News Corp’s The Daily Loses $30 Million Per Year
The Daily is a daily digital newspaper that is available on the iPad and Android tablets. Only recently has the publication become available to smartphones. The biggest problem right off the bat when they launched that the content becomes obsolete in one day. Most traditional publications usually churn out editions every week or month. This puts a lot of pressures on their reporters that have to go through tons of edits every day.
The audience was also only limited to people that own an iPad or Android tablet until recently. There are billions of people that use the Internet and most of them could not access the content through the Internet because they do not own an iPad or Android tablet, which was a huge self-imposed limitation. This explains why The Daily has only about 100,000 paying users.
The subscription cost is $39.99 per year for the tablet edition and the smartphone edition costs $19.99 per year. This means that they are making around $4 million per year or less from the service. You would figure that this is a pretty good number, but News Corp is actually losing $30 million per year on producing the publication. That is rough considering that you can find similar news content on the Internet for free.
News Corp spun off their publishing division last month. This puts pressure on the publication divisions because they were previously put into a category that included Fox News and big movie studios. Now the publication divisions have to prove themselves. The fate of The Daily is currently being decided in the board rooms at News Corp according to The New York Times.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry