Apple is linking hot new hardware to the media subscription model.
On Wednesday, Steve Jobs will take the stage at the Yerba Buena Center for the Performing Arts in the heart of San Francisco. It’s the same place he goes whenever he’s ready to unveil the latest game-changing technology. This week, he’s expected to unveil the long-anticipated tablet computer, which some have dubbed the “iPad.”
It’s expected to do for information – especially the written word – what the iPod did for music. As in revolutionize how we get news, read books, connect with our friends via Twitter and Facebook, and keep up with the essential updates on YouTube.
As The Independent of London asked over the weekend, “Can Apple Save the Written Word?“
It’s also a bit of high-stakes corporate theater — some financial analysts predict the company’s stock will drop by 15 percent if Jobs doesn’t show up there with the tablet in hand.
What is it going to look like? Something like this? Or maybe this? Or this? Some bloggers speculate there will be 7” and 10.1” models. Others have been following Apple’s recent patent activity and speculate on features like 3D display and innovative touchscreen interactivity.
[A note to our IT department –- let me be the first to say that I am definitely going to need one of these as soon as they’re out in March. And yes, it’s definitely a “need,” rather than a “want,” kind of thing. Really.]
Of course, Apple doesn’t set off a revolution by just producing cool hardware. After all, what would an iPod be without the iTunes store? So, as the Financial Times reported, “Apple is courting owners of US television networks, including CBS and Walt Disney, in the hope of launching a subscription television service over the Internet next year.”
A subscription service. Over the Internet? Hmmm. I thought people gave up on that a long time ago.
But there’s more. A Jan. 22 report in the Wall Street Journal notes that Apple has been talking with book, magazine and newspaper publishers — The New York Times, Conde Nast, News Corp. (owners of the Wall Street Journal and more), among others — about content for the tablet. The Journal also notes that Apple has been looking at ways to integrate “paid” features into Web sites, linking back to its iTunes store where it currently sells music, movies and TV shows.
It’s worth noting that the Times recently announced that it’s adopting a pay-for-content model at nytimes.com — the world’s most visited news site. Is the Times move to a paid model and the imminent launch of the iPad a coincidence? I tend to doubt it. Neither does PC World, which reported on rumors of the link on January 18.
Of course, Amazon.com’s Kindle has been out there for a while offering news subscriptions, in addition to book downloads. You can subscribe to a variety of newspapers around the world, from the Columbus Dispatch and USA Today to Le Monde and the Hindustan Times at monthly rates ranging from $5.99 to $13.99. There are also a handful of magazines.
How’s it working? A quick scan of the reviews suggests results are mixed at this point. Common complaints — unreliable deliveries and content that’s still not as complete as the print editions. Because Amazon.com is tight-lipped about Kindle sales, there’s no data on how many people are looking to get their news this way. Given that there are an estimated 250,000 Kindle owners out there at this point, it’s hard to imagine this is much of a revenue stream right now.
Will these devices change the game in ways that make people willing to pay for content? It’s hard to say. But it’s somewhat ironic that, according to news accounts, Apple encountered some significant resistance in their talks with TV networks. The big telecom networks already have a lucrative paid subscription model — it’s called cable TV.
So with an exciting new device, Apple just might be able to make the case that you’re already paying for content. Why not get it from us — and pay us — instead?
When the music industry was crumbling in the face of “free” (i.e., illegal downloads) content on the Internet, Apple found a way to get people to actually do the unthinkable — pay for music through the iPod and iTunes. As the news industry continues its death plunge in the face of “free” models on the Internet, perhaps Apple can work the same magic with the iPad and some type of subscription model.
So what do you think — can it work?
Comment by Albert M.
Tuesday 26th - Jan 2010 @ 8:14 PM
Smart.
One of the articles I read about the Apple tablet mentioned that record company executives said that the iTunes store “ruined” whole-record sales because people could buy single songs. Ruined? That’s one way of looking at it. But many people only wanted single songs. Just as now people want their content in different formats. Publishers now have the chance to reconsider distribution. It will be painful for a little while, but if they let go of the old models and start to innovate, maybe Steve Jobs can “ruin” things for them then help them reinvent their industries.