14 DAY TRIAL // Research firm knowDigital has determined that News Corp.’s iPad magazine, The Daily, will need to overcome a few obstacles with iPad owners who consume news online if it is to attract a large number of users and generate substantial subscription revenue.
“Our research finds that iPad users feel positively about what News Corporation has set out to accomplish with The Daily,” said knowDigital President Sam Milkman, who authored the report.
“However, for News Corporation to convert those positive impressions into regular use and paid subscriptions from iPad users, it is going to have to address a number of concerns raised in our study.”
One of the roadblocks cited by knowDigital is the perception among those with the greatest interest in news that The Daily’s content is lacking.
The study, ‘Real iPad Users' Early Reaction to The Daily’ (PDF link), has determined that superior content is available elsewhere online for free and that apps like The Daily - purchased through a recurring subscription model - induces greater expectations.
According to knowDigital, subjects fell into two camps, one consisting of tech-savvy, heavy news users, the other comprised of folks who are less tech-savvy and would therefore find such formats less appealing.
Yet, it was the second group that The Daily performed better with, knowDigital said.
The users in the first group, who allegedly appreciated the technical features of The Daily, dismissed much of the app’s content.
They nay-sayers expressed what knowDigital described as “nearly universal perception” that more valuable content was available elsewhere online for free.
Talking about common impressions, those who conducted the poll found that iPad users in both camps were “generally unwilling to commit to purchasing subscriptions to The Daily.”
The primary reason was rejection of the idea of paying for an app on a recurring charge basis.
Subjects in knowDigital’s study were aged between 25 and 54 - all iPad owners who used their tablets (and other devices) to read e-print multiple times each week, the company said.
The one-on-one interviews lasted 30-minutes and were carried out by knowDigital personnel following two weeks of regular usage of The Daily.