The money (ink and paper) being spend by newspapers promoting their various subscription packages must be considerable – more than at any time I cal recall. While some ads promote the newspaper and digital products, more often they promote digital products only. Either way, digital is the focus over print yet print is the medium used for the pitch.
All newsagents need to factor this into their own planning.
Newspapers are a side issue for us now. I personally still love papers over digital (I am 36) but I cant let that get in the way of business reality. We still promote papers occasionally. Like right now with the Taste Cookbook promotion. The commissions are not great but I place other products (cooking gear from IS) in the display with the Taste books and they lift the profit margins. Anyway, all have a good weekend.
Chris this is the best way to handle low margin reasonable traffic products – tactical adjacent placement. Good stuff.
Yes, the publishers are throwing/burning mountains of cash in an effort to give digital a foothold. Cash that print has provided.
And yet, after all these years, digital still cannot stand on it’s own feet. It continues to be propped up by print in a manner that must be almost embarrassing for the pro-digital exec’s in both camps.
When you look at how blindingly fast some on-line retailers have succeeded in the digital world, you have to ask the question, why is digital news publishing failing so miserably in comparison.
And if anyone wonders why print HD is bleeding so badly, perhaps if the digital power brokers who seem to hold sway in Publisher camps gave it a level playing field in the subscription marketing stakes, they might be rewarded with print being able to support digital for many, many years to come. Now there’s a thought that could lead to a business case!
Mark,
What was the price comparison between the items – digital and print?
I would expect based on supply chains digital would be maybe 20 to 30% of the print retail price, if no who is profiteering on the sale?
Many eBooks I have looked at are 75% of print retail price. This is just a crazy price with electronic delivery.
Regards
John
Around 45% of the print cost. The delay is what bothered me. BTW John I think your comment is for my post on digital books.
One of the factors for digital is that for many people, its a question of “why should I pay News/Fairfax/etc good money to read their stuff when I can get so much content for free”
Dennis, When you look at News Ltd annual reports ,its print which is having trouble standing on its own two feet .
The decline in advertising revenue for print and the obvious costs to produce and distribute the paper are the real issues
Whether their digital platform is profitable is irrelevant, newspapers cash cows such as classifieds, real estate and motoring have been plundered by other online options .
Whilst there may be some pro digital excs
Its the bottom line which News Ltd are making out of print is all that matters.
Print circulation is still ok ,it the advertising revenue which is the issue