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Caso zinio Technology Review Caso zinio Technology Review Document Transcript

  • TECHNOLOGY REVIEW C A S E S T U D Y Technology Review finds incremental profits in digital magazine sales C H A L L E N G E To increase the circulation and profitability of a con- BUSINESS CHALLENGE Undoubtedly, Technology Review has withstood the sumer magazine amid Technology Review searches for test of time. But like many publishers, it still faces increasing competition circulation growth and profitability challenges—building profits through greater circulation Talk about longevity. Technology Review magazine and addressing the evolving interests of its audience. was founded over a hundred years ago—in 1899 S O L U T I O N by the Massachusetts Institute of Technology (MIT)— Magazines move from lap to laptop To deliver the digital version as a clearinghouse to disseminate information about In late 2001, with their audience in mind, Martha of its magazine, Technology technology. MIT evolved Technology Review into a Connors, vice president and general manager at Review chose the Zinio™ consumer magazine in the 1980s, but circulation Technology Review, Inc., and her team began to service consisting of Zinio never exceeded 100,000. Although it had a dedi- explore the possibilities of distributing the magazine Reader™ software on the cated core of readers, the magazine was losing in digital format. Initially, this was driven by their subscriber’s computer, com- money and was too small to be sustainable in the curiosity about the potential for digital delivery. prehensive circulation and fulfillment programs, produc- consumer space. To increase its impact on society “We thought it was cool,” she says. tion services and a digital and turn a profit, the Technology Review staff magazine distribution system needed to find new ways to boost circulation. But then it became apparent that a digital magazine could become an additional channel of distribution In 1998, the magazine was relaunched with a new for Technology Review, adding to circulation and B E N E F I T editorial mission—to promote the understanding of profitability. Connors saw the new format not as a Sales from the additional emerging technologies and their impact on business replacement for the print version, but rather as a digital distribution channel and society. Technology Review was spun out of way to attract new readers. Because content could add to profits with minimal MIT and repositioned from serving scientists to be reused from the print version, the digital format additional investment and helping a broader audience of people better under- would require very little incremental investment. provide an enhanced user stand technologies that are about to be commercial- Plus, a digital magazine format seemed to fit per- experience through immedi- ized—now, many of the readers are business and fectly with the interests of tech-savvy Technology ate delivery and interactive capabilities available only technology executives. Review readers. with the digital magazine The relaunch was a great success. Technology But there were questions. Would a digital version Review has grown to a circulation of 315,000 and is of the magazine cannibalize the print version? profitable. Although still owned by MIT, the magazine Would people actually read a digital magazine? operates as an independent company and maintains Would the large file size deter readers from down- a feature-rich Web site that supports the same edito- loading it? And most importantly, would readers rial vision as the print counterpart. find enough value to renew their subscriptions year after year—the key to profitability?
  • BUSINESS SOLUTION computer. “Avid magazine readers value the brows- Zinio helps Technology Review readers ing experience, not the ‘hunt and peck’ searching of see clearly—digitally the Web,” Connors says. “Zinio brings the proven Many of the digital magazine distributors that magazine reading experience to digital delivery with Technology Review initially evaluated lacked the elegant added benefits and conveniences.” user experience that was needed for an audience that was already discriminating about technology. Moreover, For subscribers, the Zinio Reader, shown in Figure 1, ads did not appear as high-quality images—a signifi- unlocks a unique reading experience that extends cant obstacle for a magazine. the print metaphor with features available only from a computer: Then Connors and her team discovered Zinio—a leading • Automatic magazine delivery to a desktop, laptop digital magazine provider, or tablet PC at the same time that the magazine today having distributed over hits the newsstand (especially important for 7.5 million magazines to foreign subscribers) more than 650,000 readers. • Access to magazines anytime and anywhere Zinio now delivers over (online or offline) 70 titles to more than 200 • Ability to view rich-media content, such as animated countries. Impressed with GIF files, Flash* animations, sound and video, for the appearance and function- an enhanced reading experience ality of the Zinio magazines, • Access to archives of the magazine’s past issues Technology Review began to • Ability to highlight sections of text or insert notes work with Zinio in mid-2002 • Ability to send a free magazine copy to a friend to distribute the digital or colleague via a “Send to Friend” feature Figure 1. The digital version of Technology Review is read version of the magazine. • Keyword search capability using the Zinio Reader • Links to Web content referenced in articles and For Connors, choosing Zinio was easy. “I was very advertisements impressed with the image clarity and overall user experience that Zinio provides. Our test with sub- The rich-media content enabled by the Zinio Reader scribers went very well,” Connors says. “From the offers key benefits to publishers, readers and adver- easy downloading to the searching capability to the tisers. For example, with just one click of the mouse, quality of the display of advertisements, Zinio has a static photograph of a research instrument instantly enabled us to offer a reading experience that is becomes a video demonstration of the tool. This superior to print media.” greatly enhances the publisher’s ability to convey complex thoughts. It also provides a more engaging Zinio enhances the reading experience reader