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Daily Update for September 29, 2011
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The Daily averaging just 120,000 readers per week
News Corp. CEO Rupert Murdoch introduced the iPad newspaper The Daily (free) almost eight months ago with expectations that the paper would easily meet the half-million subscribers required for the publication to break even. Now Bloomberg is reporting that The Daily is well behind that goal, with an estimated weekly circulation of only 120,000 readers. The Bloomberg post cites advertising exec John Nitti of Publicis Groupe SA as saying that the 120,000 reader figure is for unique weekly visitors, which also includes readers who are taking advantage of the paper's two-week free trial. As a result, the actual number of paying subscribers is less than the total readership figure. After the free trial, The Daily is available for US$0.99 per week or $39.99 a year. Nitti thinks that 120,000 readers is still a respectable number for The Daily, and expects that his client (Verizon) will continue to advertise on the paper. Bloomberg notes that The Daily is expanding beyond the iPad, adding a Facebook version this month and an Android edition within the next three weeks.
Hulu may not sell after all, bidding drama continues
Hulu has been dressed in its Sunday best for some time now hoping to attract potential buyers -- but according to Reuters, a slew of speed bumps have slowed down the process and may even kill all hopes of selling the service. According to sources, the first bump in the road can be attributed to Hulu's owners -- News Corp., Disney, NBC Universal and Providence Equity Partners -- who may not all be on the same page when it comes to selling the service. Without a unified front, it's been hard for the company to find an acceptable offer from the likes of Google, Amazon, DirecTV and Dish Network, who have all talked about bidding between $500 million to $2 billion. As the service awaits a new round of bids next week, it's been said that the major players involved have (unsurprisingly) agreed to reject any lowball offers. Despite a growing numbers of subscribers, it's entirely uncertain whether anyone will step in to clean up the company's hot mess -- we're sure the drama would make for a perfect Hulu Plus exclusive, though.
Potential Hulu deal with Disney increases ads, value to prospective buyers
Now that Hulu's owners have apparently decided the best thing to do is sell it to someone else, long arrangements for content are needed to bring the highest price. Bloomberg is reporting that after cutting a deal with Fox a few days ago Hulu has now tentatively reached a deal with another of its owners, Disney. While both arrangements could keep the TV shows flowing, they also reportedly include provisions to increase the number of ads shown on the service. That would also put it in position to reach a similar agreement with Comcast-owned NBCUniversal, because of the media giant's FCC promise to reach similar agreements as its competitors for online content. A change of ownership and including more ad breaks could turn off viewers, but really what else are they going to do, go back to watching Saturday Night Live on TV?
Hulu reportedly retains investment bankers and renews Fox deal, will go on sale soon
Following yesterday's rumor that Hulu had received an a buyout offer from Yahoo, the usual "people familiar with the matter" have informed the LA Times and a reporter for CNBC that the sale process could begin within two weeks. As its owners seek to separate themselves from what is looking more and more like a competitor than a savior, reportedly Guggenheim Partners and Morgan Stanley have been retained and potential bidders have been contacted. One way to make sure anyone is actually interested in buying the site is to strengthen its content licensing deals, and oh-so-coincidentally Variety is reporting Hulu has already reached a new deal to keep the TV shows from Fox flowing. Yesterday we asked for your ideas on who an eventual buyer might be and so far the list includes Google, Amazon, Facebook, Netflix and Pets.com, which should just about cover it.
New York Post blocks iPad access through Safari browser, hopes you'll pay for a subscription instead
Well, that's one way to make people pay for puns. The New York Post, that bastion of fair, balanced, and not-at-all sensationalistic reporting, has blocked iPad owners from reading its stories through the tablet's Safari browser. If folks want the full spill on Hugh Hefner getting ditched at the altar, they'll be prompted to download the iOS app, which requires signing up for a subscription starting at $6.99 on a month-to-month basis. Setting aside News Corp.'s hubris for a moment, what's odd about this is the number of workarounds Rupert Murdoch & Co. left us cheapskates. You can still read the site on a desktop browser or a phone, including an Android one. Basically, then, News Corp. is strangling web access, but only for a select group of readers. That's a stark contrast from other content providers (even the News Corp-owned Wall Street Journal), which have been more platform-agnostic. Then again, there's the dim possibility that News Corp. targeted the iPad in an effort to re-brand the Post as a glossier sort of tabloid, à la The Daily. To which we say, that's some wishful thinking there, Rupe.
