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News International confirms banning NewsNow crawlers from linking

Rupert Murdoch, Chairman and Chief Executive O...

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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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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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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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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.

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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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