Feeds:
Posts
Comments

Archive for the ‘Online media’ Category

Not a journalist, believe it or not
I’m constantly amazed at the serendipity of the information I run across, two or three or four things in a day or two that seem related to a particular line of thinking I had. Here, thanks to Matthew Ingram of GigaOm, is a natural Part Two to my previous post.

Given my argument there, that advertising in newspapers is continuing a downward slide that paywalls, or anything else tried so far, will not stop, what then should journalists do? We’re in the content business, not the revenue business, so our ability to affect the bottom line is limited. But we can affect how our readers (aka, customers) think of our business, as a post at the confused of calcutta blog instructs. In fact, in a future ever more reliant on subscription revenue, which is dictated by declining advertising revenue, it is not optional. We MUST treat readers more as customers, engage them individually, draw them into conversation. If we see our role purely as SENDING OUT information, we doom ourselves.

From the blog:

“Ask yourself ‘Will the customer get a better product or service as a result of what I’m doing?’ Ask yourself ‘Will the customer return and trade with me again?’ Ask yourself ‘Will the customer recommend me to others?’ And again and again, ask yourself:

“Will this help build trust between the customer and the company?”

Journalists often don’t like thinking in terms of “customers.” It feels shady. Those of us who came to the work because we thought of ourselves first and foremost as writers think of our work as a product of our soul, so thinking of it as business is like we’re selling our bodies. That’s a conceit, and a luxury we can’t afford. If you want to be a starving artist, there is no end to the ways you can avoid helping any business make money.

Read Full Post »

Google ad revenue
I keeping beating the dead horse of journalists’ knowledge about their own business, and here I go again. Complain about staff cuts, focus on the quality of the content, whatever, just stop ignoring the reality of the business, which is that advertising is going away, finding new paths to consumers. No paywall will stop it. The news end of the industry keeps doing what it can to keep up with the customer, but the business end of the industry has proven inept at solving its part of this riddle. Is that because the folks there aren’t that good, or is it just that any good solutions are much harder to find?

11/27/12 UPDATE: Alan Mutter has another chart:

Read Full Post »

Through my insomnia, my mind kept rolling back to this quote from the Washington Post item about the closing of the News & Messenger in Manassas, Va.:

“They put a lot of emphasis on their digital products,” Kroeger said, “so their print circulation fell even further.”

The News & Messenger in many ways is a microcosm of the issues facing the industry, and the above quote is itself a prime example of one side in the debate about what the response should be. Do active efforts to build audience online erode circulation? Even if they do, if print advertising keeps dropping then are online efforts needed to build an audience that will give you a bridge to a future where most people will get their news online? I know I don’t have the answer.

Read Full Post »

One thing in particular to note from the news earlier today that Warren Buffett’s World Media Enterprises is closing one of its newspapers:

“Terry Kroeger, chairman of World Media, said the newspaper is in direct competition with many other publications and, being part of a large metropolitan area, had a tough time finding the sense of community that a community newspaper needs to prosper. He said the paper had been losing money for years.”

That’s not entirely true. If you check on Facebook for the page of insidenova.com, the website of the News & Messenger, which is the Virginia paper Buffett’s company is closing, you’ll see it has more than 24,000 likes, and if you dig down you’ll find that the Facebook community that had formed around insidenova.com is an active one. There is a community there. The problem is that WME, like other print publishers, doesn’t know how to make a profit from that. That’s the entire crux of the crisis in print publications. There is not necessarily the lack of an audience for news about any particular community, there is just (so far) a lack of ways to make enough money from those folks to keep the lights on.

UPDATE: Don’t take my word for it. From the Washington Post:

“This is horrendous news for everyone in Prince William County and those who care about Prince William news. The News & Messenger and InsideNoVA are the definitive source of news in Prince William.”

And note this quote: “They put a lot of emphasis on their digital products,” Kroeger said, “so their print circulation fell even further.”

So [Edited to clarify] If that view is correct throughout the industry, then the question is whether the closing of the News & Messenger is an aberration or a sign of things to come.

Read Full Post »

I am happy to have actual scientific evidence that I am right: Newspapers can’t go wrong by explaining to readers what they are paying for and why. Actually the proof is tangential to my argument, but it’s related so I’ll claim it as evidence anyway.

