How Will the iPad Transform Media?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

By now, you know that on Wednesday, Apple (Nasdaq: AAPL  ) introduced the unfortunately named but still interesting iPad. Let's take a look at how it might affect the media business.

What happened?
Its display measures slightly less than 10 inches, and like the iPhone, the iPad can switch between landscape and portrait views by flipping the device. Users can also resize text inside the iPad's Safari browser. Taken together, these features should make for a good newspaper and magazine reading experience. Mix in the iTunes payment system, and you've got a platform for delivery of premium digital content.

Of all the partners who took the stage with Apple CEO Steve Jobs when he introduced the iPad, only one was from the traditional media: New York Times' (NYSE: NYT  ) Martin Nisenholtz, who oversees digital operations for the company's namesake newspaper.

The Times created a custom iPad app just for the event, and it looks good. It's everything you'd expect from an interactive e-reader, and it's slightly more feature-rich than what you'll find at the classic website.

On balance, I agree with my Foolish colleague Seth Jayson. The iPad isn't much of a breakthrough as far as breakthroughs go, and it's not a Kindle killer. Not yet, anyway.

But it doesn't have to be. It just has to be a viable alternative, and (Nasdaq: AMZN  ) will lose. The Kindle has mostly enjoyed life without credible competition, with Barnes & Noble's (NYSE: BKS  ) Nook e-reader being a notable exception.

Even Microsoft (Nasdaq: MSFT  ) , whose planned Courier tablet looked like a brilliant entry before it went missing, has failed to seriously challenge Amazon. Apple just changed that. As a reader, the iPad has the ingredients to be PepsiCo to the Kindle's Coca-Cola.

How to play it
A basket of good media stocks might make the most sense here. My two favorites are Comcast (Nasdaq: CMCSA  ) , which could benefit from a wider audience for the digital editions of its NBC video programming, and New York Times, whose custom iPad app could transform browsers into readers and readers into customers.

Do you agree? Disagree? Make your voice heard using the comment box below, then check out the rest of our series on how the iPad could change the world. and Apple are Motley Fool Stock Advisor selections. Microsoft is a Motley Fool Inside Value pick. Microsoft is also a Motley Fool Options recommendation. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He had stock and options positions in Apple at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool is also on Twitter as @TheMotleyFool. The Fool's disclosure policy would bail out the newspapers but it just paid the rent. Sorry, guys.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1098312, ~/Articles/ArticleHandler.aspx, 10/25/2016 10:25:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

How Will the iPad Change the World?

Today's Market

updated Moments ago Sponsored by:
DOW 18,237.44 14.41 0.08%
S&P 500 2,150.14 -1.19 -0.06%
NASD 5,308.06 -1.77 -0.03%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 10:09 AM
AAPL $117.73 Up +0.08 +0.07%
Apple CAPS Rating: ****
NYT $11.50 Down +0.00 +0.00%
The New York Times CAPS Rating: **
AMZN $837.80 Down -0.29 -0.03% CAPS Rating: ****
BKS $10.75 Down -0.15 -1.38%
Barnes and Noble CAPS Rating: *
CMCSA $65.35 Up +0.39 +0.60%
Comcast CAPS Rating: ***
MSFT $61.21 Up +0.21 +0.34%
Microsoft CAPS Rating: ****