Do Apps Cannibalize Newspapers?

In Technology on November 15, 2010 at 11:53 am
James Murdoch, who is the son of Rupert Murdoc...

Image via Wikipedia

Apparently James Murdoch thinks that the iPad is a game changer and that it is ok for Apple to get 30% of the revenue from the sales of content from News Corp properties.

The thing that I think that it is difficult for newspaper owners to “get” is the same thing that record company executives find difficulty with: that is that consumers have now become accustomed to getting content free. And they want that to continue. They don’t mind if they pay for it invisibly, as happens with Free To Air, ad driven TV. They don’t mind it with radio that generates ROI in the same way.

What they do mind is the idea of having to make a payment that goes directly to the content owner. Strangely enough this appears to not apply in the case of books. Content owners need to figure out ways to get advertisers to pay, and they need to get the cost of acquisition of the content down into the micro cent range.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: