Can the iPad save CSPs?

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It’s not even being delivered yet but I bet most of you are already sick of hearing about the Apple iPad. If you are a CSP (Communications Service Provider) you are probably dreading the extra load it is going to put on your mobile network and how you won’t necessarily see an incremental increase in revenue. Think again!

Rather than sitting around navel-gazing operators should be looking at the greatest potential use of  iPad and similar devices and work out how to get onto the curve early. I wrote back in January that I would buy an iPad mainly as a delivery mechanism for my favorite magazines. I have been subscribing to electronic mags for six years now, starting on a Windows powered Tablet notebook and most recently on a Macbook Pro.

My online magazine stand is Zinio and I have a choice of hundreds of full-color glossies from all over the world. I receive an email on the day of publication each month reminding me to download and after a few minutes I am flicking, yes flicking, through the pages. The obvious benefits of convenience, environmental impact and cost-savings (around 30% of the print prices) are over-ridden by the sheer brilliance of double-clicking (or tapping) an advertisement or embedded URL and being transported direct to the source for an in depth analysis and even purchase of the product or service.

But even that pales into insignificance when you see how creative publishers have already become in developing digital magazines specifically for the iPad, combining animation and video directly into the print medium. Take a look at what VIV magazine has created and tell me if you are not bowled over.

The iPad will not only boost flagging magazine circulations but the US Audit Bureau of Circulations said on Tuesday that it has changed its definition of a digital magazine to accommodate the new class of tablet-style devices. This means that publishers can count paid digital subscriptions as part of a magazine's overall circulation as long as all the same editorial and advertising material is included. Magazines need the change because they charge for ads based on the size of their so-called rate base, the circulation they guarantee to advertisers. Of course, magazines will only get this circulation boost out of the iPad if they can persuade readers to pay for subscriptions. Few consumer magazines or newspapers have succeeded in getting large numbers of readers to pay for access to Web sites, but subscriptions to brilliant digital mags may be seen differently.

So how does this help the hapless CSP? Hark back to my opening paragraph. By offering subscriptions direct to its user base, the CSP could act as the digital magazine stand.  It has the customer base, the customer’s confidence, the means to bill and the means to deliver the content.  Sounds like the perfect combination for any would-be digital magazine developer. Don’t you agree?

Posted 03-19-2010 8:33 AM by The Insider

Comments

Tinniam Ganesh wrote re: Can the iPad save CSPs?
on 03-19-2010 9:21 AM

As you rightly point out the iPad should be blessing for the CSPs.The CSPs should enter into a business arrangement with the content provider or magazine by enabling subscription of the magazine from its subscriber base.The CSPs should also have a business model which includes revenue sharing with firms whose commercials are featured in the magazine. This is will be an all round win-win situation for all parties concerned.

Ron Pitcock wrote re: Can the iPad save CSPs?
on 03-26-2010 8:56 AM

The broadband networks are in a perfect place to become distributors of various content. One of the issues they will all face is how they can continue to monetize their bandwidth and at the same time provide a better quality of service to their subscribers. At some point all band width providers will have to measure the subscriber usage and create ways to increase their revenues from the increased network usage. The IPDR standard was created with this in mind. As consumers use more bandwidth and demand better QoS, the network providers on all media will have to adjust in order to stay competitive and keep their networks upgraded and maintained.

Tal Givoly wrote re: Can the iPad save CSPs?
on 04-04-2010 10:22 AM

I like the take. The iPad is indeed a perfect delivery vehicle for the new magazine. Unfortunately, I doubt most CSPs will pick up this opportunity, if barely any, and folks like Zinio, or even more likely, Apple itself might be better able to become this virtual news stand...

The Insider wrote Education evolution needs communications class
on 09-03-2010 6:29 AM

When Roman children were being taught to read and write they were given a piece of slate and some chalk

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