News out of the paper

Its not exactly breaking news that newspapers are almost in desperation mode now (no, don’t throw ink at me, this is in the US market context) to make sense of the wild wild web, as the very public who used to pay for the print editions now want it on the web, and more importantly for free. An issue that newspapers are still grappling with. So, with fears of revenue models collapsing, RSS feeds, PDF editions, user generated content, podcasts etc are now being force fed into print journalism regular usage. (How American Newspapers Used the Internet in 2008).

The point to note is that the internet with advertising as a revenue model is not going to be the salvation, web entities which rely on that are also going to be in trouble. There are some experiments happening in the news space online as well – News Mixer is a great example, it aggregates content and has integrated Facebook Connect for users to comment on stories. The integration eliminates anonymous handles and also means that it can highlight the views of your friends so that you can know what their take on a story is. (via RWW) A member of Yahoo’s BOSS team has found a great way to use Twitter’s search function and relevance (different tweets to the same story) for fresh news and come up Tweet News. Ice Rocket’s Big Buzz pulls different live sources (Twitter, Flickr, You Tube etc) on to a single page. (via Steve Rubel) In fact, I see the last one as a sort of threat for Google News – real time news, a scenario which can be extended into the larger context of Google Search soon, because I don’t think Google has cracked real time yet (from what I see around).

Meanwhile, hyper local entities are being created to fill the gaps being created by local newspapers shutting down. But while the monopolistic doyens are struggling, there is a paradox happening, new media empires might be getting created as web entities are making forays into print- The Printed Blog, is launching a twice-daily free print newspaper in cities across the US aggregating localized blog posts. (via Wired)

In fact, though the state of the Indian print media is not the same as in the US, the same phenomenon (web to print) is happening here too – Mutiny, which started in 2006, and wants to be India’s Huffington Post, launched its print edition a few months back. Burrp, which started with restaurant reviews, and later expanded into lifestyle events, and TV listings, apparently have a few print plans of their own.

So there must be potential  in the 2 cents of journalism (Seth Godin’s excellent post on the death of newspapers) even as there is the danger of ‘right now’ news. Seth Godin rightly says that “The web has excelled at breaking the world into the tiniest independent parts.” The challenge for newspapers will be to find the 2 cents that they can provide and people will pay for.

In India, low figures of net penetration mean that the US levels of ubiquitousness will take a while. But the mobile could be a bigger threat in the short and long term. Various players like SMSGupshup, MyToday, Mobme etc already offer subscription based services, though the source seems to be mainstream media sources. Newspapers have long relied on distribution might to thwart specific competition. But with a digital platform, that is nullified. From my consumption needs, the only thing I cant seem to find online are the hyperlocal news (that also includes local retail deals and discounts – eg. Springfield had a 60% off sale in bangalore last week, try searching for  it online). So far, in India, all the tiny independent parts that Godin has spoken of, haven’t been brought online. In that sense, the net’s utlity is incomplete in an Indian context. The real threat will start when that happens. With their huge network of reporters/other sources, is there a digital revenue model for newspapers in the real-time and/or hyperlocal news space?

The double whammy for newspapers is brought out due to the fact that advertising is the major revenue source for most newspapers in India. Most of the brand ads that I see in English dailies is targeting the young urban dweller. This segment is becoming increasingly net savvy, and I feel that brands will figure this out in the short term.

Vernacular dailies might be a better off in this regard, since even if net penetration in their major markets accelerates, (read about the government’s rural internet plans here – CSCs) vernacular content is not yet at challenging levels. (the IAMAI-IMRB report on rural and state of vernacular content in India). There is an opportunity for newspapers here, especially the vernacular ones and even those which can translate English content into vernacular.

until next time, selling news on platforms

PS. Toy for you -HP’s Tabbloid – start your own newspaper 😉