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07 Apr

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If Murdoch endorses the iPad, it’s bad

April 7, 2010 | By |

In the Guardian, soon-to-be-ex media mogul Rupert Murdoch continues to claim Google steals Murdoch’s journalistic content, while the iPad might save journalism. Faced with the statement that consumers are used to getting their news for free, he reacts as follows:

Murdoch dismissed this fear, saying consumers could be forced to change their habits. “When they have got nowhere else to go they will start paying. If it is reasonable. No one is going to ask for a lot of money,” he said.

Now we have this weird situation: users reading their news for free; the iPad trying to cater to publishers more than consumers by making ads hard to circumvent; and Murdoch protecting burying his own content behind a paywall.

So far, Murdoch has done pretty much everything wrong that could be done wrong online. Blocking out search engines and users is just one of the more obvious mistakes that prove just how little he understands the new paradigms of a digital world. It also shows he doesn’t remember that readers never really paid for news, but for all the rest in a newspaper:

In a notional town with two perfectly balanced newspapers, one paper would eventually generate some small advantage — a breaking story, a key interview — at which point both advertisers and readers would come to prefer it, however slightly. That paper would in turn find it easier to capture the next dollar of advertising, at lower expense, than the competition. (…) For a long time, longer than anyone in the newspaper business has been alive in fact, print journalism has been intertwined with these economics. The expense of printing created an environment where Wal-Mart was willing to subsidize the Baghdad bureau. This wasn’t because of any deep link between advertising and reporting, nor was it about any real desire on the part of Wal-Mart to have their marketing budget go to international correspondents. It was just an accident. Advertisers had little choice other than to have their money used that way, since they didn’t really have any other vehicle for display ads.

Now when he endorses the iPad, that’s almost certainly a bad sign. It’s a sign that he, as a publisher is catered to. The same guy who wants to force consumers to change their behavior. The same guy who is willing to practically kill his newspapers by hiding the content from the eyes of the world.

Let’s hope that the iPad won’t empower the likes of Murdoch & Co too much. I’d rather see a device saving the industry by making the content more appealing, or easy to consume, or some third way of monetizing content. Something that makes empowers and delights consumers, not makes them slaves to archaic media moguls like Murdoch. Let’s see which device that’s going to be.