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17 feb. 2010

“Newspapers, magazines less keen on iPad than book publishers”

Having demographic information about subscribers has been an important asset to magazines and newspapers, especially when it comes to selling advertising. “Is it a dealbreaker? It’s pretty damn close,” an executive at one US newspaper told Financial Times.

That makes a bit of sense, actually. Now the question is, if you don’t have to print and ship the magazine, and your 70% share of the list price has to be spent on nothing other than the editorial budget, can the magazine still be profitable even if ad prices dwindle [more than they already have because print is dying]?

Maybe I’m wrong, but it feels to me like it would be profitable, and the real problem is that the publishers would like digital sales to pay for the deficit of keeping the obsolete presses and useless sales departments running. Because that’s usually how those things work and how those companies fail to grab a lifeline when someone throws it to them.

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