Most news stories are covered by many media outlets. News is not a scarce commodity. Magazine articles, on the other hand, typically provide more in-depth commentary or analysis on interesting topics. A consumer can’t easily find other sources for a magazine story.
Hamish McKenzie argues that magazine publishers, like music publishers before them (album versus iTunes single), should break up the sacred magazine bundle online and allow consumers to either pay a Netflix type subscription to an all-you-can eat buffet of articles from a variety of publishers, or provide an a-la-carte menu for consumers to discover and pay for the articles they want to read
Of course, this implies that publishers would need to coordinate the development of an industry led technology and distribution platform (similar to Hulu), or watch an external technology company such as Flipboard, Google, Apple, or Amazon build a business model off the publisher’s content and own the relationship with the end consumer.
As McKenzie states:
The first problem is that there is an app for each magazine. To subscribe to the New Yorker, Wired, Vanity Fair, GQ, The Atlantic, Details, New York, and Time, you’ve got to have seven different apps, many of which are bloated. Some issues of Wired, for example, have weighed in at 500MB each. And what do you get inside? Aside from the occasional animation, or supplementary audio and video, they’re basically just digital facsimiles of the paper product. Worse – you can only get the stories if you get the whole magazine.
So here’s an idea for how to do it better and make money from it.
Break up the bundle. Present stories on an individual basis. Do to the magazine what iTunes did to the album, but do it with a Spotify model. And put it all into one app.
In short: build a platform not for magazines, but for magazine stories.
Here’s how it works. You have an app called something like Mag Reader. When you open Mag Reader, it shows you a list of the latest works from your favorite publications, as well as ones that align with your interests, or the stories currently most talked about on social media.
Each story is listed with a small picture, headline, by-line, date, relevancy rating (just like Netflix’s customized recommendations), introductory teaser, and publisher name. Before clicking through, you can expand each one to see more art work, the first few paragraphs, who has recommended the story, links to similar stories, and what else the publisher has put out recently. If you feel the urge, you can even buy the magazine issue into which the piece has been bundled for paper consumption.
You have a profile page, just like you do on Spotify or Facebook, on which your most recently read stories are listed alongside the stories you recommend most highly. On your page, you can also list your favourite magazines and writers, along with your interests. Perhaps you even list all the readers you follow, Twitter-style. You can discover new stories through the social connections you have built around your profile, just like you do now through Twitter, Facebook, and Google Reader (people still use that, right?).
Each writer has a profile, too. Some writers will be affiliated with magazines; some will be independent. You can follow your favorite writers, so you’ll always know when they have a new story out. On his profile, a writer has a bio, links to his stories, and perhaps even a “works in progress” section that comes with a “donate” button, so readers can make financial contributions to stories they’d like to see materialize, Kickstarter-style.
Publishers have brand pages, as well, just like on Facebook. At each page, you can read about the magazine, check out the masthead, perhaps watch some behind-the-scenes footage, and maybe even subscribe to their bundled products.
The story-reading experience is seamless and alive. You can highlight passages you want to make a note of, just like you can on the Kindle. You can look up specific words in a dictionary. Publishers can easily integrate multimedia into their stories. Writers can update their stories as new information comes to hand. On each story you can leave comments that will then, if you so choose, publish to your Facebook profile. You will be able to sort comments on the stories to prioritize the ones written by “Friends” or “Friends of Friends” (thanks, Roman Meytin, for that idea).
One commenter from Germany, who actually tried to launch a service similar to the one described in the article, summarized the experience of trying to herd
cats publishers and get them to work together:
We presented our app to dozens of newspaper publishers and press agencies in Germany and we had around 20 of them joining our model as launching partners. But we realized very soon that this model was a failure.
Most newspapers, mainly the big and interesting ones, were not interested at all, they all wanted their OWN app in the AppStore. They did not want to promote an app that contains content from other newspapers. They did not want users to choose which article is interesting and which one is not. So, more or less all German newspapers launched their OWN apps, most of them never reached top 100 of the category news in appStore and – even more surprising – a lot of them are completely free or you have to pay an initial single payment of .79 €.
Out of all U.S. adults who read magazines, 11 percent do so exclusively via digital platforms, new data from GfK MRI says. But with newsstands available on more devices, that number should increase.
Between May and October 2011, GfK MRI estimates that 1.58 billion U.S. adults read magazines. Of those, the company pegs the print + digital audience at 135 million people, and digital-only at 166 million people. That digital-only group is made primarily of men (63 percent), and they’re more likely to be young, affluent and well-educated. The sample size for this survey was 12,546 people, and GfK MRI extrapolates its results to the entire U.S. adult population.
Digital magazine reading is likely to increase as digital newsstands become available on more devices. The Apple (NSDQ: AAPL) Newsstand, launched in October, has broughtsome magazine publishers a significant number of new readers. Conde Nast, for example, reported subscription sales across nine titles up 268 percent in the two weeks following the Newsstand’s launch.
Early indications are that Apple’s new iOS features for publishers have had an immediate beneficial impact.
- Exact Editions, which says it made about 10 percent of the Newsstand app titles on iTunes Store, says downloads of freemium sample editions jumped by 14x in just a few days, whilst some titles’ actual sales have more than doubled.
- Consumer magazine publisher Future says free container apps for its titles were downloaded two million times in three days and reports “consumer spending well in excess of normal monthly revenues”. “Future has sold more digital editions in the past four days through Apple’s Newsstand than in a normal month,” says UK CEO Mark Wood.