Dave’s Take

Despite the encouraging signs that the ad business may finally be on the uptick, the news for magazine and newspaper publishers continues to be abysmal. Many publications are fighting for their lives with no real hope on the horizon. Their business model has been undercut by the immediacy and no charge aspects of the Internet, for which few see a solution – until now. With the promised new wave of tablet computers about to hit stores, publishers may have finally found a way to make their publications relevant again.

The new tablet laptops are rumored to begin going on sale as early as January of next year, with Apple’s offerings leading the pack. Mac’s new tablet is, according to industry insiders, to be based upon its iPhone operating system. Early reports depict the Apple 10” tablet as having six times the resolution and seven times the touchable surface area as their iPhones currently offer. They will supposedly feature at least two different versions, 3G and regular.

The big news for publishers about tablets is content. Apple (among other computer makers) has created a distribution model that will allow newspaper and magazine publishers to actually make money on their content. While the details are sketchy, the plan is to license content from providers across the board. In addition to fees for editorial and news content, the new tablets will also provide a host of new features only dreamed about with previous print projects.

Sports Illustrated has jumped onboard and is so excited about the new platforms that they have created a video on their website that touts how cool their tablet content will be for readers. In addition to their printed version, S.I. interactive will offer features sure to please any sports fan. Think how much better (if it’s possible) the swimsuit issue will be when you can click on video footage of the shoot. For actual games, the sites will allow fans to interact with their teams. Pulling live game stats and checking for up to the minute injuries are just a couple of the state-of-the-art possibilities soon to be available. And while all types of applications will be available, S.I. will still remain in control of their product. “We want a hand in all that, because that’s what we think people will pay for,” said Terry McDonell, editor of the Sports Illustrated Group.

Spokespeople for other publishers including Time and Conde Nast have also voiced their optimism for the new possibilities offered by tablets. They see numerous applications that will generate profits, including interactive advertising. Editors envision ads that will allow readers the ability to download coupons and other premiums with the press of a button to shake up the malaise print ads have suffered. Subscription drop cards will become a thing of the past when all one has to do is click on an icon to receive a publication into their in-box on a regular basis.

The new wave of digital storefronts aren’t expected to really get kicking until the second half of 2010, when up to five different manufacturers are expected to release tablet type laptops. Early guesses on the Macintosh tablet put the price somewhere near the $1,200 price point, which will surely drop when the competition heats up. Not only will news and magazine publishers benefit from the new platforms in terms of revenue, but readers will also have the chance to rediscover their favorite magazines and newspapers in a whole new way. Anyway you look at it, these are just the tablets the doctor ordered.