abraxus
Well-Known Member
I imagine that financially they can undercut paper mags but choose instead to make a higher margin on digital sales. Although there is higher cost to publishers in terms of the transaction costs when Google/Apple or whoever are taking a cut of the revenue.
I presume the thinking is that when faced with walking down to Smiths to buy a magazine, or clicking a button and having it magically appear in front of you, then many will choose the latter and cough up the extra for the convenience.
People are often less price sensitive when indirectly paying for something via an online account than when parting with cash or making a card payment, and so I guess digital goods take advantage of this "convenience" factor.
I presume the thinking is that when faced with walking down to Smiths to buy a magazine, or clicking a button and having it magically appear in front of you, then many will choose the latter and cough up the extra for the convenience.
People are often less price sensitive when indirectly paying for something via an online account than when parting with cash or making a card payment, and so I guess digital goods take advantage of this "convenience" factor.