As the combination of the recession and the migration of advertising revenue drove newspapers to lay off staff and cut back content, journalists and readers alike often complained that the publications were being slimmed down and made less compelling just as the price per copy was being raised — all of which is true. The thing is, readers were not presented with any options. The decision was made and then presented to them in as happy terms as possible. I wondered whether it had to be that way and have argued that if you tell readers exactly what it costs to produce a single copy of the newspaper, including specifically the cost of printing and delivering it, readers would be much more likely to accept price increases. After all, the typical subscriber is barely covering the cost of paper, ink and gasoline as it is, leaving the cost of all the humans involved in creating the content out of the picture.

The evidence I’m claiming comes from a study of consumer reaction to the New York Times’ online paywall. The study authors fault the Times for failing to adequately justify charging for online content after it had been free for so many years, because the justification or lack of it made all the difference in the world in how people reacted:

“When participants were provided with a compelling justification for the paywall — that The New York Times was likely to go bankrupt without it — their support and willingness to pay increased,” Cook and Attari concluded.

Times readers who thought the paywall was merely an effort to improve the newspaper’s bottom line, on the other hand, visited the website less frequently and looked for loopholes to avoid the charges.

The reason I’m claiming this as evidence in support of my argument is that the basic situation is the same: People do not inherently understand our industry’s finances. If they truly value what your publication does, they will accept a higher price as the cost of keeping it. If they don’t value it, well, then you have a larger problem. But if you don’t even bother to explain to them the exact reasons you want to charge more, they just assume you want to pocket the higher revenue.

Readers I have talked to don’t even realize advertising has declined. They don’t realize that advertising essentially pays (or historically has) the full cost of news production. They think that all the cost-cutting of recent years, as well as the move to start charging online, has been about INCREASING profits. People understand the need to balance income and expenses. Explain it to them. It’s not a radical concept: Treat them like adults.

Read Full Post »

Anyone remember when “disruptive innovation” was the focus of discussion about the future of the newspaper industry? It seems like ages ago, but it has been just six or seven years. A Nieman Journalism Lab interview with Clay Christensen of the Harvard Business School has brought the phrase back in recent days. For those who don’t remember Newspaper Next, Mathew Ingram at Gigaom.com aptly summarizes the idea:

“One of the classic lessons from Christensen’s seminal book ‘The Innovator’s Dilemma’ is that companies with a commanding lead in their field, whether it’s hard-drive makers or steel mills, are almost incapable of taking the steps that need to be taken to survive a technological and/or behavioral disruption — even when the danger of not doing so is blindingly obvious. In other words, even when a company can see quite clearly that a freight train is approaching or a cliff lies directly ahead, it is still almost impossible to step off the tracks or do anything other than stampede over the edge.”

For a few years, “innovation” got a big push, at least in newsrooms. Journalists, in fact, generally have done the most innovating in the business, making their news more mobile, more diverse in form.

But in the wake of the Great Recession and the ongoing slow recovery, many people in the business are focused on where they can find revenue, not on the main point Christensen had stressed, which Joshua Benton described for the Nieman Journalism Lab as:

“First, focus on the jobs that your customers are hiring you to do — and on new ones that you might be in a good position to do. Successful companies often value elements of their products that audiences don’t particularly care about; getting too much distance between those two perceptions leads to business failure.”

What is the job that people come to newspapers or any news source to get done? Ingram asks at Gigaom:

“Are readers suffering from a lack of paywalled content for which they can submit their credit cards? Probably not.”

The current focus on paywalls and how to grow the online subscription business helps the business survive, and it might even be considered an innovation if the purpose is to change the industry from one relying on cheaply acquiring an audience in order to sell lots of advertising to one that relies on creating a product that people are willing to pay to acquire — but it doesn’t serve customers. Continuing to provide the public with the same information we’ve always provided them isn’t an innovation. There has to be more.

Look at the way people use technology – and how rapidly that technology is moving. Ask yourself whether the way you do business makes sense in that world. What is the job people come to you to get done?

Christensen sounds a warning that innovation focused on customers can’t be put off for long:

“Even as the disruption is getting more and more steam in the marketplace, the core business persists, and is really quite profitable for a very long time. Then, when the disruption gets good enough to address the needs of your customers, very quickly, all of a sudden, you go off the cliff.”

