The iPad Erodes Newspaper Print Subscriptions

First, video killed the radio star.  Now, it looks like the Apple Inc. (NASDAQ:AAPL) iPad is causing the same sorts of disruption to newspaper publishers.

According to a survey of 1,000 iPad users by the Reynolds Journalism Institute, many owners of the tablet computer use it “consume news.”    More than 58% of the respondents “who subscribe to printed newspapers and use their iPad at least an hour a day for news said they are very likely to cancel their print subscriptions within the next six months,”  according to a press release.  This raises some interesting questions.

Newspapers are not going to be able to charge premium subscription rates.  In fact, participants in the survey cited  “a price lower than the price of a print subscription”  as the reason why they would buy a subscription to a news aps or an iPad newspaper subscription. Readers are used to getting content basically for free though paywalls are springing up.  The other challenge will be is in creating a unique user experiences.   Having only static text and pictures just is not going to cut it.   Publishers, though, have plenty of opportunities.

For one thing, iPad users are bound to attract advertisers eager to reach their educated and well-heeled audience.  More than half the respondents — 55.6% — said they had an annual household income of $100,000.  The average age of all respondents is 48.  That’s not the young demographic that advertisers covet, but it’s not bad either.

That is probably the reason why Rupert Murdoch is developing an iPad only publication called The Daily which he calls  his  “No. 1 most exciting project.” The iPad isn’t the savior of the newspaper industry but it may slow its fade into oblivion.

–Jonathan Berr