The new People iPad application is free to all subscribers of the popular magazine prompting the first phase of what Time Inc. hopes will serve as a model to prompt future digital and print bundle sales of its publications.
However, while the merging of the two may seem flawless, it was not an easy arrangement given that Time Inc. and Apple were engaged in a battle for months over if the company would be allowed to offer print subscribers free access to the iPad edition.
However, Apple, which receives a percentage of all app downloads, hence the hesitation to make the app free, has agreed to allow subscribers to People to enter a verification code at the iPad app store checkout so that they can gain access for free.
One of the largest issues facing media businesses today is if the companies should attach a charge to access of any digital offerings which creates the large risk that few people will actually see the content.
Some magazine publishers including Conde Nast do not intend to offer digital content for free to print subscribers but instead is working on a pricing structure for bundled packages.
However, Time Inc. on the other hand believes that all subscribers should be able to gain access to any digital products without paying an additional fee which has enabled the decision to favour users instead of increasing profits at customers’ expense.
Editor of Time Inc. style and entertainment group, Martha Nelson, stated that the magazine’s subscriber base is very loyal and should thus have the content in whatever format they choose.
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