"... The news is important for Flipboard, because it marks the first time the startup has convinced a big publisher to give it full access to its “premium” content. ... Now the paper says it will emulate cable TV’s “TV Everywhere” strategy, where paying subscribers can read the paper using any device or software they want...."
Outsourcing the distribution technology. A sure sign other paper might think the same but will they use Flipboard or another platform?
Any details on the revenue share between NYT and Flipboard? Does Flipboard get anything if viewers use read content through their app, through in-app signups, etc?
"... The partnership involves an advertising revenue split between The Times and Flipboard. The Times will sell full-screen ads that appear between its Flipboard pages, which are intended to be more attention-grabbing than conventional Web advertising...." ~ http://bits.blogs.nytimes.com/2012/06/25/flipboard-in-conten...
It would be interesting to know how they analyzed this decision. Besides losing readers to the web, one of the major problems newspapers face is that web advertising revenues are much lower than print advertising revenues. With a revenue split, they are whittling away at that revenue even further. While they are probably hoping for additional readers through Flipboard, there's a good chance that they will just be cannibalizing existing readership.
"... one of the major problems newspapers face is that web advertising revenues are much lower than print advertising revenues. ..."
Interesting observation and one I found when I read an article on LWN today about advertising vs subscriptions ~ https://lwn.net/op/FAQ.lwn#subs Note that Flipboard's McCue is reported saying:
Wow, 10-15x is an impressive markup. I'm skeptical that those rates will hold after the newness of Flipboard wears off. Your typical marketer might want to see those rates justified by proportionally higher conversions.
Flipboard ads are primary full-page ads, and full-page ads go for 10-15x more than banner ads.
A banner is easily ignored, and there tend to be competing banner ads on an individual page.
Full-page ads are invasive---you can't ignore them and must move past them to get to the content, and there is only one of them per page. Due to this, full page ads command a premium. They're seen as a 'reasonable' alternative to popups or popunders which go for similar rates.
Outsourcing the distribution technology. A sure sign other paper might think the same but will they use Flipboard or another platform?