Wall Street Journal
Cosmopolitan readers can get their first year’s subscription to the print magazine for $10. But if they want the digital edition on their iPads, they will have to fork over $19.99. That’s a pricing maneuver so bold it may make even Cosmo readers blush. In the book and newspaper industries, digital versions are typically cheaper than print ones. But some in the magazine world are going the other way, charging more for their digital versions.
Buffeted by declining advertising, which accounted for about 75% of their revenue historically, magazines are turning to tablet computers and digital editions to boost circulation revenue. In doing so, they are hoping to reset decades of subscription discounting so deep that a year’s supply of magazines like Esquire currently costs just $8.
“This represents an opportunity for the magazine business to become more leveraged toward consumer revenue and a little less dependent on advertising,” said David Carey, the president of Cosmo publisher Hearst Magazines, in an interview at his office at the top of New York’s Hearst Tower. Nearby, in Hearst’s tablet-filled App Lab, John Loughlin, Hearst’s executive vice president and general manager, put it even more bluntly: “I hope that this is the demise of $6 and $7 and $8 and $9 print subscriptions,” he said.
The Wall Street Journal
A key battlefield is emerging for suppliers of mobile chips—the low-end smartphone market in developing countries. Chip makers like Qualcomm Inc., Intel Corp. and Taiwan-based MediaTek Inc. are focusing on low-priced phones that typically cost less than $200, because the fast-growing market offers high volumes of sales. As a result, the companies are working with handset vendors in China and other emerging countries to increase their presence in the segment.
Qualcomm, the world’s dominant provider of wireless chips, has been working of late with Chinese electronics maker Lenovo Group Ltd., and the two last week introduced a couple smartphones that use dual-core Qualcomm chips typically reserved for pricier phones. While the devices from Qualcomm and Lenovo aren’t the first dual-core phones to hit the Chinese market, they are the first from Qualcomm to address the market’s low end.
The Wall Street Journal and the New York Times often disagree, at least in their editorials, but both are in agreement that the future of the newspaper will involve a healthy dose of video. It’s not surprising that the leading newspapers are branching out to video. The Web is clearly moving in a less static direction, and big brand advertisers will pay more for sight, sound and motion. Both sites have produced video over the years, and lately it’s starting to pay off in numbers that aren’t exactly YouTube, but aren’t anything to sneeze at either.
According to ComScore, the Times had 561,000 viewers and 1.6 million video views in June. The WSJ had almost 1.3 million viewers who accounted for 4.2 million video views that month. Each company professes to be feeling its way with its video strategy, with some divergences in tactics, but both believe it is becoming critical to their businesses — and news missions.
Wall Street Journal
Pentagon Sets Stage for U.S. to Respond to Computer Sabotage With Military Force
The Pentagon has concluded that computer sabotage coming from another country can constitute an act of war, a finding that for the first time opens the door for the U.S. to respond using traditional military force.
The Pentagon’s first formal cyber strategy, unclassified portions of which are expected to become public next month, represents an early attempt to grapple with a changing world in which a hacker could pose as significant a threat to U.S. nuclear reactors, subways or pipelines as a hostile country’s military. Read more
Wall Street Journal
Two years ago, the founders of eyewear company Warby Parker entered their idea in a business-plan contest—and lost.
This spring, the 15-month-old New York venture had to fight off would-be investors jockeying to write it a check. One firm was so desperate to invest in the company that its employees showed up at Warby’s offices four times in 24 hours, following up a dinner with offers of free breakfast and lunch. Read more