Are apps the saviour of the publishing industry?

June 1st, 2010, 11:53 Posted By: wraggster

The Evening Standard's general manager of digital Tim Smith took the stage at London's M-Publishing conference today, to talk about the importance of apps for newspaper publishers.
However, he kicked off by outlining some of the challenges facing traditional media. "The game has completely changed because of online migration, particularly in classifieds," he said.
"Nearly every day publications are being sold or relaunched to try to face up to this challenge... It seems that almost one a week is going into bankruptcy or cutting way back."
The Evening Standard was recently sold by Associated Newspapers to Russian billionnaire Alexander Lebedev, who made the newspaper free and entirely ad-supported.
"The essence of the strategy is to retain the character of a paid-for newspaper, but it's free," explained Smith.


"But we're also getting really interested in devices, and starting to investigate which of those devices offer promise. The new battle is happening in the pocket of the reader."
He pointed out that all the big newspaper groups are investing in downloadable smartphone apps for three reasons: first to find new readers, second to generate more direct revenues, and third to find new advertising revenues.
Smith referred to comScore stats from the UK, indicating that 23% of all mobile users have a smartphone, and 3.5% have an iPhone.
80% of iPhone users and 48% of smartphoen users access news via their device. But 56% of iPhone users and 22% of smartphone users have downloaded an app to access news.
"More smartphone owners had used their phone to read news than had to access email, listen to music or access a social networking site," said Smith. "It's definitely a vote of confidence."
Smith also said that "smartphone users are prepared to pay" for content and applications - a key point for newspaper groups mulling their investment in apps.
He talked about some apps from other publishers. The Guardian's paid iPhone app was downloaded 70,000 times in its first month, generating gross revenues of £167,000 before Apple took its 30% cut.
Smith also highlighted the free Sky News iPhone app, which focuses on ads and sponsorship for its revenues, while also promoting Sky's subscription marketing campaigns for its satellite TV business.
And the Evening Standard? The paper just launched a series of smartphone apps in partnership with Handmark: iPhone, but also Android, BlackBerry, Windows Mobile and Symbian.
"It's free to the user, mirroring the print strategy," he said. "It would be very difficult for us to charge for an application."
Why work with Handmark rather than develop in-house? "Relationships with OEMs and with carriers too," said Smith.
The commercial model is around revenues from sponsorship and advertising, and Smith said that while the app is relatively simple now, it will be developed further over time.
British Airways is sponsoring the app for two months, having got a plug in the press and online ads promoting the app launches, as well as branding within the app.
Smith didn't have any download figures for the Standard apps yet, as they only launched a week ago.

http://www.mobile-ent.biz/news/37308...shing-industry

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