newspapers

Can Apple Save Newspapers?

By Mark Evans in Apple/iPod, Media 11 Comments Tags: , , , ,

(Update: The Guardian has a story that the Financial Times will introduce a pay-per-view model next summer, while looking at whether any FT.com should be free.)

With Apple apparently scrambling to introduce a tablet computer by early next year, a bigger issue to consider is whether Apple can save the newspaper business much like it has come to the rescue of the music industry.

For years, newspapers have done a terrible job of embracing the Web and reconfiguring their business structures to the new economic, advertising and readership landscape.

Even as dozens of newspapers close or became Web-only entities with skeleton staffs, the industry still hasn’t figure out how to be vibrant and viable. For many newspapers, their only salvation will be charging for online content – something Rupert Murdoch intends to introduce next summer.

So where does Apple fits into the mix, and why could it save newspapers from themselves?

Before Apple launched iTunes, the music industry was flailing to deal with the growth of P2P and the fact consumers didn’t want to pay $20 for a CD with one or two good songs.

Apple and Steve Jobs corralled the music labels by convincing them there was a better way by giving consumers a user-friendly online music-buying service. Begrudgingly, the labels agreed with Jobs’ vision, and the rest is history.

For newspapers, the Apple Tablet has the potential to provide a new, user-friendly model to reach consumers, including younger consumers who don’t read newspapers any more.

With Wi-Fi/3G access, a large screen (10″?) and Apple’s design brilliance, Apple could roll out an iNewspaper service that was either subscription-based or ad-supported.

With hardware design to read content, the Apple Tablet would give newspapers an exciting new platform to deliver content when and where consumers wanted it.

With Apple’s support, newspapers would have a solid economic model as a key element of the iNewspaper service as opposed to trying a wide variety of different models.

The iNewspaper service would be easy to use, intuitive and compelling, which would encourage consumers to maybe even pay for content.

What do you think? Can Apple save the newspaper business to the same degree it has helped the music industry?


Newspapers Must Charge for Online Content

By Mark Evans in Media 4 Comments Tags: , , ,

As the newspaper industry grapples with how to embrace the Web and remain financially viable, I’ve become increasingly convinced newspapers must charge for content in some way, shape or form.

To some, this is a strange approach given premium services have been a failure, which is why most newspapers are still trying to drive online revenue through advertising. Meanwhile, more newspapers are disappearing or becoming streamlined, online-only operations.

The biggest argument against the ability for newspapers to charge for premium access is consumers will turn elsewhere for the newspapers they want.

In many respects, this is accurate, which is why newspapers need to focus on charging for value-added content (columns, features, archives, editorials, inside access) that aren’t available through the Web.

Of course, many newspapers may not have the luxury of offering content people want to pay to read. But I think some the world’s leading newspapers such as the New York Times, Washington Post, Wall Street Journal, Financial Times, Telegraph and The Guardian can successfully pull it off.

If you look a look at the blogosphere, for example, it’s the major newspapers that attract the most links. This suggests newspapers are writing the most interesting content, which should be a pretty good indication it has some value.

My theory is the major newspapers will start to introduce premium services soon. Janet Robinson, CEO with the New York Times Co., said earlier this week that premium services are being explored that are “centered on a metered model and a Times membership model with special offerings.”

Meanwhile, the Financial Times has quietly launched a new system whereby online readers need to register. There are two free packages, as well as premium packages that sell for $3.49 and $5.75 a week.

You have to know media mogul Rupert Murdoch is watching carefully, and it’s only a matter of time before the Wall St. Journal, the New York Post and The Times launch premium services.

If the New York Times, Wall St. Journal, Financial Times and others go premium, it will likely encourage more newspapers and magazines to offer premium services as well.

The pendulum is slowly starting to swing from free to fee. It’s not going to be widespread or swing all the way back to fee but the free-for-all is coming to an end for many major publications.

For more, check out VentureBeat and ValleyWag, which talks about New York Times Silver and Gold packages that could be sold for $150 and $300 respectively.


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