Can Mobile Save Print Publishing?

For years now people have been talking about the demise of print publishing and how the web was going to change everything. Print is dead and all content wants to be free is the mantra we’ve heard for years. But now we have a new kid on the block that is shaking everything up; mobile.

Let’s be honest; mobile has been the technology that cried wolf for the last 10 years. There have been promises and hopes that never seemed to materialize. Then along came the iPhone. The iPhone completely shook up the Carrier/Developer/End-User relationship in such a way now that its almost like mobile is just getting started. The growth of the smartphone and mobile device market has been astounding and when you realize that there are over 4 billion mobile phones on the planet (compared to less than a billion PCs) the ramifications are huge.

What’s really amazing is that we’re in the midst of the mobile gold rush. The mobile opportunity is a big one and ironically I think a lot of the effort is being mis-placed. People keep talking about apps and how do you must get your app onto a peoples phone at any cost. Pay money. Pay lots of money, even if your app is free. You have to get on the device. To this I say rubbish and honestly it points to signs of a mobile-bubble forming (we all remember the mad dash in the 90’s to get eyeballs at any cost).

At its core, mobile is a channel. Its a channel directly to your customers, users, colleagues, friends and family. Right to their
pockets. While I agree its important to have a presence on these devices in the form of an application, the real question is how are you turning mobile into an effective channel to engage and monetize your customers?

Recently we have seen mobile completely shake up the music and movie industries and now the app store has opened up all kinds of new possibilities. We at Urban Airship have been starting to work with several print publishers who are grappling with the move to mobile computing devices. The iPhone. iPad. Android phones and the soon-to-be-released tablets. In the case of print publishers its not just a channel; its a newstand in every pocket.

Considering this is an entirely new channel for content, it’s no surprise that the industry is working out some kinks. In a nutshell,
when it comes to taking publications to iPads and other mobile devices, publishers face several challenges:

* No way to offer subscriptions (only single-issue downloads)
* No clear way to track conversion rates when subscriptions end
* No way to offer magazine subscriptions as gifts
* No easy way to alert app users to new content
* Integration with existing print subscription/entitlement systems

Publishers want subscriptions so they can have valuable customer data – this is how they demonstrate value to advertisers and has been thus for eons. Users want subscriptions because it costs a lot less per issue and looking at many of the apps in the iTunes store you can see user reviews echoing this sentiment.

Even more than that, these publishers are cautious about these new platforms. The big sticking point right now, as was high-lighted by Time Inc. having their iPad app removed from the app store, is that publishers do not want to have to pay the 30% premium for access to the platform.

One of the most difficult problems with mobile apps is getting the app onto the device. Print publishers already have a fantastic channel for reaching end-users; the newstand. Print publishers are already looking at how they can tie in redeem codes into those annoying little magazine inserts that come with the newstand edition to drive users not only to the print but also digital versions of their publications. This also gives them the potential benefit of being able to directly invoice the users (outside of the normal app store transaction engine and thus the 30% cut).

All of these are just the start. Imagine when you juxtapose social components along with this. Being able to see who of your friends are reading or commenting on articles you’re reading. You can share more freely from directly within your app. Furthermore, why be limited to the ad inventory available in the print magazine? What if you can deliver context-sensitive advertising for the person reading the magazine? The opportunities are limitless.

Print publishers are working hard to find ways to leverage these new mobile platforms. Its exciting to watch and while I don’t know if it will “save” the industry, its certainly helping it redefine itself in an ever changing marketplace.

This post was written by Scott Kvetin, CEO & Co-Founder of Urban Airship, a True Ventures Portfolio Company.