I disagree as per my earlier post. Vote with your wallet if you don't agree. But to say that there's no cost or less cost to produce a digital version of the magazine is ignorant.
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Time Magazine - $5 PER ISSUE?
- Thread starter mrgreen4242
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I disagree as per my earlier post. Vote with your wallet if you don't agree. But to say that there's no cost or less cost to produce a digital version of the magazine is ignorant.
$5 for an individual edition is too expensive, even compared to off the shelf prices, due to the lower distribution costs - even with Apple's 30% share of the profits.
But so long as they have a reasonable digital subscription offering, I'm happy. Where is it though?
To be honest TIME and others should be releasing free, "archive" apps from which you can either subscribe or buy individual issues, rather than selling one app at a time..
But so long as they have a reasonable digital subscription offering, I'm happy. Where is it though?
To be honest TIME and others should be releasing free, "archive" apps from which you can either subscribe or buy individual issues, rather than selling one app at a time..
Why? The digital version is an inferior product. I can't copy it, give it to friends, save it forever and be sure I'll be able to use it in the future, etc.
Costs are significantly less.
I am voting with my wallet. and it votes no on the digital. I have the print sub anyhow.
not often. Most people subscribe for $10-$15 year - at least those who read a mag regularly.
You obviously don't work in publishing. Sending the files to a clearinghouse is the same as submitting the app to apple - so yes, it costs less. This is assuming there aren't multimedia presentations done and they are just digital representations of the print content. I agree if there are 'featurettes' it could cost more for video shoots, processing, etc.. but if you are talking a digitized mag that mirrors the print, it's cheaper.
No, I was speaking about having more ads, intrusive ads, etc. I'm not talking about the normal static ads you'd have with buying the publication.
Cost is irrelevant. Price is determined by demand. Since it is a DRM-infested inferior product with superior alternative competitors, the price should be less than the printed version.
I agree, but the Cost of Printing, the Fuel for the trucks, the delivery, the employees earning wages to deliver and then the cost of unused returns for destruction Actually add quite a bit to the cost of the print version.
The ads and about 1-1.25 dollars covers the whole production cycle. The rest of the 5 bucks is the expensive costs of transport/paper/ink. You would be surprised how expensive that part has become.
But that 5 dollar cost will drop rapidly once they see no real demand at that price.
Yes. My question to you is simpler. Do you know what a print version per issue costs? It's under $1 per issue for PRINT (subscription).
So you're telling me that $5 per issue for digital is correct? Come on.
If they are adding features, reducing ads, or whatever, that's one thing. But, if it's just an inDesign export, then that's another.
Good question. I do subscriptions, so unsure. The "At store" price isn't what TIME gets, which is why it's inflated and subscription prices are much, much cheaper. It kind of shows you just how much inflation for shipping, store commission, etc is in the cover price.
I wonder if we'll see many publications initially list their stuff at store cover price (hey, it's a cash bonanza if people bite).
Contrary to what you think you know - I've worked in the publishing industry for over 20 years.
And I am going under the assumption that the iMag version of TIME is NOT going to just be a simple version of the print media but a whole new experience. That might be where I err. And if that's the case, then yes - charging the same is ridiculous.
But I "have" to believe the magazines on the iPad will be much more than a simple "scan" of each page.
the market will help magazine companies figure out the price. this is a new concept so nothing is set in stone. let your wallet speak for you... it is the best thing you can do to voice your opinion and the company will hear it (good or bad)
Price is determined by demand. Cost is not irrelevant. If it costs $5 and you sell for $3 how long will you be selling your stuff. Not long. Coming from the printing industry I can tell you that most Mags/papers have fought digital the whole way and the industry as a whole is circling the drain. They will figure it out sooner or later but if people will pay $5 for a single issue they will take it. And if people will pay it than that is what we will all pay. Price is determined by demand.
Digital versions still have to be made which cost money.
$5 is a bit high, 3.99 seems reasonable or more bearable. I think .99 is too little. Marvel is trying to price their comics at 1.99 which i think is too high. where as .99 for a comic seems right....its only 22 pages long. A magazine has more content thus charge more.
It will all get sorted out eventually and they will find a sweet spot. ...i hope.
$5 is a bit high, 3.99 seems reasonable or more bearable. I think .99 is too little. Marvel is trying to price their comics at 1.99 which i think is too high. where as .99 for a comic seems right....its only 22 pages long. A magazine has more content thus charge more.
