Category online revenue

The New York Times in high stakes plans to charge online. Draconian, desperate or inspired?

New York Times to charge for online access from 2011. Photo: Andy Soloman

Has the bullet been bitten? Or is the bullet winging its way to the heart of its mark?

The announcement by top US newspaper, The New York Times, that starting January 2011 it will charge frequent users of its website has either been heralded by underfire newspaper execs, or derided as a desperate measure that will hasten the venerable institution’s demise.

The NYT‘s David Carr, in the Times’ Media Decoder blog, said the move represented a hedge.

People who remain reflexively bullish on free [content] ignore the fact that the clock is ticking on many of the legacy businesses that produce that content. The new approach is an effort to replace that ticking clock with a meter, and its success is not assured but to sit still would be dumb.

It is not the job of The New York Times or any other mainstream media company to give away its content until it can no longer afford to do so.

The charging plans appear fairly draconian. From next January visitors will be able to view a few articles free each month, but step over the threshold and they will be required to pay a flat fee for unlimited access. Subscribers to the daily or Sunday print editions will continue to receive full access.

The NYT has yet to say how much it intends to charge, or how many articles will remain free each month.

Newspapers have been grappling with plummeting circulations and advertising revenues. Readers have increasingly turned away from being brand loyal to being increasingly varied in choosing how they access their general news. The Internet, RSS feeds or news aggregators are able to through up numerous sources to information on any particular news story.

Yes, gathering news is an expensive business, but increasingly readers have been opting for free services to keep up with developments. As circulations decline, so advertisers look elsewhere. It’s worth noting that the the New York Times Company, which also includes the International Herald Tribune and 15 other daily newspapers, saw advertising revenue plunge 30% in the first nine months of 2009.

No doubt, this is a brave move by the NYT, but with technology, reader behaviour and news sources exploding by the month (think Twitter and other social networks, think of the boom in citizen journalism, and think cost) it is hard to see whether come next January the NYT is part of a crowd rushing to harvest online dollars or whether it finds itself back tracking as the “loyal” online  readers it wants to monetise dessert it for somewhere else.

As Reuters media reporter Felix Salmon wrote (and which was reported in the NYT):

Successful media companies go after audience first, and then watch revenues follow; failing ones alienate their audience in an attempt to maximize short-term revenues.”

So, is the NYT going to charge into battle only to find its followers have quietly disappeared? Will its brazen war cry fade into a garbled mumble? Or has it struck gold? My take is that it is not enough for legacy newspaper businesses to think they can easily transfer the model into a successful online business. They need to find ways to serve up the exclusive essential information that people will be willing to pay for.

This isn’t the first time the NYT has charged for acces. Back in the 1990s it charged overseas readers and then again a few years ago it tried another scheme to charge poeple for reading the op-ed columns. Both failed to gain any significant traction and were dropped.

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


News International confirms banning NewsNow crawlers from linking

Rupert Murdoch, Chairman and Chief Executive O...

Image via Wikipedia

Following on from my earlier post that The Times Online had barred aggregator NewsNow.co.uk from crawling its website, it seems News International as a whole has the bit firmly between its teeth and has also banned the linking service from crawling any of its newspaper sites including including The Sun Online and the News of the World.

The Guardian reported News International as saying:

“We’ve been in communication with NewsNow for several months. We asked them to remove our content repeatedly from their indexing,” said a News International spokesperson. “Now, we will update our files accordingly for all our titles.”

“NewsNow has been using Times Online content as part of its paid-for, commercial as well as free services. They have continued to do so despite our direct requests for them to stop. As a result, we have taken the decision to disallow their indexing of our content,” the company said in a statement.

“News International makes a significant investment in journalism and we believe that it is entirely appropriate for us to ask that our rights are respected. NewsNow has acknowledged that they require our permission to use our content and, in the absence of our permission, has ceased to do so.

News International owner Rupert Murdoch and other media organisations, including UK newspapers and the Associated Press (AP), accuse NewsNow and other news aggregators such as Google and Microsoft, of being parasites and insist they should pay for access to news content. While Google quietly stopped indexing AP news shortly before Christmas, the News International action represents the first live bullets in what is destined to be a significant battle over the right to link and the basic building blocks of the Internet‘s interconnected world.

For the moment NewsNow seems to have been singled out. From where I sit, I wonder whether the relatively small UK-based operation represents a soft target for a posturing Mr Murdoch as he tries to find ways to bolster declining circulation and revenues at his major titles?

The really big target would be Google, but here the trade off between losing the opportunity to monetise traffic driven by the search giant while trying to unilaterally build online revenue from brand loyal readers sounds a little trickier. Is this a case of wanting it both ways, or will Murdoch eventually put his money where his mouth is and try and hold back the tide of internet traffic by hitting the big boys?

Come on chaps, play the game. The financial woes afflicting newspapers and their general inability to generate meaningful online revenues are not the fault of third party aggregators, who afterall, are driving traffic to their websites. The challenge here is to adapt and develop new business models that can thrive in a new digital world. Yes, it is not cheap to produce original news, but unfortunately it is not a rare commodity. Newspapers needs to find ways to engage with ther communities, not cast themselves adrift.

