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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.

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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.

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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.

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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.

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Associated Press job losses update — AP layoff list

AP Associated Press LogoFurther to my posting earlier on job losses at US wire agency the Associated Press, Gawker has been keeping a running total of job losses in both the United States and in news bureaux elsewhere in the world.

The list is being constantly updated as more information and tip offs become available.

The full AP layoff list can be found here.

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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.

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Rock’n'roller Josh Tyrangiel to leave Time.com, pogo over to lead BusinessWeek

Josh Tyrangiel
Rock’n'roller Tyrangiel to head BusinessWeek

Michael Bloomberg’s new play thing, the top (but loss-making) BusinessWeek magazine will have 37-year-old Josh Tyrangiel as its new editor, once the acquisition from McGraw-Hill completes in December.

In his “On Media” blog within the BusinessWeek site, Tom Lowry wrote today:

By selecting the 37-year-old Tyrangiel who is not a business journalist per se, Bloomberg clearly wants a leader for BusinessWeek who is not only a highly-regarded editor but someone who has demonstrated he knows how to reach a wider array of readers in both print and online.

Tyrangiel, a deputy managing editor at Time magazine and the editor of Time.com, is actually a bit of a rock’n'roller. Prior to taking the reins at Time.com he was the magazine’s music critic and also wrote for publications such as Vibe and Rolling Stone. While he may never have interviewed Bernard Madoff or Warren Buffet, he can count Bruce Springsteen, George Clooney and the Dixie Chicks among his interviewees.

Bloomberg’s chief content officer and former Time Inc. editor in chief Norman Pearlstine, was reported by Lowry as saying:

“I saw Josh in a number of leadership positions as he took on increasing responsibilities at TIME.”

He continued:

“Working closely with him …. I came to appreciate his intelligence, curiosity, energy, and integrity. Josh is recognized within Time Inc. and its parent, Time Warner Inc., as an ‘editor’s editor’ and a natural leader. His understanding of the ways in which print and online publications can work together will serve Bloomberg well as we expand our consumer media offerings.”

Changes have been sweeping through BusinessWeek since the sale to Bloomberg was announced last month. Jobs have gone and staff fear the venerable old magazine will become a promotional tool for Bloomberg, with the real business being done online. With his strong online credentials, Tyrangiel, who will replace Stephen Adler, may well help confirm those fears. His tenure at Time.com saw web traffic soar from 400 million page views in 2006 to what could be an estimated 1.8 billion page views this year, Lowry wrote.

Top Time Editor To Become BusinessWeek’s New Editor

Posted by: Tom Lowry on November 17

Josh Tyrangiel .jpg
Josh Tyrangiel, a deputy managing editor at Time magazine and the top editor of its online operations, will become the first editor of a Bloomberg-owned BusinessWeek. The acquisition, announced Oct. 13, is expected to close in early December.

By selecting the 37-year-old Tyrangiel who is not a business journalist per se, Bloomberg clearly wants a leader for BusinessWeek who is not only a highly-regarded editor but someone who has demonstrated he knows how to reach a wider array of readers in both print and online. A major reason Bloomberg LP executives pursued BusinessWeek was to reach a broader audience beyond Wall Street and the professional investor communities.

“I saw Josh in a number of leadership positions as he took on increasing responsibilities at TIME,” says Norman Pearlstine, Bloomberg’s chief content officer and a former editor-in-chief of Time Inc., Time’s parent. “Working closely with him …. I came to appreciate his intelligence, curiosity, energy, and integrity. Josh is recognized within Time Inc. and its parent, Time Warner Inc., as an ‘editor’s editor’ and a natural leader. His understanding of the ways in which print and online publications can work together will serve Bloomberg well as we expand our consumer media offerings.”

In some media circles, Tyrangiel was considered a leading candidate to succeed Time managing editor Richard Stengel. According to sources, Time Warner CEO Jeff Bewkes was so impressed with Tyrangiel that he tried to recruit him to be come the editor of CNN.com, the online arm of the 24-hour cable news channel, but Time Inc.’s current editor-in-chief John Huey intervened and convinced Tyrangiel to stay at Time with the promise that he might one day succeed Stengel.

