© 2012 Forrester Research, Inc. Reproduction Prohibited 1 © 2009 Forrester Research, Inc. Reproduction Prohibited Tablet Market Update Sarah Rotman Epps, Senior Analyst Prepared for the MPA May 22, 2012

© 2012 Forrester Research, Inc. Reproduction Prohibited 2 How is the tablet market evolving? How are magazines using tablets to engage customers? What is the future of magazines on tablets? Agenda

© 2012 Forrester Research, Inc. Reproduction Prohibited 3 April 2012 “Tablets Will Rule The Future Personal Computing Landscape” One-third of Americans, and 760 million people globally will own a tablet in 2016

© 2012 Forrester Research, Inc. Reproduction Prohibited 4 April 2012 “Tablets Will Rule The Future Personal Computing Landscape” 53% of tablets in 2016 will be iPads

© 2012 Forrester Research, Inc. Reproduction Prohibited 5 Tablets will soon broaden to include “touch-plus” PCs running Windows 8 Lenovo IdeaPad “Yoga”

© 2012 Forrester Research, Inc. Reproduction Prohibited 6 To succeed, tablets need a great marketplace Nook TabletAmazon Kindle Fire

© 2012 Forrester Research, Inc. Reproduction Prohibited 7 Google Play is an improvement over Android Market, but Google has more work to do Image source: play.google.com

© 2012 Forrester Research, Inc. Reproduction Prohibited 8 What it means for you  Tablets are reaching a scale that can’t be ignored  Tablets will be multiplatform but dominated by Apple through 2016  Other winners will be marketplace-centric platforms like Amazon  Your tablet strategy should prioritize iPad first, but scale across devices and platforms

© 2012 Forrester Research, Inc. Reproduction Prohibited 9 How is the tablet market evolving? How are magazines using tablets to engage customers? What is the future of magazines on tablets? Agenda

© 2012 Forrester Research, Inc. Reproduction Prohibited 10 Magazines replicate and extend content in the short term, while investing in long-term transformation ReplicateExtendTransform Transfer existing content assets to tablets Enhance existing assets with additional functionality Invent new content, functionality, or process for the device

© 2012 Forrester Research, Inc. Reproduction Prohibited 11 Digital editions replicate print content—and can now count toward your rate base Source: Martha Stewart Living app for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 12 Touch, video, cameras, and other device capabilities extend your content beyond the print replica Source: Better Homes & Gardens app for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 13 Transformative apps break away from the print metaphor—often because there’s no print reference Source: Atomix Mag, Gourmet Live apps for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 14 What it means  It’s ok to seize low-hanging fruit by replicating and extending existing content assets  Transformative apps get beyond the print magazine, and will require new processes and a new approach to content production

© 2012 Forrester Research, Inc. Reproduction Prohibited 15 How is the tablet market evolving? How are magazines using tablets to engage customers? What is the future of magazines on tablets? Agenda

© 2012 Forrester Research, Inc. Reproduction Prohibited 16 Magazines’ future: Convergence with… CommerceTVProductivity

© 2012 Forrester Research, Inc. Reproduction Prohibited 17 Magazines already face competition from retailers

© 2012 Forrester Research, Inc. Reproduction Prohibited 18 Magazines already face competition from retailers Source: Net A Porter Magazine app for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 19 TV networks produce content that’s strikingly magazine-like Source: Food Network Cupcakes! app for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 20 Magazines experiment with productivity apps Source: IdeaFlight app for iPad

© 2012 Forrester Research, Inc. Reproduction Prohibited 21 Key takeaways  Tablets are growing quickly and will reach one-third of US adults by 2016 –760 million people worldwide will use a tablet in 2016  You need a multiplatform approach to tablets—Apple will dominate but people will adopt tablets on multiple OSes with multiple screen sizes  It’s ok to seize low-hanging fruit first by replicating and extending print and PC assets, while investing in long-term process transformation  Future “magazine” products will converge with commerce, TV, and productivity applications

© 2009 Forrester Research, Inc. Reproduction Prohibited Thank you/Q&A Sarah Rotman Epps +1