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Cover story: Digital Newsstands


(SPAIN)


Raul Suarez, GM, global markets, Zinio,


“FOR YEARS we have been the single largest retailer of digital magazines. Part of this success is within the Apple platform itself so it’s difficult to describe it as being in a different tier to Apple. It’s all part of the same ecosystem. We also offer branded apps now too,” says Raul Suarez, general manager, global markets. He added: “Anything sold on Apple is subject to Apple’s cut, so from their point of view it doesn’t make much difference if a sale comes through


an app that aggregates content on behalf of publishers, or if the sale is directly through a branded app in the Apple Newsstand.” Zinio generates profit primarily on a revenue share basis, with other services available too. Suarez says that Zinio sales and growth are healthy: “We are excited about an entirely new range of products just launched – XML-based branded apps for smartphones and tablets managed through an online CMS as an extension to our regular offering.” As far as Zinio’s unique selling point is concerned: “For many years the unity concept, of buying on one device and delivering to all devices was our USP. Now we see our key differentiator as the smartphone and tablet optimised branded apps that we produce as an extension to the regular workflow for current and new clients, providing integrated metrics. They aggregate all the best features in the market into a single product and can be produced as part of the existing work-flow. “We offer unified access across all major distribution platforms from a single file, a high level of new customers from around the world and a genuine and substantial digital revenue stream. In addition, we now offer this through stand-alone branded apps, with new revenue opportunities.”


(USA)


Jonathan Shar, general manager at Nook, USA


“NOOK HAS FOCUSED on the reader and the reader-centric, coming out of Barnes and Noble,” says Jonathan Shar, general manager, emerging digital content. “That knowledge and heritage has enabled us to develop an incredible value proposition through Nook [ereader], which launched in 2009 and then the following year when we introduced Nook Newsstand and currently with the launch of the Nook Colour reader and tablet. “We also have a Nook reading


App to allow consumers to have a relationship with Nook across iOS, Android, and Windows 8. We have expanded the newsstand through applications. We work with publishers on price, which can be the same as the print version, reduced or a special promotion. It’s been three years since we launched Nook Colour; there is still a lot of experimentation going on with price points. “The everything for $9.99 is an interesting model. The more consumers who are enjoying magazines digitally the better; anything to drive the experience from a consumer standpoint and a business model standpoint is really valuable for the industry as a whole.”


NATIONAL GEOGRAPHIC, USA “WE’RE NOT DRIVING VOLUME with the device launches like we used to,” admits Terry Day, executive vice president of worldwide consumer marketing and manufacturing. “We’re not looking to get out of any of our relationships – just looking to expand them. Of course, the business decision to add a new distributor is a function of the correct mix of terms, effort to supply the newsstand and the potential for scale.” Day says Apple is still the “dominant provider of volume by a long shot”. “After that, probably Nook, where the addition of annual subscriptions has helped. Monthly subscriptions erode fairly quickly. We don’t as yet have experience with bundle models, but we are in discussion with Next Issue Media and hope to participate soon. “We are very excited about our digital businesses. We have as much – or more – digital sales than any other magazine, but we need to improve and evolve. The first phase has really been the evolution of the print magazine to a digital platform. The next phase will involve more innovation, and we are dedicating resources to that. We have to evolve with the consumer; we have to give them the content they want, in the format they want, when they want. It is an exciting time”. “Like all of us, the newsstands are also going to have to evolve. What that will look like, I don’t know.”


ATTENTION SEEKERS: HOW PUBLISHERS STAND OUT FROM THE CROWD MEDIA 24, SOUTH AFRICA


THE SOUTH AFRICAN PUBLISHER started using digital newsstands in 2012. Says Willem Breytenbach, general manager of the digital division: “We want to give people content that inspires, educates and entertains and having our magazines in print as well as on newsstands makes this achievable. “We are constantly learning about the


Willem Breytenbach, GM of digital division, Media 24


ways in which our audience interacts with the media on newsstands and we have seen that it has been a very positive experience for our subscribers and readers.”


National Geographic says the next phase of their digital development will reveal more innovation


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Breytenback says Media 24 is “only on the newsstands that generate the best revenue options for our needs. We have seen great success with the South African MySubs newsstand and digital magazine reading platform as it is very user friendly, has a wide range of content, and makes it easier for us publishers to offer bundled solutions. “The future for digital newsstands is optimistic as the continual shift to mobile, digital platforms increases. At Media24 we have seen great success with offering our readers bundled options as well as aggregated content.”


issue 81_2014 | Magazine World |15


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