experience, adding value to the digital mag- Publishers have long used the Internet to display azine subscription. In addition, advertisers can use content. However, the digital magazine represents a rich media to engage more readers. Zinio compresses significant departure from simply posting content to magazines so that readers can download issues the Web. First, subscribers automatically receive easily, even those that offer a wealth of rich-media their digital magazine at their desktop, so they do features. By leveraging these capabilities to see not have to go to a Web site to get it. This obviously more ads and sign up more readers, magazine pub- results in a delivery metaphor similar to print publi- lishers can add revenue. cations. Also, the Web user interface is different than print. For example, a Web user typically scrolls The Zinio Reader is well suited to the needs of down or clicks “next” to get to the next page, while mobile and wireless users. The client software auto- users of digital magazines flip from one page to the matically downloads magazines from the Zinio server next—again, similar to using a print magazine. to the user’s desktop so that users can read maga- zines whether they are connected to a network or According to Connors, Zinio magazines bring the not. If the user becomes disconnected for any rea- reading styles of print magazine readers to the son, and then reconnects later, the partial download TECHNOLOGY REVIEW CASE STUDY
  • will continue from where it left off. Designed to run of hardware, including high-performance PCs based on a variety of clients and preinstalled on various on the Intel® Pentium® 4 Processor with HT Technology tablet PCs, the Zinio Reader gives travelers access and notebook computers based on Intel® Centrino™ to their favorite publications, at any time and at any mobile technology. The Intel Pentium 4 Processor location in the world. with HT Technology gives readers the power to better We are constantly run multiple applications at the same time. For Zinio helps publishers spend less to gain example, you can browse a digital magazine while seeking cost-effective more new subscribers downloading photos from a friend’s Web site and Digital publishing with Zinio is a simple extension of listening to your customized music playlist—all at ways to increase our what publishers are already doing. The publisher once. The integrated wireless LAN capability of note- simply provides Zinio with the same files—such as books based on Intel Centrino mobile technology readership. Zinio has PDF or QuarkXPress* files—that would normally be enables Zinio to automatically suspend and resume sent to a printer. “Magazine publishers do not have downloads based on the status of network connec- enabled us to attract to reinvent their workflows to take advantage of Zinio tivity. Internally, Zinio developers use Intel tools, services and benefit from digital delivery,” says Pam such as the Intel® VTune™ analyzer, to optimize the a new type of reader Horan, vice president of marketing at Zinio Systems. performance of the Zinio Reader on Intel processors. with minimal effort Zinio also provides comprehensive sales, circulation Intel servers power the service and distribution programs for publishers. Zinio handles To meet the needs of both publishers and sub- everything from sourcing the customer to handling the scribers, Zinio relies on more than twenty Intel® and investment. transaction and fulfillment. “Completely turnkey maga- processor-based Dell PowerEdge* servers, which – Martha Connors zine distribution can help publishers acquire and serve use either the Intel® Xeon™ processor MP or the Intel VP and General Manager new customers at a lower cost,” Horan says. In addi- Pentium 4 processor. According to Graham Golder, Technology Review, Inc. tion, Zinio ensures that the publisher’s content is secure vice president of engineering at Zinio Systems, Zinio by binding digital rights management into each issue. chose Intel® architecture-based servers because they offered the best combination of performance Publishers use Zinio to spark advertising interest and price. “The Intel architecture-based servers play In a tough advertising climate, Zinio has enabled a key role in the performance and capabilities of all Technology Review to give its advertisers something the services that Zinio provides to its publishers to cheer about. Connors says, “Advertisers have been blown away by the fact that you can embed sound, animation and other forms of rich media into digital LESSONS LEARNED advertisements.” Although advertising agencies are just beginning to recognize the potential of digital • Because it is human nature to devalue “intangible” products (digital mag- advertisements, Connors sees interest growing. azines included), show your readers the value-added features of digital publi- “A leading automobile company, which recently used cations. Technology Review positions the digital format as the same content Flash animation in an advertisement, is eager to use at the same price, but with a number of added benefits. more rich media in the future to gain a leading posi- tion in this emerging area of advertising,” she says. • Target your readers carefully. Digital magazines appeal to those who travel, have broadband Internet connections, prefer to receive information and news An Intel processor-based distribution online and are open to trying new technology. system helps Zinio deliver • Although most readers of digital magazines will have high-speed Internet The Zinio service utilizes Intel® processor-based access, try not to let file size exceed 15 MB per issue. servers for the production, publishing fulfillment distribution and delivery of all of its digital magazines. • When catering to the technology-savvy, never underestimate the power of “cool.” Innovative products on the forefront of technology (such as a Zinio-based Zinio Reader offers a high-performance reading magazine) are exciting to this audience. experience To promote an exceptional reading experience for all • Digital magazine readers value applications that leverage the latest technologies. users, Zinio is working closely with Intel to ensure Mention that Zinio uses servers and client software optimized for the latest Intel that its client software runs optimally on a wide range processors to provide a high-performance digital reading experience.
