Innovation and Stack (Independent Magazines)

In a fast-pasted media environment, organisations have to adopt or develop new business approaches in order to stay current, competitive and retain advertisers and consumers. The recent technology developments and change in the economic climate has caused consumer behaviour to transform and thus created a ripple effect in how advertisers are engaging with them. 

Figure 1. Stack business model

In the case of Stack, they have successfully created and implemented a new business model which eliminates the need for third party advertisers as well as meeting the needs of their target consumers. Through a two-sided business model they rely only on independent magazines who wish to attract a wider readership and consumers who wish to read a different publication each month. This model is cost effective and appealing to small independent publications as they are only have to produce the required number of magazines pre-paid for by Stack subscribers and do not need to consider marketing or distribution as this is also fulfilled by Stack.

The subscription method has been traditionally used by newspapers and magazines for decades. However, while other publications (who adopt the traditional business model) usually offer consumers the choice of single-sale or subscription, Stack only provides the latter. This means while Stack reap the advantages of the traditional model, including; a predictable and constant revenue stream, reduced uncertainty and also higher levels of brand loyalty, it also makes a more financially viable business model as publications are only sourced and purchased from independent publishers based on a predetermined quantity.

The traditional subscription service has also been replaced by in-direct subscriptions, where consumers subscribe to Stack rather than the publication itself. This is the main revenue for the company and also develops brand loyalty.

Stack magazine also have added ‘value’ and innovation to the product through applying expertise in sourcing independent publications as well as their own in-house marketing and distribution process. This process has created an emotive response as the publications change monthly, making it a surprise to readers. The publications are also described as thought provoking and engaging (Stack, 2012) providing the reader with new information and ideas.

References
Aris, A. and Bughin, J. (2009). Rebalancing the Media Value Chain. 2nd ed. Chichester: Wiley pp. 13-81
Blythe, J. (2009). Principles and Practice of Marketing. 2nd ed. South Western: Cengage Learning pp. 629-35
Kolter, P. (2008). Marketing Management: International Version. 13th ed. Pearson. pp. 63
Kolter, P. (2008). Principles of Marketing. 3rd ed.
Kung, L. (2008). Strategic Management in the Media: theory and practice. London: Stage pp. 47

The Book Publishing Evolution - Can we keep up?

The book publishing industry is currently teething its way through a massive change. Changing attitudes towards reading, in addition to the rising prominence of digital publishing has given the industry a lot to react to.  A PEST analysis reflects these changes.

Politically, the rise of digital publishing has raised new issues. These are apprehensions concerning copyright and piracy. Issues such as this may cause confusion over ownership and rights. It has been known for the publishing company to own the rights to the printed work, whilst the author keeps the rights to the digital version of the work, thus allowing the author to self-publish an electronic edition. Piracy and protecting digital copies of the book are also prominent concerns.

Piracy also raises the question of the economic factors. With digital media being so easy to replicate, ownership and rights will need to be considered differently. On a separate economic thought, the rise of self-publishing may also bring economic implications for the publishing industry.  

In Strategic Management in the Media, Kung relates that; due to generational shifts in attitude towards reading, books are being read for pleasure less often, particularly within the 18-24 age range. This declining market is, of course, a threat to the publishing industry. However, new products with new technology may entice lapsed readers.

Reading was usually a solitary pastime; however, there is an increasing social aspect evolving. The Goodreads website allows readers to socially interact with other readers, and even the authors themselves in a way that were never possible before. Similarly, Wattpad produces a social dimension to the writing process; readers can communicate and interact with the text and the writer, their feedback helping to shape the text as it is actually being produced.

The environment of change may spark new ideas, innovations and markets, or just improve existing systems. As digital media rapidly changes the industry, we need to ensure that we evolve with it. 

For Better Or Worse: An Analysis Of Digital Publishing

It’s been 550 years since Johannes Gutenberg pioneered a new printing technique and began to publish on a mass scale for the first time. With the dawn of digital publishing a new frontier revealing itself to us. Digital is being promoted as the future of the publishing industry and as tablet computers and e-books become increasingly widespread the ways in which we devour our media is changing faster than ever before.

While this is only a brief analysis of the arena of digital publishing and it wouldn't surprise anyone if this information is rendered irrelevant in 6 months, looking at the industry as it stands provides an interesting view.

Political

As digital generated content and Internet access is becoming increasingly widespread there is a new generation of writers from all backgrounds on an international scale. These new writers can create followings and generate interest in their pursuits, whether they are political or creative. With a wider field of reporting and the repercussions of coverage can be felt in political institutions across the world. The recent Arab Spring was accelerating by the use of digital communications and localized revolutionary reporting. The flip side of this is that those with an extreme agenda have the same soapbox from which to speak.

Economic

There are a series of new revenue streams that digital publishing presents for the industry in general, which goes some way to explaining why the leaders of publishing companies are fiercely pursuing it. While 40% of tablet owners have purchased a magazine app and 25% regularly read magazines on their device, there are still considerable gains to be made in that market. Advertising has been deemed more effective if it is seen to be interactive. With companies such as Facebook have been quick to adopt purchasing software such as Synapse and Alvenda buying direct from a digital magazine can hardly be light-years away.

Social

There is an increasingly social side to the way digital content is created and eventually published. Publishing efforts from 37 Signals have pioneered the use of blogs to release parts of their book over time and in order to engage with their readers to see how they were being received.  Wayne Gladstone’s book Notes From The Internet Apocalypse was originally a serialized novella published on Cracked.com but will soon be published by Thomas Dunne books.

Technological

The reading experience has been enhanced by the dawn of this new technology. The time spent reading magazines rises with digital publications, the average number of minutes spent on Vanity Fair rose from 65 minutes to 200 when the audience used a digital copy. Since their release in 2010 over 100 million iPads have been sold worldwide and this is a considerable audience for any publisher.

Legal

With digital content being so easily exploited, copied and reproduced there are a number of legal issues revolving around the rights of digital content. Acknowledging the right of workers and professionals is one key aspect of this but also the rights of the purchaser. Looking at the widely reported story that Bruce Willis was to sue Apple in order to leave his considerable digital music collection to his daughters raises an interesting question, who actually owns downloaded content? In reality customers never actually buy a lot of digital content, rather they purchase the license to use it. The same is as true for ebooks and magazines as it is for music. There may be a digital artifact on your kindle but we cannot say that you “own” it in the traditional sense of the word. As such that feeling of “buying” something may be misplaced.

Environmental

A great deal has been made about the benefits of digital readers to the environment. If there are less trees being felled for magazine paper then there will be a positive impact. However, the natural resources that have to be harvested and mined for the creation of tablets and various e-readers could have a negative impact on the environment. Books and magazines are easily recyclable whereas technology is particularly hard to dispose of and can lead to terrible amounts of waste and landfill.

Even this blog (which was meant to come in at a tidy 300 words) cannot fully incorporate every aspect of the burgeoning digital publishing industry, but hopefully it has demonstrated that in this relatively infant medium there is plenty of potential for great success.

Digital Media in the Publishing Industry

Reading alone has become as old-fashioned as print itself. Thanks to the growth of technology, readers are now seeking to form online communities around their favourite authors and books. The politics of piracy that have plagued the music industry with the growth of digital has been suggested as a similar threat to the print industry. However, by embracing  this change, we have created a whole new way of enjoying books, not threatening them. Ranging from the ‘sticky websites’ Hollander uses to describe online forums and websites, to everyday social media, the e-book allows its readers to post information, thoughts or even share books themselves online, transforming the art of reading into a new, sociable experience

The current economical climate goes hand in hand with technological aspects of today’s society. Reduced print circulation and general income alongside price rises has forced the publishing industry into seeking innovative ways to get their materials read, and still make a profit. Online publishing reduces the costs incurred when producing material in print. Digital media is not only cheaper than print, it is more accessible and user friendly. (World Newsmedia Innovation) The convenience at reading materials on the go can result in clawing in an unexpected  reader, in addition to saving on expenditure.

Furthermore, the social habits of consumers has changed considerably in this new digital age. Hollander also discusses the constant need for innovative concepts and ideas, leaving customers craving the next big thing. This fast-paced, instant culture has developed a need for us to have the newest craze as soon as possible, and this is what digital was created for. E-books mean that customers no longer have to wait, or leave the house to buy the next best seller: it’s already there. 

Technology is the driving force behind the key changes in the publishing industry. The need to create new technologies, or to use existing ones in an innovative way has become the focal point of our society, the publishing industry no less. In a world where nothing exists if not on a screen, books have had to reinvent themselves to reach a wider audience. The invention of e-books, in addition to online publications has not only kept the industry up to speed with the rest of the world, but it has also created a new way to access our most valued materials.

Digital Innovations Do Not Spell the End for Magazines

Technology has been the biggest driving force of change in the publishing sector. The Internet and invention of the smart phone and tablet have revolutionized how people gain access to information.  When the first tablet, Apple’s Ipad, was launched in 2010 many predicted the end for print media.

Jonas Bonnier, CEO of Bonniers international multi-channel media company, says that, “magazine publishers can survive if they are able to monetize a variety of revenue streams and operate on different mediums.”

The tablet meant that many magazines brought out apps to allow readers to download issues to read onscreen. This has been successful but online subscriptions still only account for a fraction of any magazines total sales. Most people would still prefer to have a magazine in hard copy, to touch, hold, smell and enjoy at their leisure.

However, it is important for magazines to have a strong online presence to retain customer brand loyalty. Therefore, all content written for the magazine must serve a function, the content should not be the same on all levels. For example it is important that there is material specifically produced for the app, which works well on the platform incorporating interactive elements.

Magazines need revenue from print advertisements and having a website only cannot supplant this. Many magazines, such as Teen People or Seventeen in the USA, made a mistake in moving to digital only format.  According to Fipp Research this spells death for the magazine, because if you can’t make it in print you won’t in digital. The problem lies not with the medium but the magazine.

Conglomerates tend to control distribution systems and retail outlets, so by cutting out the middle men and selling directly to the public online, independent publishers are able to operate more easily. Independent magazine publishers, such as Stack magazines, have a page on the Internet where subscribers sign up for monthly delivery of magazines, which cannot be found in shops.

So, instead of the Internet killing magazines off, it is actually helping them to thrive. The future of magazines looks promising as long as they continue to move with the times and have a strong presence on many platforms.