But Condé, like other publishers, says Apple (AAPL) won’t actually talk to the company about its plans for the device, or even acknowledge that it has plans.*

Condé’s plan, meanwhile, is to create digital versions of its magazines that will work on all the upcoming tablets, using new software from Adobe (ADBE). Those tablets aren’t actually on the market yet, but the publisher says it’s confident that we’ll soon see multiple versions of machines featuring large color touchscreens and wireless connections.

So who’s going to make those gadgets? Condé Nast CEO Chuck Townsend says his company is working closely with Hewlett-Packard (HPQ) and that it has also been communicating its plans to Apple. But Townsend made a point of saying that Apple executives themselves refuse to acknowledge that they’re actually planning a tablet: “They’re not talking to anybody openly,” he says.

Adobe is creating a publishing tool for the new format, as well as magazine-reader software that may come pre-installed on the devices or may require a download. The software company says it is working exclusively with Condé now, but will offer its tools to other publishers next year.

[Important technical point several readers have brought up: Adobe says its new reader software will run using its AIR platform, which works on multiple operating systems, including Apple's desktop system. But neither AIR nor Adobe's flash software works on Apple's iPhone, so if the new mystery device runs on that operating system, there's a problem. I'm following up with Adobe to see what it has to say. UPDATE: Here's Adobe's response.]

Condé says its work with Adobe won’t preclude the company from joining the “Hulu for magazines” storefront/distribution joint venture it has been discussing with Time Warner’s (TWX) Time Inc. and other publishers. “Those discussions are ongoing and important and imminent,” Townsend says.

Okay. So what will Condé’s magazines look like once the tablets appear? The publisher has been showing a demo video to advertisers, industry executives and employees, and I’m trying to convince the company to show it to the rest of the world. (UPDATE: Here’s a partial, low-quality version of the video).

But until then, you can get a sense of it by checking out the publisher’s first attempt to port a magazine to the iPhone, which was released today at the iTunes App Store.

Like the iPhone version of GQ’s December issue, Condé says its tablet magazines will feature the same content found in the print versions, including original advertising, with the ability to view pages in their original form or in formats designed specifically for the device. They will also import multimedia content, like videos, and offer the ability to synch up with social networks and other Web sites.

Condé also thinks the business model for its tablet mags will mirror that of its iPhone app. The company intends to charge readers for each title, and it plans to convince the Audit Bureau of Circulations, the magazine industry’s standards board, that its online sales are equivalent to newsstand sales. That will allow Condé to charge advertisers the same rate as for print ads.

If all of this works, it’s a dream scenario for Condé and other publishers. The magazine industry gets to keep the revenue streams its print publications generate without having to make the “analog dollars for digital pennies” discount that the Web requires. Meanwhile, Condé gets to bask in the benefits of digital–lower distribution costs, more engagement with readers.

Or put another way: Publishers hope the new devices will repair all the value destruction the Web has wrought.

But all of this assumes that consumers, who’ve shown no inclination to pay for this stuff on the Web, will be willing to pay for it once it appears on devices no one owns yet. We’ll find out soon enough.

*One possible exception is the New York Times (NYT), where editor Bill Keller refuses to talk about possible talks with Steve Jobs and company.

Tough times have forced many papers to rethink their circulation strategies. An obvious conclusion: Much of the money publishers were spending to print and deliver dead trees has gone to waste. New strategy: Print fewer copies, and charge more for the ones you do sell.

That’s a tactic, not a strategy, but in the near-term it might work.

In its last quarter, for instance, the New York Times (NYT),  saw its daily circulation drop by more than seven percent, but saw circulation revenue jump 6.7 percent, due to price increases. Last spring a single copy of the Times at a newsstand jumped from $1.50 to $2.00, and a Sunday Times now costs a staggering $6. But people are buying them.

Meanwhile, News Corp. (NWS), which owns The Wall Street Journal as well as this Web site, has been steadily increasing the WSJ price. And circulation revenue is up at the McClatchy (MNI) and Media General (MEG) chains.

Again, the industry can’t shrink its way to recovery. There are fewer people paying for news–on or offline–than there have been in decades, and there’s no way to paint this as a positive. But the people who still subscribe to papers value them, and it would be foolish not to capitalize on that. Editor & Publisher:

There are several reasons as to why circulation keeps dropping, aside from former readers who have kicked the print edition to the curb. Publishers have been purposely pulling back on certain types of circulation, including hotel, employee and third-party sponsored copies. No longer are they distributing newspapers to the outer reaches of the core market. The cost of delivery and the cost of materials have forced publishers to scale back.

Another shift has occurred: volume has taken a back seat to dollars.

Several major newspapers across the country have aggressively hiked prices of single-copy and home-delivered papers in search of circulation revenue and a renewed focus on loyal readers. Circulation is guaranteed to go down as prices go up, but publishers have opted to wring more revenue from readers as advertisers keep their coffers closed.

The publisher plans to start selling digital copies of its print titles via a yet-to-be-approved app. Condé will start with the December issue of GQ, which it will sell for $2.99 (versus a newsstand price of $4.99), but the idea is that the publisher can use the same technology to sell other issues of other magazines down the road.

Condé says the GQ digital issue will replicate the print one on a page-by-page basis, including the ads. Digital bonuses include related videos, as well as links to sites for products (clothing, music, etc.) featured in the issue.

I wasn’t able to attend Condé’s presentation this morning, so I can’t tell you how its attempt to transfer a rich glossy magazine onto a phone (or iPod touch) actually works. But for now, I’ll take the company’s word for it and assume that it’s a nice alternative to carrying around some dead trees.

The interesting question is the business model, which I think has some real potential. This doesn’t solve Condé’s core problem–its costs are too high to support its shrinking ad revenue–but it does have several things going for it.

For one, this approach reaches its potential readers where they are: I don’t want to read a magazine at my desk, and I’m far from sold on the idea of buying a specialized reader to consume it digitally. Getting it to me on my phone, which goes wherever I do, is the way to go.

It also generates some (potential) additional revenue for Condé Nast right off the bat without creating a channel conflict with its analog product line: Condé will be able to count any magazines sold via its app platform toward its audited circulation numbers, a trick that no publisher has been able to pull off with Web products so far. Meanwhile advertisers in the print publication who want to add digital links to the iPhone version will pay a premium, Condé says. And the publisher has been able to extract additional dollars from Grey Goose and Gillette, which will be “premium sponsors” of the GQ issue.

Bonus upside: Condé says the technology it has assembled for this effort should work well for future Apple (AAPL) products, like, say, its mythical tablet. “We think that the minute Apple is ready, if they ever are, to announce that they’re going forward with a tablet, that we’ll be ahead of everybody,” says Sarah Chubb, president of Condé Nast Digital.

This doesn’t solve the distribution issue that Condé and other publishers have with Apple, Amazon (AMZN) and other potential digital delivery outfits: Apple, not Condé, will control the billing relationship for the app. But then again, Condé doesn’t get to interact with you when you buy a magazine at a newsstand either, so at least it’s not getting disintermediated.

The question, as always, is whether customers are willing to pay anything at all for content they’ve been getting free on the Web. I still think we’re going to end up with a small segment of people willing to pay up for specialized stuff and a very large group that are going to end up with free things of dubious value. It would be great to be proved wrong, though.

The story went up on VF.com six days ago and has generated just under two million page views since then, says executive online editor Michael Hogan. (Disclosure: I’ve been a free-lance contributor to Vanity Fair’s “New Establishment” list in the past and will be again this year). Had Palin not made her blockbuster announcement on the Friday before the Fourth of July, the piece would be doing even better: Vanity Fair generated more traffic on the Tuesday the story was posted than the day after Palin made her news.

Still, it’s a big coup for the magazine’s site. The only way to generate more attention would be to run a slideshow featuring young attractive women.

Which the site can also do: Its story-and-photo package on Jessica Simpson, which ran in May, attracted 5.5 million page views to the site over a two-day period. Vanity Fair has generated 85 million page views so far this year, Hogan says.

