Moderator: Staci C. Kramer, Editor and Senior Writer, paidContent/GigaOm
Bob Sauerberg, President, Conde Nast: Conde Nast needed to think differently and figure out how to go digital. Gourmet digital was their leap forward and now has 1 million plus users. Digital magazines have been a great business. Is a stand-alone business now.
Half a million monthly subscribers at this point. Provides a great revenue stream long term. $20 million revenue stream. But the format for most users is print. They want to be agnostic as to print versus digital.
Industry trained the consumer to look for low prices in consumer magazines. Conde Nast is trying to change the whole mindset by going from selling a magazine subscription to selling access to branding services. This process is just beginning and are just figuring it out. Will eventually be offering consumers different bundles and packages at higher prices. Too early to say if this will work or not.
Not talking about “apps” but about digital editions. These have different content than the main magazine that takes advantage of the platform. Not just a PDF of the magazine.
Not too dependent on Apple. Apple is a key distributor but involved with B&N and Amazon as well. Seems to be no rhyme or reason as to what publication does well on a particular device. To start their bundled content business that will be a direct business rather than using distributors, because the consumer expects it to come from us. Consumers like direct contact with their major brands.
