1. © 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

2. © 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

3. © 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

4. © 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

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

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

7. © 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

8. © 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

9. © 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

10. © 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

11. © 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

12. © 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

13. © 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

14. © 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

15. © 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

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

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

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

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

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

21. © 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

22. © 2009 Forrester Research, Inc. Reproduction Prohibited Thank you/Q&A Sarah Rotman Epps +1 617.613.6249 srotman@forrester.com @srepps www.forrester.com