Sales of digital content improve thanks to some new tools

As digital readers improve the online reading experience, people seem to be getting more comfortable with the idea of paying for online content. With that progress, what publishers need now is an effective and easy way to accept payment for content – whether they want to offer content on a metered, per-use or subscription basis.

Amazon’s Kindle Fire has, perhaps broken a barrier with the easiest access to online magazine subscriptions I’ve seen. That’s the strength of the Fire: it’s an incredibly effective portal for buying content – and, frankly, anything else Amazon has to offer. The Fire’s downsides are:

Size: The 7-inch screen is simply too small for enjoyable magazine or newspaper reading. Even the magnification feature doesn’t go far enough, and it intereferes with smooth nagivation on the page and from one page to the next.

Weight: Holding the fire is a little bit like holding a flat, shiny, somewhat sexy brick. It’s a load – though it might provide interesting synergy with a bodybuilding magazine.

More-than-occasional glitchiness: The touch-screen doesn’t always respond well; sometimes it seems too sensitive and others not sensitive enough. For magazine and newspaper viewing, that makes page scrolls and page turns an unpleasant guessing game.

Limited media offerings: All of the other issues will likely be mitigated in subsequent versions of the Fire. But where Amazon’s strength has always been the scope of available content, periodical choices seem limited. Perhaps I’m wrong on that; perhaps the available choice reflect the current  range of publications that have dedicated themselves to the future of digital content consumption. But if Amazon wants to emerge as the leading content delivery platform, than it’s going to need to move away from teh curated approach that it takes with apps and seems to be taking with periodicals.

So what other options do magazine publishers have if they don’t want to be limited by (or captive to) Amazon’s subscription model?

Here’s an interesting new approach: TinyPass.com is a startup paywall service that offers the kind of flexibility publishers need. Payment can be accepted through any means – from PayPal to Amazon to Google Wallet to a dedicated merchant account. And content can be delivered in any distribution model: paywall, metered, pay-per-use, etc. According to PaidContent, it even accommodates varied content models – such as the ability to split revenue with contributors.

TinyPass is a young copy and I’ve not done enough due diligence to predict its success. But it certainly represents the kind of flexibile functionality that the publishing world needs if its growth curve for selling digital content is going to continue.

Don’t write off Murdoch’s paid iPad newspaper quite yet

Eight months after News Corp. launched the iPad only newspaper The Daily, some observers are claiming that – with only 80,000 paid subscribers – it isn’t doing very well. There are another 40,000 people currently on a free trial, according to reports.

At the time of its launch, News Corp. CEO Rupert Murdoch – who may be the world’s most aggressive evangelist for the concept of people actually paying for digital content – said he would consider The Daily to be successful when it has 500,000 subscribers.

Assuming The Daily maintains its average of 10,000 new subscribers per month, that puts it at its defined level of success in another 42 months – less than five years from startup.

For a big-deal project that utilizes new technology and depends on changing some of the most basic behaviors of its intended audience, that doesn’t sound like a bad ramp-up to me.

USA Today took far longer to become successful. Facebook became bigger faster, but it has never charged users and it took at least as long for the company to deploy a meaningful business model. Netflix expected to LOSE nearly 600,000 subscribers in 2011’s Q3 – simply because it removed DVD service as a cheap add-on for its paid digital (streamed) content. Compared to these, The Daily appears to be moving toward its goals very nicely.

The Daily also hasn’t expanded beyond the iPad platform, which has limited potential subscribers. If/when it’s made available for Droid devices and the new generation of e-readers, I expect that paid subscriptions will begin to increase beyond an average of 10,000 per month. By the time it has 250,000 or so subscribers, enough people will hear about The Daily in the course of their ordinary comings and goings that it will also pass a threshold of importance for a whole new audience of people who, at this moment, still refuse to spend money on a digital subscription.

