[opendtv] Murdoch to launch premium news for mobiles

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 16 Aug 2010 14:14:27 -0500

"While there are indications that several of News' competitors, such as The New 
York Times, are also flirting with the premium model in mobile, if the approach 
is not widely adopted, the ease with which readers can access free alternatives 
could jeopardise Murdoch's bold new venture."

Presumably, another example of attempting to obtain dual revenue streams? 
$4/week sounds steep to me, so even those who do pay would be unlikely to pay 
that same fee for as many publications as they are used to viewing on the 
Internet.

I think these guys have a tough row to hoe. We're past the era when people were 
loyal to their one newspaper, and bothered reading it cover to cover. IMO.

Bert

--------------------------------------------
http://www.rethink-wireless.com/2010/08/16/murdoch-launch-premium-news-mobiles.htm

Murdoch to launch premium news for mobiles
New publication is likely to draw talent and content from across the News Corp. 
empire
By MATT LEWIS

Published: 16 August, 2010

Everyone loves the Internet. Everyone, that is, except news publishers; many of 
whom have seen their traditionally stable and reliable newspaper and magazine 
business model flipped on its head with the oversupply of free content the 
internet has brought. Now, Rupert Murdoch is attempting to wield a blow to the 
free content approach by embracing the growing popularity of mobile consumer 
devices like the iPad and smartphones.

As newspaper and magazine advertising and subscription revenues have fallen and 
the landscape becomes increasingly littered with the carcases of numerous 
local, and some national, publications, large media players have started 
threatening to stem the flow of free content, forcing readers to pay for what 
they view. None has been more vocal about the challenge facing the news 
industry than Rupert Murdoch, Chairman of News Corp., the world's second 
largest media conglomerate (behind Disney) which owns broadcasting, film, 
newspaper, magazine and radio properties spread across the entire planet.

Murdoch has already erected a paywall around some of News' properties, such as 
the The Times and The Sunday Times in the UK. Visitors to these websites are 
able to view the full homepage but clicking on any link triggers the prompt: 
"Available exclusively by subscription." This approach is a gamble since if 
News' competitors don't eventually follow its lead, readers are likely to 
defect to free news providers.

Murdoch sees the new generation of tablets and smartphone as a potential 
lifesaver in terms of the ability to both charge subscriptions and reach a 
young audience. A couple weeks ago, Murdoch praised the iPad as a "game 
changer" for news media and predicted that "hundreds and hundreds of millions" 
of similar tablet computers will eventually be sold around the world. The Wall 
Street Journal, another News property, already charges $4 a week for delivery 
through the iPad.

Details released over the weekend suggests that Murdoch is now preparing to 
ratchet up his embrace of mobile devices with the launch of a new digital 
newspaper in the US targeted at the young and distributed as a paid-for service 
through tablets and smartphones. The iPad and iPhone will likely be key target 
devices since both have a young user base with a demonstrated willingness to 
pay for content and services in a mobile context.

The new publication is likely to draw talent and content from across the News 
Corp. empire - including Fox, The New York Post, Dow Jones and National 
Geographic - and it is assumed that it will take advantage of the 
location-aware, interactive and social networking features which are central 
features on these devices.

Although Murdoch is not pioneering the paid-for model on mobile - Wired 
magazine has enjoyed success with its paid-for iPad app - the strategy is not 
without the same risks inherent in asking consumers to pay for something they 
have grown to expect for free. While there are indications that several of 
News' competitors, such as The New York Times, are also flirting with the 
premium model in mobile, if the approach is not widely adopted, the ease with 
which readers can access free alternatives could jeopardise Murdoch's bold new 
venture.
 
 
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at 
FreeLists.org 

- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: