Computerworld reports that Apple sold 300,000 units of its iPad device on the frist day of release – including presold units. This is more than for the first day of release of the iPhone. The mixed reviews since the release are not unexpected – again look at what followed the release of the iPhone. Content is what will make or break this device. Watch for a wave of publisher announcements over the next month.
Did you see Media Watch on Monday night?
http://www.abc.net.au/mediawatch/
Yes I did. I wrote a while back that 2010 will be the year of the device. the iPad, the new Kindle, the new HP device and others will change how we access news and information and how news is reported.
Did you miss the part about digitized news only being available to the elite – the affluent and the elderly – because young people won’t pay to read news?
No, I saw the whole thing. Part of the problem with these discussions is that we tend to think of news in the context of what we have known it to be. That is changing rapidly.
Newspapers worldwide are haemorrhaging money, the result of moving further and further away from quality journalism in recent decades. No amount of dressing up sensationalist or sloppy reporting or spinning events that aren’t newsworthy can stem the flow. To fix most problems it’s necessary to get to the root cause. Selling news is no different. The medium isn’t the problem, the content is. The world doesn’t need another expensive plastic gadget, to access the day’s news. A commitment to ethical publishing based on quality journalism is more economical and faster to implement. News is factual, not context, and needs to be affordable by everyone. Why aren’t more newsagents actively campaigning for print retention?
Jeremiah, I don’t see the future of quality journalism as tethered the distribution channel.
Newsagents are business people and will pursue what is right for their businesses. For decades, the return from newspapers has fallen in real terms. This is probably a motivator as to the future they pursue.
I suspect that there will be various reactions to news and ipads. Just as CD’s and DVD’s are purchased despite been able to be downloaded from the net. Some people want a hard copy and some dont. Some people want to read the news and some never even watch the TV news. There is no doubt that less people will buy the newspaper particularly the younger generations and the relative costs to produce and distribute the hard copies will make this option more costly to the consumer. Rupert obviously has a plan on how to sell his news electronically. No doubt he also has a plan to sell his advertising. Google are also in his sights. I am unable to see the precise impact on our sales of newspapers and mags but I am sure we need to be looking at the alternatives of selling the content through our eftpos. lets hope its better than 5%!!!
Mark
The reason for fall in newspaper return was covered. Poor choice of content = fewer readers. Declining readers = ad revenue loss. Newspaper publishers effectively killed their own businesses. They forgot ethics and only chased the mighty $$$. If content quality improves and newspapers become more than vehicles for pap and mass advertising, circulation would substantially rise.
Why aren’t newsagent business people interested in quality journalism? Business is not only about $$$,
Wally
You obviously did not not see MediaWatch on Monday. With respect, Rupert’s plan is a dud. Sales of newspapers in last few decades fell because content quality declined sharply. Fewer sales led to loss of advertising revenue. Young people do NOT want to pay for news. Many older people cannot afford to pay for news. For a variety of reasons many people prefer their news printed on paper so if the content quality was substantially improved, many many more would start buying again. For that to happen, newspaper proprietors must ditch the “greed is good” mentality, make a substantial paradigm shift in how their businesses function and return to ethical publishing. News must be affordable by everyone to be successfully sold. The world does not need any more plastic gadgets. There are already too many Neros fiddling while the planet burns.
newspapers are very affordable, what other product has not increased in price for umpteen years, price is not the issue. content wont get young people buying a newspaper, its not their medium, electronic is, nothing will change that. as the older readers drop off the perch there will be nobody to replace them. its a no brainer that printed media as we know it is on a slippery slope to nowhere. any newsagent that has not already looked at other revenue streams to replace papers/mags is heading the same way. the end is cloer than we all think. we need some smart cookie to come up with a way of tapping into the electronic media, this will be hard as why would rupert want to pay a middleman for a recharge when his customers are already online and can top up with a click of a button.
Jeremiah,
I have written here a lot over the years about newspapers and sales decline so I won’t rehash that.
Newsagents don’t get that engaged on this issue because they are chasing higher margin new traffic. Newspapers while still vitally important are not growing and the margin continues to fall in real terms.
Mark
Whatever you say is a fair thing.
Sad, though, that you’re not interested in understanding the errors of the past and learning from them. Then again, being an ostrich and chasing POTENTIALLY higher margin new traffic obviously has its kicks. ROTFLOL
Jeremiah, not in business i take it?
I agree Rick, he mut not be in business. Everything comes at a cost, unfortuately a business will not survive on good will alone. While I am confident that most newsagencies pride themselves on their point of difference being their customer service and willingness to go that extra mile for their customers, I am not aware of anyone, let alone newsagents, that can afford to continue to operate a business that is not breaking even let alone making a profit.
The newspaper is affordable for consumers to purchase however it is not a product with a high profit margin and so in most cases, newspapers cost newsagents to have on the shelves instead of making us money. It is the additional business that arises from newspapers that enables us to support a product with a negative profit margin.
I would hardly say that Mark, or any other newsagent for that matter, is guilty of being an ostrich. On the contray we are actively seeking new products which will provide the profit margin to support us to continue to carry the newspapers which cost rather than make profit.
While newsagents are not in the business to make 100’s of 1000’s of dollars at the end of the day we do need to make a living. As do the staff who rely on us to do so.
Jeremiah, I would challange you to attempt to live off the profit of newspapers alone.
Rick
I’ve probably forgotten more about business than you’ll ever learn.
So thats the problem…. you have alzheimers!!!
B
You say a newspaper is not a product with a high profit margin, and I agree.
However, consider what might happen if proprietors ‘trimmed the fat’ from their businesses? That’s part of the paradigm shift I mentioned earlier which, if coupled with a return to ethical publishing based on quality journalism (i.e. a change of context) has very good potential for success. It doesn’t drive ‘impulse’ buying customers from newsagents’ doors either.
Which would you rather have – 5% or 10% of something definite – or 35% of something that might go well for a minute or two but has all the potential of being a short-lived fad? Newspapers have a long tradition of bringing customers to the door. What happens when former newspaper customers change to iPad and subscribe online from home? No add on sales! How much havoc would that cause to a newsagent’s bottom line?
B
It’s a much more pleasant disease than the one you seem to have … gordongekkoitis!!!
You seemed to be a little confused which may be a result of your illness. Newsagents DONT publish the papers and therefore have no control of the content. What we do have control over is the product we sell in order to stay viable. Your arguement should be directed at the publishers and not the distributor.
Newspaper sales, as Mark has pointed out countless times before, have been declining. They are no longer the draw card to a newsagency… you are obviously not in this business.
P.s. Gorden Gekko was a fictional character and I am certainly not fictional. Secondly, if I was in this business for the purpose of greed then I have certainly choosen the wrong industry to be in.
Jeremiah,
What do you want from me and others commenting here? It appears that you want newsagents to fight for thefuture of newspapers. Well, we don’t get paid enough to do that. The real return from newspapers has been falling for years.
While newsagents were created by a publisher, we were cut loose years ago and since they many of us have found our own future.
B – re your last post. Who’s confused? You state that newsagents are the distributor. No, they are the retailer. As for greed, it’s a sneaky little beast that slowly devours ethics and standards. So last century!
Mark – I don’t want anything. Was merely pointing out that a bird in the hand is often worth two in the bush. OK, the bird under discussion has not been performing well of late, but a good vet can fix that.
Is your difficulty understanding my comments because your beliefs and ethics have become too closely tied to $? You stated that newsagents don’t get paid enough to fight for the future of newspapers.
Forget $ for a second, and consider the widest possible dissemination of news. It must be affordable by everyone, which digital delivery cannot achieve. Even in business, virtue is its own reward.
