Digital Subscriptions Uncovered Nick Howitt, Newstrade Marketing Director, Frontline Nick

Understanding the Chaos Introduction Understanding the Chaos NH http://youtu.be/sS9UnvPYj5U

Introduction Data

Introduction Size of the Market Estimated size of total UK digital magazine market: £25 million per annum Large margin of error though given number of publishers Also: Smaller kiosks unknown Long publishing tail Other revenues (e.g. Google apps, Subs/Publisher direct sales) UK Newsstand annual RSV £1,280 million UK print subscriptions RSV £300 million

Digital Editions ABC’s +54% Introduction Trend: Christmas is Critical Digital Editions ABC’s +54%

The Challenge of Discovery Introduction The Challenge of Discovery “The very best journalism is of little value if it's on page seven of Google. The same goes for the iPad sales. If you're not flying in the iTunes Charts, how is anyone going to find and buy your apps on Newsstand?” James Tye, chief executive of Dennis Publishing Nick Reiterate the strategy and focus for 2013

App downloads result in a small number of free trials Apple Buying Patterns App downloads result in a small number of free trials Sampler data is not available App Download (3,913,703) END (3,774,129 , 96.4%) Free Trial (7,215, 0.2%) Paid Subscription (23,052, 0.6%) Single Copy (109,307, 2.8%) Live Free Trial (4,186, 58.0%) Expired Free Trial (3,029, 42.0%) Live Subscription (17,990, 78.0%) Expired Subscription (5,062, 22.0%) END (945, 31.2%) Paid Subscription (1,926, 63.6%) Single Copy Only (158, 5.2%) END (1,976, 39.0%) Renewal (3,086, 61.0%) Live Subscription (1,422, 73.8%) Expired Subscription (504, 26.2%) END (185, 36.7%) Renewal (319, 63.3% Only 32 (18%) titles of 175 are offering a free trial which convert well to subs Notes: data is a subset of the apple data only including transactions which result from an app download during the period of the research

96% of app downloads result in no sale Digital Editions Summary & Conclusions Data Structures, Quantity and Appetite to Share all need to improve! Crying out for an industry standard / approach Digital market circa £25 million pa, YoY growth good But month on month flat Christmas is crucial! 76% of transactions are single copies But 56% of revenue is subscriptions Frequency of purchase Cross shopping opportunity Back issues add revenue 96% of app downloads result in no sale Big variation by title Value in free trials We could do more We could publicise before app is downloaded Annual subs most popular? Limited offer on Google and Zinio .. Wasted opportunity? Retention better the longer the subs term Nick H

Digital Editions What Next? Lots more we can do: Category variations & Benchmarking for contributing partners Promotions analysis Pricing strategies – what works best Evaluate Christmas 2013 Look at extreme cases to learn what works best – who’s converting above the norm and why Specific case studies 10% improvement in the market is worth £2.5 million Won’t be possible without better data Value for the industry – competition is more against other apps / media than competitor digital magazines Recommend continuing with the database and analysis, otherwise data, learning, database structure work will all be lost. Cheaper to continue than to start at scratch again next year! Do under industry control rather than a commercial entity Nick H

Digital Distribution Strategy Questions? All