We all know that the iPad’s success has forced several media houses to try and roll out several applications that would be compatible with he iPad. The first to join the bandwagon is People, which have made viewing this application free for all its readers that subscribe to its magazine.
The world’s largest magazine publisher, Time Inc thinks that this is the base for all its printing and digital sales to be amalgamated into one medium. Apparently, there was a lot of discussion between Apple and Time Inc before they could come to an agreement. Time Inc wanted this application to be offered free of charge to its readers while Apple was looking to do business. Like any other application ready to be installed into the iPad from the application store, Apple would get a cut.
However Apple has finally decided to provide this service free of cost. Subscribers of People will now have to enter a verification code before they could download it from the application store onto their iPad.
This has been a topic of discussion for a while now whether media companies should charge their subscriber for utilising the digital offerings. This could have its own repercussions. If the media houses begin charging their subscribers then there is a likelihood that they could lose a few customers. Would they be able to sustain their business with lesser number of readers? This is an answer that only time will tell. There are other publishing houses that are quite happy with their current style of working and do not want to invest in digital content. Publishers like Conde Nast are not interested in giving digital content as a part of print subscription. Conde Nast is trying to chalk out a pricing structure to amalgamate the print and digital content, but they think that this could cost more than the current subscription charges.
But this not what Time Inc has followed. They believe that all its print customers should have easy and free access to digital content and they are following a strategy that will ensure that the number of users increases which will help maximise profit. This is because subscribers to People pay nearly $100 to utilise the services of their print content and Time Inc is of the opinion that their subscribers should be offered this medium however they want to.
By giving this application free of cost to their readers, People is hoping that the number of customers downloading this application from the application store will increase. In fact, the numbers have gone up to 2.5 million subscribers until the last report came out.
The publishers think that by mixing its print publications to the digital media, the number of subscriptions flowing into the print advertising will increase, which at the moment is more lucrative than the digital media. They would also like to implement this model into a lot of their other magazine by using the services of the iPad.