The Associated Press and Conde Nast are among the latest content publishers
looking to take advantage of the growing number of e-reader devices
on the market, including Apple's iPad.
AP is creating a business unit called AP Gateway to help it,
along with newscasters and broadcasters, sell digital content to readers using Web-connected
mobile devices.
AP said it plans to expand mobile offerings such as its AP Mobile news service
for cell phones and other online platforms, and has created an application for
the iPad that will show custom bundles of headlines, stories, photos and other
content from AP and its member organizations.
Pricing for the application—and whether, or for how long, particular content
will be offered free—has yet to be determined.
"AP is proposing a change that is exciting, historic and even
breathtaking. After 164 years, AP sees a way to extend the power of the
cooperative to become a revenue-generating engine," William Dean Singleton,
chairman of the AP board, said in a statement. "By opening the AP
Gateway, our industry can get into position now to take advantage of what
promises to be a remarkable period."
Conde Nast also is preparing to take advantage of the blooming market.
In an internal memorandum March 1, the publishing giant reportedly
announced plans to create iPad-friendly versions of several of its popular
magazines, including Wired, GQ, Vanity Fair, The New Yorker and Glamour.
"We feel confident enough that consumers will want our content in this new
format that we are committing the resources necessary to be there,"
Charles Townsend, president and CEO of Conde
Nast, told the New York Times. "How large a revenue stream
digitized content represents is an answer we hope to learn through this
process."
The New
York Times, wooed by Apple CEO Steve
Jobs, has also considered porting its content to the iPad.
The iPad belongs to a category that ABI
Research calls
a smartbook: "a low-powered device running a mobile operating
system that is always connected, either by WiFi or, more frequently, a cellular
or broadband connection," ABI Research
analyst Jeff Orr wrote in a Feb. 22 report. ABI
said it expects 163
million smartbooks to ship worldwide by 2015.
AP described the number of readers increasingly using
handheld devices to access news and entertainment content as a "digital
do-over" for newspaper and magazine publishers.
And in a keynote address before the Colorado Press
Association Feb. 26, AP CEO Tom Curley told
those assembled, "Consumers are getting very excited about these
breakthroughs, and as creators and publishers of news content, we should be
equally excited."
Curley continued, "No longer do we have to be held hostage to the
constraints of a Web site. We won't have to depend on consumers finding our
sites among overflowing bookmarks or keyword [searches]. We can deliver news
directly to the consumer in exciting new ways."
The moves by AP and Conde Nast come at a time when more
people are getting their news online, according to a report from the Pew
Research Center.
The organization found that Americans are most likely to get their news online
rather than from printed publications like newspapers, which have seen sharp
declines in ad revenue over the past few years. In addition, the center
said 92 percent of U.S.
citizens use multiple sources to learn news, including online sources,
television and printed publications.