How to Sell and Profit from Digital Content

STEP 1. OWN YOUR PRIMARY DISTRIBUTION CHANNEL

In the print-media world, this was not possible. However, with the iPad Publisher today, any publisher can have their own digital storefront mobile app.

Publishers that own their primary distribution channel have a competitive advantage over those that do not:

• They control the inventory – ensuring that visitors to their store can only buy their work (and not the competition’s)
• They maximize profits by selling content direct to the consumer, and not through a third partyPublishers can advertise and market their app in confidence, knowing that they will benefit from any and all sales made via their app
• When customers read content they have purchased, they do so through the publisher’s app. This creates an opportunity to display new inventory, share news, stay connected with their audience, cross-sell, and create customer loyalty.
• When customers search iTunes for the publisher or their titles, they are found – resulting in more downloads and sales

For example, Marvel Comics has their own app which creates an immersive experience for their audience, and enables Marvel to maximize profits.

STEP 2. DISTRIBUTE THROUGH AS MANY SECONDARY CHANNELS AS POSSIBLE

Another option for publishers is to distribute content via “aggregator” apps. These are mega-malls of publications. The companies that own these apps fill them with content from as many publishers as possible.

Publishers that use aggregators as their primary mobile distribution channel are at a major disadvantage:

• Their content is stocked right next to the competition
• Aggregators stock thousands of titles, it is easy to get lost among the sheer volume of available content
• Publishers cannot market and promote their content in the aggregator with confidence, as marketing dollars may result in sales for the competition
• Aggregators take a percentage of all sales made via their app – so they win regardless

Marvel Comics also uses aggregators, but does so to their advantage: Marvel floods the aggregators with content for secondary distribution, but focuses on driving sales through their Marvel app (their primary distribution channel).

Simply by being in the aggregators, Marvel makes sales from the marketing dollars spent by other publishers that use aggregators as their primary distribution channel.