Tag: Newspaper

  • A rocky future ?

    The video that marked the end of Rocky Mountain News, a daily newspaper in Denver, would have a sobering effect on anyone who’s worked in the industry. The newspaper printed its final edition on Feb 27th, 55 days short of its 150th birthday. And there’s no succour when The Business Insider points out a list of 9 newspapers that are likely to fold. Newspapers in the US are still in shock at how an industry that was once really profitable seems to be on the path of extinction. Gawker is a good place to keep track. The reasons for decline are many – the rapid technological advances, changing consumption habits, newspapers not reacting early enough – to name a few. That’s a track we have walked several times, so I shall move on.

    What are newspapers doing to survive? A few examples. The Hearst Corporation, which publishes the Houston Chronicle, San Francisco Chronicle, Albany Times Union, and has interests in an additional 43 daily and 72 non-daily newspapers, is going to charge for some of its online content. The New York Times fights on, bringing out something new on a regular basis, the latest being the version 2 of their popular iPhone app, which offers extensive support for offline reading. (via RWW) It is also starting a neighbourhood blog project, which will have content from editors as well as citizen journalists, and they are planning to target local businesses for ads. (via TechCrunch) Across the pond, FT reports that the UK’s top regional newspaper groups have banded together to negotiate with the government as they seek urgent help to save further titles from closure.  Meanwhile, The Guardian has announced its Open Platform, which will allow developers to use its content (from 1999)  in myriad ways. The more interesting part is what it states  on the Partner Program page “You can display your own ads and keep your own revenue. We will require that you join our ad network in the future.”A very innovative approach!!

    Even content reccomendation services, like Loomia, used on sites such as WSJ, are looking to get revenues for their publishers. Meanwhile, advice is pouring in, from all quarters. Social Media Explorer has an excellent post on how journalists can leverage social media. This Mashable post shows “10 ways newspapers are using social media to save the industry”. This not only includes suggestions, but also tools that are available for free. I know at least a couple of journalists here who also use Twitter for story ideas, opinions etc.

    Debates still rage on the role that newspapers play in the community, and whether its loss is something much beyond that of just a source of news. One view is that society is losing a watchdog, and that stories are reported because of full time journalists, and that in a world, where all content is free, no news gathering will happen, because there is a price to it. But there are those who think otherwise. This is a good read, on that counter view. Some recent studies would support the latter. In fact, it raises a good point about revenue, which we’ll come to in a while. But both agree that to survive, newspapers have to quickly figure out how to factor the net into their business model, whether it is too late, only time can tell.

    As this article points out, the two revenue sources of newspapers – circulation and advertising, are linked. When content becomes free (the net has forced that) people are no longer interested in paying for it offline, which essentially means that advertisers don’t get the reach that they used to, from newspapers. And projections suggest that its not just offline ad revenues that are in a free fall, online newspaper ad revenues will continue to decline in 2009. Whether the state of the online component is a function of recession, is debatable. After all, when it comes to advertising on the net, even the biggest of newspapers have a formidable foe – Google. Google, which is now putting ads in Google  News, when you search for a particular topic. Remember that Google news is only an aggregator, and as of now, there are no updates of revenue sharing arrangement with the news sources.

    Newspapers are still producing content that people want. Only, there are other sources too now.  More than the assets required to generate the content (editorial staff and related infrastructure expenses), it is the delivery platform (press, newsprint, and even the distribution) that is costing the newspaper. Now consider this, with rapid technological advances, it is becoming easier for newspapers to generate the same content, and perhaps at a lesser cost (fewer reporters combined with crowd sourcing, for example) There is still some cost involved in this, and so, it is debatable whether all the content generated should be given free online. If some thought can be applied to utilising other delivery platforms which are cheaper, a revenue model scalable with costs incurred could be achieved. In any case, newspapers never made money out of content directly. They built audiences around the content they provided, and then leveraged that audience to create a revenue model in which advertisers paid to reach that audience. Maybe it is time to rekindle that relationship with the customers and give him more options than the ‘one size fits all’ newspaper.

