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Are Mag Apps Money Pit?

  • Brandweek, Monday, December 6, 2010 11:13 PM
Magazine publishers are pouring money into apps, seduced by the notion that tablet computers can open a new avenue to make money from their content. But will they ever make it back? wonders Brandweek. There are only 8 million iPads in circulation (so far the only interactive tablet on the market) and the audience is currently too small to attract serious ad dollars. David Link, creative director at apps developer The Wonderfactory, said magazines are spending as much as $500,000 in upfront costs and hiring three to five staffers-and in some cases up to 10 people-to provide ongoing design, ad sales and tech support. So far, Apple won't let publishers sell subs.


Forthcoming tablets that support the Android platform are expected to offer a subscription option, but that opportunity won't come without extra cost. Until developers come up with a way to let publishers create apps that will work on multiple devices, publishers will have to spend more to customize their apps for each screen size and operating system.

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The money hasn't stopped the interest. Several new titles expected to hit the App Store in the coming weeks, notes Pad Gadget. One of the titles getting some major buzz comes from billionaire Richard Branson of Virgin fame.Virgin's new iPad only magazine is slated to launch tomorrow and will be titled Project. The people at TRVL magazine have embraced the iPad and what it means for both publisher and reader. The digital magazine is exclusively published on the iPad. TRVL is published by writers and photographers who love to travel and they use the digital edition to directly share their experiences with readers.

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