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Embattled publishers got some good news: Amazon’s launch of a new service selling online subscriptions, including digital magazines and newspapers, gives publishers access to its vast online retail customer base as a potential audience.
The new marketplace, “Subscribe with Amazon,” allows the subscription seller to create a customized detail page with product images, offering digital subscriptions, with the option for tiered pricing schemes where necessary.
The seller can also offer inducements, including free trials or introductory prices. Under the terms offered at launch, subscription sellers receive 70% of the sales revenue for the subscriber’s first year, rising to 85% for each subsequent year.
Will Amazon help or hurt publishers by selling digital subscriptions? In a small margin industry, losing 30% off the top in addition to discounts or incentives, may be painful.