    The time is ripe for Indian newspapers (especially the English dailies) to do some experimenting.  I wonder if its a good idea to treat the newspaper’s web presence as a separate business unit. Rather than blindly putting all the news available in the physical paper online for free,  start from scratch on the web, have a separate news gathering process (or attribute a part of the overall cost to this unit), start figuring out the requirements of consumers, allow some customisation,  (the net allows a lot already, but its still worth a shot in India) play around with local/sub local content, (they’ve to work fast on this one, since Twitter is also working on local news updates)  work on the digital delivery platforms, deliver more targeted consumers to advertisers with customised solutions rather than broadcast style ads, and maybe a fate similar to the US counterparts can be averted.

    until next time, newspaper

  • Paper Money

    There was a wonderful post in the Edelman Digital blog titled ‘The Last Newspaper‘. An insightful, well balanced and objective take on stories and content which perhaps captures the newspaper and web relationship best. From the post

    Stories are personal and transformational. Stories have definition and character. Stories are history personified.

    But content is cold, distant. Content is a commodity – a finite consumable of fleeting value. Content is artificial intelligence.

    Quite a paradox for brands that handle stories, when we consider that brands that tell the most interesting stories are loved by consumers. Taking it to a not-so-appealing premise was this question that was asked on Friendfeed recently, by Adam Lasnik.

    “I’m becoming increasingly concerned about the growing sensationalism in online “journalism.” Will the pursuit of pageviews ultimately trump integrity and thoughtfulness? I’m seriously worried.”

    When news becomes a commodity, publishers have to find a way to make theirs look more appealing than someone else’s. This is an unfortunate but inevitable by product.

    Publishers. On one side, we have Kindle 2, and its competitors (via @chupchap) work on an alternate platform for news delivery, and on the other, we have The Printed Blog rolling out a printed newspaper. Meanwhile, we  have Japanese newspapers collaborating for an iphone app. We also have an entity like NYT, which carries an op-ed article stating that perhaps non-profit, endowment based system is the way forward for newspapers, but is still the world’s best newspaper website,  taking radical steps to figure out ways to evolve, basis the understanding that newspapers are perhaps not the preferred means of delivery anymore – an API which offers developers access to 2.8 million articles from NYT, and another that gives developers data on the sharing and reading habits of Times People’s registered users. In essence, from a newspaper or even a news website, it transforms itself into a platform on which users and developers can use this mound of information for various purposes, and the possibility of linking it all together semantically. In context, an article from over 2 years back, still relevant.

    Closer to home, the top Indian newspapers are still grappling with the issue of how to handle themselves on the web. That’s not to say that some publications aren’t trying. HT, for example, has started blogs recently. Now you could turn around and say that’s basic, but that’s the state of Indian print media for you. Future revenue models are not even being thought of in most places. From their three main sources of revenue – subscription, stand sales and advertising, the first two are at best on plateaus and the last is suffering, largely due to recession. Recently, there was even a delegation of publication owners that approached the government for help!! Maybe they should be doing this instead – collaborative link journalism by Publish2. Vernacular papers are in better shape. But for English newspapers, i really don’t know what’s a better time to start thinking about future revenue.

    In that context, this post correctly states that micropayments for news (here’s a rebuttal too)  is not an option. Some revenue could be possible by making some parts of the content paid for, as the NYT is planning, but that still cannot be the main source of revenue. I am wondering how well a subscription model based on a different platform (mobile) could work. The news alerts on SMS are only the tip. While GPRS penetration is not exactly astounding, it is bound to grow especially in the segment that the English newspapers operate in, so perhaps it is a path to be explored. Locality based, contextual advertising could be fun.

    Newspapers, especially in India, would do well to heed a great piece of advice that I got from this post on brands, and the need for evolution. (via Gabriel Rossi)

    “Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” William Pollard

    Its not merely a change in delivery platform or an API that makes the move by NYT so radical. Its the mindset change, and until Indian newspapers realise that, no efforts will make long term sense. For now, they are smug in treating only other newspapers as competition, not even considering the possibility of an entire army of vertical-specialised content providers who now have digital media which gives them advantages like never before, to generate and distribute content.

    until next time, paper tigers…

    PS. This – Google buying a paper mill and converting it into a data centre, I thought, was very symbolic.

  • 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 😉

  • When the mass gets social…

    While there have been many negative reactions to the way the media handled the recent Mumbai events, I came across a few interesting ones that were a direct attack on the brands involved.

    One is a Facebook group demanding that Barkha Dutt be taken off air. At the time of writing this, I can see 1666 members in the group, and some pretty angry outbursts on the Wall. The photos are quite expressive too. The others were this post, and this, which talk about the Lead India campaign by TOI, and ask very pointed questions on where the winner is, and about collective responsibilities. Since news is a daily commodity, and has a way of affecting the audience more than say, the toothpaste used everyday, the media’s relationship with the audience is at a different level altogether, and that’s a double edged sword, as the examples above show.

    It set me thinking on the evolution of media brands, and also a service like Twitter. Mass media and social media have (among other things) one point in common – they’ve both been built on a certain amount of trust. I read a newspaper/watch a channel because I trust them to verify the content they give me, provide analysis and take outs and give me enough objective information to form a perspective. They’re filters. A service like twitter works on trust, among peers, and can be a wonderful filter, but only on very few occasions does it provide original content. Though the trust factor weighs heavily in favour of twitter, the difference in scale (of content) makes a comparison quite premature. But meanwhile, social media, by its very nature, is more or less transparent. Vested interests will come out sooner or later, the system has a way of bringing it out. Somewhere down the line, mass media has failed on this count.

    In an era where news has become a commodity, media brands have had to differentiate themselves somehow to remain relevant. One way to achieve this is through packaging, which, these days mostly amounts to sensationalism. Another way is through specific properties that people identify with. In some cases, this would be the same as packaging, and in others, it would mean creating something new – like a campaign. However efforts on both counts have perhaps resulted in the erosion of trust, and a negativity towards the excesses of coverage. And that’s where an instant journalism friendly tool like Twitter stepped in, whenever the situation was conducive. And this is not going to go away.

    So what I’m wondering is whether the first brands to feel the effects of a connected social world (in India) would be media brands, as opposed to say a toothpaste or a cola brand, or even a service like banking/telecom, simply because while other product categories can use social media as a tool,  media brands instinctively start looking at the twitter brand of reporting, as competition. I’d say that twitter has always been giving news to me, at the thin end of the long tail. This time, the information was such that  it interested the massive head of the long tail, and the aggregation was something no single channel could possibly do. The interesting part of the MSM vs Twitter journalism debate is that while all those who use Twitter can comment on MSM and its excesses, there are very few in MSM who can and do speak of the pros and cons of Twitter. 🙂

    To me, mass media has to handle itself on two levels. One, at a product level, it means that mass media have to get back to the basics -making sure that it provides the reading/viewing audience all the facts required to make an informed opinion, and then going a step further than the regular ‘SMS your views’ concept, and making sure that they take a stance that’s in alignment with the audience’s views. On a brand and communication level, they’ll have to walk the talk, roll out campaigns that don’t just pay lip service to issues that the audience cares about. Social media could help on both counts. But MSM has to do this now, when its brand equity and reach is far far more than social media. I can see some action already – Eyes and Ears, and A Billion Hands.

    until next time,  reporting vs journalism

  • News..yes. Papers?

    Rupert Murdoch recently stated that the doomsayers predicting the end of the newspaper industry are off the mark. According to him, online readers also need news form a source that they can trust, and that’s what newspapers have always been doing. He agreed though, that newspapers would have to change from the ‘one size fits all’ approach to cater to readers’ demands. He mentioned his plans for WSJ, to offer three tiers of online content: free news, a subscriber-level service, and a third “premium service” of reader-customizable “high-end financial news and analysis.”

    The newspaper, or a very close electronic cousin, will always be around. It may not be thrown on your front doorstep the way it is today.

    On the whole, I tend to agree with him. However, I also feel that newspapers would be missing the point,  if they see this as just a change of platform. Its a mindset change, not just in terms of news delivery, but also in the way they approach business. After all, even the biggest names, like NYT , Gannett (publisher of USA Today) , are not in the pink of financial health.

    Before we get to that, a few varied ‘heritage media’ (print) trends. On one hand, we have publications like Christian Science Monitor and PC Magazine and many others switching to a primarily online only presence. On the other hand, the NYT opened up a couple of APIs, releases an AIR based news reader, the Guardian buys PaidContent, and offers full text RSS feeds, the Financial Times’ new site design resembles a blog, and some magazines are even rolling out Instant Messaging functionality. Over to India, Live Mint and Business Standard have recently launched podcasting (via WATBlog), India Today added Cosmopolitan to their existing list of digital properties and Business Standard has launched a branded Instant Messenger – BS Buddy (via Medianama). In essence, newspapers and magazines seem to be looking a bit more seriously at making the transformation from real to virtual.

    So this is a good question to ask – what’s the next step for news? To start with, they could take a good look at this list of 10 things that every Newspaper/Magazine site must do. This itself would be completely against a few things that they’d consider sacred – most notably, link sharing and responding to comments. Broadly, I’d imagine it to be a two pronged approach

    • figure out how to deliver their content on digital platforms, and that might even lead to changes in the kind of content they gather, and the way they gather it.
    • figure out a business model that can leverage the content they have – subscription/ advertising/ both.

    First the content aspect. A lot of publications have been experimenting with citizen journalism. They’d do well to check out tools like CoverItLive. Instead of randomly adding a ‘blog’ section to the website, make it work. Get enthusiastic journalists to blog. Get regular bloggers to do guest columns on specific topics of their interest. Promote them and the content they add to the site. This would help them being aggregators who also serve niche interest communities. What is equally important is to bring about a systemic approach to making journalists regard their story as just a start, and getting them to take ownership of making it a conversation. There are advantages in it for them – new story ideas as well as a better understanding of their readers. Yes, Twitter can help in the conversations too. These changes in news gathering techniques might very well change the quantity and quality of newsroom staff. This makes a great case study.

    The business aspect. I read a a very insightful article on how the entry of print publications into the digital medium will change the balance of power and wealth in the link economy. This process has already started. But before that, I think they have to see themselves as news sources, rather than just the newspaper on the web. This would influence how and where they position their ads, and would help them deliver better value to advertisers, as well as readers. While on this subject, I think online ad networks that include newspapers (with various editions and publications) along with independent blog/ blog networks that complement/add on to their content, might make sense. I remember NYT making a sort of conglomerate in association with 3 other newspapers, sometime back. There are other business models too. For example, there are community funded reporting services like Spot.us. (via RWW) Do check out this link for a very radical approach.

    Though readership of dailies (with very few exceptions) continue to drop, I don’t think newspapers are in their death throes in India. But should they wait for that? A good brand takes some time to build. There’s a reason why more people in India visit Rediff and Yahoo and even the web 18 properties than Indiatimes/ Times of India group properties. I’m hoping to see something like Instablogs join the big league soon. Brand loyalty in the real world need not translate into brand loyalty in the virtual world, especially when you’re dealing with a (by now) commodity called news. And as newspapers would know from their real experiences, once readers are used to a certain way of consuming content, it’s difficult for a competitor to sneak in. It would pay well to learn from mistakes – of those aborad who might have waited too long to transform. After all, what doesn’t kill you doesn’t necessarily have to make you stronger. And I’m not sure if newspapers would like to be part of the thin end of the long tail of news consumption, with pure play web entities occupying the head.

    until next time, save paper, save the environment 🙂