Lots of coverage today for ‘tablet editor-in-chief’ Mike Goldsmith of Future’s announcement that they made $1 million in just over 3 months of launching all 65 of their magazines on Apple’s Newsstand. The key figures are:
- 75,000 subscriptions gained
- 40 percent of orders are for subscriptions
- 9.3 million free container apps downloads
- 8.5 million free issues
- 4.3 million opt-ins for push messages
This has led to general rejoicing all round.
Obviously, it’s unlike me to be curmudgeonly, but let’s have a wee look at these numbers.
- First off – $1million of revenue in 104 days gives us around $3.5 million over a full year. That’s £2.25 million against Future’s revenue last year of £141 million.
- 75,000 subscriptions against 9.3 million downloads is under 1% conversion. If subs are 40% of sales, then total unit sales must be around 200,000, which nudges just over 2% conversion.
- $1 million is just over $15,000 per title on average
- If the total sales are around 200,000, then the average sale value must be around $5 (which, actually, isn’t bad).
Two more points:
Many of the 75,000 subs are short-term and cost only £0.69 regularly, so Goldsmith cautions that subscriber count could go down as well as up and not all subscribers are high-value. [So where is the average $5 value coming from?]
All but three of Future’s iPad titles – T3, Guitarist Deluxe and Tap! – are page-turner magazine replicas. But Goldsmith said: “ If I did a T3 on every one of future’s 65 titles, I’d bankrupt the company. ”
And one quote that we can all agree with:
“Print circulations are declining – we are not going to get them back up – iPad is helping. The genie is out of the bottle, so we need to embrace it.”