ACMA: ABC and BBC may hamper Murdoch’s paid content model

acma_logoA new report from the government’s ‘s media industry watchdog is sceptical about whether newspaper owners will be able to make similar profits online in the face of competition from non-commercial news providers such as the ABC and BBC.

The report from the Australian Communications and Media Authority – Changing business models in the Australian communications and media sectors: Challenges and response strategies – highlights the decline of newspaper readership.  

Although it flags up the commercial possibilities of paid news applications such as iPad apps, ACMA questions whether consumers are willing to pay. It said: “In 2010, Rupert Murdoch announced that the introduction of the Apple iPad would also assist in the pay-per-view model, saying it was a device that would assist in the development of pay walls. Commentators have also highlighted that the strength of an application-only based news distribution model is that it will potentially enable greater control of the publication and distribution of news and other content.”

But the ACMA report goes on to say:

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