A digital newsstand is one of the newest products apple is working on. The newsstand would be used to try and attract more people to purchasing the iPad specifically, but customers with other apple products would be able to use the newsstand as well. It would be separate from the already existing app store and from iTunes. Along with making money for themselves apple is trying to help sell more subscriptions digitally. This could work, but people who buy online often look to just buy a certain issue and not necessarily an entire subscription.
Publishers may also have a problem with apple. According to the article apple wants to control much of the consumer data. This would make it more difficult for publishers to market their product to people because they would not have the data for the new customers that this newsstand would assumingly attract. This would make it especially difficult for publishers to link together the new subscriptions online with preexisting subscriptions.
Companies such as Time Warner have already said that may not sign with apple. They are afraid of cutting ties with their consumers and do not want apple as the middleman. These companies also do not want apple to take up to 30% of publishing sales like they do with music, applications, and games. Between this and not wanting to share consumer data, it is understandable why companies would think twice before signing.
According to the Audit Bureau of Circulations[1] “Newspapers’ average daily circulation fell 8.7 percent in the six months through March, after declining 11 percent in the prior six months, according to the trade group” (Print + Video). On its own website the Bureau actually has already posted a you tube video on how to prepare your magazine for subscriptions specifically for the iPad[2].
With everything else that apple has this new idea has a very good shot at working out. Even though it is in the early parts of being created (so early in fact that the people who commented did not want to be named) the name Apple will bring in people all on its own. The truth is however that apple should work with the publisher more than it seems to be willing to do at the moment. If they want to get the big name magazines on their newsstand they are probably going to need to make some sacrifices in terms of some of their cut. The article states that apple is trying to help large companies get different types of news out there for people to see. There is nothing wrong with this. The problem is that when the kindle came out publisher’s had issues with Amazon about how much of a percentage they would be claiming and how they would be withholding customer data[3]. The last thing apple needs is for this to happen to them. They are trying to grow their business and reach different people, but they need to be careful not to lose other already loyal customers in the process.
[1] http://www.businessweek.com/news/2010-09-17/apple-said-to-plan-online-newsstand-with-publishers.html
[2] http://www.youtube.com/watch?v=l0LcDNTaY84&feature=player_embedded
[3] http://www.bookbusinessmag.com/article/amazons-kindle-has-raised-issues-book-publishers-such-appropriate-pricing-options-e-books-407856/1
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