Jeremiah,
what you dont understand is that $$$ has a whole lot to do with it, i need it to pay the bank loan on the business, i need it to pay my staff wages, i need it to pay my house mortgage, i need it to feed my family, i need it to educate my kids, and finally it would be nice to have a little left over so i can take a short holiday from my 80 hour a week job. I am so sick of do gooders and greenies standing on their soap boxes in the morning and them rolling up to the dole office in the afternoon to collect their “dues” from the society they bash from their soap boxes.
As B said, if i was into making bucket loads of money, im in the wrong business.
Jeremiah,
You are ready with judgements in your comments. Try walking in our shoes for a while before you do this.
Mark,
Why do you only accuse me of making judgements when 2 other people have made the same comments? [see other posts re iPad] Why not put them down too?
The topic is iPad and the attempt (hope?) to have electronic gadgets replace print media. What’s the connection with walking in your shoes and why is it necessary?
Jerimiah,
Your comments are heavy with judgements against newsagents. If you understood what newsagents do and what enwsagencies are I suspect you would not have made the comments.
You know what, you’re so far off topic I am not responding further to you.
Mark,
Rubbish, you’ve got the collie wobbles because I dared to have a different opinion. You gushed about the iPad whereas I raised some of the possible pitfalls of going down that path. End of story.
THOSE DAM COLLIE WOBBLES
jerimiah,
You’re welcome to your opinion and to air it here as you have done. It is your allegations and name calling of newsagents without foundation and, I suspect, out of ignorance, which I challenge.
The iPad is a game changer. Newsagents need to understand this.
From our point of view, it has been game over for newspapers for the past couple of yrs. We sold our runs off as we were losing money year on year and could see no real improvements on the horizon.
As a retail only newsagency (12.5% comm) and we make about $300 profit per week from newspaper sales on a good week. This does not even cover 1 staff wage.
To put it into perspective overall newspaper sales equal about 2-3% of our overall sales per week and most of our newspapers are sold alone or with one other item.
I have had traditionalist say I should no longer call myself a newsagent but I say to them I have been in this industry 20yrs and have adapted my business to capture new markets and customers as well as cater for my existing customers. What is a newsagency now days anyway?
Newspapers do not offer news anymore as people want news to be instant not 1 or 2 days old, internet and other media offer this instant news so newspapers will need to focus more on non news articles and features as well as advertorials to entice readers, which goes against what newspapers were about. Newspapers are a time filler in todays world.
Just 1 persons point of view, I’m not saying it is right or wrong but it feeds my family.
Mark
You’re such a comedian. Everyone knows I haven’t made an allegation or name called anyone. What a joker you are. Suspecting I may be ignorant is a real howler. You should let your sense of humour out for a run more often.
Everyone needs to understand that the iPad is a game changer
IF it doesn’t cost an arm and a leg
IF there’s a high take-up rate
IF it delivers what users deem worthwhile.
Just a few big IFs to think about and understand.
Luke
If you’re correct in thinking that ‘people want news to be instant’ does that mean TV and radio will cancel their regular news broadcasts too?
I don’t understand why people keep detailing their current revenue from newspaper sales. I know that. I raised future scenarios, both print and electronic. Lots of IFs. The biggest, from a newsagent perspective, is whether the publishers will give higher revenue for electronic subscriptions and top ups than they currently do for print.
price will be affordable, and get cheaper very quickly, as for take up rate, australians continue to be a leader with the take up of new gizmos,this will be no different, will have wide ranging apps to suit all markets,
no “ifs” there at all in my book.
you may not like progress, but it will happen anyway, so may as well be part of it
Jeremiah,
You labelled me / us ostriches. read this blog and see newsagents transforming their businesses while respecting print but also developing other traffic.
You’re clearly here to stir the pot. Good on you. Maybe one day you’ll out yourself so people can understand your agenda.
as for publishers giving higher rates for top ups, i dont expect there to be a market for a middleman to sell top ups, if they are already only line, they will do it there, no need to walk to a newsagentcy to top up. that is why newsagents need to look at ways of replacing lost revenue from the print media as it will continue to decline and eventually be gone for good.
