• by Kate Kaye , June 10, 2004

They're still primarily black-and-white, but print newspapers are becoming less "read all over" as the adoption of the Internet advances. While most publishers have responded by re-purposing print content for ad-supported Web sites, digital reader technology firm NewsStand, Inc. hopes they'll take a different approach. The company has unveiled a browser-based tool for reading digital editions of newspapers and periodicals to complement its three-year-old proprietary reader application.

Like its installed application counterpart, iBrowse allows users to read and interact with exact replicas of newspapers, magazines, and other publications. Rather than requiring users to download a software application, though, the new browser option enables them to access their favorite broadsheets as they appear in print--including crossword puzzles, comics, and classifieds--through the more familiar Internet Explorer, Netscape, and Apple Safari browsers.

In addition, iBrowse gives users the option of accessing digital publications page-by-page via the Internet, whereas the reader application requires users to download full or partial digital publications onto their computers. NewsStand editions are typically 70 percent less than the size of Adobe Acrobat files, according to NewsStand President and CEO Kit Webster.

NewsStand is heading in the right direction by addressing the issues involved with navigating through multi-page digitized newspapers, says Neil Budde, president of publishing consulting firm The Neil Budde Group. "Digital editions appeal to more traditional readers who want and trust a particular publication to provide them with a more organized package," he adds.

The problem is luring those potential subscribers. NewsStand's Webster suggests that by eliminating the need to download its proprietary software, the company and its publishing partners will attract more digital edition subscribers. Users can purchase single editions or subscriptions. The company won't divulge the number of subscribers it has, but according to Webster, they reside in over 100 countries.

To promote subscriptions, NewsStand conducts a steady stream of online ad efforts, including search marketing and banner advertising. The company ran full-page multi-screen ads in March and April on Salon.com. Using Ultramercial's technology, the ads were viewed in-full by Salon visitors in exchange for one-day access to premium content. Of the 12.6 percent of users who clicked on the ads, 10 percent converted to a sale, according to Ultramercial.

NewsStand has relationships with 150 publications worldwide, including daily papers like The New York Times, USA Today, Germany's Die Welt, and France's Le Monde, as well as periodicals such as Texas Monthly and NewScientist. NewsStand's Webster points to the digital rights protection enabled by digital editions as especially appealing to publishers that are concerned about the ease with which copyrighted articles and photos can be grabbed from Web sites, manipulated, and redistributed. "Our reader pretty well locks that up," he assures.

Companies offering similar digital reader applications include Zinio Systems, Inc.--which provides a reader for digital magazines--and Olive Software Inc., marketer of the ActivePaper platform for electronic newspapers, magazines, and archival publications. According to a January 2004 Advance Interactive Media Group report sponsored by NewsStand, Olive Software estimated that 40 million of its newspaper editions have been downloaded, and Zinio had enabled 10 million magazine downloads.

Digital publications available through NewsStand feature various interactive components like zoom-in and zoom-out navigation, email and URL links, and keyword search. Users can also send articles to others, archive editions offline, automate publication download, and dictate the order in which sections are downloaded. The company expects to introduce more personalization options and a news flash feature soon.

Ads featured in original print editions can be enhanced to link to Web sites, or include embedded or streaming audio and video. NewsStand also offers digital wrappers and blow-in cards, which can be returned via email. Both the reader and iBrowse applications can track user interaction--including downloads, click-throughs, and time spent on each page.

"Publishers are effectively competing with themselves by providing free [Web] content," suggests Webster. "That model won't be successful in the long run."