Apple’s latest product launch will present the biggest challenge the traditional print media has had to deal with in over a century – that’s the message from Allan Biggar, Chairman of marketing service group All About Brands plc.
“The arrival of the iPad, which fills the gap between the iPhone and the Mac, is set to replace the newspaper tucked into a brief case or handbag. That’s the enormous challenge for the newspaper industry already struggling with declining sales” says Biggar.
The iPad will provide online access in an easy to handle package which means that consumers, such as commuters, are likely to opt for the digital as opposed to the print version. And with that switch, people are set to become less loyal to their reading preferences argues Biggar, who used to head the European arm of global PR firm, Burson-Marsteller.
“We’ve seen so far that in a digital world consumers are fickle and are looking for information which is largely free with the exception of some very specialist content. And I really struggle to see consumers choosing to view, say, the Daily Telegraph online for a story, when the same information will be largely available and free via BBC online or a variety of any other providers” he continued.
“We’re going to see massive consolidation in the media industry as a result and online there is going to be just a handful of players who will manage the transition well. You can see those players lining up now – they are Reuters, Bloomberg, and, arguably, the FT i.e. outlets who provide very specialist information (which consumers pay for) and which effectively subsidises other general news gathering operations”.
Commenting on the impact it is set to have on tabloids and other brands, Allan Biggar went on to say “There’s always going to be an appetite for specific content – and may be the likes of The Sun can find a niche in providing sensational stories which consumers will pay for. But, I don’t think people are likely to pay (or if they do, it’ll generate very modest income) for general news. The logical conclusion has to be that media outlets will slim down newsroom operations quite considerably. And as for august weekly publications like The Economist, I struggle to see how that news model can operate in a 24 hour digital news cycle”.
Ends
Further information:
Andrew Wigley
Tel: +44 20 7395 1695 or andrew@aabplc.com
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