European telecoms company says better e-readers will open subscription market

Dan Rogers - 27 May 2010

The telecoms industry is putting pressure on e-reader developers and finalising business models for subscription packages to newspapers and magazines.

A number of European companies are calling on display firms to create the fast response, colour devices needed to unlock the subscriptions market.

A leading telecoms firm in Europe, responding to an online article from +Plastic Electronics, revealed that the familiar setup of subscription business models for telecoms means that, should a device improve on the limitations of current products, it would be straightforward to put together compelling bundles of publication packages and subsidised e-readers.

E-reader suitability

The firm's spokesperson, who did not want to be named, told +Plastic Electronics that the devices themselves are the main stumbling block for subscription products. As telecoms companies would likely market their products in the same stores - and in a similar fashion - to mobile phones, monochrome e-readers with limited interactivity would not appeal in contrast to the high-tech products on display in the mobile phones section.

The company has been in contact with publishers and e-reader developers across Europe, as well as running trials with customers. It concluded that a device that can compare to the quality of other digital devices, while not detracting too much from the replication of reading print - the market e-readers will absorb - is the biggest barrier to success.

However, the inability to use the iPad, or other LCD-based tablets, outdoors in sunlight means that these products are unlikely to usurp e-readers as the hardware of choice for telecoms firms in the long-term.

Publishers

Though the e-reader itself is the biggest challenge, the telecoms company also revealed that publishers are now working on bringing their digital and print teams together to make digitising print publications easier.

While creating apps for the iPhone, for instance, is a simplified means of digitising content, an open file for multi-device usage will require more work.

Publishers and device developers are progressing at different rates, so it seems likely that smaller ventures such as the Hearst-financed Skiff may arrive earlier than packages from the telecoms industry.

The company spokesperson noted that a company of its size - one of the biggest brands in the industry - would need to have a fairly comprehensive range of publications in its packages before releasing offers; otherwise people would be disappointed that their particular subscription was not available.

For this reason, the activities of Hearst, or companies in Asia - where governments are funding the setup of complete supply chains - could provide the impetus for telecoms firms to respond later in 2010, according to the company's spokesperson.

+Plastic Electronics magazine provides exclusive, high-value content for the printed, plastic and organic electronics industry. To sign up for your copy immediately, contact publications@pira-international.com or visit our subscriptions page.