  • TECHNOLOGY REVIEW CASE STUDY Intel Technology Intel® Pentium® Xeon™ Processor Intel® Pentium® 4 Processor with HT Technology publishers, Zinio servers provide support for circula- Intel® VTune™ Performance Analyzer tion, production, fulfillment and tracking services. Technology Review attracts new readership with Zinio Technology Review uses the digital version of the magazine to increase circulation and advertising and readers, from e-commerce functionality to fast interest with minimal incremental investment. downloads,” Golder says. “After performing bench- According to Connors, the digital magazine costs the mark testing, we knew that Intel architecture-based company about one-third that of the print version. servers offered the performance we were seeking “After one year on the market, Zinio has attained at the lowest price.” a circulation of 30,000 for the digital version,” Connors says. “Half of that is coming from subscrip- As the volume increases, Zinio can simply add servers tion agents, while the rest is coming from e-mail to address the growing demand. Says Golder, “We campaigns and the Web site.” also have the ability to repurpose our servers quickly according to need, which helps us respond efficiently International customers respond favorably to the digi- to any new customer or business demands.” tal version, citing lower cost and immediate delivery as key benefits (international subscriptions are the As shown in Figure 2, the Zinio server infrastructure same price as domestic subscriptions). “Readers are provides redundant services that benefit Zinio and its impressed with the fast delivery of the magazine, the readers/end users and publishers. For readers, the ability to access magazines while traveling, the archive Zinio servers manage the e-commerce functionality for and search features and more,” says Connors. the purchase and distribution of digital magazines. For Going forward, Technology Review plans to continue to CRM (customer measure results of its new Agent sales relationship (e-commerce) management) digital format, especially renewal rates. More rich media in editorial and advertisements can be expected. “Because Production Magazine Zinio Internet services distribution Reader greater circulation is our goal, we are constantly seeking cost- effective ways to increase our Publishers’ readership,” Connors says. fulfillment and Audit and circulation reporting “Zinio has enabled us to attract services a new type of reader with minimal effort and investment.” Figure 2. An Intel processor-based server infrastructure manages essential services for Zinio and its publishers and readers THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL INTEL OR ITS SUPPLIERS BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMA- TION) ARISING OUT OF THE USE OF OR INABILITY TO USE THE INFORMATION IN THIS DOCUMENT, EVEN IF INTEL HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. BECAUSE SOME JURISDICTIONS PROHIBIT THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAM- AGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. Intel and its suppliers further do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within this document. Intel may make changes to this document, or to the products described therein, at any time without notice. Intel makes no commitment to update the document. Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel prod- ucts as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing. For more information on per- formance tests and on the performance of Intel products, reference http://www.intel.com/performance/resources/limits.htm or call (U.S.) 1-800-628-8686 or 1-916-356-3104. Zinio Systems, Inc. Intel, the Intel logo, Intel Xeon, Pentium and VTune are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States 8000 Marina Boulevard, and other countries. Zinio and Zinio Reader are trademarks or registered trademarks of Zinio Systems, Inc. Suite 300 *Other names and brands may be claimed as the property of others. Brisbane, California 94005 Portions Copyright © 2003, Intel Corporation. All rights reserved. 253924-001 www.zinio.com Portions Copyright © 2003, Zinio Systems, Inc. All rights reserved.