As the world of business rapidly advances to keep in tune with technology there are constant changes to the way we live, the way we communicate, and with how we spend our money and thanks to much of this technology, how happy we are to spend our money.
10 years ago we had the iPod which changed the way we think about music. It reduced the physical sales of CDs but it also plugged the massive hole in record labels profits that was being lost due to pirated content. The genius of Steve Jobs saw and created the future of music.
10 years on a similar set of circumstances are occurring in the printed media industry with books, newspaper, and magazines. The invention of the iPads, Kindles, smart phones, other tablets and digital reading devices have meant that physical printed media is no longer as desirable as it once was. Why carry around a book or magazine with you when you could just take your modern device and it do that and so much more?!
The foundation for success with the iPod and iTunes was that it made sense! Why go to a shop to buy a big cd when you could download the songs you want in seconds and have them onto your iPod in minutes? On top of this the KEY bonus was that it was cheaper – of course it is, there is no cost to manufacture a CD, case and artwork, no cost in logistics to get it to iTunes for you to buy and iTunes skipped out the middle man (wholesaler). So it made sense that it was cheaper.
So why oh why oh why!!! Are the printed media not taking note?! I went to buy a book a couple of days ago and was met with the below pricing scenario:
To clarify: The Kindle version is an electronic version of the book which gets electronically sent directly to the Kindle device. The book itself is black and white and features no images or additional content. It is effectively a low quality version of a hard back.
The book in question is Steve Jobs Autobiography so it’s a top selling book and the pricing would have been carefully thought through.
The cost break down is as follows:
$21.14 – for the Kindle version
$17.88 – for the hardback printed version
The difference between the two is that the Hardback printed version includes delivery. It has also had to have artwork designed, be printed, delivered to the various different wholesalers and all of the logistics in between, stocked and accounted for. On top of this the hardback version is clearly a better read, it contains glossy pictures and a decorative design. Once I’ve read the book I have the option to lend it to a friend, or even sell it to redeem some of the cost.
With the Kindle you get a printed version without glossy pictures and you can’t lend it to someone, nor can you resell it.
The only way it could be excused to pay more for the Kindle version was if the Kindle was free in the first instance and then you’re purely paying for the content to read on it. However, I paid £149.99 for my Kindle.
On top of the above example Apples new ‘Newsstand’ feature where you can download your favourite magazines onto your electronic reading device for the same price as they appear in the newsagents is also flawed. For the same reasons as the Kindle books the saving that the publishers make should be passed onto the consumer not doing so is pure greed and will lead to the publishers putting themselves out of business.
As an example I’ve read Mens Health magazine for many years, often subscribing for periods of time. I don’t currently have a Mens Health Subscription but should the iPad version be cheaper then I would most definitely subscribe for it on my iPad. However, it’s the same price as in the shops for the actual printed version therefore I refuse to subscribe to it. I am sure I am not alone and the worst part of the scenario is that on my iPad where I would normally be happy to pay a lesser rate for the iPad version of Mens Health magazine I have access to the internet which is literally packed full of websites, blogs, and other informational sources where I can get my ‘mens health’ fix for free!
I am sure that if no concessions are made web sites that provide free sources of information will continue to thrive whilst the traditional magazines will die out.
Autosport now charges for it’s online content, so I no longer read it. I instead read Planet F1 and get the same quality of news for free.
And I thought the music industry was bad!
