To produce? Maybe for the content itself (although for the most part, content is shared between the two), but one of the biggest selling points for going digital is to save on printing costs and distribution. I do still have problems with some of the points this piece from Forbes brings up though on the content production side of things. I get that producing videos for a digital edition adds costs, but the idea that including more photos in the digital edition also raises costs is ridiculous — we’re just getting to see more from a shoot, the parts that usually end up on the cutting room floor.
The question of bandwidth could be an issue, but really, is there actually an alternative to releasing magazines for the iPad than through the iTunes App Store? The article gives Zinio as an example, suggesting that all magazines sold through that device are doing it through its own servers. Is Apple really not getting any cut from sales that are done through the iPad app though? If so, then I guess we can expect to see the release of a Conde Nast (or Time, Inc., etc.) app, that will house all of its magazines.
Update: A reader suggests that the point about the photos is not so ridiculous, considering that most photographers are paid for each photo published. I assumed they were paid for the shoots.