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


NewsNow blocked by The Times, faces new restrictions in right to link

The battle of the aggregators and news providers deepened today, with UK service NewsNow.co.uk saying News International had barred it from being able to link to any content on Times Online.

The increasingly bitter confrontation over the right to link to freely available news content threatens to set precedents that fly in the face of the natural development of the Internet and the the World Wide Web where growth thrives on the easy exchange of information in an increasingly connected world.

News International owner Rupert Murdoch has had a real beef with news aggregators — including Google and Microsoft. They are, he says, parasites that steal premium content beyond what would be governed by fair use. NewsNow has been facing a concerted action from the major UK newspapers that want to stop commercial content aggregators linking to their news. Against this back drop are tumbling print newspaper revenues and titles struggling to monetise their content online.

Struan Bartlett, Managing Director and Chairman of NewsNow says his service has been singled out

“It is lamentable that News International has chosen to request we stop linking to their content and providing in-bound traffic and potential subscribers to the Times Online and right now it looks as though NewsNow has been singled out.

We note that no other major search engine has been blocked by NI in this manner. NewsNow is not fundamentally different to other news search engines that are part of the Internet infrastructure, such as Google News and Yahoo. Why block us and not them?”

At the end of last year, the UK national newspaper copyright body the Newspaper Licensing Agency (NLA), imposed a scheme that introduced the requirement to obtain permission and pay fees to circulate links to freely available web pages. The scheme has been referred to the Copyright Tribunal. NewsNow stopped offering links to UK newspapers as part of its premium subscription services, but continued to offer links in its free services.

My view is clear on this issue. Yes, online revenue comes from having content, but also, most importantly, generating as much traffic as possible. To use a simple analogy, if a road is blocked off traffic does not drive down to have a look, but instead seeks an alternate route to get to its destination. If newspapers are struggling to build online models that deliver healthly dollops of cash from general news content, the one thing they must do is look for ways to monetise traffic.

For the cynics among you, here is The Times online singing the praises of NewsNow in 2006.

NewsNow is also behind the Right2Link campaign.

Related articles by Zemanta

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (1 vote cast)


eBay founder Pierre Omidyar dropping Twitter project for local news service

Image representing Pierre Omidyar as depicted ...
Pierre Omidyar, Image via CrunchBase

Billionaire eBay founder Pierre Omidyar has announced that he’s abandoning Ginx, his Twitter client project, in favour of developing a new online local news service in Hawaii where he lives.

Peer News, founded by Omidyar and fellow eBay stalwart Randy Ching in 2008, has advertised via Twitter for an editor and in a blog posting Omidyar said a lot of effort was now going into building the new service.

We have a lot of work to do before our public launch in early 2010. We’re focused on building a really talented team here in Honolulu. For our Ginx users, we’re sorry to let you know that we’ll be shutting down the service at the end of 2009. We learned a lot and greatly appreciate all the interaction and feedback from you over the past year. We’re huge fans of Twitter, so you will still see us online, but we want our developers focused on the new organization and news service.

Omidyar (@pierre on Twitter) said he had been interested in news for some time and that Peer News was founded with the goal of:

empowering citizens and encouraging greater civic participation through media. We believe that a strong democracy requires an engaged society supported by effective news reporting and analysis. And, we believe that this can be done in a profitable, sustainable way.

FireShot capture #055 - 'Pierre Omidyar (pierre) on Twitter' - twitter_com_pierreSo if you fancy applying to be the editor based in Honolulu, the details can be found here. Prospective candidates need to offer answers to two key questions impacting news today.

  1. In 100 words or less, when did you first realise that the Web was going to change journalism forever?
  2. In 100 words or less, what advice would you give the news industry?

News veteran Howard Weaver has been advising the Peer News team, and in a blog posting entitled “Looking toward one future for local civic journalism” he said:

The new venture intends to demonstrate that a digitally native, technologically fluent web organisation can profitably serve targeted readers who want sophisticated journalism focused on local civic affairs.

Local and regional newspapers have been hugely impacted in the crisis affecting journalism and changing reader and advertiser habits. Local publications have been closing in their scores as revenues and circulations plummet. The loss of a local newspaper closes a prime avenue for local accountability and democracy. It is a subject of heated debate, and stressed out newspaper executives will be watching Omidyar very closely to see if he can generate profits from online local news.

Related articles by Zemanta

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


VIDEO — Socialnomics presents compelling evidence of the power of Social Media

If you needed any convincing, this latest video “Social Media ROI: Socialnomics” by Socialnomics author Erik Qualman paints a convincing case. Memo to all companies and businesses everywhere: Ignore at your peril.

As Qualman says on his Socialnomics – Social Media Blog:

This article and video have been put together with the hopes of it being a viable tool for those with a vision to get those seated in the back row to stand up and see the social media light.

The latest offering is packed full of bold stats, so I’d advise some degree of caution in blindly accepting the detail. However, what cannot be disputed is social media isn’t just flexing its muscles, it is fast becoming the most powerful technological revolution to sweep the globe. It is critical for the power of the social media discontinuity to be fully understood. Those that do will prosper.

The video follows on from Qualman’s hugely successful YouTube video from a few months ago called “Socialnomics: Social Media Revolution” which has over million views.

If you haven’t seen it (and it is essential viewing), you can find the original within my posting “What Grandma didn’t say: Social Media is here to stay” or here is the alternative shorter version:

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (1 vote cast)


Associated Press lays off news staff as cost cutting hits home

The Associated Press Building in New York City...
Image via Wikipedia

The Associated Press has laid off “dozens” of news staff as part of the agency‘s bid to reduce staffing costs by 10% this year.

The moves come as the 163-year-old cooperative wire agency has grappled with falling revenues, mutiny from its members and well-publicised battles against search engines and aggregators that it accuses of making money off the back of its services.

While US news media was buzzing yesterday as first word of the cuts began to filter out, the AP — which prides itself on fast breaking news — was itself uncharacteristically slow in reporting what was happening.

When it eventually came, the AP story didn’t say how many staff were being laid off, but the News Media Guild, which represents around 1,300 employees in the US, said as of Tuesday evening 38 Guild-covered reporters, editors and photographers had been told they were no longer required. It dubbed the day “Black Tuesday”.

AP said its cost cutting goal was set late last year as it prepared to lower fees for newspapers and broadcasters that had been hit by recession and the shift of advertising to the Internet.

The AP story said:

AP’s revenue is expected to fall about 6 percent this year to roughly $700 million.

Hoping to minimize layoffs, the AP imposed a hiring freeze late last year and offered early retirement packages to longtime employees over the summer. About 100 opted for those packages.

It’s been a tough year for the news business in the United States. Newspaper circulation across the country plunged by an average 10.6% in the six months to 30 September, while earlier this month the struggling Chicago Tribune, Los Angeles Times and other Tribune Co newspapers planned to do an AP cold turkey for a week as part of a test to see if all ties with the news agency can be severed next year.

The AP has promised members rate reductions averaging around 20%, but with its content perceived to be increasingly less relevant and the costs for the service harder to sustain, many question what the future holds for the news agency.

AP supremeo Tom Curley has been aggressively fighting (alongside Rupert Murdoch) giant news search services such as Google and Microsoft saying they should be made to pay for AP content. Curley says sites such as Google have reaped a fortune off AP articles, photos and video without paying fair compensation.

Reblog this post [with Zemanta]
VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


VIDEO – Old and new media lock horns to generate fascinating discussion on the future of news

Keynote discussion of the week where the future of news media was chewed over at the Monaco Media Forum 2009 by Mathias Dopfner, CEO of Axel Springer, and Arianna Huffington of Huffington Post fame. Conversation is hosted by Christine Ockrent, CEO of France 24.

The resulting video is a fantastic exploration of the tensions between the old and new schools of journalism, commercial pressures and just what the future may (or may not) hold.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Murdoch’s News Corp cooking up a storm over plans to ban Google

Paywallman flies to newspaper rescue
Paywallman flies to newspaper rescue

And the drum keeps playing. It’s almost as if Rupert Murdoch believes that if the News Corp digital tribe keeps chanting the mantra that Google will be blocked from indexing their sites, the future of publishing and the wealth of publishers will be preserved.

On Friday, the Telegraph reported that Jon Miller, former AOL head and now News Corp’s chief digital officer, told the Monaco Media Forum that the News Corp door would soon be slammed shut on Google and his company would lead the media industry in a new direction.

“There is real tension surrounding the free versus pay debate,” Miller was quoted as saying. “It will play out in the next two years. We believe that the value of high quality content is not recognised online (by giving its away for free) so something needs to happen.”

Now, like him or loathe him, Murdoch is one of the greatest media moguls the world has seen. Over the years he has proved the naysayers wrong time after time. And what about now as the news publishing industry lurches ever deeper into crisis? Can pay barriers be thrown up with the expectation readers will remain loyal to brands and hand over cash to secure the privilege of continuing to consume News Corp content?

Not on your Nellie!

As I’ve mentioned previously, the actions of News Corp and other news publishers ignore the plain simple fact that reader behaviour is radically changing. Brand loyalty is fading, and having got used to free content online people are simply not prepared to pay for news and general information. Beyond refusals to pay lie the new worlds of social networks, aggregator services, citizen journalists and ordinary people just using technology to communicate in ways that only a few years ago were purely in the realms of science fiction.

At the heart of the online world sits the link economy. Links are what drag eyeballs from place to place. People increasingly follow through on recommendations from trusted sources including search engines, people they know, aggregators, or Twitter (which is becoming hugly important in setting readership consumption agendas). What people are doing less and less, is deliberately seeking out the view espoused by the old media brand.

