IPad Users Spend $70,000 Per Day on Newsstand Content

[Phillip Swanson]

Turns out Apple’s iPad generates a sizable amount of money for publishers through Newsstand. Well, at first at least.

According to a study by analytics firm Distimo users spend about $70,000 each day on tablet-optimized newspapers and magazines through Newsstand. This translates to roughly $25.5 million in yearly sales through Apple’s online content store.

Now, Business Insider plays Devil's Advocate and takes into consideration Apple has sold 65 million iPads and Newsstand is generating $70,000 a day. This equates to the average user spending $.001 a day on magazines or newspapers. Even more depressing, this means the average user is only spending $.37 a year on magazines or newspapers.

Still, Distimo claims Newsstand has helped push digital publication sales. News apps account for about 7% of the top 200 grossing apps with most of the revenue coming from in-app purchases. Another point to take in, Apple rakes in 30% off the top of these revenues meaning that $25.5 million a year is really closer to $16 million a year.

I guess depending on how you spin this data, the digital rebirth of The New York Times and other traditional media outlets on the iPad isn’t looking so bright.

Source: Business Insider

[Dazz187s]

I always wanted to get the NY Times. But it was too pricey. With the iPad app, it has been more affordable and convenient. Not sure what I'm stating here, but I surely needed someone to read this?

[valkraider]

Well, if I were to spend $.37 a year on magazine subscriptions for my iPad, it would be $.37 a year more than I did before I had my iPad.

I haven't bought a magazine (or newspaper) subscription since the 1990s.

[baRRy boRRis]

I subscribe to Creative Review and now the iPad has a 264dpi screen, reading CR on the iPad would be brilliant. Brilliant if 1. It existed in the App Store and 2. It's free as I pay £40ish a year for the paper copy and refuse to pay again.

[TheOrioles33]

I get Maxim and Mens Health through Zinio and a free Wired subscription through work.

[confucious]

The Week, I pay for. The Metro is free.
The Times/Sunday Times aren't on NewsStand.
So I'm just under $70,000 each day.