Print pounds; Digital pennies
“Digital pennies will remain pennies forever,” according to Claire Enders. Speaking at MediaTel Group’s Future of National Newspaper seminar on Friday, Enders told a room full of newspaper execs to “stop talking about digital”.
“It’s such a small percentage, why do we keep talking about it,” she said. “The answers lie in the core products and core business, not the iPad.
“It is hard for any business to generate significant money from online… Online display is feeble in the UK and it’s not growing,” she added.
Enders believes there are more pressing issues facing the newspaper industry, such as distribution, quality, and consolidation and that the web and apps are good brand reinforcements, rather than a real monetisation tool.
However, News International’s trading director Dominic Carter was quick to defend the digital space, saying that publishers would not have made it through the recession without investing in digital.
“It’s not about one platform,” he said. “The world has changed and we have to change with it… people don’t have time anymore, the iPad helps solve that problem and apps are a great home delivery solution.”
“It is about the mix – both Twitter and the weekend Guardian,” agreed Adam Freeman, director, consumer media at Guardian News & Media. “We’ve got to do it all – cater for the digital savvy audience and print readers.”
Carter, unsurprisingly, thinks digital revenues will grow but said – “monetising content is a big challenge we all face… But it is important to take risks and invest for the future. If you don’t do this, you won’t survive.”
Freeman, meanwhile, says it’s all about functionality. “People will not pay for content, they want something extra,” he said. “It is a transition, getting people to pay – but they will if you offer more, especially functionality, accessibility and personalisation.”
However, Enders couldn’t be convinced, describing the paywall as “an interesting and brave move by News International, with no downside but very small impact.” For her, digital pennies will never turn into digital pounds… though there are many who would like to prove her wrong.