magazine is so author friendly. “They offer a reasonable flat rate for articles and, more importantly, they offer non-exclusive terms. There’s a windowing period of 60 days where The Magazine is the only place that content will appear, but after two months the author can publish it himself or take it elsewhere.”

Distribution to Canada Might Start Costing More

The New York Post is reporting that The News Group, a magazine wholesaler in Canada, may soon be asking American Publishers for more money to get their magazines on newsstands. Keith J. Kelly writes, “The top 135 magazine titles will be exempt from TNG price increases, according to The New Single Copy, a newsletter that tracks the market. Midsize and smaller publishers are likely to be whacked.”

These new costs will begin January 1. Kelly adds, “The price hike will be either 2 cents, 4 cents or 8 cents for each copy handled. An additional fee is tacked on to remote locations.”

Time Inc. Spinoff May Not Come Until Second-Half 2014

Although many are anticipating the Time Inc. spinoff, it seems the wait may be a little longer due to financials and the need to implement a different direction. Steve Cohn writes, “In third-quarter 2013, Time Inc. revenue fell to “813 million from $838 million [in third-quarter 2012], which is part of a pattern that extends back at least to 2008,” according the recent document filed with the Securities and Exchange Commission that was a preliminary to the initial public offering.”


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