During his tenure at Time.com, Tyrangiel boosted the Web site’s traffic from 400 million page views in 2006 to what could be an estimated 1.8 billion page views this year. Previous to Time, Tyrangiel worked at Rolling Stone and Vibe magazines and served as a news producer at MTV.

“Josh Tyrangiel will be a tremendous asset as we build the market presence of BusinessWeek backed by Bloomberg’s global multimedia news organization, to create the most compelling business news for the most sought-after readers.,” said Bloomberg L.P. President Daniel Doctoroff.

Tyrangiel will report to Pearlstine, who in turn will report on editorial matters to Matthew Winkler, Bloomberg’s editor-in-chief. “Norm and Josh are the ideal team to deliver a terrific business magazine that brings the most trusted, most influential and most important news to a global audience of thought leaders,” said Winkler.

Tyrangiel will work alongside BusinessWeek executive editors Ellen Pollock and John Byrne and managing editor Ciro Scotti. Pearlstine announced earlier that they would continue in their roles at the magazine. Tyrangiel succeeds Stephen J. Adler, who announced his resignation as editor-in-chief on Oct. 20.

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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.

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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.

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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.

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Link economy explodes into hyper hyperlink inflation

This takes my vote for statistic of the week.

A decade ago newspaper website homepages averaged just 12 links. Today that number has soared to around 450.

Wow.

Photo: vinx80x

Photo: vinx80x/vincenzo

Are readers suffering hyper hyperlink inflation? At what stage does the “more is good” adage become redundant?

New York Times’s Nick Bilton, currently on a book-writing sabbatical, includes the startling numbers in the forthcoming edition of Wired UK magazine, reports the Media Guardian’s Mercedes Bunz on PDA, The Digital Content Blog.

As Bunz reminds us, it was a year ago that Jeff Jarvis proclaimed “links are the currency of the new media economy”, but have newspapers taken the idea a touch too far? LLC (Link Like Crazy) is still seen to be at the heart of distributing content across the internet, but at what point does this become counterproductive? What is the right balance?

Bilton said:

“It is a fascinating fact is that if you go online and visit 200 web pages in one day – which is a simple task when you could email, blogs, youtube etc – you’ll see on average 490,000 words; War & Peace was only 460,000 words.”

War & Peace every day? Goodness. Think I’ll just stick to Ulysses at a far more digestible 265,000 words.
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Tribune Co to test AP cold turkey in bid to break news wire link

FireShot capture #041 - 'Tribune Company __ Media Relations' - www_tribune_com_pressroom_index_htmlAssociated Press supremo Tom Curley will likely have gagged on his breakfast this morning as he tried to digest the news that the struggling Chicago Tribune, Los Angeles Times and other Tribune Co newspapers planned to do an AP cold turkey for a week from 8 November as part of a test to see if all ties with the news agency can be severed next year.

Chicago Tribune columinist Phil Rosenthal, in his blog “Tower Ticker” on the newspaper’s website, says the trial, driven mainly by the need to cut costs, will see the publications use as little AP content as possible and comes

almost 13 months after Tribune Co gave the AP a required two-year warning that it might drop the news service, effective Oct. 15, 2010. Tribune Co said at the time that it was keeping its options open while weighing what role, if any, the AP would play in its future.
Some content Tribune Co papers get from the Associated Press, such as sports statistics, will still be published during the experiment. The company also said that if the AP is the only available source for a report considered vital, it will use that AP coverage. But the company wants to see to what kind of void the absence of AP stories and photos would have.
Rosenthal said the besides self-generated content, Tribune titles would look to sources such as Reuters, the Washington Post, New York Times, Agence France Presse, CNN, Global Post, Bloomberg and McClatchy newspapers to fill the void left by AP.
US newspapers are having a tough time, with the latest ABCs showing average circulation decline for the six months to 30 September of 10.6%. The Chicago Tribune saw its circulation dive 9.7% in the period, while the LA Times dropped 11%. Tribune Co filed for bankruptcy protection last December due to plummeting advertising revenues and massive debts of around $13 billion.
As they grapple with ways to retain readers, newspapers are looking to develop unique content, and shared wire copy available across numerous publications or websites is seen to do little to attract eyeballs.
AP Associated Press LogoAP is a not-for-profit cooperative with more than 4,000 employees working in more than 240 news bureaux worldwide. It is owned by its 1,500 US daily newspaper members that elect a board to direct the business.
An AP news story today headlined “Tribune Co newspapers won’t use AP next week” said that at the AP annual meeting in April, about 180 newspapers had threatened to leave the news service, with many of them citing cost as the main reason.

