Will Apple's tablet change print media?

Posted by Leah McBride Mensching on January 26, 2010 at 5:12 PM

Apple is scheduled to introduce its tablet computer at an event in San Francisco Wednesday, and in doing so, may give the media industry "a chance to undo mistakes of the past," The New York Times reported yesterday. Apple is expected to market the tablet as a way for companies to charge for content, which could prove to be a valuable new revenue stream.

However, there is a catch. In making content available on the tablet, content creators could fall into the same trap they have with other devices, such as e-readers: losing their direct relationship with customers to Apple and having to follow pricing restrictions.

But there is optimism.

"The iPhone was a harbinger," Trip Hawkins, a founder of Electronic Arts and now chief executive of Digital Chocolate, which makes games for cellphones, told The Times. "When you have a device that is this convenient and fun for consumers to use, you can get a lot more people interested in paying for and engaging with the content. Big media companies should be all over this like a cheap suit."

Investors are bullish, saying Apple's attention to detail will give the tablet an advantage in a computer category once thought to be a failure, Reuters reported. Analysts are also waiting to hear what the pricetag will be. Some estimates have been US$1,000, others have been around $600 - but the higher it is, the more difficult it will be to convince consumers to pay.