Thursday, May 9, 2013

Follow-up: The Loop and the TypeEngine model

Interesting day, two posts, two follow-ups. This one is on the post on The Loop, the new digital magazine from Jim Dalrymple.

Late this after the folks over at TypeEngine sent out an e-mail to those who have signed up at their site in the past, celebrating the release of the first Newsstand app to use their digital publishing solution. If you haven't see the post on The Loop, the new digital magazine from Jim Dalrymple you can read the original post here, or read the posts at The Next Web or Geekwire.

The big news from the e-mail isn't the app, of course, you already know all about that (or will if you click that link and read the story) it is about the pricing TypeEngine will use.

Like plug-in systems there will be no charge to sign up and play around with the system. The costs start when you decide to launch an app. There will be a one-time $99 app submission fee and a recurring monthly account fee of $25. You'll also get dinged for a 15 cent per download charge.

Running the numbers it looks like this: say you launch a Newsstand app and manage to sell 1000 issues. Your costs would be $99 for the app, $25 that month for the account, and $150 for the downloads. Total cost is $274. Assuming you charge $1.99 per issue you would have driven $1,990 in revenue, or which Apple gets $597 – you're left with $1,119, or 56 percent of the take. The next month you would not be charged that $99 fee, so your take would go up to 61 percent of the total revenue.

That's pretty reasonable, though TypeEngine's platform – at least as seen in The Loop – is pretty plain jane. But more titles are to be released this month, according to TypeEngine, so we'll see if there is more to it than the Kindle Edition-like look of the first Newsstand app.

The TypeEngine team says they are "still on track for a June release" so you'll want to check back in at their site to see if they've gone public or not soon.

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