10/26 UPDATE — More on the ways people use technology:

“This year, the amount of time consumers spent using mobile devices—excluding talk time—will grow 51.9% to an average 82 minutes per day, up from just 34 minutes in 2010, eMarketer estimates.

“… Time spent with print media will drop to an average 38 minutes per day this year, eMarketer estimates, down from an average 44 minutes per day in 2011. Newspapers will see a drop to an average 22 minutes per day this year, while time spent with print magazines will fall to 16 minutes per day.”

Read Full Post »

from the Nieman Journalism Lab
A friend who is a web editor asked on Facebook what her journalist friends think of the news that the new owner of the Orange County Register is going all-in on a print-first approach to news.

My initial response was that it was “goofy.” After letting the idea simmer for a few hours, I can substantially amend my response.

First, I applaud the reasoning being used, as explained by editor Ken Brusic:

“The new owners have decided that the way they want to proceed with a business model is to really move from solely an advertising-based newspaper model to a subscriber-based one, and in order to accomplish that — basically, what we need if we’re going to charge more — is more quality in the newspaper.”

This is no small thing. Moving to a subscriber-based model means you believe you can make money primarily from the content you produce, not from finding advertisers who want to reach your subscriber base. Beefing up the staff, then, is just putting your money where your mouth is – the exact opposite of putting up a paywall while also cutting staff and/or pay.

That said, I still think there are limitations to the model. If the beefed-up Register succeeds, I tend to think it eventually will become a niche product for a high-information demographic. If smartly marketed – and keeping a free website for breaking news and pushes to the paper or an all-subscription site is a part of that – it would not be resigning itself to a forever aging and shrinking demographic, but it almost certainly would find itself with a small one: older than average, wealthier than average, better-informed than average. Not a bad demographic to have, for outside promotional events and whatever advertisers might remain, but not a mass-circulation base.

The main reason for that I think is entirely outside the control of the Register, or any news organization, as I summarized elsewhere in a completely different context on Wednesday:

“As Jeff Cole of the Annenberg School’s Center for the Digital Future has put it, the ongoing changes (facing the news industry) are not just technological but behavioral and comprehensive, of the same order as the changes that followed the advent of television, and anyone seeking to lead a business affected by them has to understand that.”

When my grandfather was a young man, it was an absolute given that if you read a newspaper, you did it after work. By the time my father started dating a pretty, young features writer at the Columbus (Ohio) Citizen-Journal, that was no longer a given. By the time I worked a summer internship at The Phoenix (Ariz.) Gazette, that was one of the few afternoon papers left in the country, and it was on its last legs.

Why the change? Were the morning papers that much better? In some cases they may have been, but that wouldn’t explain a nationwide phenomenon, so no. The change came about purely because of changes in people’s lives. It began to make more sense to people to read a morning paper. Their afternoons maybe became busier and busier, or the evening TV news filled their information needs better than a P.M. paper because the TV news was more up to date. Whatever the reason, it was less a vote on the afternoon paper than a symptom of larger trends in society.

Similarly, newspapers today are not facing financial trouble because they are “giving away” their content online – or, if you believe that is a genuine problem, not solely or even mainly because of it. Morning newspaper circulation had been in decline before most people ever heard of the World Wide Web. The advent of the Web, then the high-speed Web, then the mobile Web merely accelerated the trend and added on the burden of advertisers having new options for reaching people.

The decline of the printed newspaper can be seen as merely part of a continuum of change in how people choose to get information, and there’s no reason to think the change is stopping where it is now. And if that is the correct view, then restricting your information to print – even a high-quality, smartly marketed product – is swimming against the tide. It doesn’t mean you can’t make a living at it, but you are planting yourself squarely where the majority of people have decided they don’t want to be. You might be able to entice some to visit, those few who highly value what you have to offer, but the day will come that you are not and never will be a mass product again. Maybe that isn’t so important to you, and maybe journalism will be better served this way, but just understand where it is you are going.

