Open Enrollment | Subscribe to Publishing Executive HERE
Connect
Follow us on
Advertisement
 
Principal in Next Steps Marketing

The Digital Market

By Thea Selby

About Thea

M. Thea Selby is a Principal in Next Steps Marketing, a San Francisco boutique firm that solves audience-building challenges in creative, customized way using practical "call-to-action" marketing techniques where the return is clearly measurable by clicks, online sign-ups, responses to direct mail, orders from partners, or sales at newsstand.

She was the 2010 Women's Leadership Conference Chair, is a co-founder and board member of Exceptional Women in Publishing—a national organization dedicated to supporting women in and through the power of online and print media—and is the former CEO and Publisher of Light Green Media, a digital publishing company.

 

Media Vent

Bob Sacks
Stats on Magazine Launches Are Irrelevant & Misleading
Jul 2, 2015

My friend Samir Husni has penned a short essay and complaint about "numbers" used in our industry for purposes of...



Marketing Services Lab

The Marketing Services Lab
3 Ways To Tell The Content Marketing Boom Spells Revenue Growth for Publishers
Jun 30, 2015

Last week Publishing Executive announced the launch of the Publishing & Media Labthat we will host at the 2015 Content Marketing World conference this...



Publishers' Dojo

Linda Ruth
Miniaturize & Simplify, Solutions to Publishers' Mobile Problem
Jun 15, 2015

As many publishers have found, providing a magazine experience on a mobile app and getting people to engage with it...



B2B Beat

Andy Kowl
Content is Money
Jun 12, 2015

Most of the publishing world says Content is King. The publishers at SIPA say Content is Money. The annual conference...



Industry Insiders

The Insiders
Apple Throws Publishers Another Curve Ball
Jun 9, 2015

The relationship between Apple and the magazine publishing industry has been acrimonious since the launch of the iPad in 2010...



Pub Talk

Denis Wilson
Resurgence of Vinyl Should Remind Publishers of Their Core Fans
Feb 3, 2015

Last week this article from The Media Briefing about the "resurgence" of vinyl circulated in our offices. Resurgence is in quotes there...



How much money do publishers make on tablet sales?

 
Get the Flash Player to see this rotator.
 

Having given the old college try on how many magazines are being sold on tablets, this week, I’m going to do some simple math with quite a few assumptions to come up with a rough estimate of how much money tablets are making publishers.

I did a calculation assuming all sales to be single copy sales on the one hand, and all sales to be subscriptions on the other. The truth lies in the middle, as the iPad did not have subscription sales at the start.

Let’s start with single copy sales.

My assumptions:

  1. An average cover price of $4.00
  2. An average frequency of 5 times a year (putting all the monthlies, weeklies, and quarterlies into a big pot)
  3. An average number of customers of 1,000 per issue
  4. An average remit of 30% to the tablet/70% to the publisher

Subscriptions assumptions:

  1. An average price of $9.99 a year
  2. An average of 1,000 subscriptions a year sold

With these assumptions in place, here are the dollars, in millions. Click on the chart above to see it in a formatted version.

Nexus—No Subscription: 

  • Yearly Revenue, TAB  $2.3 million
  • Yearly Revenue, PUB  $5.5 million 

Nexus—Subscription:

  • Yearly Revenue, TAB  $1.3 million
  • Yearly Revenue, PUB  $3.1 million

Apple iPad —No Subscription

  • Yearly Revenue, TAB  $15.5 million   
  • Yearly Revenue, PUB  $36.2 million

Apple iPad —Subscription

  • Yearly Revenue, TAB  $8.9 million   
  • Yearly Revenue, PUB  $20.7 million

Amazon Kindle—No Subscription  

  • Yearly Revenue, TAB  $3.9 million
  • Yearly Revenue, PUB  $9.1 million

Amazon Kindle—Subscription

  • Yearly Revenue, TAB  $2.2 million
  • Yearly Revenue, PUB  $5.2 million


We see a low in revenue of Nexus, earning only $1.3M out of magazine sales per year, and a high from the iPad, of $15.5M per year. On the publisher’s side, since they receive 70% of the revenue, the aggregate revenue is a low of $3.1M with subscription assumptions for Nexus and a high of $36.2M assumptions for the iPad.

Are these estimates low? Are they high? I think they are very low. Read my next blog to find out why.

Note: I want to thank Barbara Scott, my partner in research crime, for her continued research support.

P.S. I’ve tried to answer the questions posed in the comments section. Please feel free to email me if you feel you’d like to continue the conversation.

Companies Mentioned:

Sections:

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: