2013 Fall Sales Newsletter Fall Newsletter : Page 3

Going Mobile: Revenue Opportunities for Publishers Practical Guidelines for Magazines Looking for Success on New Media Platforms A t Apple’s 2010 launch of its new tablet, many publishers recognized the iPad’s potential as a platform for book and magazine reading. Like the Kindle and other dedicated e-readers, it was a “lean back” digital device—allowing audiences to engage with digital content away from a keyboard or desktop. Unlike those simpler devices, however, it delivered a superior visual experience, coupled with the interactivity of Internet-connected applications (apps). The public response was immediate, and has increased significantly—particularly in North America and Europe. Apple sold 14.8 million iPads in 2010, more than double the bullish Wall Street predictions of 7 million for that year. According to the International Data Corporation (IDC), over 200 million iPads will have been sold worldwide by the end of 2013. IDC also predicted that total tablet shipments (including iPads and Android-based devices) will exceed total portable and desktop PC shipments by 2015. Smartphones—the immediate predecessors of tablet devices—are also of critical interest to publishers. Although they lack the screen size to display a traditional magazine page, these devices are potentially the “carry along” complements to either printed or digital editions. Growth in smartphone sales has greatly exceeded that of tablets, and the number of people with both a smartphone and a tablet has risen sharply, while laptop and desktop ownership growth has remained flat. Although print subscribers still outnumber digital, the growth potential for many publishers is clearly with mobile. Three years after the introduction of the iPad and six years after the introduction of the iPhone, the key question for publishers is how to monetize these game-changing platforms. With over 1 billion estimated smartphones in use, and mobile Internet usage expected to surpass desktop usage by 2014, practical solutions for capturing dollars (as well as eyeballs) are critical to the future of the publishing business. PAGE 3 Going Mobile: Revenue Opportunities for Publishers

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