The news should not come as a surprise, since Mr. Murdoch has praised the iPad since day one and has been a strong advocate for paid-for content in a digital world where everything is available for nothing. He has also fought Google in an aim to protect copyrighted material and the future of his media conglomerate. On the other hand is Steve Jobs, who according to The Guardian has consulted The Daily to create an iPad app, also knows news content has to be the cash cow of the platform after the disappointing launch of iBooks.
The experience cannot be too far from the paywall experiences with The Wall Street Journal and The Times in the UK, making parts of the websites only available to subscribers. I believe the reason behind it is not monetisation per se, but to attract a smarter (and paying) audience for advertisers. With this in mind, The Daily sounds to me like a great experiment that a News Corp can afford. With less than a year since it was launched, the iPad cannot be considered as mainstream as other Apple gadgets and its owners are definitely a market of its own. Other publishers have also gone semi-serious with iPad publishing, with Conde Nast reporting 32,000 Wired issues sold every month, The Daily could test the waters for other publications of the group. My experience flicking to ads on Wired's iPad app tells me that advertisers are keen to jump in the bandwagon. Perhaps its the revolutionary thing here is to get demographics and iTunes buying power.