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iPad affecting newspaper sales

Today at the Monaco Media Forum, another nail was pounded into the coffin of that cornerstone of traditional media, the newspaper.

News Corp's Asian/European operations lead, James Murdoch, noted that the switch to iPad and other mobile reading apps has had a direct effect on newspaper sales. Murdoch said that the apps were "much more directly cannibalistic" than web sites, as subscribers read the apps in a manner similar to how they read traditional newspapers. Web readers apparently consume their news somewhat differently. While he didn't disclose sales numbers, Murdoch said that the newspapers affected include the Wall Street Journal, News of the World, and the Times of London.

News Corp isn't making as much money on subscriptions through mobile apps, but is happy with selling news through the iTunes model. Apple's 30% take isn't that bad when the cost of printing and distribution of traditional newspapers is taken into account. Murdoch mentioned that "the guy on the newstand and the newsagent charge a percentage, and they don't even merchandise it properly."

While the iPad is the current leader in electronic news sales, News Corp just delivered an Android tablet version of the Wall Street Journal yesterday and also provides a version for the Amazon Kindle and other e-readers.



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Today at the Monaco Media Forum, another nail was pounded into the coffin of that cornerstone of traditional media, the newspaper. News...
 

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lens

It's pretty clear that smartphones in general eat newspaper sales, especially news stand and non-subscription sales. Whenever I'd stop for breakfast on the way to work, or grab lunch by myself, I'd always buy a paper from a box or newstand. Now, I read my phone.

November 14 2010 at 2:24 AM Report abuse rate up rate down Reply
dave61

I grew up believing that journalists & newspapers should, and largely did, present a neutral position: the facts not opinion or self serving statements. However, with NewsCorp, I am not so naive. This feels as self-serving as usual from any of the Murdoch family. No doubt it is part of them creating the environment for their ongoing attacks on the BBC.

However, I am not one of those who believe that all news should be free. I understand that news gathering costs money. A paywall or subscription model makes sense. The first app I access every morning is The Grauniad and I will be happy to pay their proposed subscription. Paper as a medium might be dead but the need for reliable, trustworthy sources will always remain.

November 12 2010 at 5:08 PM Report abuse rate up rate down Reply
exilio

When your local newspaper sucks, like mine in San Jose, California, it's not hard to transition to digital media. Too bad the local rag hasn't yet. Een their attempts have been feeble at best. What's more, most of the writers are anything but--there's a serious lack of unbiased, talented writers in San Jose. And as the supposed Silicon Valley I shocked and amazed how poorly done the news is--shameful.

November 12 2010 at 3:44 PM Report abuse rate up rate down Reply
1 reply to exilio's comment
Raj

Do you have examples of the bad writing?

I think this all has to do with the AP and the idea that newspapers are somehow local monopolies that are viewports into the world... AP is killing local papers, taking more than they give.

November 12 2010 at 5:25 PM Report abuse rate up rate down Reply
fronesis

That opening line of the article is one of the worst mixed metaphors I have seen in a long time!

November 12 2010 at 3:36 PM Report abuse rate up rate down Reply
Damon Kiesow

Steven -

As Murdoch did not share any actual data (that I have seen), it seems to me he was speaking dogmatically here. Did you sense his comments reflected anything beyond News Corp's belief that digital technologies in general are to blame for circulation declines?

I can agree that tablet experiences are more engaging than the Web, but with the small number of tablets sold so far it is tough to believe they have had any provable impact on subscription sales.

November 12 2010 at 2:46 PM Report abuse rate up rate down Reply
Wayne

Newspapers should really get on board with digital subscriptions as soon as possible. I recently traded a print subscription to my local paper for a digital subscription using PressReader, and it's been great. The only reason I still have my print subscription to the NY Times even though I do most of my NY Times reading with the iPad app is that there's no mechanism for paying for the digital content. As soon as the Times has digital subscriptions (supposedly sometime early next year), I'll scrap the print subscription. Call me old-fashioned, but I'd like to pay for my newspaper, whether it's on dead trees or digitally.

Newspapers, are you listening?

November 12 2010 at 2:39 PM Report abuse rate up rate down Reply
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