The days of “Dear boy, don’t you know it was in The Times?” as a means of communicated worth, trust and accuracy are gone. Today, readers will look across a number of sources depending on what is served up to them. Increasingly, the reader also doesn’t want just a single view but a panorama of views across different credible or even biased sources.

Murdoch accuses news aggregators of being parasites and search engines of stealing premium content beyond what would be governed by fair use. It’s not just that he is concerned with the revenue value of their content being diminished, but there is a parallel discussion centred on the cost of gathering top notch news. It is a very expensive business to have foreign correspondents scattered around the world. The days of the bottomless expense accounts and bespoke Savile Row safari suits are long gone. As an ex-foreign correspondent myself with a great love of news, the argument over who will pay is one I grapple with.

But, as with the newspapers, we have to let the past be the past. If we accept that traditional publishers face declining revenues for the legacy business the challenge becomes how to open new revenue streams while looking to prioritise expenditure on generating premium content.

Nick Gregg, CEO of StrategyEye, succinctly captures the key issues in his paper “The Next Two Years of Publishing — Where it Needs to Move”.

“Large editorial journalist bases are expensive and out of tune with [the] new world,” he says. “A shift to a blend of ‘investigative’ writers and ‘curator’ writers is needed to reduce costs and deliver wider information in the succinct manner modern users expect.”
Editorial models need to be reinvented and technology needs to be harnessed to exploit new content opportunities. He fires a loud warning shot over the bows of RMS (Rupert Murdoch Ship) News Corp.
“…knee-jerk reactions are not the way forward. The current vogue for some publishers to say ‘let’s shift to paid subscription walls’ is potentially highly damaging except in certain niche content areas. Imposing subscription walls may generate some revenue from a small percentage of loyal readers. But it could kill a brand in the long run if the next generation of target audience simply never engages with its content.”

Back over at News Corp, Miller reckoned newspapers in the UK could survive after Google cold turkey.

“The traffic which comes in from Google brings a consumer who more often than not read one article and then leaves the site. That is the least valuable of traffic to us… the economic impact [of not having content indexed by Google] is not as great as you might think. You can survive without it,” the Telegraph quoted him as saying.

I have a feeling I will be frequently coming back to this topic . It would be lovely (from a newspaper viewpoint) if news stand sales could simply be replaced with online subscriptions or even micro sales. But considering where we are in the freemium world, this is about as likely as Murdoch being asked to turn out for England on the wing.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Rupert Murdoch’s anti-aggregator stance undermined by his own titles

Rupert Murdoch: Just say no.
Rupert Murdoch: Just say no. (Photo: World Economic Forum)

Whoops. Has Rupert Murdoch been caught out deftly practicing what he has so rabidly been preaching against? While he has ranted about the “parasites” that are Google and other news aggregators that he accuses of “stealing” his content, it appears that his own sites have been quite happily indexing and aggregating content from third parties.

In a thoroughly fun, revealing and totally mischievous post by Techdirt it seems many of his own titles, including the flagship Wall Street Journal and sites owned by the ever-reactionary Fox News, are offering content aggregation services to their readers. Oops.

I’m not blaming the staff at these titles and websites for practicing what is, after all, perfectly acceptable and expected in the inter-connected modern Internet world, but Murdoch really should check his own house is in order before preaching hardship.

People in glass houses shouldn’t throw stones, Mr Murdoch.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


AWARDS — Megas — MediaGuardian Innovation Awards 2010 open for entries

FireShot capture #040 - 'The MediaGuardian Innovation Awards 2010 I Megas I guardian_co_uk' - www_guardian_co_uk_megasUK national daily The Guardian has opened its call for entries for its third annual MediaGuardian Innovation Awards, or Megas as they are modestly known.

The awards aim to recognise the best in innovation at a time when the media industry is experiencing dramatic shifts in reader or consumer behaviour and the emergence of radically different revenue and business models.

The Megas will reward innovation across 13 categories, with a top “MediaGuardian Innovator of the Year” award going to the person judged to have had the greatest impact on media innovation over the past year.

Full list of categories (and links to the details):

  • Launch – The most innovative launch
  • PR – The most innovative buzz creation
  • Advertising – The most innovative advertising work
  • Creative – The most creative, pioneering design work
  • Technology – The creation or application of a new technology to make a real improvement in delivery rather than just as a gimmick
  • Use of web platforms – The use of existing tools and data services to create new and exciting experiences for people on the Internet
  • Applications – The most innovative apps
  • Business model – An outstanding example of an innovative approach to charging (or not charging) for content
  • Startup – The best new companies registered between December 2008 and December 2009 that demonstrate a truly innovative concept which has potential to shake up the media world.
  • Community engagement – Companies which have extended their reach by creating a community to engage their audience
  • Campaigning – The most innovative methods of galvanising public support for the greater good. Entries open to public or charity sector organisations
  • Gadget – This category will reward phones, MP3 players, audio and reading devices which are innovative in their technology, design and usability.
  • Independent media – open to non corporate sector companies or individuals which demonstrate the power to influence policy, push boundaries and make history rather than just reporting it
  • MediaGuardian Innovator of the Year – The media figure judged to have had the greatest impact on innovation in the media in the past year
All work submitted must have appeared for the first time between 31 October 2008 and 5 December 2009. Entries must be submitted by 4 December and the winners will be announced at an awards ceremony in London in March 2010.
A full list of last year’s winners can be found here. Follow the awards on Twitter on @guardianmegas
VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