And if you really want to generate traffic, run slideshows featuring very young attractive women. Last year the magazine’s 18-picture slideshow featuring a kind-of-topless Miley “Hannah Montana” Cyrus attracted some 18 million page views in a couple of days.

None of that will be terribly surprising to people who’ve wallowed in Web publishing for any amount of time. What surprised me a bit, though, was Vanity Fair’s decision to publish the piece in its entirety from the start. Doesn’t that cannibalize newsstand sales?

Maybe, says Hogan. But “it’s an open question as to what costs newsstand and what doesn’t.” And as the magazine tries to figure that out, he says, it has been experimenting. Some stuff goes up online before the magazine hits newsstands, while other pieces won’t appear on the site until a month later.

In the case of the Palin piece, the magazine had originally prepared to run an excerpt/summary of the story at first, then make the whole thing available by the end of the month after the news cycle was extinguished.

But on Friday, June 26, a few days before the excerpt was scheduled to run online, the magazine rethought its plan, assuming that the piece would be widely quoted and discussed before most people would ever see it. “The PR department started getting concerned that it was going to be controversial, and they wanted people to read the whole thing, and draw their own conclusions,” Hogan says. The final call went to Editor-in-Chief Graydon Carter, who, I gather, isn’t really much of a Web guy.

Meanwhile, I’m still waiting to read Michael Lewis’s latest piece for the magazine, on AIG’s (AIG) notorious “financial products” division. That one’s only available, for now, in excerpt form online, which means I’m actually going to have pay cash to read it, or wait a few hours–Hogan says it should be available in full later today.

Kelly’s number for today “may be on the high side,” a person familiar with the matter counsels me. In any event, I expect to have more details later in the day. As always, I value your input, and I keep all correspondence anonymous: peter@allthingsd.com.

In the meantime, an update on this week’s cuts: I’m told Time Europe editor William Green and senior editor James Graff were laid off via phone yesterday, and that more cuts in the London office are expected today. And four-year-old Cottage Living magazine has been shut down, which means that 38 out of 47 people who worked on that title are out of work; the remainder will be placed elsewhere in the group. Announced along with the job cuts today were the departures of executives from Cooking Light and Southern Progress. Chris Allen, Senior Vice President and Publisher of Cooking Light is resigning his position, as are Southern Progress execs Bruce Akin, Karla Hardy and Dick Gardner. Here are the memos:

November 18, 2008

To:Time Inc. Employees
From:Sylvia Auton
Re: Cottage Living Magazine

I regret to inform you that we will no longer be producing Cottage Living magazine. The November/December 2008 issue, on newsstands now, will be the magazine’s last. Cottageliving.com will also shutdown. However, the company will keep the brand alive in one of its other leading shelter titles and these plans will be finalized over the next few weeks.

Since its inception, Cottage Living attracted significant advertiser support and fostered a loyal following among readers. However, the economic downturn has particularly affected the shelter market and while the brand was genuinely loved by readers and advertisers alike, the economy inhibited its ability to grow and therefore, sadly, we had to make the decision to close it.

Cottage Living launched with a unique editorial mission. Its readership celebrated community and character over conformity, personality rather than perfection, and informality instead of pretension. The brand’s tagline: ‘life just right,’ showed how one could ‘live large,’ even luxuriously, in a lighter footprint.

Launched in September 2004 with a circulation of 500,000, the brand quickly grew to 650,000 in January/February 2005. One year later, Cottage Living increased its rate base to 900,000, and then to one million in January/February 2007. Cottage Living also produced many one-time special-interest publications including Cottage Christmas and Cottage Makeovers.

Cottage Living also received many industry accolades including AdWeek’s ‘2005 Startup of the Year’ and Advertising Age’s ‘2005 Launch Worth Watching.’ It was also named to AdWeek’s ‘Hot List’ 10 Under 50 list for two consecutive years: 2006 and 2007.

I want to thank the many dedicated and talented Cottage Living staffers. It was developed, edited and published by some of the best talent in the business and we can remain proud of its many achievements.

S.A.”