“The Associated Press has been working with all members of the cooperative, including Tribune Co, to ensure that the AP news report retains its value to member newspapers and their readers,” AP spokesman Paul Colford was reported as saying in a statement.

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 163-year-old wire agency.

Curley has been aggressively fighting (alongside Rupert Murdoch) giant news search services such as Google and Microsoft saying hey 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. Now his choices are getting further squeezed and the old agency, like so many of its traditional members, needs to find new types of revenue to replace existing and possibly diminishing streams.

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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.

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Trendsmap — Fantastic tool to track real-time Twitter conversations worldwide

Want to know what people are saying on Twitter around the world, or even in your local town? Trendsmap offers a really simple and intuitive (yet effective) interface where trending topics are overlaid across Google maps to give you the ability to zoom in and track tweets as they happen. Brilliant. Love it.

Trendsmap has been created by Stateless Systems, a web startup based in Melbourne, Australia and they say it was created by their software engineers benefiting from Twitter’s open data policy, Google Maps and What the Trend, which offers Twitter trends and user generated content explaining why they are happening.

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Time Inc seen heading for more cuts, NYT reports more losses

'Time Inc_' - www_timeinc_com_homeBad news and more bad (but not so bad) news remain the flavours of the day for US publishing giants Time Inc and the New York Times. A report in this morning’s Financial Times says Time is preparing for a another major fresh round of job cuts to follow on from last year’s massive loss of 600 jobs, or 6% of its staff.

Sourcing the article to “a person familiar with the plans”, the FT said the cuts were expected within the next few weeks.

The nearby New York Times Company reported a loss of $35.6 million in the third quarter as newspaper advertising revenue plummeted nearly 30%. But it still managed to beat expectations on deep cost-cutting and through pushing up its cover price and even saw its stock spike. Tellingly, internet revenue was also down 7.2%, to $78.9 million which was driven by an 18.5% fall in digital advertising revenue at the News Media Group.

Other uncomfortable reading for print publishers would wrap in:

Anyone got any good news out there?

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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.

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Bloomberg snaps up BusinessWeek, cuts seen likely to follow

businessweek-logoSo Bloomberg is to acquire McGraw-Hill’s venerable but struggling magazine BusinessWeek for a cash offer of between $2 million to $5 million. Not very precise, but it appears the terms of the deal, which is expected to complete by 1 December, have not been formally announced.

Founded in the Great Depression, but will BusinessWeek be able to take care of its own?

Founded in the Great Depression, but will BusinessWeek be able to take care of its own?

BusinessWeek, founded in 1929 at the time of the Great Depression, was put up for sale in July, and the process has followed a tortuous path over the last few months. PaidContent.org has a useful timeline of its coverage following the twists and turns of the deal here.

The weekly, which competes with fortnightly publications Forbes and Fortune, is thought to have lost around $20 million last yar and was projected to see that figure more than double in 2009. According to a blog posting by BusinessWeek’s senior editor Robin Ajello, Bloomberg will take on all existing liabilities including potential severance payments.

The magazine employs around 400 staff, and Ajello said editor-in-chief Steve Adler has sought to allay fears of a “scorched earth policy” and told his staff  the deal guaranteed that McGraw-Hill benefits would be extended to employees for one year after the deal closes.

The acquisition marks a significant change of direction for Bloomberg that since being established in 1981 has sought to build rather than buy market share.

The full team of top Bloomberg executives, along with McGraw-Hill CEO Terry McGraw, will speak to BusinessWeek staff first thing today.

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NASA bombs Moon, president gets Nobel Peace Prize

One in the eye for the Moon

One in the eye for the Moon (or is that world peace?)

It’s hard to resist at least a small comment on these two extraordinary events today. In the first, US space agency NASA “bombed” the moon in search of water, and in the second US President Barack Obama was announced as the winner of the 2009 Nobel Peace Prize for “his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.”