NewsNow aggregator says newspapers threaten injunction to stop linking

FireShot capture #038 - 'NewsNow_ The UK's #1 News Portal' - newsnow_co_uk_hNewsNow, the UK-based news aggregator service, now says several major newspaper publishers are threatening to seek a court  injunction to stop it posting links to their content.

In an “Free Linking Q&A”, the news aggregator says News International, publisher of The Sun, The Times and the News of the World, wants all linking to its content to be stopped. Others including The Guardian, Daily Mail, Daily Mirror, The Daily Telegraph, The Independent, Daily Express plus regionals such as Johnston Press and Northcliffe Media are:

demanding money and intrusive control over how we conduct our business.

NewsNow, established in 1997, is the largest UK news aggregator with around 20% of the market, second only to Google.

Graphic: Hitwise

Graphic: Hitwise

It is unclear whether anything has changed since NewsNow first published its open letter last week, (NewsNow aggregator comes out fighting against newspaper threats) but what is clear is the service is beginning to feel the pinch.

And it is the pinch that the newspaper publishers are also feeling. Revenues for traditional print newspapers are tumbling. In the US, the latest newspaper ABCs showed that on average circulations fell more than 10% in the six months to 30 September. With publishers desperate to shore up revenue streams classic mistakes are being made.

Rather than embrace the opportunity of the new eyeballs the aggregators provide, they are seeking to monetise the links themselves. Now, there is no value in the links per se. There is value in the traffic they carry. It’s a bit like a train full of passengers. While the people are on the train they can be monetised — they buy tickets, drinks and food. But take away the rails and the train can’t move. If the train doesn’t move there will be no passengers, and no revenues. Come on publishers, think about this.

The struggle here is in creating innovative revenue replacement strategies and in delivering services that appeal to a new generation of customers that want to engage with their content in ways that print newspapers can never deliver. It is certain that in the future traditional print newspapers and their legacy business models will not be the key driver of cash. In order to generate revenue, newspapers will need to ensure they have online traffic, and for that they should be looking to seek ways of exploiting the free services offered by the link aggregators or search engines.

NewsNow says the key question here is not how much publishers want to be paid for the “right” to link to their content.

It’s about what deserves compensation. It’s the principle of publishers restricting and levying fees on link aggregation and link circulation we’re bothered about, and the long-term consequences for the web, freedom to link, freedom of expression and access to news, and our right to go about our lawful business without being threatened.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Facebook and MySpace say they’re talking about sharing content

'Facebook I Facebook' - www_facebook_com_facebook_ref=pf

'MySpace UK' - www_myspace_comFrom a report by Emma Barnett in The Telegraph today, Facebook and MySpace have confirmed they are in talks about sharing content across the two sites.

Sheryl Sandberg, Facebook‘s chief operating officer, was quoted as saying the deal could see MySpace music and video being shared via Facebook’s Connect platform that allows users to log into third party sites using their Facebook ID.

Sandberg, Facebook’s chief operating officer, told The Telegraph:

Facebook is focussing on building the best technology which helps people share content, while at MySpace they are focussing on more a content-led strategy. We would like to have their content, as we already do with many other sites, shared across our network because it is good for our users.

The two companies share some common ancestry with MySpace Chief Executive Owen Van Natta having previously worked as Facebook’s chief revenue officer.

Van Natta said partnerships were a core part of MySpace strategy and he saw clear synergies between the two giants of the social networking world.

Facebook is about core communications with your friendship network, whereas MySpace is about congregating around popular content with people who share your interests.

Van Natta recently said that he no longer considers Facebook as competition and with MySpace pushing to offer more content, particularly music, a tie up between the two companies looks increasingly beneficial to both.  MySpace has around 100 million unique users but has had an increasingly tougher time growing of late, while Facebook has continued with its relentless rise and rise and now counts 300 million unique users or so.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Black days for US newspapers as circulation plunges

'Europe Edition - Wall Street Journal - Latest News, Breaking Stories, Top Headlines - WSJ_com' - europe_wsj_com_home-page

The only US newspaper to show circulation increase

If there is still anyone that doubts there is a crisis in the newspaper publishing industry they must be very well hidden. It seems that as every day passes more bad news emerges. Today, it was the turn of the US Audit Bureau of Circulations (ABC) to hammer in new coffin nails and paint a picture of massively accelerating decline.

