How The Australian fell in love with the iPad

It wasn’t the public that killed off newspapers. The man who supposedly had newsprint running through his veins pulled the plug on the printers, and he did so happily, tasting the increased profits to come.

Rupert Murdoch, September 2009 :

“I do certainly see the day when more people will be buying their newspapers on portable reading panels than on crushed trees.

“Then we’re going to have no paper, no printing plants, no unions. It’s going to be great.”

And here’s The Australian’s editor in chief Chris Mitchell :

“When you remove the fixed costs in newspapers, they become much more viable. So if you think of a newspaper without paper and ink and petrol and trucks, you’re taking out between 60 and 70 per cent of the cost base…. “

If Fairfax had given this kind of coverage to the iPad, the Oz would have been calling on it to be more balanced and/or come clean on its relationship with Apple.

The bluster around the ipad has pretty much killed their media section and its credibility within months … I can’t even read it anymore, it’s just one big ad for their ipad delusions.

Tim, do you know which other publishers are launching apps? Would be great to see a list of them from you -and track if in fact these apps do save their bacon. How much are they all spending on this?

Bring on the HP Slate. With Windows. Go Microsoft.

The HP slate has been canceled:
http://techcrunch.com/2010/04/.....t-project/

I’m sure they’ll replace it with something.

Hate to be the bearer of bad news, A, but word on the street is that the Slate is dead.

http://techcrunch.com/2010/04/.....t-project/

Plenty of juicy looking Android-powered tablets on the way, though.

Snap, Andrew.

lol. Just saw someone (I assume from News) using their iPad in a cafe across from their offices. It looked interesting. But not $700 interesting.

But who knows how this will go? It will put a lot of pressure on smaller publishers to produce iPad apps. The problem is for a big newspaper like the Australian, it makes a lot of sense. But the costs of developing these apps is not small. And that excludes the ongoing costs. And that creates a huge problem for small publishers. Paying (around) $20k to develop you iPad app is a big expense, and it’s going to cost a lot more than that to build one that really rocks. And if you do it, you will need to do it in a way that is superior to a website that uses html 5 extensively (another cost because there is no flash on iPads).

This means you need to start thinking about multiple designers, website administrators, coders etc. This is not a small ongoing cost. However in the context of news, this is a small ongoing cost.

The issue is, what will make this app so great that I am going to pay for it? There are already a whole bunch of news apps in the market. Many of which are free. So there is a double edged sword facing news.
1. The app has to be so good that people will pay for it (and @$3.95 each the would need to sell an incredible amount of them to make it viable).
2. Enough people need to buy the app to make it a reasonable media investment.

These two challenges are inexorably intertwined, and Australia’s relatively small domestic market mean attaining that critical mass (say 100,000 subscribers) a herculean task. After all, the iPad does have a browser, and I remain to be convinced that people will pay for news when it really is in ubiqutous supply. What about the ABC? When they launch an app it will be free, and probably quite good. Newspapers talk a big talk about multimedia, but the video they produce is pretty crap. The FTA TV guys will almost always produce better video. Why try and compete with them?

Remember 1% of America is an enormous number. 1% of Australia isn’t.

You know it makes sense.

What’s an iPad?

wonder how much Apple are spending with Newsnet for the ipad launch … all this editorial love might be related to an ad spend and not all attributed to the australian’s revolutionary ipad app.

I can’t wait to revisit these comments in y6 months time. You have no idea about what is about to hit you!

Do i need another “i” in my life?
Of course I do. More stuff to throw away. More consumer lust. More rare metals to mine. More environmental destruction.
When will this consumerism stop?

I need an iScream

It’s about the content, not the platform, and until The Australian gets less biased, I ain’t giving them a cent, in print or via digital means. I can’t wait for my iPad and I can’t wait to easily read newspapers like The Guardian, Financial Times and The New York Times each and every day they’re published.

Well, perhaps The Australian’s enthusiasm for the iPad isn’t so bad – at least they’re following the latest online trends, which is a lot more than you can say of Fairfax.