The Daily generated 800,000 downloads, $10 million loss in first quarter of operation
It's still too early to pass judgment on News Corp's daring venture into tablet-only newspapers, The Daily, but at least we now have an idea of how much it costs to get a project like this off the ground. Having spent $30 million developing the concept before launch, the company's latest quarterly reports indicate another $10 million loss was incurred on the early operations of The Daily. That's resulted in 800,000 total downloads of the iPad-only app, though a breakdown of how many of those were just trying out the free trial and how many have stuck around for the paid version hasn't been forthcoming. News Corp stresses that The Daily is still a work in progress, one that we've heard may also be making its way onto Android tablets, and looks very much committed to seeing its plan through to the end. So if this digital-only, subscription-paid news idea fails, it won't be for lack of trying.
Time Warner removes channels from iPad app while Cablevision prepares one of its own
Time Warner Cable was the first party to blink in the battle with programmers over its new live TV streaming TWCable TV iPad app, removing channels from Viacom, Fox and Discovery. The company's official statement indicates its merely choosing to focus on the "enlightened programmers" who support its cause and that it will provide replacement channels (maybe BBC America, since it's in all the screenshots) ASAP, possibly as soon as tomorrow. Expect the legal fight to continue to heat up between Time Warner, which believes it has obtained all the rights necessary to provide these channels on any screen in a customer's home, and the programmers, that think it hasn't. Throwing more gasoline on the fire is word from Cablevision that its new iPad app with TV and video on-demand access was supposed to be out already and is merely awaiting Apple's approval before it launches. According to the Wall Street Journal it will go forward launching the Optimum Link -- formerly PC to TV Media Relay -- product that brings video from their PC to the TV tomorrow. Check out the list of pulled channels after the break or on Time Warner's blog, we'll let you know when or if anything changes.
Fox asks Time Warner to stop streaming its channels to customers' iPads
While we'd heard many networks were unhappy with Time Warner's decision to release its live TV streaming iPad app and there have even been whispers of cease-and-desist letters in the offing, Fox has put a request to have its channels excluded in writing. At issue is whether or not their agreement allows Time Warner to provide the channel on devices other than the TV -- while TWC is confident it does since it only works within the customer's home, the networks would apparently like to renegotiate before conceding anything. Senior VP of Fox Networks Group Scott Grogin confirmed the letter was sent but did not reveal any details about its contents. Following the battle plan of its last battle with Fox, Time Warner Cable has preemptively put up a IWantMyTWCableTVApp site asking customers to show support for the TWCable TV app against the networks. We'll wait to see who blinks first and remember that Dish is already slinging channels to tablets with wild abandon while Comcast and Cablevision have plans for similar implementations on the way.
News Corp. set to unload Myspace?
We hate to say it, but we could see this coming a mile down the road: After Myspace (or, as the kids say, my[_____]) relaunched itself as an entertainment portal to little effect late last year, and then the company went and laid off fifty percent of its staff, what's the next step? Tears -- a flood of bitter, bitter tears. And after that? Well, it looks like News Corp. is considering a couple options. As COO Chase Carey said on a recent earnings call, "The new MySpace has been very well received by the market and we have some very encouraging metrics. But the plan to allow MySpace to reach it's full potential may be best achieved under a new owner." Continuing with the theme, he told Paid Content the following: "There's been a lot of interest, because there's been some indication we're pursuing this path. We'll consider all options... it could be a sale, it could be an investor coming in to it, it could be us staying in with a restructured ownership structure with management." Now, that's a whole bunch of "corporate speak" there, and while the future is up in the air, we're fairly sure that if you called our man Chase and offered him cold, hard cash, you could probably take Myspace off his hands at a fairly reasonable price. Make sure you ask him to throw in the Blingees for free.
