Why are iPad magazines more expensive then the physical version?? Ipad magazines are currently selling for 4.99 a copy. That is the same price as an issue on a newsstand. But, if someone subscribes to the physical magazines, they can pay as little as 35 cents an issue. Journalists are aware of this and are going to allow Apple store subscriptions for about 2.99 an issue. Why is there such a price difference? Shouldn't the digital versions be cheaper since they are easier to produce?
Alisa Bowen, a senior vice president at Thomson Reuters, reminded the audience what magazines and newspapers are for: selling advertisements. What most people are missing, she said, is the significance of the 125 million credit card numbers Apple has collected over the years. "125 million people with their credit cards out, one tap away from spending money — this is huge," she said. "It's a massive opportunity."
This is true, but with the new OS 4.0 coming out in the fall for the iPad, there will be in app interactive ADS. I wonder how this will effect the magazine market. Magazine are also considered to be impulse buys, developers are forgetting how easy it is to purchase an item on the iPad.
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