It will all get sorted out eventually and they will find a sweet spot. ...i hope.
People need to stop trying to justify every purchase they make in life based on what something costs.
Outside of commodities, cost has only a minor influence on what the price of something is sold for...
As others noted, the newstand price for time magazine is like $4.95 so it is the same.
At some point I am sure they will offer subscription packages, and even combo packages for online/print.
Although people expecting to get all of that for less than they pay for a printed subscription now are dreaming. At least for the next 10 years.
I suspect a digital subscription might even be more expensive initially then a paper one because people will pay for it. People will also pay more for a combo to get both. So that is ultimately where it will end up.
This is a new frontier and they are all trying to find their way. I will say people need to stop defaulting back to so much news content has been free online. That is going away. Advertising hasn't done the job and as more people mindlessly use ad blocking tools it only becomes worse. The era of free quality content on the net is slowly coming to an end.
Outside of commodities, cost has only a minor influence on what the price of something is sold for...
As others noted, the newstand price for time magazine is like $4.95 so it is the same.
At some point I am sure they will offer subscription packages, and even combo packages for online/print.
Although people expecting to get all of that for less than they pay for a printed subscription now are dreaming. At least for the next 10 years.
I suspect a digital subscription might even be more expensive initially then a paper one because people will pay for it. People will also pay more for a combo to get both. So that is ultimately where it will end up.
This is a new frontier and they are all trying to find their way. I will say people need to stop defaulting back to so much news content has been free online. That is going away. Advertising hasn't done the job and as more people mindlessly use ad blocking tools it only becomes worse. The era of free quality content on the net is slowly coming to an end.
Cost is irrelevant. If it costs $5 and the demand is such that it can only be sold at $3, you can try setting your price > $5, but you are just as surely going out of business as in your example of selling for less than cost.
You guys are throwing econ terms but you guys have no understanding of them whatsoever.
Demand is derived from quantity demanded which is from individual preferences. Cost comes into the supply curve of the product, not the demand curve.
To say cost is irrelevant is ignorant. Cost is very much relevant to the pricing and demand/supply of a product.
Actually, I have a minor in economics, so I do know what I'm talking about. My point is that quantity sold will be determined based on picking a price on the demand curve, and will have nothing to do with the cost. Further, the supply curve is almost irrelevant as there is essentially zero marginal cost for each additional unit.
They will charge the maximum the market is prepared to pay - that's capitalism.
Nothing to do with how much it costs to produce (although if you charge less than that, your business fails). Just because you think that printing/distribution costs are the main part of the price you pay at the newstand doesn't make it so. And remember, Apple have to be paid...
The market is still in its infancy so lots of different price points are out there
Nothing to do with how much it costs to produce (although if you charge less than that, your business fails). Just because you think that printing/distribution costs are the main part of the price you pay at the newstand doesn't make it so. And remember, Apple have to be paid...
The market is still in its infancy so lots of different price points are out there
You also forgot this...
So...
20% profit to the news stand (maybe more)
40% profit to the wholesaler
I'm no math whiz but that sure sounds like 60% of the cover price goes NOT to the magazine PUBLISHER but the wholesaler as well as the retailer.
Now Apple **IS** getting a 30% cut so that does offset this savings to some degree but all things being equal digital magazines should be CHEAPER no doubt about it. No printing, shipping, take-backs (stuff that didn't sell - usually just the cover gets sent back), recycling, warehousing, etc have to bring the price down.
ALSO something that everyone seems to be overlooking is the fact that OLDER ISSUES can REMAIN on sale .... FOREVER and POPULAR ISSUES WILL NEVER SELL OUT! These two points can't be stressed enough. Never before have magazines been able to sell old magazines in such a SIMPLE way before. Yes, some magazines did offer 'back issues' but at an added cost and only while inventory existed and this 'service' was performed by someone they had to hire to manage everything. Now the magazine can always be available and be sold 'forever'.
This 'new' feature MIGHT have smart magazines rethinking their digital magazines and perhaps put more effort into a special topic then they otherwise would -- knowing the extra effort will promote the sale of said magazine for LONG after its publication date.
Finally ... anyone who bothers to look it up 'newsstand magazine sales' will see that the number of issues (over all) have be dropping consistently year after year after year, going all the way back to the early 90s.
No, I'd say they're trying to stay in business, fund and take a gamble on a new media app and will eventually arrive at a more reasonable price point.
Too many years of free content on the Internet has really skewed the view of what things cost to produce.