Product Marketing Blog

With the Apple iPad, publishers will be able to charge prices similar to print books (but no higher).  While it’s nice that publishers get a bit more control on the iPad platform, I don’t really think they should charge the same price as print.  After all, there’s no printing, raw materials (other than content), shipping or stocking.  It’s the whole argument that we had when CDs came out – publishers were able to get away with large profit margins as the cost of the technology dropped (and they didn’t drop the price).  One could say that the market will set the price with whatever buyers are willing to pay.  True, but charging the same price for different delivery methods doesn’t really make sense either.  Time will tell.

Obviously Apple’s new iPad has been revealed (and I’m sorry, that’s a horrible name).  Silicon Alley Insider’s point reminds us that Apple’s product will indeed save newspapers – because of all the advertising spending Apple will be doing to promote the iPad.  I think newspapers do have a chance – not due to the iPad or any other device – only if they embrace the Internet and use a model that works.  It will require some hard decisions.