Earlier this week we wrote a blog about the new iPad newspaper – The Daily. The Daily will be available for just 99cents a week and every evening at the click of a button, ready in time for your morning coffee. Who wants to read yesterday’s news today?
That may well be but could this be doomed before it has even started? The paper is reported to cost 99cents a week. This calculates to $5.1 million in subscription revenue for every 100,000 subscription. Now, remove expenses from this total. News Corp has to pay their right hand man Steve Jobb an estimated 30% of that. You would anticipate a more fruitful revenue than that for a project you spent $30 million on.
Ok there are the advertisers who will undoubtedly be willing to pay for premium advertising space. However, they are very limited to the type of advertising they can sell. Will advertising moguls pay top dollars for advertising in an app with no interactivity when they can all too easily advertise on the internet?
Readers like the interactivity of the internet. It is a source of information delivery and communication. With no features like sharing and e mailing a friend there is no room for the reader to offer feed back or the option of content dispersal to be had.
As well as that people may shy away from this paid for app in favour of the interactive and digital competition that The Daily will have from all the free newspapers and news resources on the internet, like CNN and The Washington Post. Hard times are among us! Why pay for what is free?
He has done his homework and spent months recruiting and employing a credible 100 journalists to churn his milk into butter, but will it survive without the interactive media content? It’s only been 9 months since the arrival of the iPad so let’s see how 2011 pans out for The Daily. Especially after a run up against all the free news apps it has to compete with.
By 3D Issue