Apple iPad and the press

Will the tablet, now in its third incarnation, be the death of print journalism?

 

The take home message from Wednesday’s Press Gazette conference News on the Move was that print journalism really is done for. And as Apple geared up to release its latest model, everyone agreed that it’s mostly the iPad’s fault.

The problem is that the niche printed news used to fill (on our knees on the train, on our laps on the sofa, in our hands while queuing for a coffee) – is no longer there. We can check our phones for news while waiting at Starbucks, our PCs at work and at home, and our Apple iPads at any point in between when we happen to be sitting down.  The space for paper is, well, not even paper thin.

Printed content had, for a while, a privileged position – the sofa.  From the sofa, before the iPad, people were restricted to magazines, papers, and TV. To access other types of media, you had to go and sit at the PC, or find a table for your laptop (a misnomer, as one speaker noted – the iPad is the real laptop). Not so now.

Before going on we should note that other tablets are really not worth talking about. As one speaker put it, “the only reason you have an Android tablet is if your Granny gets confused in the shop”.  According to research firm Forrester, Apple has 73 per cent of the tablet market, and no Android tablet maker has more than a 5 per cent share against it. There is no "tablet market", it turns out – only an iPad market.

The iPad market, then, is really levelling the playing field in terms of journalistic content. Access is not restricted by medium any more, and this is reflected in the ever-tumbling print sales.

The iPad may have left journalism broken, but like a bullied younger sibling it is still trailing around after its tormentors, wanting to join in.

At the Press Gazette conference, much was made of the various spikes in web traffic for news sites via the different media, and these might be monetised.

A quick breakdown:

6am – 9am: "Commuting Spike": increased traffic on phones on the way in to work.

9am – 10am: A “web spike” as PCs are checked for news.

12pm – 2pm: Spike as iPads used over lunch.

6pm: A further web spike as workers take a final look at the news before heading home.

10pm – 12pm: iPads checked again for news before (or - they speculated - in) bed.

The trouble, though, is that profits made online are unlikely make up for the losses in print sales. According to Pew, the journalism research centre, news organisations lose $7 for every $1 gained when a customer moves their subscription from print to digital.  Still, news organisations hope to find a way to adapt. Models vary - but none seems to have struck gold yet.

One interesting departure from the usual model is the FT. They have dropped the Apple app, and instead have an HTML5 app. Their reasoning? Apple take a 30 per cent cut, which the FT can now avoid, and the HTML5 app can be used on android - which may be negligible on tablets – but becomes significant on phones.

But perhaps it’s a waste of time chasing consumers from one device to the next.

FT.com managing director Rob Grimshaw said:  “Our policy is not to second guess the consumer. Consumers hop from one device to another. The key is to have one login and one password, which will get you to our content from any device.”

And perhaps a considered burial of heads in sand is the way to go. If there's one thing everyone could agree on, it's that we have no idea what terrifying digital contraption will be released next.

 

No reason not to use an iPad, Getty images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

Photo: Getty
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As long as the Tories fail to solve the housing crisis, they will struggle to win

The fall in the number of homeowners leaves the Conservatives unable to sell capitalism to those with no capital. 

For the Conservatives, rising home ownership was once a reliable route to government. Former Labour voters still speak of their gratitude to Margaret Thatcher for the Right to Buy scheme. But as home ownership has plummeted, the Tories have struggled to sell capitalism to a generation without capital. 

In Britain, ownership has fallen to 63.5 per cent, the lowest rate since 1987 and the fourth-worst in the EU. The number of private renters now exceeds 11 million (a larger number than in the social sector). The same policies that initially promoted ownership acted to reverse it. A third of Right to Buy properties fell into the hands of private landlords. High rents left tenants unable to save for a deposit.

Rather than expanding supply, the Tories have focused on subsidising demand (since 2010, housebuilding has fallen to its lowest level since 1923). At a cabinet meeting in 2013, shortly after the launch of the government’s Help to Buy scheme, George Osborne declared: “Hopefully we will get a little housing boom and everyone will be happy as property values go up”. The then-chancellor’s remark epitomised his focus on homeowners. Conservative policy was consciously designed to enrich the propertied.

A new report from the Resolution Foundation, Home Affront: housing across the generations, shows the consequences of such short-termism. Based on recent trends, less than half of millennials will buy a home before the age of 45 compared to over 70 per cent of baby boomers. Four out of every ten 30-year-olds now live in private rented accommodation (often of substandard quality) in contrast to one in ten 50 years ago. And while the average family spent just 6 per cent of their income on housing costs in the early 1960s, this has trebled to 18 per cent. 

When Theresa May launched her Conservative leadership campaign, she vowed to break with David Cameron’s approach. "Unless we deal with the housing deficit, we will see house prices keep on rising," she warned. "The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing instead of more productive investments that generate more economic growth."

The government has since banned letting agent fees and announced an additional £1.4bn for affordable housing – a sector entirely neglected by Cameron and Osborne (see graph below). Social housing, they believed, merely created more Labour voters. "They genuinely saw housing as a petri dish for voters," Nick Clegg later recalled. "It was unbelievable." 

But though housebuilding has risen to its highest levels since 2008, with 164,960 new homes started in the year to June 2017 and 153,000 completed, this remains far short of the 250,000 required merely to meet existing demand (let alone make up the deficit). In 2016/17, the government funded just 944 homes for social rent (down from 36,000 in 2010). 

In a little-noticed speech yesterday, Sajid Javid promised a "top-to-bottom" review of social housing following the Grenfell fire. But unless this includes a substantial increase in public funding, the housing crisis will endure. 

For the Conservatives, this would pose a great enough challenge in normal times. But the political energy absorbed by Brexit, and the £15bn a year it is forecast to cost the UK, makes it still greater.

At the 2017 general election, homeowners voted for the Tories over Labour by 55 per cent to 30 per cent (mortgage holders by 43-40). By contrast, private renters backed Labour by 54 per cent to 31 per cent. As long as the latter multiply in number, while the former fall, the Tories will struggle to build a majority-winning coalition. 

George Eaton is political editor of the New Statesman.