While the consensus among publishers is that tablet computers and mobile e-reading devices hold great promise for the future of news distribution, how to go about turning potential into success isn't as straightforward.
A recent gathering of publishers and digital platform experts and an upcoming report on the meeting - sets out to change that.
There is no subject of more interest to publishers now than tablets and e-readers, and the turnout at the 3rd WAN-IFRA International E-Reading and Tablets Conference was evidence of that interest. Around 260 participants from 40 countries attended the event, held last week in Hamburg, Germany, three times the turnout last year.
And the interest spans all markets and cultures Europe was well-represented, and media professionals also travelled from Brazil, Canada, Chile, Honduras, Hong Kong, India, Israel, Japan, Oman, Russia, Saudi Arabia, South Africa, Thailand, and the United States to attend the meeting.
“You can't compare the fun experience that the iPad provides to a black and white e-reading device,” said Nick Thomas, a consumer product strategy analyst at Forrester Research. “But if no single e-reader beats the iPad today, collectively they all do. The demand for tablet PCs will be broader and faster-growing than e-readers, but e-readers have a future as a single-function device for reading e-books, magazines and newspapers”.
“Mobile e-reading is about having a complete ecosystem for many e-reading products and many target groups, with a totally consumer oriented technology running behind it,” said Kristina Sabelström Möller, Senior Research Manager for Emerging Digital Platforms and Business Development at the World Association of Newspapers and News Publishers (WAN-IFRA), the moderator of the conference.
While consumers are resistant to paying for online news, they seem much more open to pay on mobile e-reading devices. For single copy purchase, consumers are willing to pay the equivalent of newsstand prices on mobile devices, but subscription acceptance varies from market to market.
Readers in the US, for example, say they would agree to pay one-third of the print subscription price for a newspaper, according to Forrester Research.
In Switzerland, it’s up to 50 percent of the print subscription price, according to a test by Codex, an initiative from leading Swiss publishers and mobile operator Swisscom. In the United Kingdom, readers are ready to pay close to 70 percent of the print price for the 30-day subscription offer of The Sun on the iPad, said Darren Goldsby, Director of Digital Solutions at News International.
More than 900,000 people have downloaded USA Today's iPad application.
Though the app has thus far been offered for free, thanks to a strong advertising demand, "people will pay for content on mobile platforms," said Craig McKinnis of Gannett Digital Ventures. Gannett, which publishes USA Today, has had good results with paid-for content on the Amazon Kindle, he said.
Reflecting concerns that digital revenues are failing to meet the revenues generated by print - and the need for substantial revenues to support credible news gathering operations many speakers highlighted the importance of offering both content and convenience that would convince people to pay.
Ease of payment and a compelling content store for the devices were seen as essential.
The appeal of the devices for advertisers was also discussed. Mr. McKinnis of Gannett expressed concern about new 7-inch (18-centimeter) tablets coming to the market that might lessen this appeal. Gannett, which is focusing on the Amazon Kindle and the iPad, has also decided to bet on HTML5, Android, and Windows Versions for its future developments.
A post-conference report will be available in November and can be ordered by contacting Christiane Schmidt, Senior Programme Manager, Emerging Digital Platforms and Business Development, by e-mail at christiane.schmidt@wan-ifra.org
