Better Homes and Gardens remains one of the highest-circulated publications in the United States: more than 7.5 million issues per month, with an audience of 39 million readers. Publisher Meredith Corporation (NYSE:MDP) only brought its magazines like Better Homes, Fitness and Parents to the iPad in March, meaning its digital edition business still is a growing concern — and an increasingly important one considering both advertising and circulation revenue at the company have declined over the past year. Cheaper tablets that can push those digital magazines can help recover some of those losses. Like MHP, Meredith likely won’t climb back to 2007 share prices anytime soon, but at this point, any help is welcome.
The New York Times Co.
The New York Times Co. (NYSE:NYT) was in need of some good news. Even though the company turned in strong second-quarter earnings in July thanks in no small part to digital ad sales and its paid subscription service, third-quarter ad revenues are expected to be worse than forecast. However, more digital reading device users for NYT to hock its electronic wares could translate to steadier earnings for the company going into 2012. That’s not to mention the company’s fleet of web businesses that can sell new apps to Kindle Fire and iPad users.
It is Amazon the publisher more than Amazon the retailer that will benefit from the growing tablet market. The company’s numerous new publishing imprints continue to line up major releases. Now with an entrenched place in the e-reader market, a competitive tablet of its own and control of approximately 40% of e-book sales on the iPad, Amazon is an even greater threat to competing publishers that rely on the company for distribution.