Robin Wauters reports today in Tech Crunch, "Barnes & Noble is now heavily discounting (and even giving away free) NOOK devices with digital subscriptions to a magazine or newspaper, the first time a bookseller has ever done this type of promotion if I’m not mistaken."
Back then e-reader sales were sputtering in defiance of so many high hopes. One popular analysis held that the devices needed more features. Others thought slick interfaces and better form factors were the answer. "As soon as Apple properly address e-readers there will be no hesitation," wrote one foolhardy industry watcher on LinkedIn.
Months later came the iPad Spring that revolutionized the category and proved everybody right but me. But I hardly noticed, so thrilling were the times. The ungainly "e-reader" departed the lexicon and in flew the "tablet." Form factors, features and operating systems proliferated wildly. Intense competition kept prices flat while awesomeness climbed steeply. Indeed, some of the hungrier brands began selling devices at a loss in pursuit of market share. All the while, the only fixed variable in tablet sales was content.
Until now. Credit the intersecting challenge of monetizing digital publication, particularly of periodical journalism. All that stuff that used to be free on the Internet and that people weren't happy to pay for once the publishers erected paywalls. The marriage of paid subscriptions and free tablets (details here via Wired) works to close gaps in the perceived value of each.
In 2009, reported Forrester Research, roughly three million e-readers of all types were sold. Granted, there were only a few types. In 2011, reports Computer World, Apple sold 40 million iPads. No doubt sales will continue to rise. But increasingly the buyers will be publishers themselves. They will subsidize the cost of putting devices in people's hands as the enticement to get them to pay for digital content.