Subject: Staff Announcement
To:       Lifestyle Business Unit Employees
From:   Sylvia Auton and Steve Sachs
Re:       Staff Announcement  

With the departure of Bruce Akin, we’re pleased to announce that Bruce Larson will assume the role of Senior Vice President and the lead executive in charge of SPC operations for Time Inc. He will be responsible for the general management of all operations in the Birmingham office, Oxmoor House and Southern Living at HOME.

Bruce joined the company in 1991 as a manager of corporate reporting. Over the last 17 years he has been promoted numerous times and has held jobs in a variety of areas, from corporate accounting to IT to consumer marketing and production.

During his tenure with Southern Progress, Bruce has shown outstanding decision-making and leadership skills and has been a key player responsible for the strong financial growth the company has enjoyed over the years.

Please join us in congratulating Bruce on his new assignment.”

To:  Southern Progress Colleagues
From:  Bruce Larson

I regret to announce that two longtime, trusted Southern Progress colleagues, Karla Hardy and Dick Gardner, have decided to retire at the end of the year.

Karla has been a steady presence in our advertising production circles ever since she joined the company in 1977 as advertising traffic manager for Progressive Farmer. In 1985, she accepted a position as assistant to the editor and advertising/production coordinator for Southern Living Classics, which merged later that year with the newly acquired Southern Accents, where she eventually moved up to advertising production manager. When we launched Coastal Living, Karla began working on both titles, and in 2007 she began helping manage advertising production for Cottage Living as well. And let’s not forget her work on Entrée. With her incredible depth of knowledge of advertising production and her keen eye for detail, it’s no wonder that Karla is so highly regarded. She knows how to best position each ad for space efficiency and visibility, and she knows how to work with our sales staff and advertisers to ensure that everyone is happy with the outcome.

Dick began his Southern Progress career just nine months after Karla, back in 1978. He spent the first 13 years of his SPC career on the corporate side, managing building operations, office services, and purchasing, before moving to the magazine side of the business as financial manager for Southern Living and Southern Accents. In 1995, he was named general manager of Southern Accents. One short year later, he added responsibility for the soon-to-be-launched Coastal Living. In 2004, he was named vice president and general manager for Coastal Living alone, and in 2007 he took on the GM role for Cottage Living as well. Dick is well respected for his wisdom, leadership. and kindness, not to mention his astute business sense. He knows his titles—and his staff—inside and out and never fails to find the right solution to any challenge. Plus, he has a great sense of humor.

There have been several times over the years when both Dick and Karla have been counted on to work on more than one title—a sure sign of how highly they’re valued around here—and each did so while managing to maintain a positive, calm outlook. Please join me in thanking them for all they’ve done for us and letting them know how much they’ll be missed.”

Subject: Staff Announcement
To: Lifestyle Business Unit Employees
From:  Sylvia Auton
Re:  Staff Announcement

After careful consideration, Chris Allen, Senior Vice President and Publisher of Cooking Light, has decided to leave the company.

A 26-year veteran, Chris first joined Cooking Light in 1991 as eastern advertising sales director and quickly rose through the ranks. Chris’ leadership and expertise resulted in enormous successes for the Cooking Light brand: Under his direction, Cooking Light has grown to become the world’s largest epicurean and healthy lifestyle magazine.

During his tenure, Cooking Light was named to AdWeek’s Hot List four times, Advertising Age’s ‘A List,’ Capell’s Circulation Report’s prestigious ‘Triple Play Award’ three times, and ‘Most Notable Launch of the Past 20 Years’ awarded by Media Industry Newsletter and Samir Husni in 2005. Chris also presided over the launch of several groundbreaking marketing campaigns, including The Cooking Light Cruise, the Cooking Light Fit House, and Cooking Light Supper Clubs.

An avid cook and exercise enthusiast, Chris lived the Cooking Light brand. He’s also a rock star: The Cooking Light band, Way Past Close, has performed throughout New York City and Birmingham to clients and colleagues.

Earlier in his career, Chris spent eight years at PEOPLE rising from salesperson to New York divisional sales manager.

Please join me in thanking Chris for his many contributions to Southern Progress and Time Inc. and wishing him the very best.”