The announcement this week of in-app commerce is game changing for newspaper and magazine publishers. Where previously they, directly or through a ‘distributor’ could sell a product to be delivered through the iPhone and would need to sell another for the next issue or subscription, using in-app commerce, they will be far more easily able to sell the next issue or subscription. This means there is less likely to be the churn of the current approach.
Newspaper publishers understand this. Churn at the end of a home delivery subscription is a huge issue – as high as 50% with some subscriptions. This is part of the reason the Advertiser announced their plans to take over management of customer accounts in Adelaide.
In-app commerce will help newspaper and magazine publishers reduce churn and therefore find delivery in the iPhone even more appealing than physical world distribution. The new facilities enable offers to be more precise, personalised, to individual subscribers. This is where it gets to be very smart.
Why does this matter to newsagents? It is another reason for our suppliers to look at this rapidly growing channel which shrinks the supply chain. A publisher / consumer relationship where the iPhone is the access point does not need a printing plant, a distributor, trucks, newsagents and returns handling facilities.