Consider this — across the 379 newspapers in the mix, daily circulation fell by an average 10.6% to 30.39 million copies for the six months to 30 September 2009 compared to 34 million copies in the same period last year. For the sake of comparison, the decline this time round was more than double that in the previous period. I’m not a betting man, but unless there is radical change it is becoming a question of when not if major newspapers go under.

But there is more to this than just the market telling newspapers it is no longer as interested in their products as it once was. Unlike other recessions, this time round responses to the grim economics from publishers is fuelling a vicious cycle of accelerating decline. As readership shrinks and ad revenue fades, publishers are left with little choice other to reduce costs in every way possible. Huge staff cuts means the underlying quality proposition of the title is eroded, while cuts in the numbers of copies distributed free or heavily discounted means the reach of the publication is adversely impacted. Result — circulation falls further and ad revenue declines faster as the ABCs are a key indicator for businesses deciding where to place their advertising spend. Ow. That really hurts.

Only one of the top 25 newspapers was credited with circulation growth. The News Corp-owned Wall Street Journal’s circulation rose 0.6% to 2.02 million.

Top 25 US newspapers by circulation (source: ABC)

1 Wall Street Journal 2,024,269 +0.61%
2 USA Today 1,900,116 -17.15%
3 New York Times 927,851 -7.28%
4 Los Angeles Times 657,851 -11.05%
5 The Washington Post 582,844 -6.4%
6 New York Daily News 544,167 -13.98%
7 New York Post 508,042 -18.77%
8 Chicago Tribune 465,892 -9.72%
9 Houston Chronicle 384,892 -9.72%
10 Philadelphia Inquirer 361,480 n/a
11 Newsday 357,124 -5.40%
12 The Denver Post 340,949 -14.24
13 The Arizona Republic 316,874 -12.30%
14 Star Tribune, Minneapolis 304,543 -5.53%
15 Chicago Sun-Times 275,641 -11.98%
16 The Plain Dealer, Cleveland 271,180 -11.24%
17 Detroit Free Press 269,729 -9.56%
18 The Boston Globe 264,105 -18.48%
19 The Dallas Morning News 263,810 -22.16%
20 The Seattle Times 263,588 n/a
21 San Francisco Chronicle 251,782 -25.82%
22 The Oregonian 249,163 -12.06%
23 The Star-Ledger, Newark 246,006 -22.22%
24 San Diego Union-Tribune 242,705 -10.05%
25 St Petersberg (Fla) Times 240,147 -10.70%
VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (1 vote cast)


Survey gives massive thumbs down to paid news & sports content

Oh dear, another week and another piece of research delivering much the same grim message. No surprises then when a sample of 2,ooo UK respondents overwhelming gave a thumbs down to paying for nearly all forms of online content including news and sports coverage.

Who will pay for news & views? Not the readers, it would appear
Who will pay for news & views? Not the readers, it would appear (via MediaWeek)

The study, by Lightspeed Research and commissioned by Global Web Index, gives traditional media executives yet more food for thought.

Aside from the 91% saying they would never pay for news the survey also hammered a nail into the coffin of those that thought deeper, richer content would have people reaching for their wallets with 90% saying “forget it” to paid-for analysis.

The findings will only serve to up the pressure on traditional publishers looking to redefine business models for the online world.

The issues here are controversial. Murdoch is looking to charge for access to some of his newspapers and TV channels, while other British newspapers are believed to have been putting pressure on news aggregators in a bid to grab revenues via the third economy — those that simply point the way to content provided by others.

VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (1 vote cast)


The Economics of Abundance – Where’s the money in a freemium world?

Short and pithy, but highly relevant video. Where’s the money in a freemium world? Useful introduction to the “Economics of Abundance” from Mike Masnick and the Techdirt team that promises to be the first in a series of three short films. Following on from my post yesterday about UK newspapers targeting aggregators such as NewsNow in bid to secure or protect traditional reader revenues, this is not only the future, it is now. Painful to some maybe, but ignore at your peril.

VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (1 vote cast)


NewsNow aggregator comes out fighting against newspaper threats

'NewsNow_ Journalism' - newsnow_co_uk_h_Current+Affairs_Journalism

In a move slammed by commentators as being akin to a herd of donkey’s suing the inventor of the wheel, a number of national UK newspapers have apparently been making legal threats to content aggregator service NewsNow.

What on earth is going on here? While details of the threats have yet to emerge, we know newspapers have been seeing their commercial prospects head south and we know that the key to ensuring future survival is to elusive generate online revenue streams. But what these newspapers seem to be doing is shooting a messenger and not addressing the roots of their problems.

NewsNow is a basic linking service. It is not stealing any content, purely enabling users to search on key words for links that then take people through to the source article. Links are at the heart of the web. They are what make things tick. They generate traffic while building relevancy for SEO purposes. As I was building the online premium subscription breaking news service ICIS news, I wanted to ensure we were on NewsNow. For me there is a clear correlation between free traffic, which in turn generates leads and which then can be converted into REVENUE.

