Google's chief economist sees tablets as profit center for newspapers
Varian says that thanks to tablets, news readers are now reachable at times where they could not be reached before. But during those times, the tablet reader is not able to read in-depth stories which means less revenue from ad impressions. While the Pew Foundation recently found that 64% of tablet read the news on their slate, the trick for newpaper sites is to get fresh and interesting news to readers to keep them coming back to read more in-depth analysis later on in the day when they have more time.
The key for the survival of newspapers on tablets is timely and in-depth reporting. Returning to the numbers we mentioned before, newspapers are making one-eighth of their ad revenue online. Getting tablet owners to spend more than 2 to 4 minutes reading news sites on a tablet will lead to more clicking on ads and more revenue.
Another way for old-line newspaper groups to raise their online presence and revenue is to offer digital editions of their paper as an app. For example, the New York Daily News digital edition is a perfect page by page replica of the daily print edition down to the ads. Now, the local A&P isn't going to want to spend more money on an ad carried in the digital edition because a reader in Oshkosh is useless to them. But it could lead to some national accounts for the papers. Right now, after a 30 day trial, you need to pay for the digital edition of the Daily News. But it might serve newspaper publishers to push their circulation and offer these editions totally free to readers in perpetuity, and rake in the advertising dollars.
source: JournalismFestival via SlashGear