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Cost of Digital Downloads...

Chubster

Novice Member
I subscribed to the new Nikon Mag for the Ipad the other day but was a bit miffed to see that it was the same price as the physically printed mag £4.99

So I asked why this was over at their forum. Can you believe that the government taxes digital downloads but doesnt when it comes to print. So much for the "Eco friendly" Government then. Madness
 

twist

Distinguished Member
Im in the print business and they do tax printed materials, but its a bit of a PITA minefield, stationary has vat, large format posters have vat, A4 leaflets do not, A4 magazines with special finishing do. These are a few examples.

Digital downloads are stupidly overpriced.
 

Chubster

Novice Member
They are but it appears not to be directly the publishes fault, which is waht I assumed.

Here is a quote from Stuart over at Digital Camera World (hope Im allowed to quote)

"Two things to remember on the pricing of digital editions.

One is that the mechanics are entirely in Apple's control - if they don't provide the ability to have a low starter price, then we can't do it. (And they don't - they are new at the magazines thing, I'm sure it will come in time).

The other is that Mr Osbourne taxes digital mag sales but not print ones, so every penny we save in not printing the issue goes to Her Majesty instead. What with Apple's cut as well, substantially less of the price you pay makes it back to us than if you hand over your fiver to W H Smith.

The bottom line is that if we cut the digital edition price substantially, and people then switched from print to digital, we'd be in all kinds of financial problems."
 

godsakes

Well-known Member
with VAT to take into account and apple taking their 30% cut, it's probably not clear cut how much better off the publisher is with the online distribution. I know that you mean though, you'd expect 25-50% off for a digital version.
 

Greg Hook

Moderator & Reviewer
Presumably the Tax they are talking about is the 20% VAT. So by that reckoning a £5 printed magazine that has no VAT according to them, equates to a £6 digital edition. So you are in effect saving £1 and they are losing 83p compared to the printed version.

But I would be interested from comments on people in the industry as the printing and distribution costs must be massive?

EDIT: Seeing godsakes reply above, I wasn't aware Apple took 30%. That obviously dents that no end. So compared to a £5 printed version, they are actually getting £2.91 for the digital version, which is made of £2.91 for them, £1.25 for Apple and £0.83 VAT. Which makes it a lot clearer picture.
 
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twist

Distinguished Member
What annoys me though is digital music for example is pretty much the same price of a cd. With a CD you get a full colour printed sleeve, a crystal case and a physical disc you can sell at a later date.
 

Chubster

Novice Member
Have to admit its a great way to keep the mags all in one place, rather than under my sofa :rolleyes: just got to get use to actually reading them that way.
 

Greg Hook

Moderator & Reviewer
What annoys me though is digital music for example is pretty much the same price of a cd. With a CD you get a full colour printed sleeve, a crystal case and a physical disc you can sell at a later date.
What about books? Amazon for example the Kindle book price is almost the same and sometimes a lot more than the printed version. Now that I don't understand at all.
 

twist

Distinguished Member
What about books? Amazon for example the Kindle book price is almost the same and sometimes a lot more than the printed version. Now that I don't understand at all.
Very true. :mad:

Its like a conspiracy, lets sneakily bring out new products that most people want to buy, once we have a large enough audience, ditch the conventional media, cut the costs right back and sell it for the same price even though were offering far less in reality, sure some jobs will be created but a huge print/publishing industry goes under along with the other jobs it supports.

Dont even get me started on fuel prices!
 
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Chubster

Novice Member
With regards music and printed books/mags etc how long do you think it will be before a physical product is a thing of the past. Think how much "stuff" is needed, globally, to produce it all. Download speeds are pretty much there, storage costs are coming down all the time, do we really need to have a physical product anymore ?
 

twist

Distinguished Member
Some people including myself like physical items I pay for, dunno, just gives you satisfaction knowing you paid for something you can feel, I also prefer thumbing physical media.

I think its like sending an E card to someone for their birthday.

As far as how much stuff is needed, that stuff provides jobs, jobs make a larger industry and create more wealth for everyone which means a better lifestyle for everyone. All you do with digital media is make fat cats fatter by cutting down the workforce.
 
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Greg Hook

Moderator & Reviewer
Some people including myself like physical items I pay for, dunno, just gives you satisfaction knowing you paid for something you can feel, I also prefer thumbing physical media.

I think its like sending an E card to someone for their birthday.

As far as how much stuff is needed, that stuff provides jobs, jobs make a larger industry and create more wealth for everyone which means a better lifestyle for everyone. All you do with digital media is make fat cats fatter by cutting down the workforce.
I'm the same. I prefer something physical that digital :devil:. Like Blu-rays and DVDs. I like to see them on the shelf too.
 

twist

Distinguished Member
The other side of it is, you cant resell a digital item, like music. So you cant get part of a return on your investment, the person buying it cant get it for a good used price, things become unobtainable for people who cant afford to buy it new. Outcome, you get no return, joe bloggs cant afford it, Ebay gets no fees (may be a good thing), you delete the media. Again, your local newspaper stand, book store, cd shop, post office etc closes, more people out of work, economy shrinks, we all suffer.
 
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Chubster

Novice Member
Realise the job thing is an important issue but that aside and with out getting all eco warrior, cos im not, I dont even recycle :devil: that "stuff" isnt infinite. If it can be had via a digital method then that has to be the way to go.

Then the "stuff" that has been saved can be used to build better stuff, like new DSLR's
 

Chubster

Novice Member
I agree...as I mentioned earlier its "weird" reading a mag on a electronic device, no matter how much they try and make it sound like turning a real page (please give up with that your not kidding anyone) but then we are just donkeys and that's what we're used to....your kids, or perhaps grand kids think different I bet.
 

twist

Distinguished Member
Realise the job thing is an important issue but that aside and with out getting all eco warrior, cos im not, I dont even recycle :devil: that "stuff" isnt infinite. If it can be had via a digital method then that has to be the way to go.

Then the "stuff" that has been saved can be used to build better stuff, like new DSLR's
Recycling creates new products, most of the "stuff" you used is made from recycled products. A CD or old tin can etc. doesnt just make another CD but pens, bog paper, fridges etc etc etc. That we reuse.

I agree...as I mentioned earlier its "weird" reading a mag on a electronic device, no matter how much they try and make it sound like turning a real page (please give up with that your not kidding anyone) but then we are just donkeys and that's what we're used to....your kids, or perhaps grand kids think different I bet.
From what Ive heard you cant turn the pages in your type of magazines. :laugh:

They may think different because the devices are cool and youre a square if you read a book, or they dont know the difference.
 

godsakes

Well-known Member
I agree...as I mentioned earlier its "weird" reading a mag on a electronic device, no matter how much they try and make it sound like turning a real page (please give up with that your not kidding anyone) but then we are just donkeys and that's what we're used to....your kids, or perhaps grand kids think different I bet.
I think we just need a larger iSlate to fully recreate the magazine size personally, possibly a dual screen version.
 

twist

Distinguished Member
Dont forget islates are expensive and break, initial outlay + cost of content + breakability and thievability factor + electricity outlet required + headaches from eyestrain = specsavers. Still love my islate but has a few downfalls compared to conventional media.
 
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shotokan101

Distinguished Member
I have to say that I'm in total agreement with Twist in these issues - I much prefer to actually receive something physical for my money and couldn't believe the eBook pricing for kindle (recieved one for Xmas) and I certainly won't be buying ANY full priced books for it :(

Jim
 

Chubster

Novice Member
Ok...Whats an islate.....I have looked on G and all I get is rumours ???
 

Chubster

Novice Member
But you said iSlate as well.....I WANT one
 

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