The Daily now available in the App Store
As of this writing, Rupert Murdoch and team are taking questions from the press during The Daily's launch event, and the app itself is now live in the App Store. The long-anticipated app was finally demonstrated and released earlier today. Verizon is sponsoring a free two-week trial period for all customers. After that it will cost US$0.99 per day week or 39.99 per year. We'll have more on The Daily throughout the day, so check back often.
Live from The Daily launch event, with Apple's Eddy Cue
Is the future of media an iPad-exclusive daily newspaper that's delivered automatically overnight using a new subscription service? We're here at the Guggenheim Museum in New York for the launch of News Corp's The Daily to find out -- and Apple's VP of internet services Eddy Cue is scheduled to join Rupert Murdoch on stage, so things could get interesting. Join us, won't you?
Apple and News Corp. announce February 2 event to unveil The Daily
Apple and News Corp. sent out invitations to a February 2 event to unveil The Daily. The press event will include News Corps. Chairman & CEO Rupert Murdoch and Eddy Cue, Apple's vice president of Internet Services. The duo are expected to provide all the juicy details on the iPad-based newspaper and confirm the product's 99-cent weekly pricing. Attendees may also get a close-up look at the first application to use Apple's subscription-based pricing and new delivery mechanism, which sends content to your iOS device on a regular interval. Both of these features are expected to debut in the next version of iOS.
News Corp and Apple set date for The Daily launch: February 2nd
The Daily, News Corp's iPad-specific news"paper," is living up to speculation about an early February inauguration with the announcement of a launch event on February 2nd. CEO Rupert Murdoch is explicitly mentioned on the invite, though Apple's presence will be fulfilled by Eddy Cue, presumably a late draft-in to substitute for his company's CEO, Steve Jobs, who's currently out on medical leave. Even without the great Apple orator, we expect the arrival of the first tablet-only news outlet to be a significant event, so we'll be strapping on our liveblogging gear and heading out to the Guggenheim Museum for a looksie. You'll join us in spirit, won't you?
The Daily to launch by mid-February for 99-cents per week
The Daily, News Corp's foray into the world of digital newspaper publishing, might debut in the next few weeks. Executive James Murdoch, Chief Executive of News Corp. in Europe and Asia, verified this tentative launch date during the DLD conference in Munich, Germany. He also confirmed the iPad-based digital paper will be available for 99-cents per week as previously rumored. Available initially in the US, The Daily is an attempt by News Corp. to expand into the online delivery of news and monetize this new form of journalism. News Corp. has reportedly hired 100 journalists to provide content for this iPad newspaper and is working closely with Apple on this project. The iPad newspaper is expected to require iOS 4.3, which will include support for subscription-based pricing. If The Daily will debut in the next few weeks, we can also expect iOS 4.3 to become available in the same time frame.
More rumored details on The Daily
The long-rumored iPad magazine, The Daily, is a big leap into the tablet market for News Corp. Rupert Murdoch, head of News Corp, has reportedly hired 100 journalists to work on this daily newspaper for the iPad and is working closely with Apple on this project. Expected to be introduced this week by Murdoch and Steve Jobs, the app launch has been delayed into next month as kinks with the subscription-based service are reportedly worked out. According to new information from Advertising Age, the iPad-based newspaper will be available as an App Store subscription costing 99-cents a day 99-cents a week. A two-week trial will be available for iPad owners who prefer to try before they buy. AdAge also suggests the rumored newspaper will feature a multi-story front page with a magazine-style layout for other content. The Daily will support multi-touch gestures that let you rotate, zoom and swipe through the content. Though working closely with Apple, News Corp. will not be using iAds within the newspaper application. News Corp. has tapped New York-based Medialets to mange the ads and resulting metrics for this daily digital newspaper. Ads may be sold at a flat rate to businesses. The Daily reportedly has the sponsorship of big name companies like Verizon Wireless, Land Rover, Macy's, Pepsi Max and Virgin America. Not only sponsors, each company will reportedly promote the newspaper by offering incentives meant to entice customers to download and subscribe to the app. Verizon Wireless, which currently sells the iPad, could bundle a limited-time subscription with each iPad purchase, while Virgin America could offer frequent flyer miles for those that download the app. Apple reportedly has a short-term exclusive deal to carry the daily newspaper on its popular iPad tablet. Over time, the app will be ported to other tablet platforms including Android, webOS and the BlackBerry PlayBook. Update: AdAge has corrected the rumored pricing of The Daily from 99-cents a day to the much more reasonable 99-cents per week. [via AppleInsider, 9to5 Mac]
