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Posts Tagged ‘innovation’

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.

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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.”

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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.

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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.

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Mathew Ingram at GigaOm reminds everyone that even with a paywall in place online, a newspaper has quite a gap to fill if advertising continues to decline (as it likely will), and that relying on payments from readers does not equal freedom from pressure to generate traffic. Sample:

“But the biggest flaw in … (that) reasoning, I think, is the idea that having subscribers means newspapers won’t have to be driven by pageview-based tactics any more, and can just focus on high-quality journalism. This assumes that the readers who subscribe will be radically different creatures than the ones who read the content for free: in other words, they will only be interested in serious journalism and not celebrity news briefs or slideshows, whereas the free reader is driven only by their interest in those sleazy eyeball-grabbing tactics.

“I don’t think that’s the case at all. I think most readers who pay will still want just as many of those things, and will only continue subscribing as long as they get them — and without them, the paper’s subscription base may be loyal, but it will also be relatively tiny. This is the flip-side of the transformation that some newspapers like the NYT have already undergone, where the revenue provided by readers now exceeds the revenue provided by advertising. While that may seem like it would provide great freedom to pursue quality, it also means the the paper is even more beholden to a small group of readers …”

That being said, I think the industry still needs to move aggressively to build non-advertising revenue. Journalists just shouldn’t look forward to the day when finally they are free of business-driven demands on their time and websites.

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Mark Potts’ description on his Recovering Journalist blog of the first glimpses he and Washington Post executives had 20 years ago of the coming media technology revolution reminds me of my own moment of realization on that topic.

It’s worth the time to read Mark’s post, but his tale revolves around this:

“Twenty years ago, Robert G. Kaiser, newly appointed managing editor of The Washington Post, took a trip to California to learn more about the then-developing world of Silicon Valley. While there, he was invited by John Sculley, then Apple’s CEO, to a conference in Japan about the future of digital media. Several dozen movers and shakers from the worlds of publishing and technology gathered in the resort town of Hakone, outside Tokyo, to discuss what it might mean to use computers to collect and distribute news and information, something described by the newfangled word ‘multimedia.’”

It was just 1992, but what was described in that meeting in Japan is pretty much the online media environment we have now. As Mark describes it, Kaiser and others recognized the need to prepare for the technological tidal wave, but for all the effort put into it, things just petered out:

“The history of the past 20 years of newspapers and digital media is, unfortunately, a legacy of timidity, missed opportunities and a general lack of imagination and guts to leap into the future.”

My moment of realization comes on a much smaller, more limited scale. In 1997, I told my reporters that we all needed to think of the newspaper’s website as a place to report breaking news because it put us on an even playing field with TV, but I remained skeptical of how much new effort needed to be directed online. But in June 2005, I attended a session at API in Reston, Va., with the unwieldy name “Cross-Platform Media Teams: Strategic Thinking for a Multi-Platform World,” and that changed everything for me. In particular, a presentation by Jeff Coles of USC’s Center for the Digital Future drove home the idea that the Internet was driving far-reaching changes in people’s behavior in the same way that the advent of television did. The trends indicated that even then, before the first iPhone launched the explosive growth in smartphones.

Which leads us in more recent years to the kind of scenes such as former Wall Street Journal reporter Paul Glader recently described from a trip on Amtrak:

“All of my neighbors were pecking away at Amazon Kindles or Apple iPads. In this container on rails, the microcosm of well-connected travelers showed what kind of ‘Star Trek’ world in which we are, or soon will be, living. … They flitted back and forth, like distracted youngsters, between email, news sites, books and video games like Angry Birds.”

Newsrooms already have been decimated by massive declines in advertising revenue. Often, the cuts in staffing make editors even more resistant to changing beats or organizational structures – we’ve lost so much, how can we do anything new when we can’t even do what we once thought was the bare minimum? But retrenchment is no way to keep up with a world that’s racing ahead of you.

(Thanks to Poynter’s Jeff Sonderman for pointing to both of these articles.)

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A quick note: Chris Dixon of Hunch has posted the full text of a memo sent by BuzzFeed’s CEO, Jonah Peretti, to his staff listing what he sees as the strengths of BuzzFeed. The site has plenty of detractors – not a few of whom added their comments and criticism onto Dixon’s post. It is not overall a site that the typical news organization could or should try to duplicate on a local level. But there is much in the memo that resonated with me as philosophically sound approaches to media, at all levels, in the digital age, and just because a whole thing is not something to try to duplicate doesn’t mean there aren’t parts and practices you could learn from.

