iPad vs Magazines: (plain text excerpt)
Since Apple released the iPad in April 2010, 3 million people people have dropped $499 (or more) to get their hands on one. Many bought it believing that iPad would be the future of book and magazine consumption. And publishers quickly began pumping out iPad editions of their products.
So how are iPad magazines faring so far? Will said predictions come true? What will it take for digital magazines to replace their print editions?
The Pricing Problem
Every magazine on the iPad also has a website which contains most or all content from each issue. For free. Additionally, the lack of subscription options creates a price disparity for magazine/app buyers.
To match the magazine industry’s $4.5 billion annual print revenue, 900 million $4.99 iPad apps would need to be sold.
(Or, assuming publishers could make $25 per issue per subscriber in advertising, they’d need to sell 54 magazine apps to every iPad owner, for $4.99 each)