Another excerpt from what I wrote in a different context Wednesday:

“The biggest obstacle our industry faces is not the tools, which are ever-changing and seemingly ever more powerful and diverse, but whether those leading the newsrooms can accept the necessity of change, even painful change, and find ways to adapt – without letting others keep focused on what is lost and how things used to be. The pace of change, and the related challenges, isn’t likely to let up.”

The reactions my web editor friend has gotten to her post are (as of this writing) largely from the “focused on what is lost and how things used to be” end of the spectrum. There is no Ghost Dance for newspapers. What’s past is past. You can celebrate it, but you can’t bring it back.

Read Full Post »

In his address to the Arizona Newspapers Association, Steve Buttry summed up the argument against newspaper websites setting paywalls or pay meters (and it is just newspapers; you never hear of TV stations debating whether to charge for access to their sites). I’ll quote the part that sums up his summation:

“Most of the forward-looking paths to prosperity work better with a larger audience, and paywalls (or meters or whatever you want to call them) limit your audience. Most of the paths to prosperity demand that we reach a younger audience, and paywalls continue a model in the comfort zone of newspapers’ aging and dying audience.”

There is an argument to be made in favor of paywalls, and Warren Buffett has summed it up – become indispensable:

“Make the paper so good that I get the shakes if I don’t have it.”

This is not an outrageous theory or one new to newspapers. I have pointed before to a slimmed-down version of a Newspaper Next presentation about creating an “experience” in the news pages, the argument being that people pay all the time for an experience rather than the actual product being sold. Under the experience theory, people will seek out and buy a news product online if it gives them a good emotional jolt or something to talk about. It becomes a valuable part of the day by the effect it has on their day.

Where this theory falls apart is the way that real-world newspaper publishers are trying to keep their businesses afloat.

You cannot create indispensable stories “so good that I get the shakes if I don’t have it” if you are paying the story-creators so little that they make as little – or less – money than first-year teachers. Good stories come only from good minds, and good minds may take a first job paying that little, but they also will soon find a way to something better, and then your flash-in-the-pan indispensability departs with them.

But low pay has been built into newspapers’ current cost structure. It was the way that publishers dealt with, first, the demand for maintaining profit margins and, in the recession and crash of advertising revenue, the need simply to stay afloat. Newsrooms across the country – not all of them, but many – tried to maintain as many staff positions as they could by squeezing pay. Now they are stuck.

If you are stuck with a revenue level that won’t support filling your staff with indispensable storytellers, you need to rethink your staff and content model, slim down the staff size and build up the pay. Otherwise you resign yourself to forever being completely dispensable.

You can’t be indispensable and poorly written at the same time. In that case, Steve’s point is completely correct: You will get online subscriptions from current newspaper addicts, the people who are so used to reading you that they just can’t do without. But they will die off, and you will have nothing that non-subscribers find worthwhile, so you also will die off.

Paywall defenders could argue that there is no “prosperity” to be found in unpaid models so far, but Steve is absolutely correct that in order to survive you need to bring in new consumers, new readers, new audiences.

The most recent real example I’ve seen of this is here in Richmond, where Bill’s Barbecue recently went out of business. Bill’s was a Richmond institution. When I moved here in 2001, I saw Bill’s everywhere. I figured it had to have really good barbecue for it to be so widespread. Then I went into one near home and bought some. Lord, that was some awful barbecue. It was soupy. It smelled funny. I started asking around, and to date no one I have met in Richmond thinks Bill’s had good barbecue (everyone praises the pies, but you don’t build a big barbecue restaurant chain based on the dessert). It was skating on a decades-old reputation, frequented apparently by old-Richmonders who fondly clung to memories (although not many of them; there were two Bill’s within a mile of my house, and neither was ever busy, at any time of day). Finally, the family that owns the business decided to stop.

This is where many newspapers are. There is a base of loyal customers who are willing to pay, though they lament what has been lost in the past 10 years. But there is less and less reason for any new customers to come through the door, and to the extent there is any at all, tighter and tighter paywall restrictions cut off the potential new-customer base. At some point, publishers will feel it necessary to open the walls, but by then their product may be an afterthought, a niche publication in a universe of alternative news sources.

With or without a paywall, you can’t attract an audience when you have little worth reading.

