Magazines struggle with business models for iPad apps

Author: Martine Wubben - 13-01-2011

The sale of magazine apps for the iPad is stagnating, both in the U.S. and the Netherlands. Publishers should have better developed business models for their iPad apps that bring more added value compared to the existing paper and digital alternatives.

Last week Emerce reported that the iPad app sales for the popular magazine Wired have decreased considerably. Apps sales for other popular magazines such as GQ, Vanity Fair and Glamour are very disappointing.

Source: Emerce.nl

As a possible explanation for the falling numbers Emerce mentions that the iPad's novelty would have worn off for readers. The relatively high price for a single copy compared to the price one would pay for an annual subscription, also plays a role. Other explanations are the unfamiliarity with this version of the magazines and the enormous range of other applications that can be downloaded.

Martijn Kole, magazine publisher and consumer of apps magazine, understands the disappointing sales of the Dutch iPad apps though. "The novelty has worn off, it is still a relatively expensive product for the customer and publisher, and the added value of most iPad apps is still quite limited. Dutch magazines Autoweek and Viva offer enriched content, but it is too early to say anything about their circulation development. AutoWeek has created a pretty successful advertising model of lead generation. There is a limited audience of iPad owners in the Netherlands, a decent iPad penetration is also a requirement, "said Kole to Mediafacts.nl

Kole also has a few things to say about the apps for news media: "The news media HD apps such as that of nu.nl offer the user for fast news little added value compared to the iPhone app or website nu.nl. Magazines FD and Elsevier have an iPad version of their editions. Unlike other newspapers, the iPad app is free to FD subscriber. But Elsevier has its loyal customers pay € 3.99. As a loyal subscriber I probably won’t be willing to pay for a separate app iPad. Publishers should therefore take a careful look at their business model to maximize the benefits for apps."

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