How $0.99 Could Change The Print Industry
It’s no secret, the print industry is on its last leg. It was revealed a few years back that the world’s largest newspaper, The New York Times, was having financial difficulties*, and had to restructure itself to remain viable. With advertising revenue shifting to new media**, the print industry is struggling to find its identity in today’s Web-savvy environment. In recent months, some publishers have attempted to generate revenue by charging users to view content on their respective Web sites. But the initiative has been unpopular among the general public as users are able to find free alternatives on mediums such as blogs.
The music industry went through a similar identity crisis in the late nineties, and Apple jumped to the opportunity by helping the industry shift into the digital age.
In April of 2003, Apple revolutionized the music industry with the launch of the iTunes Music store. The digital storefront offered consumers a fast and easy way to purchase and download songs through Apple’s iTunes digital media player. The business model proved successful as in Feb. 2010, Apple reported that over 10 billion songs*** had been downloaded through the service. Apple showed the music industry that it could make a profitable business out of selling songs at a $0.99 price point (please note that Apple introduced a three-tiered pricing model in April 2009).
Could Apple be the print industry’s savior by adopting a similar digital download structure?
The $0.99 per imprint download scheme through iTunes would be a great way to convince consumers to adopt a digital format that would be compatible with their digital media devices. The $0.99 price point would be perfect for consumers who are already used to paying between $1 to $2 for a physical copy of the newspaper. Instead of going to their nearest newsstand to obtain their copy of the paper, users would be able to download a digital copy from iTunes in the comfort of their home.
Publications could also benefit from Apple’s “season pass” subscription structure which is currently available for select TV shows through its iTunes Video store. Season pass allows users to subscribe to a particular TV show and receive the content following the initial broadcast. The same model could be adapted for newspapers which would allow content to be automatically downloaded to one’s device.
A digital distribution method would end up being a cost cutting measure as publishers could reduce their newspaper printouts in accordance to their subscriptions. Publishers could gradually move their subscription base from paper to digital distribution.
To ease the transition from print to digital, publishers could maintain the familiar grid-style newspaper layout subscribers have grown accustomed to. The conventional structure would enable them to continue to get the same traditional revenue from advertisers without confusing readers. Advertisers would also benefit from being able to have their digital ads linked to their Web sites, giving their Web sites more exposure and maximizing their message and space if small print or extra offers are available.
Time is running out for the print industry and publishers need to adopt a digital standard that’s simple and delivers the same quality that their readers have grown accustomed to. The industry needs to realize that the majority of the reader base has moved into the digital age and that it’s time to embrace the medium. As the great Marshall McLuhan once said “the medium is the message.”
* From Cash Crunch At New York Times: $400 Million Due In May, Silicon Alley Insider
** From the Wikipedia entry on New Media.
*** Stat taken from the iTunes Store Wikipedia entry here.
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