Maybe not. Each issue of Time for IPad is $4.99. Even I have subscribed paper-based magazine, I have to buy again for IPad issues. And there is no one year subscription for Time at this moment. Then let's compare the price, $4.99*52 (IPad) v.s. $20 (Paper-based). I just wonder who will buy Time in IPad. If there is no user, why bother to implement on IPad.
As B-school student, I totally understand, at early stage of implementation of Time into IPad. There is a high amount of up-front expense in development for IPad-based webpage/app. But it's one time investment, and they are cutting all cost associated with distribution for IPad magazines. I just feel, current price strategy is stupid. And Time is not alone. Let's check price of other magazines in IPad.
Wired: $3.99
New Yorker: $4.99
People: $3.99
Popular science: $4.99
I think big magazines can work together on IPad magazine template, which could be applied to all magazines. In this ways, cost on webpage/app development can be saved. Most importantly, they need to adapt themselves to new trends (new device, new distribution channel, user created contents)
A few questions from the observation:
1. what price for traditional magazines in IPad?
2. what business should be used? what rate to charge advertising?
3. should magazines be priced as a bundle? can published charge articles by articles? maybe 10 cents per articles?
This is a great post, Xin! I think that these magazines will have to rethink their pricing strategy to make accessing a single issue of a magazine more affordable. As we talked about in class, we're in a day and age where we expect much of this information to be "free" since we're accessing it in digital format. My opinion is that these magazines will soon lower their prices to make a single issue as affordable as a full year subscription once they're covered their initial development expenditures. And when that day comes, I can't wait to access the latest cover of US Weekly with a single tap of an app icon!
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