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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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EVENT — Essential free Online Content Marketing webcasts

Media and digital convergence offers myriad options and opportunities. Fine, if you know what you’re talking about that is. But for many, the emerging digital landscape is confusing. Those nice chaps at Those in Media have put together a programme of free webcasts and discussions on 20 January to help you all get the most out of your content.

Topics covered include tracking content ROI, publishing as the future of marketing, reading “digital body language” and managing content to avoid information overload.

These pages have previously mentioned another Those in Media initiative — the plans to host Mediastock in Europe in the summer. Sadly, as Brent Willen says, it was just too ambitious. So that idea is on hold, but other ideas including the webcasts and a tie up with AuthorsGlobe to produce Online Executive Education Sessions, with the first due on 4 February.

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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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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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Groan and the world groans with you as you auto-tweet your weight

Twitter how fat you are
Twitter how fat you are

Sometimes there is just too much information. I’m not talking about too much information and the challenge to filter, sift and consume, but about too much information, ie that information that we really do not need (or want) to know.Click here to find out more!

French company Withings, not satisfied with a WiFi-enabled bathroom scale that enables the weight-obsessed to pipe all body fat details to their PC, is now extended the machine’s capabilities to Twitter with auto-tweets going out once you step on the “WiFi Body Scale”.

Yes, in a bid to add real gravitas (gravity?) to the bugeoning online convesation, Withings weighers can now Twitter their intimate body details (thanks to Jennifer Van Grove at Mashable).

As French entrepreneur Loic says in the following clip

Maybe two or three years ago, when we said we were getting fat we should have a WiFi scale that would post to the internet so that it uses social pressure from our friends if we get fat.

Urghh. I’m sure there must be a better use of this social networking lark?

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LinkedIn & Twitter go a “Twitter #In” to enable cross posting

Professional networking site LinkedIn and micro-blogging service Twitter have joined forces to enable cross posting of LinkedIn status updates or Tweets to ensure they reach the widest possible audience. The service is not yet available to all LinkedIn users (myself included) but is promised to be rolled out over the next few days.

Twitter co-founder Biz Stone and LinkedIn co-founder Reid Hoffman can be seen talking about “Twitter #In” here.

Allen Blue on the LinkedIn blog says:

The idea is simple: When you set your status on LinkedIn you can now tweet it as well, amplifying it to your followers and real-time search services like Twitter Search and Bing. And when you tweet, you can send that message to your LinkedIn connections as well, from any Twitter service or tool.

On Twitter, LinkedIn users will have the option of making all or selected Tweets available to their professional network. Certainly useful when it comes to filtering out the personal and focussing in on the purely professional personna projected through LinkedIn.

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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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Survey puts £1.38 billion Twitter cost on UK businesses

A survey by IT services provider Morse calculates that personal use of social networks such as Facebook and Twitter by employees during working hours is costing UK businesses an estimated £1.38 billion a year in lost productivity, but more importantly says companies need clear policies to ensure brand protection.

Of the 1,460 office workers questioned, 57% said they used social media sites during the working day for an average 40 minutes each which added up to the equivalent of a full working week a year, Morse said in a press release.

Is this such a bad thing? Is the true cost as high as Morse is suggesting? Probably not. People at work have always found ways to use (waste?) time in ways that do not directly contribute to company productivity. In the modern office environment how many less people now go off for tea or cigarette breaks? How many people have changed the way they use the internet to spend proportionately more time on social networks rather than traditional websites? How many use their lunch hour to catch up with their “friends” and “followers”?

But while Morse will generate column inches with its headline-grabbing figure of £1.38 billion, it is clear that social networks offer both threats and opportunities. Morse makes the point that too many firms have not formulated clear policies on the use of Twitter or other social networks to ensure professional reputations are protected.

When it comes to usage policies it is clear many businesses have some way to go, as of those surveyed just over three quarters (76%) said that their employer hadn’t issued them with specific guidelines with regards to using Twitter.  Without guidelines and usage polices businesses are leaving themselves wide open to a reduction in productivity, brand damage and security risks.

