Will my iPad kill home delivery of your newspaper?

On March 18th I bought an iPad. I’m thrilled with it. According to Fortune Magazine, as an iPad owner I have lots of company. On release day last month 500,000 people bought an iPad 2. The International Data Corporation reports Apple sold 14 million of the original version.

I can read the newspaper on my iPad. Since it and other tablets are catching on and the newspaper apps are free, I’ve been musing about what’s going to happen to my paper newspaper. I’m afraid it won’t be around much longer.

People are increasingly going online to get their news, so subscription numbers and sales of paper copies are plunging.

Newsrooms are heaving money and time at their online editions.

But although money spent on online advertising is increasing, only a fifth of it goes to news organizations.

Postmedia’s most recent financial report revealed a $12.3 million second quarter loss, which they blame on declining print advertising revenue and shrinking circulation.

My prediction? News organizations will move to a pay-for-content system. Several, such as the New York Times, have what they call “paywalls” in place already, as I blogged recently.

But some – The Guardian for one – are holding off (I explain why here.)

Paywalls aren’t paying the bills yet so news organizations must shed some overhead – and this could well be paper costs, pricey presses with pricey staff and intricate delivery networks …

My conclusion? I’m training myself to read the news on my iPad at the breakfast table. Are you with me?





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