http://paidcontent.org/2012/03/20/419-social-magazine-apps-grapple-with-advertising/ The economics of digital content Sun, 19 May 2013 00:21:01 +0000 hourly 1 http://wordpress.com/ http://paidcontent.org/2012/03/20/419-social-magazine-apps-grapple-with-advertising/#comment-88261 Tue, 20 Mar 2012 18:20:17 +0000 http://gostage.paidcontent.org/419-social-magazine-apps-grapple-with-advertising/#comment-88261 Someone needs to draw a big circle around this transaction and understand how value flows between the various parties. At the end of the day, how has Forbes benefited by permitting another entity to gain audience through using its content, even though there are promotional effects? As Flipboard continues to build a gorgeous reading experience, there will be decreasing incentive for readers to travel to Forbes’ products to get their content (and Flipboard’s market power will continue to increase). I’m fine with experimentation, as we don’t know which business model will ultimately prevail, but there seems to be a lot of hand-waving regarding the benefits to traditional publishers. I suspect that Flipboard is the bigger winner here.

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