How I would summarize the parts of the memo that resonate with me: The goal is building something sustainable in the long term. To do this, you pursue practices that build your credibility with your audience. Driving traffic is nice, but if it undermines what you want your audience to associate with you, it’s not sustainable.

What BuzzFeed wants its audience to associate with it is “the most talked about items” on the Web. You can argue about the choices the site’s staff make in that pursuit, but being in the thick of the buzz of your community has to be one of your main goals. If you aren’t in it, you’re on the periphery of everyone’s attention, and it’s hard to build a sustainable business out there.

Highlights of what stood out to me:

“When you compare web publishing today with what Hearst and Conde Nast built in the last century, it is clear that online publishing has a long long way to go. As sites like Facebook and Twitter mature, the moment is right to build a defining company for a world where content is distributed through sharing and social media instead of transitional print and broadcast channels.”

“We care about the experience of people who read BuzzFeed and we don’t try to trick them for short term gain. This approach is surprisingly rare.

“How does this matter in practice? First of all, we don’t publish slideshows. Instead we publish scrollable lists so readers don’t have to click a million times and can easily scroll through a post. The primary reason to publish slideshows, as far as I can tell, is to juice page views and banner ad impressions. Slideshows are super annoying and lists are awesome so we do lists!

“For the same reason, we don’t show crappy display ads and we make all our revenue from social advertising that users love and share. We never launched one of those ‘frictionless sharing’ apps on Facebook that automatically shares the stories you click because those apps are super annoying. We don’t post deceptive, manipulative headlines that trick people into reading a story. We don’t focus on SEO or gaming search engines or filling our pages with millions of keywords and tags that only a robot will read. We avoid anything that is bad for our readers and can only be justified by short term business interests.

“Instead, we focus on publishing content our readers love so much they think it is worth sharing. It sounds simple but it’s hard to do and it is the metric that aligns our company with our readers. In the long term is good for readers and good for business.”

“[D]oing something hard can actually be an advantage for a business. It means that there are not that many other people trying to do what we do or capable of doing what we do. … There are lots and lots of things that random, unpaid web users suck at doing. In particular, the best reporting and the most entertaining media is usually created by people who do it for a living – that means us!”

“BuzzFeed is unique in that we are equally obsessed with 1) entertaining content, 2) substantive content, and 3) social advertising. The teams that focus on each of these areas are equally important which is a key part of our success. We want our cute animals, humor, and animated gifs to be the best of their kind on the web – they aren’t just a cheap way to generate traffic. We want our reporters to have the best scoops, the smartest analysis, and the most talked about items – they aren’t just a hood ornament to lend the site prestige. And we want our advertising to be innovative, inspiring, and lead the shift to social – and not just be a necessary evil that pays the bills.

“Some companies only care about journalism and as a result the people focusing on lighter editorial fare or advertising are second class citizens. Some companies only care about traffic which creates an environment where good journalists can’t take the time to talk to sources or do substantive work. Some companies only care about ad revenue and actually force editors to create new sections or content just because brands want to sponsor it.”

7/26/12 UPDATE: The Nieman Journalism Lab has a related article on BuzzFeed’s experiments to reinvent the wire story for the social Web. I think the key thing for others, especially local media organizations, to keep an eye on is the principal of looking for the best way to convey the information at hand, not just defaulting to a traditional, paragraph-based story:

“[O]n any given day news on the site doesn’t have to take a predictable shape. It could be a collection of photos, a dominant photo with links, or a collection of quotes.

“ ‘It’s something that does the work of a wire story and informs people about this very important piece of international news in this way that was authentically in the language of the social web,’ Smith said.

“While Smith wants BuzzFeed to tinker with wire stories and try new ideas, that doesn’t mean the site won’t be producing more traditional looking stories. He told me one reason he wants his reporters to think smarter about wire stories is to free them up for original reporting.”

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USA Today app
The 2012 RJI Mobile Media News Consumption Survey brings some interesting mileposts on the evolution of mobile news use, but to me it seems to raise some questions too.

In a post at poynter.org, Jeff Sonderman writes that certain results of the survey “makes tablet readers seem the best hope for print publishers that want to make a digital transition based on paid content.” Along with a finding that tablets are strongly favored for news consumption by people over 35, Jeff highlights three findings of the survey:

“More than half [52 percent] of the mobile news consumers who said they used their large media tablet most frequently for news also subscribed to a printed newspaper and/or newsmagazine. …
“Those who said they use their large media tablet most frequently for consuming news also are much more likely to subscribe to digital news products than those who said they use their smartphone most frequently for news. …
“About 60 percent of owners who favored large media tablets consider their experience consuming news on their tablets better than reading a printed newspaper.”