Time Warner, Disney and News Corp. bigwigs speak up against FCC stipulations in Comcast-NBC deal
Hello, inevitable. It simply had to happen, and now, it is. As Comcast, NBC and the FCC attempt to work out stipulations over Comcast's proposed 51 percent buyout of NBC Universal, a smattering of major media companies are paying close attention to the play-by-play. Naturally, the precedents that are set from this deal will affect future agreements of this caliber, and lobbyists for both Disney and News Corp. (as well as Time Warner CEO Jeff Bewkes) aren't standing over on the sidelines any longer. All three outfits have reportedly been "voicing their concerns this week with the FCC, worried that such conditions could undermine their own efforts to profit from the nascent online video industry." We're told that the media mega-corps are worried that the rules -- if hammered down -- could interfere with ongoing negotiations with online video providers, and in turn, give them less leverage to monetize and control their content on the world wide web. In other words, if NBC Universal is forced to provide content fluidly to all ISPs (and not just Comcast), what's to say other content makers and internet providers wouldn't also be forced into similar deals, regardless of whether or not they're involved in takeover negotiations? Needless to say, we're nowhere near the end of this journey, and while the nuts and bolts are pretty dry to think about, the outcomes could have a serious impact on our future viewing habits.
'The Daily' iPad newspaper set for launch, according to sources (update)
The good old Associated Press has a couple of good old unnamed sources pinpointing the launch of The Daily -- the first iPad-only newspaper venture -- as January 19th. They even name the location as the San Francisco Museum of Modern Art. Rupert Murdoch's News Corp is the company making this leap into the unknown (do people even care about news anymore?) and he is specifically named as a presenter at this alleged event for next week, to be joined on stage by Apple's Steve Jobs. An ancillary little note is that journalists are said to have already been hired in bureaus across the country, including the big news-spinning markets of New York and Los Angeles -- which makes all the sense in the world given the widespread expectation that the news app they'll be working for will launch by the end of this month. Update: Did we say the end of this month? Looks like The Daily's more likely to debut in early February instead -- News Corporation confirmed to All Things D that the iPad news service has been delayed, and an unnamed source says that it will be "weeks, not months" before we see it emerge again.
News Corp's 'The Daily' pub to hit iPad in January?
We heard News Corp's "iPad newspaper" The Daily was on track for release in early 2011, but AllThingsD is hearing something more specific -- week of January 17th, in fact, with the caveat that the launch plans have "moved around a couple of times in the past few months." From what we've gathered previously, The Daily will be published daily (surprise, surprise) and cost 99 cents per week (about $4.25 per month) and might leverage a new App Store subscription payment system that could be announced at an Apple event. So... nothing definitive, really. Got that? Good.
"Daily" iPad newspaper to launch January 17
Rupert Murdoch's iPad-exclusive publication, The Daily, is rumored to arrive on January 17. All Things Digital's Peter Kafka quotes "multiple sources," saying "News Corp plans to launch the publication by the week of January 17." The Daily is the much-rumored, iPad-only publication from News Corp. Murdoch has supposedly worked closely with Apple and Steve Jobs himself during the app's development. It was rumored that the app would be revealed at a December press event that was to feature Jobs, Murdoch and an overview of the alleged "newsstand" feature that many believe will introduce in-app subscriptions to the App Store. Kafka notes that The Daily will supposedly sell for US$0.99 per week, and that the extensive staff Murdoch has assembled will produce lots of video and other gee-whiz tech goodies for Daily readers to enjoy. That rumor of a December release turned out to be a dud, so don't get yourself all excited just yet. We'll know soon enough.