Read Full Post »

I’m gradually getting around to the ONA sessions I was not able to attend last week, and here’s one I definitely wish I had: David Wright of NPR discussing online design. He makes a point echoing one of the things said a day earlier by Amy Webb (included in this post) – get the online experience right or the content doesn’t matter.

(Video of Amy’s session. You can find video of David’s presentation here, but to keep up with the full thing you also need the slideshow in a separate window.)

But David had a better illustration than Amy did. Both asked, more or less, what problem are you trying to solve? David illustrated it with an example from the phone industry. In the post-monopoly, pre-mobile era, Sprint built its brand with a television commercial declaring its service was so good, “you can hear a pin drop.” In the post-mobile era, Verizon struck on the central issue for consumers: “Can you hear me now?” In other words, we went from a landline era, in which customers cared most about how clear the sounds on their phone were, to the mobile one, in which they cared most about whether they could hear anything at all.

In that metaphor, many journalists are stuck at the landline stage, but most of our customers have moved on to mobile phones.

What Amy said better than David was that news people stink at thinking in terms of Web design because we are most concerned with the end destination – our content. But since David’s entire presentation was design, he dwelled longer on that issue (how people get to the content in the first place) and showed just one example of the problem, the home page of a newspaper’s website, where the top navigation had, he said, 152 options (I assume he’s including drop-downs). The only reason for that can be journalists – every editor in charge of each section wants to be sure each “critical” part of his/her section is easy to get to from the home page. It does not help the online reader. Compare the typical news site’s design with what you find on an app designed for tablets, or (like the new business site Quartz) one designed to mimic tablet apps.

What they both said was to design with the online audience in mind. Create the best possible experience and people will come back. Without a good experience, the content alone won’t do it.

All of this echoes an idea from a decade earlier that didn’t (in my opinion) find much acceptance in newspapers: the “experience” newspaper. The argument then, said almost exactly as David put it in his presentation, is that people will pay for a satisfying experience, even if the essential content (the actual content or something similar) is available somewhere else. If it’s true, that more than anything else might be the hope for getting young people who don’t have any news-subscribing habit to pay for news. If it’s not, the future of paid news – aside from major national or regional brands – might be tied entirely to the number of older readers who already are in the habit of paying for news – in other words, already in decline.

Read Full Post »

Following are the notes I have passed to my colleagues on the Online News Association’s 2012 conference (and for more check the ONA Newsroom):

J-Lab’s “pre-convention” sessions on Thursday produced the information I thought was most immediately useful. In one, editors from The Seattle Times and KQED talked about their efforts to create a network of community news partners. The Times’ model was low-maintenance (requiring only “1 or 2 hours a week”) and easily replicable. KQED’s was much more difficult to get going and maintain.

The Times has 55 local blogs – from neighborhood blogs of the sort like the Church Hill People’s News or the West of the Boulevard News here in Richmond to single-issue blogs on things like beer or bicycling – signed up as “community news partners.” Essentially the blogs agree to let the Times aggregate their RSS feeds; the Times’ editors have a dashboard built in WordPress to let them choose what stories they think are interesting, and the headlines (ONLY the headlines) then appear on the Times’ website, with the links pointing directly to the blogs. The partners agree to give the Times exclusive access to any photos that they get (the Times’ hope is that in a giant, breaking-news situation one of the blogs will have someone there first). The Times agrees to let the blogs do the same kind of headline-linking to the Times’ site and agrees to provide any of its photos to the blogs for free upon request (with credit given). UPDATE: I forgot to mention that each Sunday the Times publishes a page of excerpts from top blog posts.

The Times has gotten news stories – including A1 stories – that otherwise would have been missed (the Times includes a note with the story saying the information appeared first in X blog), and there is survey evidence that the partnerships have improved the newspaper’s image among local residents.

KQED’s partnerships are much more complex because the station wanted full, content-producing (audio and video, since KQED has both a radio station and a TV station) partnerships. That meant avoiding any site that advocates policy positions (the Times has no problem as long as the blog is transparent about its advocacy) and providing training to get content that meets its broadcast standards.

I think the Times model actually exposes a vulnerability that newspapers ignore at their peril. If a TV station were to seek such an extensive, low-maintenance network, it could greatly enhance its website as a community hub, build on the station’s promotional and community-engagement efforts (which already exceed what newspapers do) and effectively corner the market on community news. Assuming newspapers continue to throw up paywalls and TV stations do not, the newspaper site retreats into niche status (though the niche is elite, high-information readers), while the TV station that harnesses the blog network cements itself as the go-to place for “what’s happening now?” information.

