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Profitability of Online Distribution?
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<blockquote data-quote="MoogleEmpMog" data-source="post: 3464623" data-attributes="member: 22882"><p>Wizards puts out an amazing amount of content on the free portion of their site - if you're interested in any two of their games, there's easily a magazine's worth of content every month.</p><p></p><p>Writing fees, when you come down to it, are essentially meaningless to a publisher of even Paizo's size, much less Wizards'; Paizo paid between 5 and 10c/word for Dragon (I don't know the specs on Dungeon). I can't imagine that amounted to more than, say, $8000 an issue, if that. At the newsstand price, they would have to sell only 1,000 issues to cover those probably exaggerated writing fees - out of a circulation of tens of thousands. That's discounting ad revenue, of course.</p><p></p><p>I'm sure Wizards expects to sell at least a thousand subscriptions to their online service; between their various games, they probably get millions of visits each month; if even a tiny fraction pay for D&D content, they would easily cover the writing fees.</p><p></p><p>The big difference between online publication and print publication is that those (essentially minimal) writing fees are the ONLY cost. (There shouldn't be a significantly increased server load.)</p><p></p><p>I also suspect Wizards wants to push the non-magazine-style content with their new web launch. They may want to consolidate the magazines primarily as a way of introducing more people to the new things they're doing.</p></blockquote><p></p>
[QUOTE="MoogleEmpMog, post: 3464623, member: 22882"] Wizards puts out an amazing amount of content on the free portion of their site - if you're interested in any two of their games, there's easily a magazine's worth of content every month. Writing fees, when you come down to it, are essentially meaningless to a publisher of even Paizo's size, much less Wizards'; Paizo paid between 5 and 10c/word for Dragon (I don't know the specs on Dungeon). I can't imagine that amounted to more than, say, $8000 an issue, if that. At the newsstand price, they would have to sell only 1,000 issues to cover those probably exaggerated writing fees - out of a circulation of tens of thousands. That's discounting ad revenue, of course. I'm sure Wizards expects to sell at least a thousand subscriptions to their online service; between their various games, they probably get millions of visits each month; if even a tiny fraction pay for D&D content, they would easily cover the writing fees. The big difference between online publication and print publication is that those (essentially minimal) writing fees are the ONLY cost. (There shouldn't be a significantly increased server load.) I also suspect Wizards wants to push the non-magazine-style content with their new web launch. They may want to consolidate the magazines primarily as a way of introducing more people to the new things they're doing. [/QUOTE]
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