While The Daily is the venture hogging the spotlight, it is just the latest in a series of fascinating experiments being conducted in-market that are testing what model of device-specific user interface design, aggregated or exclusive content and pricing model are going to work for the tablet and smartphone user. Backed by the New York Times, Washington Post and Gannett, Ongo Digital is betting on a UI-driven aggregation service with a subscription model. Jack Dorsey-backed Flipboard is delivering iPad users a personalized magazine UI based on their Twitter feeds free-to-air.
What is different however for The Daily is the strategic and financial muscle of News Corp. It has been developed in partnership with Apple and this should secure it a prime location in the iTunes Store. In return, News Corp will be playing by Apple's rules and processing subscriptions through the In-App Payment functionality and paying a revenue share in the process. The specific terms News Corp have negotiated are unknown, but every other publisher now faces paying 30% of their hard won iOS application subscription revenue to Apple.
The market The Daily launches into is challenging. Interest will spike at launch but it will be subscriber numbers at the end of 2011 that matter. It faces a universe of free content delivered via Google through the browser, and it faces a growing range of free news applications in the App Store. It will need sustained, heavy promotion and a compelling pricing strategy. However its main strategic advantage may prove to be that its parent has deep pockets, and this is going to buy it time to build an audience and refine its model.
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