Morse consultant Philip Wicks said:

However, if implemented correctly, the use of social networks can help facilitate closer ties with employees and customers. Therefore, businesses need to strike the right balance between engagement and productivity when it comes to employee usage.

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DreamWorks bans Hollywood stars Diaz & Myers from Twitter

Reports that a number of top Hollywoord stars, including Shrek voice stars Cameron Diaz and Mike Myers, have been banned from Twitter and other social media sites can only provoke derision.

The most followed person on Twitter

The most followed person on Twitter

It appears executives at Disney and DreamWorks — where Diaz and Myers are lined up for next year’s Shrek squel — are paranoid that by pre-empting carefully choreographed press releases, Tweets from top performers are leaking information that could harm the film industry reputation.

While, Hollywood has a long history of gagging its top performers, it should be looking for effective ways to engage with social media through the huge numbers of followers its stars can call on. American actor and former model Aston Kutcher,  has become the most followed person on Twitter with a count of 3,845,728 followers and still rising.

DreamWorks can be found on Twitter at @DW_Studios, where it has managed the grand total of just 18 Tweets.

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Nasa launches Tweetup for Space Shuttle liftoff

'NASA - NASA Launches Tweetup for Space Shuttle Atlantis Liftoff in Florida' - www_nasa_gov_home_hqnews_2009_oct_HQ_09-240_STS-129_Tweetup_html

US space agency NASA is inviting 100 of its top @nasa followers on Twitter to a two-day Tweetup at the Kennedy Space Center in Florida that will culminate in front row seats for the launch of Space Shuttle Atlantis on 12 November.

While this is NASA’s fifth hosted Tweetup, it is the first that will allow space freaks to get up close and personal with a shuttle and its crew.

“Each event has provided our followers with inside access to NASA personnel, including astronauts. The goal of this particular Tweetup is to share the excitement of a shuttle launch with a new audience,” Michael Cabbage, director of the News Services division at NASA Headquarters in Washington said is a press release.

The first 100 people to register on the web will get the golden ticket, with 50 others to be added to a waiting list.  Registration opens at noon EDT on Friday 16 October at http://www.nasa.gov/tweetup

The event will give lucky registrants the chance to tour Kennedy Space Center, view the space shuttle launch and speak with shuttle technicians, engineers, astronauts and managers. There will also be a session to meet the staff behind the tweets on @NASA.

NASA astronaut Mike Massimino has become wildly popular on Twitter where he Tweets under the name @Astro_Mike, and currently counts some 1,084,677 followers. He was the first person to send a Tweet from space when in May this year he posted:

From orbit: Launch was awesome!! I am feeling great, working hard, & enjoying the magnificent views, the adventure of a lifetime has begun!’


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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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@Guardiantech has 78% of all UK newspaper Twitter followers

The @guardiantech Twitter feed now accounts for 78% of all 1,665,202 followers of UK national newspaper Twitter accounts, a blog posting by Malcolm Coles has said.

FireShot capture #012 - 'Rate of growth slows for newspaper Twitter accounts » malcolm coles' - www_malcolmcoles_co_uk_blog_newspaper-twitter-october-2009

Table showing UK newspaper Twitter accounts and number of followers. Table: Malcolm Coles

In the posting also found on the Online Journalism Blog, Coles said that between them  national UK newspapers had gained 196,266 new Twitter followers in the month to 1 October, a 13.1% increase compared to 17% achieved the previous month.

Coles is tracking 131 accounts. The full table can be found here.

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Is there life after 40 for foreign correspondents?

Old friend and colleague Tom Crampton on his blog has a wonderfully funny and sometimes downright depressing video interview with Eric Weiner, former NPR correspondent and author of Geography of Bliss, listing the top 10 options for former foreign correspondents.

As Crampton says:

This list was originally composed thinking in terms of a 40-something foreign correspondent who had spent enough years living rough out in the field. Now, with the slashing of newsrooms and foreign budgets, some younger correspondents still in the flush of youth may want to listen to Eric’s sage advice.

So in summary, here they are.

