Cover story: Digital Newsstands
(UK)
POCKETMAGS IS THE newsstand product of Magazine Cloner, the UK-based app development company. “Our primary business was always branded apps – for all platforms,” says sales director Ian Remmer. “When we began there was also a definite need for online magazines, but we couldn’t set up our own newsstand Pocketmags until we had a decent amount of titles (500 or more). Now you can download onto PCs, Macs, iPads, Androids, Windows 8 and Blackberry. We now have around 1,600 titles along with their back catalogues. “The big advantage for publishers is that if a sale is made online, they don’t lose 30 per cent to Apple, or Android or Amazon. The other advantage for publishers is that for anyone to download online, they require an account. Apps can be downloaded anonymously but this mandatory requirement online is a bonus for publishers as it provides them with user data.” On Pocketmags each publisher sets their own price – around £2.99 (€3.60). “We haven’t been tempted by the ‘all you can eat’ model, it seems unsuitable for UK and European publishers where the copy revenue is so important – as opposed to the US volume model – because the yield per issue is so low. For the same reasons,
Ian Remmer, sales director, Magazine Cloner, UK, says the company is making money on newsstands
it’s dangerous for smaller publishers. As with everyone, the biggest platform we deal with is Apple branded apps. The second biggest is Pocketmags. Whilst online magazines have been around for years it’s their availability on tablet devices, particularly the iPad that brought them to the mainsteam. Yes we are making money from the newsstand as do our publishers and those who choose to use Pocketmags for additional digital distribution.” Remmer doesn’t believe people will move
away from Apple. “It is still the most effective selling platform by a significant distance and it’s important to be on there. No matter how large Pocketmags and its competitors are, we are a million miles from a position where the Apple Newsstand becomes a secondary platform – that won’t be changing any time soon. But we do have our advantages, e.g. multi-platform, flexibility of pricing and offers, promotional activity and reaching customers publishers wouldn’t ordinarily do, all of whom are loyal digital readers.” Pocketmags has plans to feed into other
AT A GLANCE: DIGITAL NEWSSTANDS Nook: flexible pricing arrangement with publishers
Pocketmags: UK-based but expanding internationally. Publisher sets prices.
PressReader: US-based, but international. All you can eat for $29.99/month. Publishers paid by issue bought.
large companies who want to offer their customers digital magazines. “We have partners in Australia and North America who provide regional shop-fronts for Pocketmags. We are in talks with various companies, often retailers and distributors, who want to start offering digital magazines. They have a choice; they can either do what I’ve been doing for the past four years, or we can work together and continue to broaden the reach of our publisher’s titles but without giving the publishers more parties to deal with as continues to be the case for apparently negligible income.” Remmer believes there will be more consolidation in the future: “There’s no point in having lots of little ones. The main change will continue to be publishers moving towards more enhanced content and mobile specific editions. Replicas will continue to have a place though as the cost vs return is still not compelling enough for many titles and digital isn’t quite standing on its own, as shown by the closure of a number of larger digital only titles last year.”
Readly: Sweden and US, with plans for expansion. All you can eat for $9.99/month. Publishers get fee on points system.
Zinio: Revenue shared basis with publisher.
Magzter: subscription-based newsstand, offering special deals and bundles. Revenue shared basis with publisher.
Next Issue (Hearst, Condé Nast, Time Inc., Meredith and News Corp): US only, all you can eat for $9.99/month
(CANADA)
PRESSREADER HAS BEEN around for some time. Primarily a leading digital newspaper aggregator, the newsstand evolved to include magazines around two years ago. “We have had newsstands as a concept since
2003,” says Nikolay Malyarov, chief content officer and general counsel, “based on the Spotify/Netflix model of providing a service that gives access to a lot of content. We started with about 150 titles and that number has grown since. The introduction of the Apple iPad helped us grow the number of titles. “We offer functionality that enables readers
to translate the content on the site to any language. We’ve added social media so that readers can share the content. We have more than 12,000 libraries worldwide using our service – in Singapore, for example, everyone with a library ticket can use our service because the authorities there have paid for it. We have grown our channels and have gone into the airline space and hotels. So if you check into a hotel and log into the
fipp.com Nikolay Malyarov, chief content officer and general counsel, Press Reader, Canada
wifi network, the hotel has already purchased the service, so all you have to do is download PressReader and you start using it straight away. Once you leave the hotel all the content you have downloaded is available to you. The newsstand has almost 2,500 titles, from over 100 different countries. The business model is primarily a $29.99 monthly subscription, with the options of pay-as- you-go and single copies of magazines and newspapers. Publisher receives a royalty payment
for every issue – whether consumed by an individual, library, hotel, etc. They are paid per copy, with the sales going towards their audited circulation. “Publishers get paid if the consumer
goes beyond the front cover; like browsing on a print newsstand. They get paid for one issue – if the consumers spends five seconds or five hours reading it. “Our other advantage is we help build distribution, because we have relationships with governments, airlines, etc. who are unlikely to buy single publications. This gets publishers into that space. We’re in 176 countries and the service is free – giving them a risk free opportunity to develop their distribution beyond their traditional channels.” Malyarov says the future is all about continuing to grow PressReader’s presence – in magazines as well as in TV.
issue 81_2014 | Magazine World |13
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