Choosing the Apple option or the Google option – a quandry for publishers

An article in the New York Times (February 21, 2011) summarizes two choices for publishers wanting electronic magazine sales – go through the iTunes store and pay Apple 30 % and get no consumer information, or go through Google and pay 10 % and get all the information they gather. The article points out that when magazines are sold in newstands, the publisher knows nothing about the consumer.  In addition, Apple’s 100 million customers in iTunes are used to paying for content and may, in fact, prefer not to hear from publishers.  Which of these intermediaries should a retailer choose to expand sales ? Is it worth paying an extra 20 % of margin to Apple to have access to a gathering place of consumers with easy click payment ? Will the future be a hybrid of both of these channels, each tuned to a different customer base ?

About aviyer2010

Professor
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