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Edition: U.S. Article Comments (2) Email Print Reprints Read Pilots and passengers rail at new airport patdowns 11 Nov 2010 Harry Potter star Watson "felt sick" when told of riches 08 Nov 2010 Respite for Ireland, euro after sharp selloff 10:33am EST Analysis: German tempers fray as U.S. policy gulf widens 10 Nov 2010 China's SAIC close to GM IPO stake buy-sources 10 Nov 2010 Discussed 100 Pilots and passengers rail at new airport patdowns 97 Analysis: German tempers fray as U.S. policy gulf widens 76 GLOBAL ECONOMY-Obama returns fire after China slams Fed’s move Watched Japanese Tourism Bra Wed, Nov 10 2010 Bejeweled bra exposed in NY Thu, Oct 21 2010 Scientists re-create big bang Tue, Nov 9 2010 James Murdoch says apps cannibalize newspapers Tweet This Share on LinkedIn Share on Facebook MONACO (Reuters) - Sales of newspaper apps for devices like the Apple iPad are cannibalizing sales of physical newspapers, James Murdoch, head of News Corp's operations in Europe and Asia, said on Friday. News Corp in June closed its free Times of... Related News RIM aims to challenge iPad with PlayBook pricing Wed, Nov 10 2010 UPDATE 3-UK intervenes in News Corp's proposed BSkyB buyout Thu, Nov 4 2010 UK intervenes in News Corp's proposed BSkyB buyout Thu, Nov 4 2010 Media sector wrings hands on 2011 outlook Wed, Nov 3 2010 WRAPUP 1-Media sector wrings hands on 2011 outlook Wed, Nov 3 2010 Analysis & Opinion The dismal economics of paywalls Newspaper paywall datapoint of the day Related Topics Technology » Media » iPad » Stocks Visitors check out the new Apple iPads at an Apple retail store in Madrid in this May 28, 2010 file photo. Credit: Reuters/Susana Vera MONACO | Fri Nov 12, 2010 9:38am EST MONACO (Reuters) - Sales of newspaper apps for devices like the Apple iPad are cannibalizing sales of physical newspapers, James Murdoch, head of News Corp's operations in Europe and Asia, said on Friday. News Corp in June closed its free Times of London website. The Times, the Sunday Times and Britain's best-selling Sunday tabloid the News of the World -- also owned by News Corp -- are now available online only to paying subscribers. News Corp's British newspaper arm News International said this month the titles had lost up to 90 percent of their online readership and now had 105,000 paying customers, including those who had bought the iPad and Amazon Kindle apps. The exercise is being closely watched by the newspaper industry, which has lost readers and advertising revenues to free alternative news sources online and is seeking new business models for the digital age. Rupert Murdoch, News Corp's chief executive and James's father, has called the iPad a game-changer for news media, and many in the industry agree, thanks to the iPad's large screen, high resolution and capacity for interactive features. James Murdoch welcomed the opportunity to sell through Apple's iTunes online store, despite the fact that Apple takes 30 percent of the publisher's revenue. "We go to the iTunes store because it's frictionless. They charge a percentage but the guy on the newstand and the newsagent charge a percentage, and they don't even merchandise it properly," he told the Monaco Media Forum. But he said apps for mobile devices, with which readers typically engage far more than they do with computer websites, were more dangerous to print sales. "The problem with the apps is that they are much more directly cannibalistic of the print products than the website," he said. "People interact with it much more like they do with the traditional product. Apple began selling the tablet computer in April and had sold 7.5 million by the end of September. Other manufacturers have responded with their own tablets. (Reporting by Georgina Prodhan; Editing by Jon Loades-Carter) Technology Media iPad Comments See All Comments (2) | Post Comment Nov 12, 2010 9:33am EST Yep — same way that pesky electricity cannibalized gas and refrigeration cannibalized the ice transport business and….well, you get the idea….it’s called ‘progress’ dhjdhj Report As Abusive Nov 12, 2010 10:33am EST ain’t competition a beotch. A business model based on hiring the notorious and obnoxious to say the provocative can get you talked about, but not make you money. The answer? Why all these libs should join we me in forming a cartel so we can restrict trade and fix prices. Tim Berners-Lee is smarter than you. Deal with it. ARJTurgot Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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