Among the questions I have is whether print news organizations should be focusing on where their current audience is or where the potential audience is – and that’s a question that goes back decades.

Among people who already subscribe to newspapers or news magazines, and who are over 35, tablets are a strong favorite – but if you focus on going after that group, what about the people under 35, who much more strongly favor using their smartphones rather than a tablet (57 percent vs. 28 percent)?

Smartphones also are nearly ubiquitous – owned by 92 percent of mobile news consumers, compared to the 40 percent who own tablets.

Maybe if your mobile site is good, it doesn’t matter, but I haven’t heard that the industry is approaching the point where most mobile sites are considered to deliver a good experience. Until then, the few news sites that are good would seem to have an advantage in building a reading habit among a larger segment of the potential audience, leaving the industry still relying on a shrinking portion of the population.

A focus on the tablet also could simply reinforce the old print newsroom habit of tailoring the work toward a particular time of day – except with tablets it is evening instead of morning. Smartphone users are roughly equally likely to check for news at various times of day, while half of tablet users wait until evening.

Ultimately, this may come down to whether you think news will (or should) wind up primarily supported by subscriptions and some type of paywall or will (or should) remain largely free and supported by advertising. If the former, the ready niche – of older, presumably better-off readers accustomed to your style of product – is tablets.

But even if that’s the better path in the short-term because it based on paid content now, not the promise of something uncertain later, it’s less of a digital transition unless your theory is that it is the best way to convince stubbornly print-oriented editors and publishers to begin tailoring their work toward a tablet-based digital audience, and that from there it then would be easier to get to an all-digital orientation from there than from where they are now.

7/11/12 UPDATE: I think my own view comes closer to what the deputy publisher of TPM expressed in May to Nieman Journalism Lab:

“We’re giving a lot of thought to three different kinds of consumption: Active consumption being at the desktop, on-the-go consumption being on your mobile phone, and passive consumption being in your bed, on your tablet, something like that.”

7/13/12 UPDATE: I’d like to see more studies of the effects of paywalls on demographics, but one from Our Hometown about what happened to the online audience of the Times Record in Brunswick, Maine (that link goes to a PDF), should give everyone pause: When the paper’s website was free, the average age of users was 43, but after a paywall went up the number of young site visitors dropped off a cliff and the average age rose to 59.

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Somehow I had missed the perfectly respectable, safe-for-work New York magazine story in 2009 about the porn industry’s Internet-driven woes and, allegedly, what the news industry could learn from them. Much thanks to JimRomenesko.com for helping me find it, because how often do people in mainstream journalism get a chance to learn about porn and be able to say with a straight face that it’s work-related research?

The quick summary: While porn initially benefitted from the Internet, over time the improving technology, bandwidth and cameras have meant that free or extremely cheap amateur video is blowing up the revenue stream.

And although the 2009 article indicates that what I guess you’d call porn industry officials felt they had some ideas for dealing with the downturn, a new article in The Atlantic indicates the problem continues unabated:

“What holds for journalism in this case holds for sex. In both cases, the competition is so broad that customers are likely to go elsewhere rather than pay. There are, obviously, exceptions in the case of newspapers — the Wall Street Journal has a profitable paywall, and the New York Times appears to be having some early success with its own.”

While I think there’s a certain amount of fun in the porn/journalism comparison, it’s a fundamentally flawed comparison. You will never find 12-year-old boys huddling in one friend’s room with the door closed to pass around a copy of the New York Times that one of them snuck from under his father’s mattress. Sex is a biological pursuit of primitive urges. Seeking out writing and information is an intellectual pursuit (partisan froth aside). Journalism may have a better chance of finding a niche of people willing to embrace paying for worthwhile presentation of worthwhile information. In other words, as The Atlantic’s article put it, I think people do have slightly higher standards for their news than for their porn. Slightly.

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Congratulations to Earl J. Wilkinson for his post on INMA’s The Earl Blog coining a new term (new to me, at least, even if you’ve heard it before) for the nearly mythical, not to say non-existent, kind of news story that takes forever to report and write but which hardly anyone actually reads: “Trekking Through Zimbabwe.” It’s no “hiking the Appalachian Trail,” but it will do.

Wilkinson’s post is about the new “ownership class” emerging in what once was the newspaper industry (he says it’s emerging as the newsmedia industry). He identifies two categories of these new owners: Owners who are doing everything in their power to repair the old model or invent a new model before the economic waves cover them up; owners who, evaluating the cost/benefit analysis of making those changes, are electing to divest and find more efficient ways to invest shareholder monies.

The post is an assessment of where the industry’s evolution is. It’s worth a read.

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