Don’t overlook the fact that the first praise-packed review of the iPad that ran in The Oz came from WSJ tech writer and world-renowned Apple schill Walt Mossberg, who never met an Apple product he didn’t love nor one that would not change the world.

@ Not Amused. I am aware of what is about to hit me. In fact I would suggest more than you are.

But the fact remains that a transition for media organisations to the iPad is about making money. I am an old cumudgeon like that. I like to do things in my business that are profitable. Now if you could logically show me how I, as a media proprietor am going to make money from the iPad I am all ears. But this chasing of technology because it is shiny and new doesn’t make it a profitable business. Surely to god you remember the dotcom era?

It’s an intersting device. it will do interesting things. But how will Mumbrella (for example) make money from building an iPad app?

You know it makes sense.

@ Carrob “this chasing of technology because it is shiny and new doesn’t make it a profitable business”…
With respect, ignoring technology (especially the shiny and new) doesn’t make a profitable business either. If you can’t see the opportunities these new platforms and distribution channels (such as iPad and iTunes) offer, then step aside and let the savvy media proprietors, those who do see a way to make a profit, through…

@surefire

I will type this very slowly. Because I am fairly certain that you aren’t the brightest of the three bears.

I understand technology better than almost any other media proprietor. In fact one of my businesses actually has an iPhone application. So I can see opportunities. It is just the hype that you represent that gives me the shivers.

I will go back to my original point. What is the business model for an iPad application for the Australian? And small publishers? How do we make money from it? Does anyone have a profitable media app?

Sigh. I must roll my eyes. I “just don’t get it”

You know it makes sense.

@ Carrob – Dear “old curmudgeon”, no need for the insults – leave the bears out of it, they never hurt you!

I hope you don’t mind if I write quickly – because time is precious and the future of media production and distribution waits for no-one, especially the ‘old curmudgeon’ variety.

The fact you “don’t get it” is telling…

So again, to my original point, step aside and allow the savvy media makers through – the ones who understand your media world is changing. Digital distribution models made viable by this years iPad and next years common place ‘tablets’ do indeed offer a discernible alternative to the rusty de-facto models of today. If you don’t see it – work harder and keep looking…

Otherwise, sit tight by the fireside, tune in to the wireless and hope to hell next years fashion fad for the under 30’s is ‘buying a daily newspaper’.

I roll my eyes and wish you well!

@surefire lol

You demonstrate my point exactly. Just explain how no one but you “get’s it”.

The point is very simple. Very very very simple. So I will type the question again very very slowly.

What is the business model?

Explain to Tim and the rest of the mumbrella readers how a mumbrella iPad app will change the game. And how exactly he will make money out of it. For savvy media makers such as yourself this would be a doddle.

Dot points please. I forget my bifocals and this internet thing is hard to read by candleight as I shun electricity as it is too newfangled.

The silence on this answer will be deafening.

You know it makes sense.

@ Carrob

The fact that you are looking for the one ‘business model’ to deliver you a golden egg speaks volumes.

How long exactly have you been in publishing? Given I know very little about your business how’s this for starters….

Compelling content + an interactive, tactile medium = highly engaged reader.
Highly engaged readers = feverish advertisers
Feverish advertisers = $$$$$$$

Do I need to mention the cost savings? Furthermore each time a publication reduces its print run in favour of digital delivery, the high level of fixed costs it takes to run the print industry will be shared over a diminishing base.

How much of an increase in costs can your business bear?

@ Carrob – Good morning dear “old curmudgeon” friend…

Although slightly disappointed in your clumsy need to sling bullyboy insults, I do sense your bravado is laced with a simple laconic sense of humour – so with an Aussie wink and nudge, I’m happy to lean against the sports bar with you and “break the deafening silence”…

And I do so directly from one of two iPads which our business has been using over the past four weeks, to test and develop applications, media content, websites, presentations, games and so on.

So you see old chum, I’m in a better position than you to make a prediction (with confidence) that the iPad (and other soon to be released tablet devices – see DEL’s Streak for instance) will absolutely have a noticeable impact on the newspaper industry. Indeed, these things will shape current production paths and distribution methods, just as the ubiquitous mp3 player shaped (saved) the music industry.

