I bet you didn’t know that when you bought an Apple iPad you were among the wealthy. You may also not of known, because of your wealth, you are more willing to pay Rupert Murdoch for HIS news. In fact he believes that Apple and the iPad is going to be the savior of his empire. In fact he is predicting that Apple will sell 15m units this year and a whopping 40m in 2012. I am sure that Apple is hoping that he is right.
In a recnt article it also stated that:
Without giving any precise figures, he insisted subscriber levels for the newly paywalled Times and Sunday Times websites are strong and described the strategy as “the start of a new business model for the internet”. “The argument that information wants to be free is only said by those who want it for free,” said Murdoch.
Murdoch loves the iPad because it is an attractive, highly desirable and well-executed walled garden – arguably the exception, rather than the rule, in selling paid content. It also has a wealthy user base wll suited to News Corp’s quality news titles, but is still a niche product.
Whether the Times paywall gamble pays off is far less certain. Charging a subscription to access website content isn’t a new business model, but pulling it off on a mainstream news site would be quite something.
Now, if I was a betting man, and had to place my money on Apple or News Corp. I would chose Apple. I believe that Murdoch is hanging his hopes on a product that is going to sell well, but whether that product saves his business is an unknown. I still believe that people are going to be reluctant to pay for news no matter who is distributing it, nor how it is distrubuted. Just my personal opinion.
What do you think?