In an open letter to UK national, regional and local newspapers, NewsNow chief Struan Bartlett said his company and other aggregators had received legal threats over the possible imposition of new controls on how aggregators can link to external websites.

Bartlett’s letter specifically named The Times, The Sun, The Guardian, Daily Mirror, The Daily Telegraph, The Independent and the Daily Express and said that publishers were misguided in thinking that aggregators could undermine newspapers.

We can’t speak for all aggregators but for our part at NewsNow, we don’t do anything that detracts from the value of your content. We don’t redistribute your web pages to anyone. We operate within the law, and we don’t do you any harm.

Far from it. We deliver you traffic and drive you revenues you otherwise wouldn’t have received. The idea that we are undermining your businesses is incorrect. It is fanciful to imagine that, if it weren’t for link aggregators, you would have more traffic or revenues. We provide a service that you do not: a means for readers to find your content more readily, via continuously updating links to a diversity of websites.

If newspapers persist in placing themselves in a firmly sealed box they will see traffic decline. People will not type in individual URLs. The reader today needs to have relevant content pushed to them. People are increasing less inclined to go out and pull content in the hope it is what they may want to see.

The problem here goes to the core of the paid versus free debate. News Corp’s Rupert Murdoch and Tom Curley, head of the Associated Press, have laid down the gauntlet to the major players like Google and Microsoft as part of their bids to ensure either the readers or the aggregators pay for the content they disseminate.

Bartlett said:

Links market your content to readers. Abolish them, and readers won’t all type in your homepage address. They will go elsewhere. We don’t believe we are alone in this view. Many website traffic managers, journalists and editors within your own organisations clearly share this view. We know, because they’ve told us directly that they strongly value our linking to your websites.

There can only be one loser in the Battle of the Links — the newspapers. Aggregators will simply look elsewhere for the content, and eyeballs will be dragged away with them. Brand loyalty is increasingly a thing of the past, especially when it comes to consuming news online. Nico Flores makes some good arguments in favour of the link economy on his blog On Demand Media.

We’ve seen what’s happened to the music industry as it utterly failed to innovate and drive new business models in the face of escalating free or illegal downloads, and now, it appears, newspapers and other news sources may be about to make the same mistakes. It is impossible for anyone to maintain monopoly over general information, and that is where the majority of “news” sits.

What is important is ensuring the traffic is driven down a preferred road and that the content provider is then able to engage directly with the reader to seek ways to monetise content that is carefully targetted and highly relevant to a specific user. The key here is all about embracing the future, not fighting it. Bows and arrows are no good against nuclear weapons.

VN:F [1.9.3_1094]
Rate this post
Rating: 5.0/5 (2 votes cast)


Y Combinator looking to fund great ideas in paid online content

Y Combinator logoUS-based venture firm Y Combinator is seeking the next great idea to drive new life into paid content and journalism as traditional newspapers and magazines die.

The hope is that new ideas will be generated to build paid-for content sites from the position of making money first, rather than supporting a particular form of journalism and then trying to figure out how to make money from it.

I’m making no comments here, just going to leave you to decide. The full wording of their appeal for start-ups delivering paid for content and quality journalism follows.

RFS 1: The Future of Journalism

Newspapers and magazines are in trouble. We think they will mostly die, because we think we know what will replace them, and it is too far from their current model for them to reach it in time.

And yet people still need at least some of what they do. You can’t have aggregators without content. So what will the content site of the future look like? And how will you make money from it? These questions turn out to be very closely related. Just as they were for print media, initially. The reason newspapers and magazines are dying is that what they do is no longer related to how they make money from it. In fact, most journalists probably don’t even realize that the definition of journalism they take for granted was not something that sprang fully-formed from the head of Zeus, but is rather a direct though somewhat atrophied consequence of a very successful 20th century business model.

What would a content site look like if you started from how to make money—as print media once did—instead of taking a particular form of journalism as a given and treating how to make money from it as an afterthought?

(The good news is, we think the writing will actually end up being better.)

Groups applying to work on this idea should include at least one person who can write well and rapidly about any topic, one or more programmers who are good at statistics, data mining, and making sites scale, and someone who’s reasonably competent at graphic design. These functions can of course be combined, and in fact it’s even better if they are. Ex-Googlers would be particularly well suited to this project.

All the details on how to apply for funding in winter 2010 can be found here. What ideas are out there?

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


AP targets slower news but will it shoot itself in the foot?

AP Associated Press LogoIn a Twitter age when real time means (almost) exactly that, the comments from Associated Press supremo Tom Curley that the agency was considering offering news stories exclusively to some online customers for a short period seems to fly in the face of common sense and exhibit a lack of awareness about online news trends.

In remarks made at the Foreign Correspondents Club in Hong Kong this week, Curley said deepening competition between Google and Microsoft presented content providers with a golden opportunity to cash in as the two internet giants competed to grab every bigger online audience shares.

