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.

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump