As is the case with most product launches in the digital space, The Daily’s reality likely lies somewhere in the middle — short of the hype, but still possessing the potential to significantly alter the media landscape if it can tap into a growing tablet market that already represents a significant niche among American news consumers.
What’s Working Against The Daily?
Because of its initial exclusivity to the iPad, The Daily’s brand is inexorably tied to Apple. While seemingly a limiting factor, this relationship won’t diminish the prospect for success. If you had to pick a partner in selling a product that once was profitable but is now being traded for free, Apple’s history with the music industry must be appealing. And that’s precisely what The Daily is hoping to do. A successful subscription model for online news will provide journalism the lifeline it needs in much the same way that iTunes made record labels profitable again.
At $0.99 a week, The Daily is less expensive than most online news publications that have experimented to date with paywalls and subscription-only models, notably The Wall Street Journal and The Sunday Times, which are, coincidentally, also owned by Rupert Murdoch. Has he finally found the price point at which consumers will now be willing to pay for what used to be free?
Arguably, The Daily’s greatest advantage will be the experience it provides its readership. The quality of content promised by The Daily looks to bring together the best of how news travels on the web; podcast-like audio reports, vivid images, streaming videos, options to share through social media, and, of course, its ability to report breaking stories without waiting for the next morning’s edition. Further, it will all be delivered on what many see as one of the most user-friendly portable devices available. Just as the iPod-iTunes ecosystem made digital music easy to find and transport, the combination of the iPad and The Daily could very well make news reading easy, informative, social, and, dare I say, fun.
What’s Working Against The Daily ?
One major challenge for The Daily is that the price point that most online news consumers prefer is still zero. No online subscription news service to date can really be called a success. Those that have managed to entice readership do so through the niche reporting — or high profile reporters — that readers can’t access anywhere else. Content is still king, and we still don’t know how The Daily’s reporting will differ from that of its competitors. If there is no significant distinction, there is less of an incentive for consumers to shell out their hard-earned dollars.
Money won’t be the only limit to success. The Daily will need to find support in an audience that wants
increasingly customized news. It is doubtful that a publication with an international scope will be able to deliver the focus that helps bolster the readership of hyper-local and interest-specific blogs.
increasingly customized news. It is doubtful that a publication with an international scope will be able to deliver the focus that helps bolster the readership of hyper-local and interest-specific blogs.
And there is also the question of The Daily’s brand recognition and loyalty among information consumers, which have yet to be established and must immediately compete with the biggest names in news. If content is king, credibility is queen — and today’s major dailies have been building that credibility for more than 150 years in some cases. Perhaps the greatest threat to The Daily’s success is the fact that credibility and trust are only built over time, and its competitors have a significant advantage in this respect. Furthermore, the most popular blogs and online thought leaders often build trust by railing against the establishment that many see embodied by The Daily’s heritage — namely The Wall Street Journal, The New York Times, and Rupert Murdoch. That’s another hurdle The Daily must clear if its potential is to be realized.
How Will It All Play Out?
At the end of the day, The Daily will be judged — and purchased — in the same way as its competitors; on the content it provides and the way that content is delivered. Could it — and other services based on its model — one day be the primary portal through which we learn about the world? It’s certainly possible — but not without providing the quality reporting and delivery that news consumers expect in return for even a nominal price.
