The largest U.S. magazine companies, which publish more than 50 of the best known magazines being published today are banding together to create a new company to publish digital editions of their products. According to a story
in the New York Observer, Time Inc., Condé Nast and Hearst are expected to join the new company, to be headed on an interim basis by John Squires, executive vice-president at Time Inc.
The details are not yet known, but what is known is its purpose: to produce and market editions of all their magazines in as many forms as possible, including print, and for use on a whole range of digital devices, such as iPhones and Blackberry. The comparison with iTunes is unmistakeable.
Each magazine publisher now believes it’s too risky to go it alone to find new ways to get consumers to pay. If they all join together, the reasoning goes, they stand a better chance of producing greater revenue.
The deal is taking time to complete because it involves so many moving pieces.
“It’s pretty complicated stuff,” said a source. “The really, really hard part is that you’ve got so many different kinds of devices running on different operating systems. And how do you handle that? The consortium provides one point of contact for the consumer. When you come to the main store, you can get the content any way you want.”
It's interesting to see the big guys starting to play nice together, particularly in the face of brash startups, such as Maggwire
Labels: digital, web and print