Digital Magazines - Is the Price Right?

I've been noticing the increased availability of digital magazines, which are available via outlets such as the iTunes store (Magshop) and Zinio ("the world's largest digital newsstand").

I like that digital magazines are a modern way to indulge your interests and offer features that traditional print media cannot. For example, the Masterchef Magazine iPad app also offers the reader interactive features such as video, behind-the-scenes footage and "Cook Mode", which enables recipes to be displayed in a larger font for use in the kitchen (ballsy move against the underwhelming Telstra T-Hub?).

 

However, I find myself questioning the pricing behind digital magazines, and considered the following points:

• I feel as though a part of the price consumers pay for printed magazines is partially to have a tangible product in hand (likewise with newspapers). Digital magazines are often hefty downloads and can be can be priced very similarly to its printed counterpart.  Sure, where the digital version doesn't deliver on the 'tangibility USP', it delivers value via other features such as the interactive options mentioned above. Still, does this merit the price of the digital product? Isn't it possible that there are other ways to entertain one's interest? One way could be through other apps, which arguably don't interrupt the consumer with as many advertisements as a magazine has the potential to do.
• I feel the digital costs aren't as justified as it is often a case of uploading and leveraging off the outputs of the printed version.
• I suspect that digital magazines are an approach to boost slipping readership and circulation rates of traditional print media (including newspapers), but this trend may face its own problems if  the digital version is perceived as too expensive to download.
• On the other hand, I understand that the connotations of lowering a product's price and how it can affect its brand positioning. (Significant discounts of Gourmet Traveller may not reflect its brand values.) Also, magazine publishers would also need to recoup their costs and maintain margins despite shifts in consumption habits.
• A printed issue of Masterchef Magazine costs $4.95. According to the iTunes store, the current and two latest back issues are priced at $2.99. With the digital version costing 40% less than the printed version, the deliverance of value may be achieved. As someone who has a subscription to Masterchef magazine, I would certainly be pleased if this was offered to me as a type of "gift with purchase". Think of what this can do to increase long-term usage and loyalty!

The digital front cover of the current issue of Masterchef Magazine is nearly identical to the print version (shown), except the digital version obviously does not show the barcode and the price.

Overall I'm still sceptical about the cost of digital magazines. I don't feel they should be free, but would prefer to see them offered as such when the consumer has purchased the printed version.


What do you think?