New Technologies Can’t Save Old Business Models

“Is the iPad Really the Savior of the Newspaper Industry?” by “Amy-Mae Elliott (Mashable.com, 19 October 2010).  The short answer is, no. The iPad will be of benefit to a handful but it is not the savior of the (print) newspaper industry. The main reason is, the old publishing model was based on geography, barriers to entry, distribution, etc., and not so much on content (as is the prevailing myth).

Consumers were forced to buy from their local (news) provider because there were no other options. The reality was, aside from local news and sports, and significant percentage of the content was identical / similar to the next market over, etc. The newspaper model was based on taking what was essentially a commodity, repackaging it and charging for its ease of availability. Once the access limitation was eliminated so was the value add. The fact the barriers to entry (to become a publisher) also dropped significantly only made matters more difficult. For example, look at what Craig’s List did to the newspapers’ local monopoly on classified ads.

The problem right now is that the supply of news greatly exceeds demand. This could explain why we’re increasingly subjected to so much non-news. As many publishers are scrambling for original – but what is ultimately crap – content, they’ll “print” anything. What’s sad is that each individual newspaper still believes they are in the content business. They are in collective denial and refuse to admit they were in the distribution business. Regardless of their stack of journalism degrees, etc.

In short, there’s no needed for the same story to be “reprinted” hundreds of times in an all access, all the time world. It seems unlikely the iPad is going to change that. Some will survive. Many will not. And a handful will morph into something else.

All that said, the magazine model might be a different story. With a higher percentage of original content that often address a niche interest and/or target market. There certainly seems to be a possibility the iPad can help that model.

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