News Corp bets on iPad for future of news
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Jon Miller, (L) CEO of Digital Media Group and Jesse Angelo, Editor of ''The Daily,'' unveil News Cooperation's new iPad news publication ''The Daily'' in New York, February 2, 2011.
Credit: Reuters/Brendan McDermid
NEW YORK |
NEW YORK (Reuters) - Rupert Murdoch, among the most ardent defenders of the traditional press, has staked his reputation on a risky bet that for just 14 cents a day he can save the news business with tablet devices like Apple's iPad.
Unlike the News Corp chairman's other newspapers such as the Wall Street Journal or the Times of London, it was not immediately clear who the Daily, News Corp's digital newspaper for the iPad unveiled on Wednesday, is intended to reach.
But that has not stopped the 79-year-old media mogul from investing $30 million to start to find an answer.
The Daily, a general news product available to iPad users in the United States, will cover everything from national politics to sports to gossip. It will cost 99 cents a week or $39.99 a year. Apple is expected to take a 30 percent cut in the first year.
The Daily will also be the first subscription product available through Apple's iTunes store. The first two weeks will be free courtesy of Verizon Communications.
News Corp will later roll out the Daily on other tablets.
"We can and must make the business of news gathering and editing viable again," Murdoch said in New York. "We're entering a remarkable age of innovation and digital renaissance."
Murdoch's lofty remarks recalled his speech almost six years ago when the media mogul urged newspaper editors, or "digital immigrants," to save the news business by applying a "digital mindset."
Shortly thereafter, News Corp was hailed as a digital leader among traditional media companies after its purchase of the once-hot MySpace social network. MySpace was overtaken by Facebook and now faces either closure or sale.
The Daily represents a big gamble that starting a digital organization from scratch employing traditional journalists will revive the news business beset by declining readership and advertising revenue.
But will anyone pay for news that is not specialized, analysts asked.
"It helps us answer the big question of 2011," said Ken Doctor, an analyst with Outsell Research. "Can you charge for (online) general news?"
The Daily represents News Corp's newest attempt to get consumers to pay for online news and support investment in journalism.
In another example, News Corp put all the news from the Times of London website behind a pay wall, charging 1 pound for a day or 2 pounds for a week's access. Its online readership dropped by almost 90 percent.
Murdoch said the Daily would cost an additional $500,000 or less a week to run before revenue from advertisers and subscriptions. He added that he would measure his success by "selling millions" of subscriptions.
What do you get when you cross two evil empires: The Daily.
Who really couldn’t see this one coming. The two modern-day masters of propaganda getting into bed together.
News Corp will continue to dominate because they know how to meet the needs of the consumer.
It’s slick, but it’s not worth paying for. I can get the news elsewhere for free. I don’t care about the multimedia stuff. I usually read the news during breakfast or on my commute or while watching tv and and I’m not going to turn up the audio for that. For free it might be ok, but I won’t be going past the 14day trial.
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