Magazine publishers band together for digital newsstand

Posted by Nestor Bailly on November 25, 2009 at 12:54 PM

The New York Times has confirmed rumors of plans by Time, Conde Nast, Meredith and Hearst to launch a digital newsstand company for publications in a variety of digital formats.

Hailed as an 'iTunes for magazines,' the new company and service will have the four rival publishers as equity partners.

Planned to be launched in December, the company is part of an effort to shore up decreasing circulation and advertising revenue by exerting control over digital distribution and readership. Several newspaper publishers have expressed interest in the service as well.

The basic idea is to provide a platform from which readers can purchase and read publications like The New Yorker or Sports Illustrated in print and electronic formats. The publishers are working together to provide a variety of formats, for example iPhones, Blackberries, e-Readers and regular old pdfs.

Although there is some focus on e-reader formatting and distribution, the main idea appears to be letting publishers engage directly with their readers, increasing their leverage over device makers.

The digital newsstand is to have flexible payment options, allowing users to buy monthly or annual subscriptions, or single issues. The move is part of a plan by print publishers to get their products in front of consumers increasingly turning to digital news sources and to combat increasingly dire advertising revenue.

"It's increasingly clear that finding the right digital business model is crucial for the future of our business," Ann Moore, the Time Inc. chairwoman, said. She added, "We need to develop a strategy for the portable digital world and to refine our views on paid content." One hopes this change will reflect the general mood of the magazine and newspaper industry, the former of which has been remarkably slow in adopting digital trends.

Source: New York Times