* * * *

Amy Webb, Webbmedia Group’s Tech Trends (Storify coverage, and video of the session)

Amy’s job is to spot trends in technology and media so she can help her clients adapt to disruption. The bulk of her talk was on the broader process for how her company does that. But for ONA she devoted a lot of attention to the issue of online video by news organizations, who she says are awful at online video. The problem we have, in her view, is that we are content-oriented people, so we focus on the content, not the online experience. That is backwards of how it should be. She says you should focus on creating an online experience, not on the content. As an example she pointed to is HuffingtonPost Live: The video is extremely forgettable at this point, but the online dashboard provides a web-native experience, geared for the multitasking that people do online. She says that the video inevitably will improve, but having the best video-exploration experience puts the site in the driver’s seat.

Key quote: “Don’t replicate the TV experience.” People online don’t want to just sit and only have the video play.

Near-term trends she sees for news/content:

–“Atomic”-based news. That is “atomic” in the sense of news being broken into its component bits for better personalization. In other words, for any given story, there is a basic story for the casual reader, a version with more context for those with a higher level of interest, and an expert-level package. This is made possible by rapidly improving algorithms, such as are used by Google and Amazon, tracking the user’s history and interest.

–Algorithm-created content. This would be the automated translation of spreadsheet-based information into full sentences and paragraphs. The algorithms are increasingly sophisticated and produce better and better results. I think something like this could be huge, cost-wise, for such things as sports and cops, so you could hire data-entry people instead of writers. (10/9 UPDATE: This is a company that sells the software.)

–There’s a huge opening for verticals targeting women – but NOT “mom blogs” or “mom” anything, which is overdone and misses the majority of women. She means mainstream topics but reported with a female audience and women’s particular concerns in mind. In the bulk of news, women are an afterthought or absent, so women are hungry to see themselves reflected in the world of news and information.

–Apple vs. Android: Google has a new version of Google Maps coming for Android phones (you may recall that Apple booted Google Maps from the iPhone, with poor reviews for its replacement – one tech guy I talked to in SF says his iPhone can’t even map his home address in NYC). It’s called Google Now. She thinks it will be huge for Android and tilt the field against Apple. Quote: “Google Now will make Siri look like somebody’s high school project.”

–Wearable technology. She brought in a prototype of a purse that recharges your phone. You just drop the phone inside. There’s no plugging it in, no special place to put the phone. She says you probably also will see the same technology incorporated into clothes so that you will have a phone-charging pocket.

Longer-term trend:

–Augmented reality. You may have seen the online demonstration of Google glasses, a pair of glasses that gives the wearer a display of information about things the person looks at. She has seen similar technology in contact lenses.

* * * *

The opening day’s keynote speaker was José Antonio Vargas (Storify coverage, video), the former Washington Post reporter who revealed his illegal immigration status. His main point was an argument to stop using the term “illegal alien.” He made a good point, partly on the legal/semantic issue of it being a civil violation to be in the country without documentation, not a criminal one, and partly on the basis of this: “In what other context do we ever describe a person as illegal?” Someone who drives at age 14 has broken the criminal law but is described as an underage driver; someone who drives drunk has broken the criminal law but is described as a drunken driver; neither is an illegal driver. He advocates using the term “undocumented immigrant,” which is both more precise and accurate.

(Poynter rounds up some of the counterarguments.)

* * * *

The Friday lunch “keynote” was an interview of Twitter’s CEO, Dick Costolo. Excellent interview. (Coverage, if you’re interested, or video.) One big bit of news: Twitter is developing tools to make it easier to curate event-oriented tweets. Also, pretty much all of Twitter’s development efforts are targeted at mobile users. Tweetdeck is its desktop tool and the only thing for desktops that is contemplated. (Costolo actually referred to it as something like “Twitter Pro for journalists.”)

UPDATE: Jeff Sonderman at Poynter.org has a list of 12 bite-size takeaways from the conference, largely different than mine.

Read Full Post »

« Newer Posts - Older Posts »