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

2. Understanding the Chaos
Introduction
Understanding the Chaos NH

3. Introduction Data

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. Digital Distribution Strategy Questions?
All