This is a part of the article. To read the full article go to: Advertising Age- Rolling Stone 2011

——————————————————————————————————-

Ad Age: What’s your take on selling magazines on the iPad and other tablets?

Mr. Wenner: It’s the same pretty much as I’ve said about the web. The tablet itself is a really fun device. Some

people are going to enjoy it a lot and use it. Some people aren’t. On this plane one person’s traveling with a

tablet, one’s not. There’s a certain trendiness to the thing. And it’s a great thing. But is it a good magazine

thing?

It’s a good magazine reading device, absolutely. And where it becomes more convenient to read the magazine

on that, that’s got the advantage. But that’s more convenient only if you’re traveling, if you’re away from home.

Otherwise it’s still easier to read the physical magazine, which is widely available on newsstands, at airports,

and everywhere. You can still subscribe to get it and get it on time. You still get all the value of the magazine.

I don’t think that gives you much advantage as a magazine reader to read it on the tablet — in fact less so. It’s

a little more difficult.

From the publisher’s point of view I would think they’re crazy to encourage it. They’re going to get less money

for it from advertisers. Right now it costs a fortune to convert your magazine, to program it, to get all the things

you have to do on there. And they’re not selling. You know, 5,000 copies there, 3,000 copies here, it’s not

worth it. You haven’t put a dent in your R&D costs.

So I think that they’re prematurely rushing and showing little confidence and faith in what they’ve really got,

their real asset, which is the magazine itself, which is still a great commodity. It’s a small additive; it’s not the

new business.

Ad Age: Well, you think for now, or you think forever?

Mr. Wenner: Oh I think down the road. Who knows how far down the road — years though and possibly

decades.

Ad Age: Not months.

Mr. Wenner: Not months. Decades, probably. People’s habits will shift, they’ll make improvements in the

delivery system, the screen will change, it will get lighter, whatever, and new people growing up will find that as

a habit. But you’re talking about a generation at least, maybe two generations, before the shift is decisive.

Look at the music industry as an example. I think it’s split about 50-50 between CDs and digital delivery. There

is a place where there are extraordinary advantages in the distribution delivery system. Otherwise the products

are indistinguishable; there’s no difference in the physical products as there is here.