The Financial Times: a digital success for 2010?

Posted by Stefanie Chernow on July 27, 2010 at 4:15 PM

The Financial Times Group announced that the Financial Times has kicked off the first half of 2010 in the black with much credit going to its digital readership. Marjorie Scardino, CEO of the paper's parent company Pearson Plc, reported that online readership grew 27% up to 149,000 viewers within the last six months. Registered users also climbed 77% to 2.5 million subscriptions. While most of Pearson Plc's profits were driven by its educational and book publishing operations, Scardino was pleased to announce that FT group turned over operating profits with digital revenues contributing more than 25% of the total.

A significant amount of the FT's success is due to its iPad app. Last month, the Financial Times's iPad application received an award for "Best iPad App" at the 2010 Apple design awards. The application's merit goes beyond rhetoric, as it has been downloaded by roughly 250,000 users. Furthermore, Scardino cited that users of the Financial Times's iPad application spend an average of 25 minutes on the application.

What is the secret to the Financial Times digital success? Merely having an iPad application has proven to increase readership. A mere few days after Wired released its iPad application, it reported that the sales of the iPad version of the news would exceed sales of its printed counterpart. Additionally, Reuters reported that its readers spent three times as long viewing its iPad application than its online edition of the print. Yet as all newspapers are turning toward the iPad, it can not be stressed enough the importance of having a competitive application. In May an Australian newspaper's application failed to make the grade, with critics noting the constant advertisement pop-ups which distracted the reader.

The FT not only has a superior user friendly application, but it has quietly gone about raising revenue. The trial version is offered through the iTunes store, where the app allows the reader 10 free articles. After the trial period users are required to sign up for an online subscription through FT.com to continue viewing the FT iPad application. This foot in the door technique aims to hook the user and hopefully prompt them to scramble for their credit cards for the 11th article. While the content of the Financial Times does give it leverage over general-interest newspapers when persuading readers to pay, the success of its iPad may provide an important lesson for the news industry.

Sources: Editor&Publisher, The Guardian, FT.Com