Is Apple’s new Newsstand for iPads and iPhones worth the effort?
What is it: Newsstand was launched in mid October in the latest version of iOS, its operating system for the iPad and iPhone. The goal of the feature is to help users find, collect and organise apps for newspapers and magazines. The “apps”–publications–appear in iTunes as an album, show or book would. It’s in effect a digital news kiosk. So what’s different about Newsstand?
Why it’s important: For Apple it’s an attempt to consolidate all news apps under one section, like Games or Lifestyle. Existing news apps won’t be forced into this, but those that do will find themselves featured in the section, so there is an advantage to being a first mover. For publishers it should make their products much easier to find; the iTunes store has become something of a chaotic free-for-all.
Indeed, in the first few days, Newsstand apps have enjoyed a surge of interest: The New York Times app for the iPad was downloaded 27,000 times in the week before the launch, and 189,000 in the week after. (The iPhone app was downloaded 85 times more, according to Poynter.) Publishers are reporting that in-app subscriptions are also doing well.
Pluses: The key benefit is that Newsstand apps will include a push notification so that updates are downloaded in the background. The app will already be downloaded and waiting, in the words of Poynter “like a newspaper on your doorstep or a magazine in your mailbox.” This process may only happen once a day, although apps can download up-to-date content when they’re opened.
Minuses: Newsstand apps won’t sit on the user’s home screen–instead they’ll be bundled together inside a virtual bookshelf. This may be seen as an advantage for users, but does mean that publishers who go this route will be pushed one click further down the food chain. The app icon, however, is no longer a traditional square but more akin to a magazine cover or front page. And of course it can change with each download.
The bottom line: Well, of course, publishers will be locked into Apple’s 30% revenue sharing deal and Apple gets the subscriber’s personal data. And Apple’s guidelines specifically reject any in-app subscription or buy links for content that would be used in the app. (In other words, the app can’t be used to buy or subscribe to content that can be accessible within the app. It can, however, be used to access content that is bought outside the app, so long as there’s no buy button inside the app to that content. In short, publishers can’t circumvent Apple’s 30% cut by giving away an app but with a link to a paid subscription mechanism elsewhere.)
There is another financial benefit at work here: since the introduction in July of the in-app purchasing system and auto-renewal, publishers have seen a spike in renewals: Exact Editions cites 80% renewals and a doubling of sales between July and August.
What people say: Critics consider this all to be in some ways a step backward. For publishers they’re not only locked into Apple’s revenue and data grabbing, but they also have limited options of differentiating themselves from other publications; they’re forced to sit on a shelf alongside all other comers, and while they’re still called ‘apps’ the product is being packaged and presented as a publication–what Poynter calls a “duplicative, rather than innovative” model. And while publishers may be grateful that their products now have a home, the danger is this becomes THE home for all magazines and newspapers, making it even harder for those who choose to go an independent route–by creating HTML5 Web apps, for example–to get themselves heard.
What to do: So what kind of strategy should a publisher adopt? Well, if you’ve already got something in the iTunes store it makes sense to move it into the Newsstand to capture this early surge of interest. Just make sure you have your in-app subscription bits working properly and in accordance with Apple’s guidelines. The preferred model seems to be a freemium one: the app is free, but subscription for the best content is on a monthly or annual basis.
And it’s not necessarily the old titles that are benefiting: News Corp’s eight-month old, iPad-only The Daily is doing well, too: It was the number one seller in the section after the Newsstand launch, and now has 80,000 paid subscribers–most of whom have paid for the full year subscription, according to Forbes.
If you don’t have anything for the iPad or iPhone already, it’s not something that should be jumped into lightly. There’s clearly a market for individual magazines and newspapers–rather than simply their content atomised into links shared on Facebook, accessed through RSS or aggregated through apps like things like Flipboard and Zite. But they need to be done right.
Newsstand – Worth It?
Is Apple’s new Newsstand for iPads and iPhones worth the effort?
What is it: Newsstand was launched in mid October in the latest version of iOS, its operating system for the iPad and iPhone. The goal of the feature is to help users find, collect and organise apps for newspapers and magazines. The “apps”–publications–appear in iTunes as an album, show or book would. It’s in effect a digital news kiosk. So what’s different about Newsstand?
Why it’s important: For Apple it’s an attempt to consolidate all news apps under one section, like Games or Lifestyle. Existing news apps won’t be forced into this, but those that do will find themselves featured in the section, so there is an advantage to being a first mover. For publishers it should make their products much easier to find; the iTunes store has become something of a chaotic free-for-all.
Indeed, in the first few days, Newsstand apps have enjoyed a surge of interest: The New York Times app for the iPad was downloaded 27,000 times in the week before the launch, and 189,000 in the week after. (The iPhone app was downloaded 85 times more, according to Poynter.) Publishers are reporting that in-app subscriptions are also doing well.
Pluses: The key benefit is that Newsstand apps will include a push notification so that updates are downloaded in the background. The app will already be downloaded and waiting, in the words of Poynter “like a newspaper on your doorstep or a magazine in your mailbox.” This process may only happen once a day, although apps can download up-to-date content when they’re opened.
Minuses: Newsstand apps won’t sit on the user’s home screen–instead they’ll be bundled together inside a virtual bookshelf. This may be seen as an advantage for users, but does mean that publishers who go this route will be pushed one click further down the food chain. The app icon, however, is no longer a traditional square but more akin to a magazine cover or front page. And of course it can change with each download.
The bottom line: Well, of course, publishers will be locked into Apple’s 30% revenue sharing deal and Apple gets the subscriber’s personal data. And Apple’s guidelines specifically reject any in-app subscription or buy links for content that would be used in the app. (In other words, the app can’t be used to buy or subscribe to content that can be accessible within the app. It can, however, be used to access content that is bought outside the app, so long as there’s no buy button inside the app to that content. In short, publishers can’t circumvent Apple’s 30% cut by giving away an app but with a link to a paid subscription mechanism elsewhere.)
There is another financial benefit at work here: since the introduction in July of the in-app purchasing system and auto-renewal, publishers have seen a spike in renewals: Exact Editions cites 80% renewals and a doubling of sales between July and August.
What people say: Critics consider this all to be in some ways a step backward. For publishers they’re not only locked into Apple’s revenue and data grabbing, but they also have limited options of differentiating themselves from other publications; they’re forced to sit on a shelf alongside all other comers, and while they’re still called ‘apps’ the product is being packaged and presented as a publication–what Poynter calls a “duplicative, rather than innovative” model. And while publishers may be grateful that their products now have a home, the danger is this becomes THE home for all magazines and newspapers, making it even harder for those who choose to go an independent route–by creating HTML5 Web apps, for example–to get themselves heard.
What to do: So what kind of strategy should a publisher adopt? Well, if you’ve already got something in the iTunes store it makes sense to move it into the Newsstand to capture this early surge of interest. Just make sure you have your in-app subscription bits working properly and in accordance with Apple’s guidelines. The preferred model seems to be a freemium one: the app is free, but subscription for the best content is on a monthly or annual basis.
And it’s not necessarily the old titles that are benefiting: News Corp’s eight-month old, iPad-only The Daily is doing well, too: It was the number one seller in the section after the Newsstand launch, and now has 80,000 paid subscribers–most of whom have paid for the full year subscription, according to Forbes.
If you don’t have anything for the iPad or iPhone already, it’s not something that should be jumped into lightly. There’s clearly a market for individual magazines and newspapers–rather than simply their content atomised into links shared on Facebook, accessed through RSS or aggregated through apps like things like Flipboard and Zite. But they need to be done right.