Wired on the iPad, via All Things D
Next month, Apple’s iPad comes out (and I will buy one). But what will be the impact of iPads and tablets from other companies on traditional media? Many are considering it to be the new magazine form factor. In theory, the iPad would make online ads compelling, and better enable digital subscriptions and a la carte buys. Wired Magazine, for one, has been showing off a good-looking prototype. I highly recommend this video from The Wall Street Journal’s All Things D site.
Newspapers will look great, too. Look at The New York Times’ demo. My guess, however, is that the iPad’s impact on newspapers’ bottom line will be marginal for several years — and then, it may be too late. While the iPad should have excellent introductory sales, most sales will likely be low-end units without communications, so their usage will be mostly home and coffee shop based. Low-end units, limited to Wi-Fi Internet, are $499. Wireless Communications adds $130, plus $30 a month. Wi-Fi-only won’t provide a big lift to newspapers, because it doesn’t get the product onto commuter trains.
Newspaper companies, of course, are better positioned to participate in the mobile revolution than a year ago by virtue of their vertical properties, such as Classified Ventures’ Cars.com and Apartments.com. Both are “on the go” media sites that allow users to get information on a 24/7 basis, but more importantly, while they are out and about shopping for their category.
Other newspaper niche sites, like The Envelope from the LA Times, bring newspapers into an entirely new domain with the addition of online App games based on news and entertainment. These might ultimately play a role in the transformation of newspapers.
For now, I’m not counting on significant advertising or circulation revenues to develop for newspapers directly because of their investments in tablet devices, or mobile generally.