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News Corp, Apple Launch The Daily

Feb 2, 2011

Apple and News Corp launched The Daily, an iPad-only
newspaper, Feb. 2 in New York City. Priced at 99 cents per week (and $39.99 per
year), the publication enters a complicated and dynamic media environment that
seems to take special pleasure in crushing upstarts.

The question is whether the iPad’s popularity and News
Corp’s production muscle can translate into an offering with marketplace
endurance. In addition to created-from-scratch news content, The Daily offers built-in games, weather
updates, a customizable sports dashboard, interactive video and photos, and
stories read aloud.

"The Daily is a manifestation of what can be called the
Flipboard revolution. Flipboard, launched in 2010 and listed as an app of the
year for iPad, offers a blend of visually striking and relevant content with
significant social overlay," Allen Weiner, an analyst with Gartner, wrote
in a Feb. 2 posting on his corporate blog
. "Pilot season for Flipboard
newspapers has just begun. The New York Times, AOL and others will soon be out
with similar products. Is being first an advantage?"

In
a Nov. 9, 2010, interview with The
Australian Financial Review
, News Corp CEO Rupert Murdoch suggested that
The Daily would need a circulation of around 800,000 readers to become
economically viable — a number he believed achievable in the context of the
iPad’s sell-through rate. "By the end of the next year there will be 30-40
million iPads," he said at the time. "I believe every single person will
eventually have one, even children."

For more, read the eWeek article: Apple, News Corp Launch iPad-Only Daily Newspaper.

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