  1. Journeyman
  2. Management
  3. Author
  4. Professor
  5. Public Relations
  6. Barfly
  7. Bed & Breakfast
  8. Death
  9. (Do a) Steve Rattner — tenuous inclusion as this ex-NYT reporter is the only ex-hack known to have switched into something and made shedloads of money. Weiner says more examples needed. Any ideas?
  10. Digital

Now, I have to confess that much of this list rings very true. I indeed did hang up my poison pen at the age of 40. I left my last posting in the hostile environment of Pakistan to return after many years away to lead a quiet life in the backroads of beautiful English countryside. I’ve either dabbled with or or considered most of the above. Even death (but not as a serious option for me I hasten to add, but for those friends I lost along the way).

These are tough times. The days of the expensive safari suit, chain smoking, hard drinking and bottomless expense accounts once touted by foreign correspondents along with their notebooks and pens are mostly gone. The days when they could disappear to the field (read hotel bar) for a three-day bender are gone. A story a week, became a story a day, became several stories a day, became several stories a day and a blog entry, became several stories a day, several blog entries and a podcast, and so on, adding video, and the emergence of never ending deadlines. Their employers are feeling the squeeze. Budget cuts have led to closures of numerous newspapers. These foreign correspondents really need to find something new to do.

By the time they parachute in these days, the Twitterer, YouTuber and citizen journalists have been at it for ages. Now, I’m not saying the job of foreign correspondent is redundant, far from it. It needs to adapt and it will survive. It was the best job I ever had, loved it. But there came a time when it had to end.

Looking at the list, I know people that fit into all categories (except #9 because no one becomes a journalist to get rich). Some are deluded and never know when it’s time to stop, and others spend the bulk of their life dining (or probably drinking) out on tales of daring do from a brief defining moment in their youth. Without wanting to seem disrespectful, anyone who spent time in the bar at the Foreign Correspondents Club in Hong Kong at anytime over the last 20 years would see a gradually aging group of distinguished ex-correspondents struggling to let go of their Vietnam War exploits. To be fair, I’m sure I would have been exactly the same.

I do think Weiner missed one possible extra venture — become a secret agent. The history of journalism is littered with examples of hacks that were actually spies, or spies that pretended to be hacks (far less convincing, though). Certainly when I was in Vietnam, the spooks there genuinely thought that some key foreign correspondents were actually in the pay of the CIA or MI6. Were they right, or were they suffering from fevered Communist paranoia? Who’s to say.

So, what did I do once I stopped being a foreign correspondent? I took up management.

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Mediastock — coming to a field somewhere in Europe Aug 2010

So, Mediastock is coming to a field somewhere in Europe in August 2010. At least, that is the plan as put forward by Brent Willen, founder of LinkedIn‘s hugely successful “ThoseinMedia” group that currently boasts  52,207 members from across the global media spectrum.

The plans are somewhat sketchy, but Willen, in a shout-out to group members today says:

our goal is to get the industry out of the conference halls and hotel lobbies, not to mention stuffy attire, and have a meet in a state of nature with a very flattened hierarchical structure (i.e. none).

There’s a video with the message that outlines the idea. Production values are rather iffy, but sure the event could be a corker with topics including journalism, marketing and social media addressed and debated in tents. The event is being twittered with hashtag #mediastock

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Twitter’s $100m to buy time to sort itself out

The giant of the microblogging world, Twitter, is close to getting $100 million in new capital that will value the  fast-growing site at around $1 billion, the Wall Street Journal reported.

Goodness me, at 140 characters max, that works out at a each character being worth a massive  $7 million.

Now, I’m a huge fan of Twitter, I think it’s great, although sometimes it can grate. Do a search on the word “Vietnam” and see just how many people start their day with Tweeting “Good morning, Vietnam“. Enough, let’s concentrate on the good. As a tool to filter and quickly digest the things I really want to know, it is hard to beat.  But get this, just what will they be doing with the extra $100 million (which was apparently twice as much as was expected) in Twitter Towers?

The new funding, said the WSJ would…

…buy the fast-growing Internet-messaging company more time to figure out its business model, according to people familiar with the situation.

Gosh, if only it was that easy all the time.

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