AP

Arkansas newspaper gambles on free iPads as the future

May 25, 2019, 8:51 AM

In this on Thursday, May 23, 2019 photo, Walter Hussman Jr., publisher of the statewide newspaper t...

In this on Thursday, May 23, 2019 photo, Walter Hussman Jr., publisher of the statewide newspaper the Arkansas Democrat-Gazette, explains to members of the Hope, Arkansas Rotary Club how to access and use the paper's digital replica on an iPad in Hope, Ark. The newspaper will stop printing its daily paper by the end of the year and is distributing free iPads to all subscribers who transition to the daily digital version. (AP Photo/Hannah Grabenstein)

(AP Photo/Hannah Grabenstein)

HOPE, Ark. (AP) — Over a lunch of hamburger steaks, mashed potatoes and green beans, Walter Hussman delivered his pitch to the dozen or so attendees of the Hope, Arkansas, Rotary Club meeting. He promised that if they keep paying their current rate of $36 a month for subscription to the Arkansas Democrat-Gazette newspaper, even though it will no longer be printed daily or delivered to their door, they’ll get a free iPad to view a digital version.

The daily digital replica of the state’s largest newspaper accessible will be accessed with an easy-to-use app they can download on the tablet that the newspaper is distributing to subscribers.

Hussman, the newspaper’s publisher, said Wednesday that by the end of the year, only the Sunday edition of the paper will be printed.

It’s a gamble Hussman feels compelled to take to sustain his newsroom of 106 employees and turn a profit, which the paper hasn’t done since 2017.

In March 2018, the paper began the experiment in Blytheville, a town of about 14,000 in the northeast corner of the state 155 miles (249 kilometers) from Little Rock, where the paper publishes. Each of the paper’s 200 subscribers was offered the iPad at the current print delivery rate, plus a personal training session to explain how to use the tablet, and print delivery stopped about two months later.

More than 70% of the Blytheville subscribers converted to the digital version, a figure that, if replicated statewide, is enough for the paper to turn a profit, which Hussman expects will be in 2020. Including distribution of the Norwest Arkansas Democrat-Gazette’s, which is not converting to iPad, the paper’s daily circulation was about 80,000 before the transition, said Larry Graham, vice president of circulation.

Hussman has said he’s willing to spend $12 million on the tablets, or about 36,400 iPads, which retail for $329. At the current lowest subscription rate of $34 a month, that would generate about $14.8 million in revenue per year, which Hussman said would turn a profit after expenses.

Rick Edmonds, media business analyst at Poynter, said two publications have tried similar experiments. In 2011, the Philadelphia Inquirer sold Android tablets for $100 if users signed up for a two-year, $9.99 monthly subscription, a program which Edmonds said was “very unsuccessful.” In 2013, the Montreal-based La Presse launched a free tablet app and discontinued daily printed editions three years later, though they’ve since become a non-profit.

To sell the Democrat-Gazette’s plan, Hussman is traveling the state speaking to civic clubs. He explains how advertising revenue for newspapers has dropped precipitously since its peak in 2006, and how digital advertising isn’t as profitable as media outlets originally predicted.

After the Rotary meeting, 65-year-old Steve Harris, a subscriber since the early 1980s, said he’s been using his iPad for about a month. There are “pros and cons” to the iPad, but he likes the photo galleries available on the digital replica, as well as its ease of access when he’s traveling.

But Bill Loe, 87, said he doesn’t know if he’ll keep subscribing.

“I’m not sure. If I can run that gadget, I will,” he said.

In Hussman’s experience, skepticism is the initial reaction from subscribers of the newspaper, who tend to skew older, but eventually, most tell him they prefer it to print.

The digital replica looks just like the printed paper and is intuitive to navigate within the app. Clicking on the jump takes the user to the continuing story. The text can be enlarged. All pictures are in color; some also reveal videos.

This isn’t Hussman’s first controversial move to keep his newspaper profitable. In the mid-2000s, he thought papers publishing online content for free was short-sighted and the Democrat-Gazette’s website established a paywall earlier than most media organizations.

The tablets are essentially a long-term loan and subscribers keep them for as long as they pay for the paper. They’re also responsible for repairing or replacing the tablets, which come with Apple’s one-year warranty. Hussman said the newspaper doesn’t monitor usage or track users in any way. When it’s returned, it’s wiped clean and can be re-distributed.

Hussman isn’t sure whether the digital replica will appeal to younger generations, but enough people are converting for now.

Penny Muse Abernathy, who teaches digital media economics and behavior at University of North Carolina at Chapel Hill, said whether people will continue to pay depends on what the reader experience is like and if the news is still vital to readers.

“I think it’s a very smart move. It’s a very farsighted one,” she said.

The Arkansas Democrat-Gazette, which turns 200 this year, won two Pulitzers in 1958 as the Gazette before two papers merged, for its coverage of the integration of Little Rock’s Central High School.

“I wish we didn’t have to do this,” Hussman said of scrapping print, but to sell the newspaper would be a “dereliction of our responsibility.”

Cutting print delivery hasn’t disappointed everyone, though. Dolly Henley, 61, decided to subscribe at the Rotary Club meeting. She and her husband haven’t had the Democrat-Gazette delivered to their home in the 25 years they’ve lived in the tiny town of Washington, Arkansas. Now, with the digital replica accessible by iPad, she’s excited to get daily “delivery” again.

“Getting it to the digital world is just where it’s at right now,” she said. “Change is good.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

AP

close up of a peleton bike pictured, a recall has been issued for some...

Associated Press

Peloton recalling more than 2M exercise bikes because the seat post assembly can break during use

The recall includes approximately 2.2 million of the Peloton Bikes Model PL01. The bikes were sold from January 2018 through May 2023 for about $1,400.

11 months ago

Immigration Asylum Family Reunification Explainer....

JULIE WATSON Associated Press

US will let in at least 100,000 Latin Americans to reunite with families

President Joe Biden's administration has promised to offer more legal options for Latin American migrants to come to the United States to be reunited with their families.

11 months ago

two border patrol agents pictured, agents are dealing with a surge as title 42 reaches its expirati...

Associated Press

Title 42 has ended. Here’s what it did, and how US immigration policy is changing

The end of Title 42's use has raised questions about what will happen with migration preparing for an increase in migrants.

11 months ago

Rumman Chowdhury is pictured, she is the coordinator for the mass AI hacking exercise...

Associated Press

Hackers aim to find flaws in AI – with White House help

No sooner did ChatGPT get unleashed than hackers started “jailbreaking” the artificial intelligence chatbot – trying to override its safeguards so it could blurt out something unhinged or obscene. But now its maker, OpenAI, and other major AI providers such as Google and Microsoft, are coordinating with the Biden administration to let thousands of hackers […]

11 months ago

Parents of Ema Kobiljski, 13, mourn during the funeral procession at the central cemetery in Belgra...

JOVANA GEC Associated Press

Burials held in Serbia for some victims of mass shootings

Funerals are taking place in Serbia for some of the victims of two mass shootings that happened in just two days, leaving 17 people dead and 21 wounded, many of them children.

11 months ago

interest rate...

DAVID McHUGH AP Business Writer

Europe’s inflation inches up ahead of interest rate decision

Europe's painful inflation has inched higher, extending the squeeze on households and keeping pressure on the European Central Bank to unleash what could be another large interest rate increase.

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Arkansas newspaper gambles on free iPads as the future