Over time, the notion of paying for digital content will become normal; at that point, many of the media that are waiting for The Daily to fail will begin to benefit from the expensive groundwork that Murdoch’s company has chosen to undertake. They too will begin charging for their content; they too will struggle until reaching a level of critical mass. But they’ll have the luxury of doing that work without the scrutiny that The Daily is receiving now.

I’m saying all this without ever having read The Daily, as I’m not an iPad user. Perhaps it’s not a great product. Perhaps even people within News Corp. are disappointed that The Daily has just 80,000 paid subscriptions.

But I’ve learned over time that the toughest sell is the one that requires prospective buyers to change their behavior before spending money. At that, it sounds to me like The Daily is already successful.

 

I want to love iPad; is that so wrong?

ipadAt the beginning of January, I wrote a hopeful post about the coming introduction of what we now know to be the Apple iPad.

On re-reading it, I’m glad to say I was appropriately not giddy. I simply said the new device, if it met expectations, could provide a strong enough platform that media would use it to begin their evolution toward a digital-only era, which is essentially inevitable. (Essentially, because I don’t believe print will  go away completely. But it will become a niche solution with fewer players and more limited application).

As the print media watch their business model melt down, they desperately need something that allows them to translate their work into an electronic format. Computer screens and e-zine platforms don’t do it. Hand-held devices don’t do it.

Will the iPad? Maybe. The device looks pretty cool. Myself, I’d be excited to use what is essentially a magazine-sized iPod Touch as a reading device. It’s far more compelling to me than the limited e-book readers like the Kindle. (Some of my most gadget-oriented acquaintances are already dumping their book-reading devices – not in anticipation of the iPad, but because they don’t want to use them anymore.)

Most entertaining to me has been watching the different media report on the iPad’s big reveal. The print media have been agog and amazed. They have, if anything, let their financial needs show from under their skirts. The print media is so giddy about the device that it has probably overplayed its importance.

My favorite lead, from the L.A. Times referred to the iPad as “the most anticipated tablet since Moses’.”

But broadcast reports tell me those folks don’t get it. They are announcing the iPad as if it’s just another gadget. One local pretty face actually said, “I don’t understand what the fuss is about. It seems like as soon as you get one gadget they come out with another that you have to buy.”

Oh, she gets it all right. Just like the average Joe, who neither cares nor understands that an entire industry is pinning its hopes on this thing.

It gives me a bit of a chill, because I’d like to see some real innovation by magazine publishers and newspaper publishers to utilize the full capabilities of a tablet like the iPad. I’d like to see something that brings a traditional magazine to a new level that’s closer to Facebook than 60 Minutes. But most people will just look at the price tag and ask, “Do I really need this?”

Absent some really good media products, I’m not really sure what the iPad is best for; it’s a really expensive e-book reader and not a replacement for a laptop computer. It’s a new category altogether and it demands new content. Or it won’t sell.

So, you print media types, get to work – and fast. If you don’t, the iPad could be deemed a failure before you ever get your chance. (Not that I’m betting against Apple.)

Which raises another concern: If the iPad costs $600-$1,000, and monthly service costs another $30, how much is a subscription to Newsweek, People, Vanity Fair or Playboy going to cost?

Will people pay for a reader and monthly service knowing that what they’ve really done is spent all that money just to enable them to pay for more content? And what about all that other media we all buy: cable TV, smart phones, Netflix, Satellite radio…

How much media will people pay for.

Thinking about it, as curious as I am about the iPad, I’m about tapped out. Unless it can replace something else I’m already paying for, I can’t afford to lead the print-consuming audience to its new online Shangri-La.

For what it’s worth, here are some other takes on the iPad:

MediaPost: Even Apple can’t save newspapers

Techcrunch: 10 reasons why iPad will put Kindle out of business

Newsosaur: Can iPad save media? Skeptics weigh in

With Apple tablet, print hope for a new payday

iPad is most important for businesses not named Apple

Apple’s tablet could change the face of publishing