1. Digital One Year On

2. 2 The Digital Magazine Whirlpool

3. The Digital Magazine Marketplace Small market <2% of total market volumes Average 3-4,000 copies per issue Growth market (+47% YoY), but... Underlying growth = +15% and slowing 30% of constant ABC titles have dropped

4. The Digital Reader Repertoire 2.4 titles (43% have only 1) Issues read 2.9 issues per month Time spent 9.1 hours per month Money spent £3.59 per month (38% spend nothing) Source: Dovetail Subscriber Satisfaction Survey 2014

5. Multi-format Total Consumer Magazine Brands Print Only (44%) Print + Digital (56%) PDF replica (46%) Enhanced replica (39%) Fully interactive rebuild (8%) Non-issue, interactive app (7%) Source: PPA Publishing Futures 2014

6. Multi-device Source: Dovetail Subscriber Satisfaction Survey 2014

7. Multi-channel discovery Where have you typically found your digital magazines? Parent print magazine (publisher direct)30% Apple Newsstand (etailer)23% Magazine’s own website (publisher direct)23% Search engine20% Another print magazine or newspaper18% Apple iTunes (etailer)17% Another appstore (etailer)15% Another enewsstand (etailer)14% Personal recommendation12% Blogs & social networks9% In-app link5% Other4% TOTAL189% Source: Dovetail Subscriber Satisfaction Survey 2014

8. Multi-channel purchase Source % of Total Digital Magazine Business Apple77% Zinio7% Google4% Other etailer4% Publisher direct8% TOTAL100% Source: Profile of key publishers

9. Digital One Year On Data, Analysis, Results

10. Data covers 2/3rds of the market Publishers Platforms Analysis

11. The market has now stalled … Last Year This Year NB Excludes publisher direct sales

12. Discoverability an issue: Marketing Google doing better … driven by single copy giveaway

13. Discoverability an issue: Cross shopping Apple £15 per customer Zinio £24

14. Discoverability an issue: New initiatives

15. Apple downloads slowing However, still over 800,000 unique app downloads on average per month

16. Most of the decline is in countries other than UK and Ireland

17. Subscriptions revenue improving, while single copies decline…

18. Conversion improving over time … 64% tend to convert to single copies first Over 10% buying single copies go on to buy a sub through apple Conversion to purchase within a month is 4.2%; over a longer period this improves to 4.9% Spike in conversion in August due to single copy promotion through Apple

19. 1/4 of titles are on a par with the print price through Apple …but almost 40% are a lot cheaper!

20. Price discount (vs. print) - little impact on conversion

21. Churn 21 Only 1 in 3 subscribers are still subscribing 12 months later

22. Day of the week

23. Insight available to contributing publishers Insight Compared to the MarketAppleGoogleZinio App download over timex App Conversion over timex Conversion by Titlex Single Copies over Time (Sales and RSV)xxx Subscription over time (sales and RSV)xxx Churn by title and subscription lengthxx Current issue distribution of titles by Price pointxxx Apple conversion by Price pointx Single Copy to Sub Conversionxx Single Copy Frequency of Purchasexx Cross Shop AnalysisxX Back issuesxxx

24. Digital One Year On In Summary…

25. The digital gap Source: Dovetail Subscriber Satisfaction Survey 2014 64% The percentage of magazine subscribers who own a tablet. 24% The percentage of magazine subscribers who read a digital magazine.

26. Building backwards from the consumer Specific Uses Sampling & promotions Archiving back issues Travelling Gifting First issue delivery Time-sensitive delivery Challenging delivery Content insights

27. Building backwards from the consumer The Mag Moment Location Time available Device used What they want to do Issues to tasks & chunks Brands to subjects Specific Uses Sampling & promotions Archiving back issues Travelling Gifting First issue delivery Time-sensitive delivery Challenging delivery Content insights

28. Some big issues Digital magazines Their format & functionality Their role in multi-channel publishing Getting the right audience measurement metrics Enewsstands Their role in multi-platform channel management Understanding the hybrid dynamics Some operational issues Digital price versus print price Single copy versus subscription Standalone versus bundle Downloads versus streaming

29. The Gartner Hype Cycle EXPECTATIONS TIME