The AP licenses its content to many online services — including Google, Yahoo! and Microsoft’s MSN — as well as providing content to websites belonging to newspaper and broadcast clients worldwide. The AP, in its coverage of the  comments, said Curley echoed the complaints of many news companies that say sites such as Google have reaped a fortune off their articles, photos and video without paying fair compensation.

All AP clients currently get breaking news delivered at the same time, but these ideas would end that. As an ex-agency (Reuters)  correspondent I’m deeply concerned by these developments on two counts:

  1. The AP will break very few exclusives of earth shattering importance and will therefore find itself behind the news pack, thus undermining its value to clients and readers (shoot in foot syndrome?);
  2. Traditionally, every news organisation wants to be fast and first with breaking news. As news vendors struggle to compete with Twitter and citizen journalists, this seems to be a mercenary attempt to control news output and is doomed to fail (although it may raise a little extra revenue).

To be fair, Curley did not say just how such a service would work, or what kind of premium could be charged, but he did suggest offering “exclusivity” for as little as 20 or 30 minutes. My fear is that this could be the first step in trying to sell rights to news in much the same way that rights are so strictly controlled to major sporting events. The difference here is that this can’t work.

We know that relations between Google and the AP have been deteriorating for a while now. Back in April, Curley indicated that talks between the two over content usage rights weren’t going well again, and threatened to pull the plug on the AP feed to Google.

Come on Tom Curley, think again. The challenge to build online revenues needs creative solutions, not something that ultimately devalues the core product — your news.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


The Economist confirms to readers new online charging plans

Yesterday, The Economist’s plans to raise its online paywall were reported here and elsewhere. Today, the publication has formally told its readers. The following was emailed out this morning.

The Economist

Email from The Economist to subscribers

Dear Reader,

I’d like to inform you about important changes at Economist.com.

Beginning October 13th, we will be limiting access to certain sections of our site to subscribers only. Over the past few years, Economist.com has become a hub for intelligent discussion, with news commentary, blogs and an award-winning debate series. We will continue to encourage both subscribers and non-subscribers to participate in those conversations. We will also enhance the experience we offer our most loyal readers by expanding our subscribers-only features.

Currently, all content published within the last year is free of charge. Soon, this access will be limited to articles published within the last 90 days. The print edition contents page, which offers a convenient way to browse articles and features from the latest issue of The Economist, will also be limited to subscribers only.

Through these complementary aspects of Economist.com, we will continue to foster intelligent discussion and debate, while enhancing the value we bring to our community of subscribers.

I hope you’ll continue to visit the site and enjoy all it has to offer.

Sincerely,
Ben Edwards
Ben Edwards, Publisher
Economist.com

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Economist to build website paywall higher for archive content

The Economist is to expand its archive pay wall from Tuesday 13 October to all content more than 90 days old from the existing one year barrier. Online readers will continue to be able to access the last three months and the latest issue for free, as well as blogs, audio-visual and other sections of the site.

The Economist online is to expand paid subscription only access

The Economist online is to expand paid subscription only access

The Economist has been somewhat insulated from the woes affecting other traditional news publications, with the various versions of the “weekly newspaper” delivering a combined net circulation per issue of 1.4 million copies and claims four million readers globally.

Ben Edwards, publisher of The Economist’s website, was quoted by Media Week as saying the brand online had expanded beyond the print issue to become “a hub for intelligent discussion and debate”.

He added: “Our intention is to continue to develop intelligent discussion as a free, advertising-supported experience, but to charge for the weekly magazine online.”

The online subscription costs £50 a year, or about half of the combined print edition plus online package.

It can be argued that The Economist is in a better position than most when it comes to charging for its online content. It’s model is unlikely to signal much hope for newspapers wracked with declining print subscriptions and display sales. It is not their archives that will deliver the revenues needed, but the breaking news and most current content.

Possibly part of the argument here is that The Economist is doing this simply because it can. It’s coming from a position of strength and is seeking to exploit that. Yes, its display revenues are down massively, but its print versions been riding a wave of success and it has grown its reach into the social media sphere massively. Not bad for a high brow rag.

The recent Top 25 Digital Influencers in News & Politics report from digital marketing consultancy Sparxoo placed The Economist at number 19:

Just ahead of Newsweek, The Economist is surprisingly competitive in the social category. The Economist does very well on Facebook (placing sixth) and breaks into the top 10 most backlinked sites. In fact, the Economist has more fans than CNN, MSNBC, the BBC and the Huffington Post combined, with 158k.

Is this offering a golden key to a brighter publishing future? Economist editor John Micklethwait believes so:

I’m more optimistic about the media industry in the last two or three months,” he told the The Gazette in Montreal last week. “I think the message has got through that people need to pay for content.”

Yes, The Economist display revenues have slumped, but these have been countered by growth in print subscription revenues and a savvy approach to social media and the web.

VN:F [1.9.3_1094]
Rate this post
Rating: 0.0/5 (0 votes cast)


Get Adobe Flash playerPlugin by wpburn.com wordpress themes

Copyright © Andy Soloman
Global Journalism and New Media

Built on Notes Blog Core
Powered by WordPress