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THE MONEY SHOT
iMonitor Shows iOS Newsstand has 8.1% of Mag Apps, Boosts SalesFriday, November 4, 2011 The recent addition of a dedicated Newsstand area and supporting technologies on the iOS 5 operating system have had a dramatic effect on revenue for magazines.  According to McPheters & Company and its tracking of magazine apps in iMonitor, publisher adoption of Apple’s new distribution and marketing model for subscription content has been swift. “8.1% of iPad magazines have migrated to Newsstand already,” says Rebecca McPheters, the company founder and a min columnist. Apple only released iOS 5 and its new Newsstand capabilities in early October. But McPheters says there has been a torrent of new apps and updates from the major media companies she tracks since the new OS launched. “This is the largest number we have ever processed.” By highlighting subscription-based apps to their own area of the App Store and collecting under a single folder app on the home page, Apple seems to have helped users more effectively discover some of their favorite print brands. The payoff has been a significant change in the rankings of highest selling and highest grossing apps. In terms of top grossing apps, in September only 34 publication-related apps appeared in the top 200 in Apple’s App Store ranks. In October, with only half a month in which the new Newsstand model was in place, 59 of the top grossing apps were from print publishers. “We are seeing it dominated by publications that have migrated to the Newsstand,” says McPheters. Publishers are also learning to proliferate their content more effectively across platforms other than iOS. In May, iMonitor saw only 35% of major U.S. magazine publishers represented on the Barnes & Noble Nook Color e-reader, a share that reached 48% by September. The share of magazine makers on iPhone and iPad rose incrementally during the period. Interest among the major publishers in the Android OS remains scant, at only 24%. Publishers continue to complain that the Android marketplace suffers from fragmentation across too many devices and versions of the OS. While Nook Color runs Android in a highly customized version, no fully open Android tablet device has succeeded in gaining market share. The app terrain is going to morph once again in coming weeks when Amazon introduces its Kindle Fire and B&N rolls out a successor to the Nook Color that is going to be called the Nook Tablet according to reports.
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