A new report from research consultancy Juniper Research has found that annual revenues derived from eNewspapers delivered to portable devices will exceed $1.1 billion by 2016, with publishers increasingly delivering via subscription-based applications to counteract falling print sales.
 

The report noted the surge in iPad adoption led a number of newspaper publishers to move beyond standalone smartphone apps towards integrated digital strategies. Companies such as News International have begun offering a single subscription price enabling access to The Times across all digital platforms.
 

It observed that transitioning to a paywall-based model would almost certainly result in a substantial decline in the digital user base. Despite this, for many publishers the revenues that accrued from a moderate user base paying a modest subscription charge would outweigh initial loss of CPM (cost per mille)-based advertising revenue.
 

However, the report stressed that many newspaper publishers would struggle to bridge the gap caused by the dramatic decline in sales from print editions. Furthermore, the ubiquity of free online news and infotainment sources obliges publishers to set digital subscription prices markedly lower than print to ensure a critical mass of users. This in turn would put further pressure on margins.
 

Meanwhile, these pressures are likely to be exacerbated by the emergence of ‘NeoNewspapers’. These are publications such as The Early Edition and Flipboard which essentially create newspaper/magazine-style content on tablets derived from social media, RSS feeds and brand partners.
 

According to report author Dr Windsor Holden, “The problem facing publishers is twofold. Firstly; is their content sufficiently attractive to create a viable paying audience? Secondly, can they continue to sustain the costs of a print proposition during the migration to digital?”

Other findings from the report include:

The mPublishing whitepaper is available to download from the Juniper website together with further details of the full report.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

 

In related news, iMaverick, a full local daily “newspaper” customised for tablet devices, has made its debut. iMaverick is put together by the team from dailymaverick.co.za, and is available by subscription only. For more information visit www.imaverick.co.za.