Now, by all means, you can jump in at this point and bang on about how you miss the smell of newsprint, how hard it is to make ‘applications’ and where’s the profit…

The truth is old timer you’ll have to figure it out if you want to serve this oncoming audience – an audience brought up on the Internet. A face-booking, iTunes using, movie downloading, smart phone using, SMSing, tech fluent audience. And here’s the thing – this audience is more likely to spend a few dollars online to get their media fix (via their WebOS device, Android device or iPad) than over the counter at the newsagent.

Of course, I’m not going to provide you with ‘bullet points’ on how you can take advantage of this ever expanding, willing to pay audience and the oncoming ‘media tablet age’. I get paid for that and I figure you ain’t investing.

A couple of clues though, which might help you sleep at night…

It’s all about the scale. It’s about containing and controlling the brand. It’s about delivering a holistic and easy experience. It’s about thinking beyond collecting a few coins from pensioners and serving a dwindling readership within metropolitan borders. It’s about reaching an international audience… you see, the localised rivers of gold are all dried up… Welcome to a new, all pervasive ‘global media age’. The good news is – some of us will make a profit. That’s inevitable.

And of all the newspapers in this country, it seems The Australian is in the best position to understand and appreciate this best of all.

No doubt you’ll want the ‘last word’ old curmudgeon, so over to you… I look forward to reading it in a few years time when Tim rolls out (easily and cheaply) his tablet application.

I wish you well old pal!

@surefire @Not Amused.

You guys are classics. Reading between the hype and the twaddle that you both spew out you are saying (basically).

“The iPad is Great. It’s fantasic. You just don’t get it. Stop talking about making money it’s about compelling content”

Fuck me. I go to work to make money. It sounds like you guys go to work in order to charge unsuspecting schmucks for your blubbering bullshit.

And I guess that’s your business model.

You know it makes sense.

A small thing overall but…

And the following day, May 11 local book publishers are rushing to get on board the miraculous device, said the Oz, reminding us:

“Australian iPad owners will be able to use Apple’s iBookstore online bookshop as soon as they get their hands on the device.”

Bit of license taken with the full-stop there brolly-blogger. Here’s the FULL text:

AUSTRALIAN iPad owners will be able to use Apple’s iBookstore online bookshop as soon as they get their hands on the device, but local publishers have faced an uphill battle to get their titles on to its digital shelves.

Australian Publishers Association chief executive Maree McCaskill said Apple had been slow to appoint a delegate to negotiate with local publishers, holding up efforts to get Australian authors and titles on to the iPad after it goes on sale here on May 28.

…

The context can really make all the difference.

Hello

Does anybody know how many downloads or subs of the australia ipad app have been downloaded.

I read the chestbeating story about being second but I heard nothing from utterly useless journalist about how many.

I join whoever it was in this topic saying the australian editorial team are very embarrassing with all this coverage.

A screen with limited functionality for more $’s than a notebook (by that I mean not an overpriced MacBook)? Or maybe the Mac heads will throw away their MacBooks to make way for the lighter, slimmer iPad and forget why they wanted a MacBook in the first place. And then again they can carry both bits of shiny technology around so they can read the same stuff on TWO ephemeral glittering status symbols.

History repeats and the iPad competitors will be offering better product at a much lower sticker prices.

iPad?
iPass.

BUT I’ll create content for sale to the suckers that desperately need something to show their friends on their iPad….

Congratulations on a very well researched article! Amazing when you finally realise what’s going on behind the scene and why apple seems to be doing so well selling the ipad.. given the… challenges.

I don’t think any technology product has ever received as much free publicity from an Australian newspaper. The capacity of the device to produce revenue for News Ltd has clearly created an editorial conflict of interest. They’ve demonstrated a lack of perspective.

The Australian’s ap is aesthetically pleasing but underwhelming in its interface. No bookmarking, no copy/pasting. It is as passive as newsprint. I will not be renewing my subscription but will return to reading their content using a web browser.