What a load of twaddle. While there are so many worthy recipients out there, Obama has done little. This is not to say he won’t, but how can this be? It makes a mockery of the concept of the Nobel Peace Prize. If he has any moral spine he will refuse to accept the award and ask to only be considered once he’s actually delivered peace somewhere. To make matters worse, on the day the prize was announced it seems his watch was responsible for ushering in hostilities against the Moon.

This is what it looks like to bomb the Moon.

Now, we know that Obama entered the White House with fine words, aspirations and lots of pledges to undo some of the key tenets of the Bush regime and take a more internationalist and conciliatory approach to international affairs. He wanted dialogue and engagement rather than just bombs and threats.

Has he succeeded? At best, it’s too early to tell. At worst, no.

Here’s a video in Norweigian (and a bit of English) announcing the Nobel Peace Prize to a very surprised audience.

There are a few very surprising things about the Obama Peace Prize:

  1. He became president two months before nominations closed
  2. He is waging wars on two fronts in Iraq and Afghanistan.

I’m not saying he’s a war monger, but he has increased the number of combat troops in Afghanistan and is believed to support a fresh “surge” to counter the Taliban. I wonder what the surviving relatives of the scores of civilians killed by US and allied forces in Afghanistan this year would say about this award?

Michael Binyon, in a comment on The Times website, echoed the thoughts of many and was blunt in his condemnation:

The award of this year’s Nobel peace prize to President Obama will be met with widespread incredulity, consternation in many capitals and probably deep embarrassment by the President himself.

Rarely has an award had such an obvious political and partisan intent. It was clearly seen by the Norwegian Nobel committee as a way of expressing European gratitude for an end to the Bush Administration, approval for the election of America’s first black president and hope that Washington will honour its promise to re-engage with the world.

Instead, the prize risks looking preposterous in its claims, patronising in its intentions and demeaning in its attempt to build up a man who has barely begun his period in office, let alone achieved any tangible outcome for peace.

Back in 1973, the award went to President Nixon’s right-hand-man Henry Kissenger for his peace efforts with the North Vietnamese government. As if a failure to find peace there wasn’t enough, the fact that he also conducted a filthy, dirty “secret” war in Laos and destabilised Cambodia means his miserable legacy lasts until this day. Kissenger, accused by many of war crimes, also earlier this week helpfully encouraged Obama to beef up combat operations in Afghanistan. Thanks Henry.

In 1973 the Nobel Peace Prize for Henry Kissenger provoked widespread outrage

In 1973 the Nobel Peace Prize for Henry Kissenger provoked widespread outrage

But back to the Moon. What was the cost of bombing the Moon? Actually it was a cool $79 million. The satirists are going to have fun with this for a while to come.

I’m sure it wouldn’t have been such a tall ask for the Norwegian Nobel Committee to find a worthy winner of this year’s prize, certainly someone who wouldn’t have bombed the Moon, nor anyone else for that matter.

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MaYoMo video-centric citizen journalist network goes live

MaYoMo (Map Your Moments, www.mayomo.com) is a new Web 2.0 service that simply offers users the chance to ask “what’s happening, where and when” with the idea of empowering user generated content to lead the news agenda. It aims to deliver a “socially-connected, real-time platform for global news reporting — and conversation about that news.”

Beyond the usual web video fare of YouTube type clips of a French youth doing a flip over a railway line, and some nice photos of the Maldives, the site does veer more into news and offers a clear personal perspective. The protests against a trade agreement between Armenia and Turkey take news down to a local level, while users are encouraged to request news from specific places or on particular topics.

MaYoMo aims to offer breaking news on demand from citizen journalist around the world

MaYoMo aims to offer breaking news on demand from citizen journalists around the world

Hristo Alexiev, CEO and cofounder of MaYoMo, was quoted in a press release saying:

A key difference with our model is that we attract content from both young, aspiring journalists, as well as experienced independent journalists and bloggers.

The site claims that from “Alpha” and “Beta” launches over the last year it has gained users in 120 countries that have posted 57,000 news articles.

But it’s still early days. Despite @MaYoMo pouring out over 3,000 tweets since July, it still only has 340 followers, while on Facebook it counts just 146 fans.

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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.

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