To attract a large number of users and generate substantial subscription revenue, The Daily—the news-based application released by News Corporation in February exclusively for Apple’s iPad™ platform—will need to overcome a few obstacles with iPad owners who consume news online. These obstacles include the perception among those with the greatest interest in news that The Daily’s content is lacking, that superior content is available elsewhere online for free and the expectation that apps are purchased through one-time transactions, as opposed to the recurring subscription model The Daily employs. Identifying these obstacles comprises the major finding of research on The Daily released today by knowDigital, which funded and independently completed the study.
The study revealed how consumers generally fell into two camps—one consisting of tech-savvy, heavy news users and one consisting of those who are less tech-savvy and have lower interest in gathering news content. It is with this second group that The Daily performed better, as the heavy news users in the first group—while appreciating the technical features of The Daily—dismissed much of the app’s content, expressing the nearly universal perception that more compelling and in-depth news content is available elsewhere online for no charge. iPad users in both camps were generally unwilling to commit to purchasing subscriptions to The Daily for a number of reasons, including some based on their specific perceptions of The Daily and some based on the idea of paying for an app on a recurring charge basis.
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