menu

Jeff Jarvis: Why iPad’s ‘The Daily’ News App Failed

Jeff Jarvis: Why iPad’s ‘The Daily’ News App Failed
Advertising

Rupert Murdoch's iPad-only venture neglected key lessons of subscription news, and that is why it folded.

Jeff Jarvis, Guardian
  • 3 december 2012


Powered by Guardian.co.uk
This article titled “The Daily closes shop: why the news app was doomed from the start” was written by Jeff Jarvis, for guardian.co.uk on Monday 3rd December 2012 16.53 UTC

On Twitter, I’ve already been accused of schadenfreude over the death of News Corp’s soon-to-die, paywalled, tablet-only, once-a-day news venture called The Daily.

Not so. I’d have loved to have seen an online-only news service make it. But The Daily was, in my view, doomed from the start because of all the adjectival modifiers listed above.

First, the paywall: NewsCorp proprietor Rupert Murdoch has charging for content as a religion. He says people should pay for his products (though I’ve never seen a successful business plan in a competitive market built on the verb “should”). He turned his Times from an internet presence of note into a footnote because he insisted upon putting it behind a wall.

With The Daily, Murdoch wanted to prove that he could start and we would buy a news product online. But he forgot a key lesson of selling subscriptions, one he surely learned when he owned magazines: that it takes a lot of marketing expense to acquire customers. It costs money to charge money.

When it started, I calculated that The Daily would need to net at least 750,000 subscriptions – 1m when accounting for cancellations (aka “churn”) – to break even on an operating basis, what with a share of sales going to Apple on the iPad. Murdoch promised he would sell “millions.” In the end, it reached 100,000 subscribers, not nearly enough to compensate for a reported $30m in development cost and $500,000 per week burn rate.

Mind you, I am not against charging for content. I will happily sell you my books. But The Daily wasn’t much worth paying for. Though it looked quite nice and its content was competent, that content was all-in-all just news and news is a commodity available for free in many other places. Larry Kramer, publisher of the much-larger USA Today, just said with admirable candor that he can’t put up a pay wall online because his product “isn’t unique enough”. Ditto The Daily.

Next, The Daily started as an iPad-only offering. Eventually, it branched out to the iPhone and to Android tablets (but only for Verizon customers) and the Kindle. I hope that other publishers learn from this misguided “mobile” strategy. Too many have dreamed that the tablet would return to them the control over brand, experience, and business model that the web and its links took from them. Too many think they need to create new products just for so-called mobile devices (though we actually often use them when stationary, at desk or on couch).

No, a news organization should have a strategy built around relationships with individuals, serving them wherever, whenever, and on whatever platform they like. My needs don’t change just because the device in my hands does.

Finally, there was the absolutely befuddling decision to make The Daily daily. News was only ever daily because it was forced into that limitation by the means of production and distribution of print. The internet freed us from those shackles of time. Why put them on again? Nostalgia?

In the breakup of News Corp. that is the real outcome of the London news scandals and the Leveson inquiry, the new company had to start cleaning up its books, getting rid of money-losing ventures. The Daily was the first to go. But there are more in that stable, starting with the New York Post, which loses, by one account, $110m a year just to give Murdoch what he has long callsed his “bully pulpit.” Now he has a bully pulpit with almost four times more subscribers for free on Twitter. Can The Post’s obit be far behind?

guardian.co.uk © Guardian News & Media Limited 2010

Published via the Guardian News Feed plugin for WordPress.

Advertising
Trending

Brand Engagement At The Gates Of The World's Largest Open-Air Gallery

Culture
Work Today

Editorial Roundtable: The People-First Workplace Should Borrow From Tradition

Managed By Q, Soma, Workbar, Primary, AltSchool and thinkPARALLAX underline the old-fashioned ideas that deserve a place in the Future of Work

Op-Ed Today

Digital Design Expert: Mobile First Is Dead, Think Mobile Native

Brian Cooper, chief creative officer of OLIVER Group UK, explains how some brands are still playing catch-up to new technology

Trending

Get PSFK's Related Report: Future of Automotive

See All
Fashion Today

Handbags Crafted From An Old NFL Stadium

People for Urban Progress is an up-cycling program that tackles the waste problem of big demolitions

Related Expert

Benjamin Dyett

Digital Solutions, Tech, Systems

Europe Today

Architect Turns A Giant Smile Into A Public Exhibition

The structure offers visitors a new perspective of London and creates an immersive environment that integrates structure, surface, space and light

Children Today

Norwegian Kids Are Using Their Phones To Log Unsafe Street Conditions

Travel Agent is an app that gamifies the reporting of hazardous conditions to improve the safety of children's commute to school

Travel Today

Google Wants To Help You Plan Your Next Trip

A new app curates vacation itineraries and organizes reservation emails to take the work out of planning a getaway

PSFK LABS REPORT

Future Of Automotive
Scenarios Driving The Digital Transformation Of An Industry
NEW

PSFK Op-Ed Yesterday

Energy Expert: How American Consumers Are Taking Control Of Their Power Use

Jennifer Tuohy, green tech expert at The Home Depot, discusses green home technologies and developments for renewable technologies in US homes

PSFK Labs Today

The 10 Steps To Discover, Hire, Develop Your Next Leader

PSFK's Future of Work report outlines key steps in the employee development path to empower next-gen leaders

Technology Today

Small Handheld Analyzer Checks Oral Hygiene On The Go

The breath-detecting gadget gives people a quick and easy peek into their dental health

Asia Yesterday

Safe Drivers Rewarded In Japan With Free Coffee

Driving Barista is a new app that encourages Japanese motorists to put their phones down as they drive

Arts & Culture Yesterday

Michael Kors Has Designed Their Own Instant Camera

In a partnership with Fuji, the limited edition Instax Mini 70 comes in an exclusive metallic gold color

Health Yesterday

Manage Your Emotional Health Through Your Phone

Pharmaceutical company Pfizer has created a new iOS app meant to help patients track mental progress and set goals

Food Yesterday

Delete Food Pics Off Of Instagram To Feed The Hungry

Land O'Lakes and Feeding America are donating meals for every picture of a meal taken off of the social platform

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

Design & Architecture Yesterday

This Shape-Shifting Pod Could Be The Future Of The Cubicle

MIT and Google have designed a new form of work enclosure meant to offer privacy in open-office layouts

Advertising Yesterday

Billboard Spies On People As They Walk By

To promote the movie "Snowden," the advertisement broadcasts information on passersby without their knowledge

Fashion Yesterday

Anti-Pollution Scarf Helps Cyclists Ride Through Cities

An innovative system filters pollutants and its accompanying app monitors quality of the air

No search results found.