Subscribe To A Newsapaper, Get An E-reader Free

from the make-it-up-on-volume dept

Well, this was bound to happen. Barnes & Noble is offering big discounts on its Nook e-readers to people taking out subscriptions to digital editions of magazines and newspapers:

The Nook edition of People is $9.99 a month; with a one-year subscription, customers will receive a Nook Tablet, a color device with a 7-inch display, for $199, a discount from its regular price of $249. Customers who buy a one-year subscription for the Nook edition of The New York Times for $19.99 a month, which includes access to NYTimes.com, will receive a black-and-white Nook Simple Touch free or a Nook Color for $99.

It’s that last deal that’s really striking: a free Nook when you subscribe for a year. The benefit is clear: once you’ve got your Nook, you’re quite likely to buy a few other titles to read on it, and that’s where the profit starts rolling in for Barnes & Noble.

It’s not hard to see Amazon following suit. After all, it is allegedly selling the Kindle Fire for less than it costs to make, so it has effectively adopted the same business strategy already.

The low-end models for both Barnes & Noble and Amazon are ideal for bundling free with newspapers and magazines, especially as hardware prices continue to drop. E-readers might even be offered free with e-books, provided people commit to buying a minimum number per year – traditional book clubs would be wise to try this approach in conjunction with Amazon or Barnes & Noble before those two do it on their own. Similarly, it can only be a matter of time before the newspaper and magazine publishers start offering combined hardware and software bundles as standard in an attempt to entice people to sign up for digital subs.

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Companies: barnes & noble

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Comments on “Subscribe To A Newsapaper, Get An E-reader Free”

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24 Comments
abc gum says:

This sounds familiar …

I do not recall the company name, but several years ago (10+) a company offered a computer for $100 if you signed up for their multi year service. There was a slight problem though, upon receipt of the computer the customers would cancel the subscription. This angered the company greatly and they threatened to sue etc. I never did hear what became of this, I suppose it encouraged adaption of the much hated Early Termination Fee.

Josef Anvil (profile) says:

Research

This just flies in the face of the studies that say piracy is killing content. NYT made a success of its paywall, despite all the other available news outlets on the web (FREE outlets).

I’m certain that a NYT subscription is not worth the discount on the Nook, but that doesn’t mean that a few million other people don’t feel different. So how exactly is piracy killing content ?

Anonymous Coward says:

The idea is sound (if not terribly original – hell the printer business has basically been doing this for year, selling the printers cheap, then charging you out the backdoor for ink).

Now if they’d start offering something I might actually want. $120 a year for People, for which I find next to useless, to save $50 on a Nook, is not a good deal.

Anonymous Coward says:

So let me get this straight, they are giving away FREE hardware (what some on this site have called a rare good) in exchange for your purchase of content (what some on this site have referred to as an infinite good). Therefor they are valuing the content more than the hardward. This is exactly how most people view the world, they are more interested in the articles, music, television show, movie, etc.. than they are in what they are using to view/listen.

Anonymous Anonymous Coward says:

Capturing the RMR

Recurring Monthly Revenue. That is what they are after. If a company can show a decent RMR then the financiers are much more likely to believe they have a sustaining source of cash flow. It worked for the cellphone industry, and for that matter the traditional telephone industry. RMR shows a much more predictable income source than future sales estimates.

I wonder just how creative companies will get with this type of business model?

Nick (profile) says:

I’m… not reading from this that you get “free Nook” for signing up, here you get a nook for $200 instead of $250 as long as you sign up for a years worth of People for $10/month.

If you are looking for a deal on a Nook, and also a sub to People, this may be for you but….

Who’s to say that by the end of the first year that Nook won’t have dropped on its own to 200 or less?

Chosen Reject (profile) says:

Re: Re:

Who am I kidding? You probably won’t even read my comment as far as this quote seeing as you somehow dropped off reading the article just a couple of sentences short of what you didn’t see, but I’ll try anyway

Customers who buy a one-year subscription for the Nook edition of The New York Times … will receive a black-and-white Nook Simple Touch free …

I know patience is a virtue, but it seems it’s also a virgin. It’s never been used.

Silence7 says:

AOL - Free Computers

Wasn’t it AOL that was giving away free computers through Best Buy if you signed a 2-year contract for internet access. This is the same kind of deal. Frankly I’d like to see more of this.

Amazon is already doing something like this with their “With Special Offers” Kindles. You see an ad on your powered off screen when your not reading, in exchange for a discount on the initial purchase price.

They.. B&N, Amazon, etc… Should develop some sort of Netflix for books. $15 a month for all the books you can read. Sign up for 2 years in advance, free reader. You can have one book loaded on your reader at a time (along with your other books/documents)

No Shipping
400-600kb file sizes (No streaming GB’s of data)
Profit!!

I have 8 people in my immediate circle with various reader hardware, and I believe all of them would sign up for a $15/month plan.

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