You still seem to miss the point that the origination costs are the same on-line or in print, and that makes up the lion's share of the costs. Running a magazine is like producing a new product every month, that is only on sale for that month, and doing the same thing again next month. The NRE (editorial costs) gets amortized over the product's lifetime, which in this case is one month. If the NRE is big enough the production costs fade toward irrelevance.
No, I haven't missed the point at all, it stands to reason that the same costs of preparing the magazine are there what is not there is what you reckoned was the wholesaler/newsagent cut i.e the distribution costs, which you thought was about 50% of the cover price, none of which are required for online magazines and also I used the cost that you estimated it cost for "September/October 2017 issue of elektor had 132 pages, so it will have cost at least £42,240 to print"
I'm not looking for an argument or bad feeling, just merely using your figures that you quoted and taking a layman's view that if the wasted by products could be eliminated the price could be reduced and circulation might and I would certain expect it be to the case, should actually increase and that online magazines could possibly become viable and would be greener in the process.
No, it's OK, I don't think you're spoiling for a fight.
I just don't think that you can expect people to still pay the printed cover price for an on-line only/PDF-only version. That's where I think your numbers fall apart. Once we get beyond that to debating what effect price will have on readership then I think we're just both trying to grope our way towards figuring out what would work in practice.
The cover price for individual copies of Elektor is £9.95, the price for PDF only individual copies is £6.95. The price for a six issue annual subscription (print + PDF + website member access) is £65.95, and a six issue subscription (PDF + website member access) is £48.95.
If that represents a true assessment of the discount the market expects for PDF only versus print, then the PDF 'cover' price can't be higher than 74% of the print cover price. As that is very close to 75% and they probably did their original calculation in euros, then adjusted prices to the magic X.95 format, I suspect it's an arbitrary figure, not a scientifically derived one. Anyway, nevertheless, I think it supports my argument that there is an expectation of a discount for PDF only access - in this case 74% of the cover price for the subscription with 'member benefits', 70% for individual copies.
Further, as I've already said, I'm far from convinced that a lower price translates into
significantly higher sales. It might buy you a few, but I don't think it's enough to produce significantly higher net income overall. My suspicion is that the market is close to saturation, and that it's not a very price sensitive market. People who've £100s to spend on test gear, components and cases aren't going to be particularly sensitive to a few quid one way or another on related magazine prices. Again, that's one for someone with some real economics chops and data to figure out; the best
we can come up with is gut feeling on that particular point. The closest we could come to empirical data on that point would be to run a poll on here - at least we have the target audience at our fingertips.
For what it's worth I tend to agree with your perception that current prices feel too high. That is not, however, the same as saying that they are objectively too high for the costs involved. Again, from experience, I know that publishers hate putting up cover prices almost as much as readers hate them going up and aren't want to raise prices unless circumstances force their hands.
Content is another matter, and I, like you, find recent content in electronics mags much less compelling than older content. If there's a leap in improvement to be made, it's probably here. If content is compelling, then reading the start of an article on the news-stand can make you say "Stuff, the price, I
must read this article". This could, of course, lead us into a circular argument about the nature of a printed news-stand magazine that can be easily previewed versus a PDF that can't
Also, there is a risk of losing news-stand readership by converting to PDF only. I can't quantify that, but I'm certain that some readers would fall by the wayside that way. There will also be some holdouts that just won't covert from paper to PDF, whether that's a significant number is debatable, but there will be
some. Those together would have to be
more than offset by any gains in readership from a reduced PDF only price.
I do know that if I was having this debate in an editorial meeting that the debate would be at least as confused as here, and at least 20 degrees hotter. Second guessing your readership is one of the hardest things to do in publishing, and is definitely more of an art than a science.
I'm getting cross-eyed here, time for bed...