iPad to the rescue? Print publications search for a savior

The iPad Wi-Fi launches on April 3rd in Apple stores across the country. With an estimated first day pre-order of 120,000, the iPad is a commerical success.  The real test of its power in the marketplace is whether print media can successfully utilize the platform and regain the advertising dollars that are scarce in the digital marketplace.

Several news organizations have iPhone apps including The New York Times, USA Today, the Washington Post and the Wall Street Journal–the Washington Post charging for their app. If the apps are successful on the iPhone, that success will hopefully translate to the iPad, but in terms of advertising dollars, that might be tricky to pull off. 

Steve Jobs unveils iPad. Can it restore print journalism? Photo by Mike Lee, courtesy of Creative CommonsThe Washington Post launched their paid iPhone app earlier this month and it's already a success, ranking 4th on the list of top paid apps on iTunes.  They plan on developing an app for the iPad, but they have not yet announced a pricing plan, reported yahoo news.

The New York Times, on the other hand, is in the midst of a battle over pricing plans, with their digital and print sides in a tug of war. The print side, seeing this as another form of distribution, wants to control the pricing, proposing a monthly charge of $20 to $30, while the digital side feels that a $10 monthly charge is more economically feasible and realistic. The trick for both sides–the New York Times won't be the only organization dealing with this challenge–is having enough subscribers to the product. While the first day pre-order sales are strong, whether the product has longevity in the marketplace is always a question until the product goes through several life cycles. 

The second issue will be altering consumer behavior. The iPad's layout can mimc the "traditional" newspaper experience, but the consumer has to be convinced that paying monthly for a product they may or may not use everyday is a good investment.

The New York Times is moving toward a paid format on their Web site, but the Washington Post is resisting that notion. If the Post charges a monthly fee for their iPad app and not the Web site, what's to stop a consumer from going to the site instead of using the iPad app? Advertisers must weigh the risk as well, and from a print standpoint, the more the Post charges for the app, the more they can charge advertisers.

The ultimate question is, how will consumers view the iPad? Will it be seen as a mobile device, an e-reader or an alternate laptop? The perception will determine how much consumers are willing to pay for apps. Print publications have been searching for a way to make money but much like the current model, it's all dependent on the users; the genie can't be put back in the bottle.