Reuters: Hearst Magazine President on e-Subscriptions

[kjk]

http://www.reuters.com/article/2011/...7B003J20111201

"We do expect in 2012 at some point to be able to have more than a million on e-subscriptions," Hearst Magazine President David Carey said.

Hearst makes the digital titles of its 19 magazines available on several tablet computers, including Barnes and Noble's Nook, which commands the largest percentage of its digital subs, Amazon's Kindle Fire, and Apple's iPad. The digital magazines are priced at $1.99 for a monthly subscription.

Carey said tablet providers take roughly a 35 percent cut of subscription revenue, meaning Hearst gets to keep 65 percent. For traditional print newsstand sales, publishers typically keep 55 cents on the dollar.

Apple's 70/30 split is pretty well known-is Carey suggesting others get a better cut, which would average out to 65/35?

"There was so much drama with Apple negotiations," Carey said about the magazine industry. "(You would) expect someone to sell the movie rights from all that debate last spring."

"It's a pretty efficient distribution for us to be honest," he added.

Will be impressed when book publishers also come to that conclusion