Sunday, July 17, 2011

Getting Into An I Pad-dy: Newspapers

I Pad, U Pad, Wii Pad. We all Pad together.

Unfortunately, for Apple and for newspaper and magazine publishers, we don't. We may in some distant future. But for now, we pad as a small minority.

The publishers are ambivalent to this future. They would happily dispense with one of their biggest cost bases - printing - but they are no nearer creating a business model that satisfactorily digitalises and monetises hard copy into oblivion. Ah but the iPad will be that model. Some might think so; some, like Steve Jobs, would hope so. But the mere newspaper-reading mortal continues to be a Steve Unjobsworthy who hasn't become an Apple organisation man and hasn't been commanded by the contemporary tablets of stone, the ostentatiously styled modern miracle of the iPad tablet and its peers.

There's bad news for newspaper publishers; good news for publishers of magazines. PriceWaterhouseCoopers have reported that whereas revenue from digital magazines is set to "sky rocket", thanks to the iPad, sales of subscriptions of newspapers in this digital form will not be sufficient to offset the fall in print sales.

The iPad is many things, but essentially, for many of its products, its newspaper products, it is merely a digital replacement of the hard copy. The hype, and that also for the iPhone, the Android and any other current-day trickery you care to mention, outstrips the reality. There are many, many users of course. But this doesn't mean that newspapers will suddenly disappear. As pointed out by the UK firm Enders Analysis: "Ten million pay for a daily newspaper in the UK. They spend roughly 30 pounds a month each. There will not be 10 million people spending 30 pounds a month on the iPad any time soon".

In a way, the iPad is an experiment, as is much digital and internet publishing. It is worthwhile playing with, but it is only one aspect of the digital future. Newspaper publishers who see it as the only holy grail of a prosperous non-print new world are seriously deluding themselves. Experiments need to be conducted in different ways, and one is to create a wholly new product (or products) with its own revenue stream. It's thinking out of the box, but the fear is that publishers will be seduced into boxing themselves solely inside the iPad tablet box.

All of which brings us to the "Majorca Daily Bulletin". It is now iPad-able, online in full. At a price. Part of a service under the non-snappy moniker of Kioskoymas, through which we are told "the most complete offer of press of quality" is available, the Bulletin is the only English paper in what is an online iPad-oriented system for Spanish newspaper and magazine publishers. A bizarre aspect of this service, were you minded to want to subscribe to the paper, is that you would need to read Spanish. Obviously you would. They're not going to have an English version to guide you through the online registration and payment process when the service is meant to be for Spanish readers.

And subscription is a not unimportant element. Getting the punter to buy a month or more ahead does wonders for cash planning in the uncertain digital world but it runs counter to consumer psychology. Subscriptions to hard-copy newspapers have only ever been a small part of publishers' businesses. Readers habitually buy daily, a truism for a daily publication. Why would you stump up in advance when you haven't in the past? News International is facing this conundrum along with other more pressing matters.

A solution is an incentive. Yet from what I can make out, unless you have a multiple subscription, i.e. to at least more than one title through Kioskoymas, you pay the going rate. And unless you, as an English reader, are inclined to also read Spanish papers or even able to, then you are not going to have a multiple subscription. Moreover, a month seems to be the minimum subscription period, this being unlike other services which enable you to pay daily.

And one of these services is Orbyt. This was launched last year and features "El Mundo", "La Razón" and other Spanish papers as well as magazines. So Kioskoymas is a rival and a less elegant one than Orbyt, if the websites of the two services are anything to go by. The competition with Orbyt is probably quite significant. The Bulletin is part of the Grupo Serra stable, of which "Ultima Hora" is its biggest-selling paper. And "Ultima Hora" is a competitor with the Balearics version of "El Mundo". For it to have an iPad presence as a rival makes sense, and you wonder if this is the main reason why The Bulletin is now iPad-able; it has been bundled in, but it is "Ultima Hora" that really matters.

The Bulletin might gain from this service, it might not, but fundamentally it cannot be seen as the be all and end all, and this is the message for any newspaper publisher. The iPad is basically a means of cannibalising the product. It is a replacement technique more than it is a new-product technique and it is the latter that publishers need to work on.


Any comments to andrew@thealcudiaguide.com please.

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