Luke, I couldn’t agree more.
We get the odd customer who will comment that we must make good money because they spend the odd dollar here! It’s quite cathartic to say the least, to get to point out that in this day and age, papers are more a liability, given home delivery issues (and the woefully low percentage of those customers who actually support the store), and the shop space required (thus outside control of our own businesses) etc. etc. The ignorance of the general public in relation to common misconceptions about our businesses is immense.
We had an opportunity to place an ad in a small community publication recently, and it was an interesting experience to have free reign over content. That is, to be able to promote things outside of the newsagency lines.
We ended up designing one that featured the slogan: More than Just the News… being a mixed business and all.
The feedback from that from the community has been very positive, and reinforces our imperative for diversification in terms of core business. As I write this, I’m attending to a customer who commented (unsolicited) on how postitively powerful and refreshing that statement was – and how informative it was in relation to our ‘other’ core business.
I say this, mindful of those fearing for ‘The Channel’ not agreeing with our direction. However, not being in a strip or shopping centre, frees us up for catering to what the community needs, and not necessarily what an ‘ordinary’ newsagency would provide. Obviously it would be a different matter if that was not the case.
Jeremiah, I can see where you’re coming from regarding quality of journalism as opposed to something to read. Sadly one multinational publisher in particular has managed to sully the term in every medium since it was allowed to acquire as many of them as it has. The way I see it, it’s far too late to expect newsagents to take any responsibility for that, given the control this and other publishers have (and always have had) over our businesses. It’s simply a stark demonstration of how insidious the methods (and messages!!) of such a company have been in the process of its growth and appeal. Analysis with hindsight has been valuable all the same. It means we can at least control our businesses in other directions – chiefly for us, because the readership of our biggest sellers are not interested in impulse buys or the odd bottle of milk. We need to survive, so we offer our higher-margin stock to those who aren’t newspaper readers. We are retailers, yes. However in order to be, we have to be customers as well. We’re pretty shoddily-treated customers at that.
$$$ any way we can. Ethically and with integrity. If we operated solely for the sake of quality journalism, we’d starve. It’s just too, too late.
Don’t judge so harshly. How about becoming a newsagent? Good honest work.
Jeremiah, your comment #5 asked “Why aren’t more newsagents actively campaigning for print retention?” I’ve tried to answer it from my point of view, if it is not what you want to hear then so be it, grab a soap box and start preaching the value of print journalism.
tl;dr
In other news the iPad fails to live up to expectations. It doesn’t walk on water.
Also, Apple has announced the new iPad mini which features the ability to make calls. It looks exactly like an iPhone.
—
In reply to the original post though, and the other iPad-related posts, it’s just an expensive toy. Most of what can be done on the iPad (phone/touch/pod) has been done, or can be done on less expensive things or similar devices.
One thing I’ll give Apple credit for is good marketing. (Although false and misleading marketing and advertising at times.)
One thing I get frustrated at, are out of touch journalists and blog commentors, who attempt to paint a picture of new technology failing.
Newspapers didn’t die because of poor journalism.
Newspapers died (past tense – draw a line and turn the page please), because a substitute product: electronic media – chiefly the web and phones, replaced it’s purpose.
Primary news consumption factors are convenience, relevance (timeliness), richness, and of course format.
New media trumps newspapers in all categories. And before you “old hands” (with all respect intended), exclaim, “oh, but I’d rather hold a physical piece of paper etc”, with respect – you are NOT the future. Your views are outdated. You are out of touch, and time is against you.
Current generations do not, and will not buy a newspaper. It’s not because of poor journalism – it’s because of inconvenience.
As a business owner aged 29, I’d love for Newsagents to succeed and find a relevance well into the future. This will not happen without the forward thinking attitude that Mark actively promotes.
I implore you guys to get on the cutting edge of new media. Regularly patrol sites like engadget and mashable to stay on top.
Finally, re Aaron reply 38. The ipad is not a toy. It is the breed of device that destroys your magazine business. How can you not see this?
Sail your ships and laugh at the Wright brothers. With the attitude that “but I can already travel from A to B by ship”, you almost deserve to have your business destroyed.
Nathan
With respect, young man, you should have finished the sentence. ‘Newspapers didn’t die because of poor journalism’ they died because a few decades ago too many publishers saw a way of grabbing more of the pie. It started with a subtle change from reporting on genuine news events to printing sensationalist nonsense, which has culminated today in an almost endless stream of articles on the antics of supposed celebrities and detailed examples of various degrees of criminal behaviour being passed off as news, interspersed with far too much advertising. The public was treated like sheep, and the majority swallowed it hook, line and sinker. Many weekly magazines also lowered their standards and all was fine and dandy in publishing land for a while, but, like most things in life, many of the once feeble public began to realise they were being had and stopped buying papers and magazines.
In essence, the reality is that if electronic gizmos fly, they will, for the most part, be delivering the same old nonsense rubbish that has been passed off as news for far too long.
Finally, at 29, the views you have expressed show you have a lot of learning to do. And I don’t only mean how to dump your arrogance and replace it with some humility and respect. You need to restructure your life and do some real learning before it’s too late, because one day in the not too distant future, time will be against you too.
Get yourself ready! Stand up and say to them whatever I command you. Do not be terrified by them, or I will terrify you before them. Today I have made you a fortified city, an iron pillar and a bronze wall to stand against the whole land—against the kings of Judah, its officials, its priests and the people of the land. They will fight against you but will not overcome you, for I am with you and will rescue you, declares the LORD.
– Jeremiah 1:17-19 (NIV)
Nathan, I don’t believe that age is at all an indicator on whether someone is qualified to express an opinion or not. Your experience and opinion is important to those that frequent this site and we appreciate you giving it.
Jeremiah,
There is no evidence to suggest that a shift in content has eroded print media sales. In fact, there is much anecdotal evidence to suggest the exact opposite.
‘Sensationalist’ news websites, blogs and forums are some of the most visited sites on the internet. They command audiences that rival their ‘genuine’ reporting counterparts.
Its also worth noting that the popularity of social networking (which continues to grow exponentially) also has close ties to ‘sensationalist’ reporting. Many celebrities are skipping the traditional media middleman and going direct to the public.
People continue to demand this kind of reporting in record numbers – just not in print form.
Jeremiah,
I was hoping you’d reply with some substance.
You should invest in one of these computer or mobile telephones they speak of. Believe it or not, you’ll actually find some quality online too.
…But the oh-mighty Jonathan Holmes didn’t tell you that did he? After all, he is the messiah…
Your beef isn’t with Newsagents.
Your beef is with society – go see a counsellor.
B,
Yeah you’re right, age should not be a qualifier to express an opinion. Apologies if it came accross that way.
I intended to make reference to a paradigm shift, by illustrating through age.
I think a great opportunity for newsagents is to conduct a survey with your customers. Survey those under 35, and ask if, any why, they reduced purchases of print material. My money is on convenience + time relevance.
Jeremiah
Hell hath no fury like a newsagent scorned.
This is a protected site and any scorn or wrath visited upon this site will be met with fire and tempest….
Oh yea you have been warned
i shouldn’t say it but damm i have that Jeremiah was a bull frog song stuck in my head .
@Nathan
I don’t run a business. I’ve just started my second year at Uni. Some of the other commentors here probably remember when I was doing my VCE just over a year ago.
That being said, the iPad still sucks. Maybe it’s because I dislike Apple’s i-anything and the masses of people who feed off their marketing and getting one because ‘everyone else has one’. They’ll refuse to listen to a word said against something they just spent a few hundred on.
We are dealing with more customers using their iphone to copy information from our magazines whilst browsing.