Peter Kafka

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No More Digital Discount: Conde Nast Raises Prices For Two iPad Magazines

iPad magazines haven’t been huge hits. At least in part because readers say they’re too expensive.

So this one’s a bit of a head-scratcher: Conde Nast is going to raise the prices of two of its tablet titles.

GQ and Vanity Fair used to offer readers who’d already bought a single digital issue a discount on subsequent purchases. But it’s doing away with that next month.

So effectively, loyal readers of  GQ on the iPad will see prices go from $2.99 to $4.99 an issue, while Vanity Fair will go from $3.99 to $4.99.

The move is part of Conde’s decision to move those two titles, along with Glamour, from a digital publishing system it had built itself last year to one from Adobe. That’s the same system Conde already uses to publish Wired magazine and other titles, and it’s the one the publisher chose after a bake-off last fall.

The shift means Conde will stop supporting the existing apps for those three titles at Apple’s iTunes store, and will ask users to download new apps over the coming weeks. Anyone who bought digital versions of the three magazines in the last year will still be able to read them, as long as they’ve downloaded and archived the issues.* And Conde is giving readers a heads up via in-app ads like the one to the left.*

Conde will try to goose sales for Glamour, the first magazine to shift platforms, by cutting the app’s price down to $0.99 for a week starting next Tuesday. Which should be a good way to help the app move to the top of iTunes’ charts — people love cheap apps.

So why push the price back up after that? And why raise prices for the other two titles?

Conde says the platform shift gives the publisher a chance to “reexamine pricing”, and that it now wants to sell all of its digital titles at the same price analog copies command at a newsstand. (Or close to it – both the New Yorker and Wired still sell for a dollar less at iTunes than their paper counterparts).

Which is really a way of saying “boy oh boy would we like to sell subscriptions, because when we do, we’ll offer monthly or yearly committments at a steep discount to individual sales, just like we do with paper copies.”

But that’s not going to be happening at iTunes anytime soon, because none of the big magazine publishers have shown any inclination to accept Apple’s subscription rules — at least for titles they’re already selling in paper form. Meanwhile Conde has announced that it plans to sell its digital magazines for Google’s Android this spring – but has yet to mention subscriptions.

*If you have to reset your machine entirely, though, you’ll be out of luck altogether. Sometimes digital just isn’t as durable as paper and ink.

**The shift also means that anyone who has enjoyed reading Glamour, GQ or Vanity Fair on their iPhone is out of luck. Conde says for the near-term, its new magazine apps will only be formatted for the iPad.


comments so far. Add yours.

  • Anonymous

    The problem for publishers is that they dropped prices so much for magazines that they have created products selling with subscription for a buck or so an issue (sometimes less!). I have converted my print subscriptions to Zinio (started to do this 9 years ago, but now the iPad makes it better), and I am happy to pay for the content at the same prices I’m paying for print. Magazines are soon probably going to be forced to live with the benefit of getting similar prices without the cost of production and distribution of paper editions.

  • http://www.tablazines.com Tablazines

    I know they’re trying to push toward subscriptions but I’m not really convinced that raising single issue prices are the way to go.

  • Anonymous

    The fact that users stand to lose access to content that they have paid for is precisely the sort of abuse of customers that leads users to prefer to buy through Apple’s subscription mechanism.

  • http://mediamemo.allthingsd.com/ PKafka

    I don’t see how buying a subscription via iTunes would ensure that you don’t lose access to a discontinued app/service/etc.

  • http://www.marketingtactics.com/ davebarnes

    Gosh.
    I can subscribe to GQ for less than a $1/issue. See http://landofmags.com/usersear.....038;CAT1=9
    Why would I pay $5 for an iPad copy?

    Condé Nast eliminates the costs of printing and distribution and then expects me to pay 5X. I don’t think so.

  • http://mediamemo.allthingsd.com/ PKafka

    I thought $2.99 was a pretty compelling offer for an impulse buy, and ended up buying most of them that way. I think $5 will be tougher for me to swallow, for whatever reason.

  • Anonymous

    The bottom line is simple: magazine publishers have not figured out a viable revenue model for digital distribution. Unfortunately,unlike with music, books and freestanding digital apps, Apple hasn’t figured one out either. It’s all a morass.

  • Anonymous

    Where’s the incentive for the consumer to switch to a digital format then?

    If I’m saving you the costs of paper, ink & shipping, I’d like to see at least a little dip in price.

  • Anonymous

    Whoa, are they for real? Thats crazy dude!

    http://www.total-privacy.ie.tc

  • http://simwit.a6studios.com Andrew Chandler

    Too expensive. I love Wired, and can get a print subscription for $10 a year. I would gladly pay for a digital one at that price, but not $60!

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I break down a product the same way I break down a character I’m going to play. I try to get inside the mind of that person — the user, the consumer — and figure out why they’re doing something and what they want from it.

— Ashton Kutcher’s investing philosophy