Date

Thu - 21.09.2017


business model

The first session of the World Newspaper Congress kicked off today with talk of perhaps the biggest ongoing conversation amongst the media around the world: how to pay for the digital content the news industry creates.

Les Hinton, CEO of Dow Jones & Co., told the Congress that charging for online news is a must, and companies need to find more ways to improve their ad sales to survive. Paul Jansen, CEO of SPH search at Singapore Press Holdings, said his biggest mistake was initially going free in the infancy of the Web. Andreas Wiele, of Axel Springer AG in Germany, said the industry must come up with models to allow print to measure efficiency, or advertisers will "go away."

Les Hinton, CEO of Dow Jones & Co.
Photo: Brian Powers, Western Integrated Media
Righting past mistakes

The media industry must completely reinvent itself to increase productivity, quality and profits, Hinton said. Charging for online news is a must and companies need to find more ways to improve their advertisement sales to survive.

Author

Shakia Harris

Date

2009-12-01 23:25

The newspaper business model is powerless to compensate for falling print ad revenues, and the problem is not going to go away. The print model cannot and will not migrate to the Internet, where there is a "revenue black hole," in which 76 percent of all online revenues go to Google and Yahoo!, Timothy Balding, co-CEO of WAN-IFRA, told the 62nd World Newspaper Congress today.

"To compete, you will need to retain control of your content. In 2013, combined print and digital revenues will be less than print revenues in 2008," he said, citing data from ZenithOptimedia and PricewaterhouseCoopers. "Should we allow aggregators to build their business on the back of our content?"

Timothy Balding, co-CEO of WAN-IFRA. Photo: Brian Powers, Western Integrated Media

"There are outside forces we can't control," Balding said, referring to a chart of the Dow Jones Industrial Index over the past year that rapidly dropped off.

In terms of digital revenues, only Google posted first-half growth in 2009, he said, and in the third quarter this year, compared to the same time last year, newspaper ad revenues dropped 17 percent.

In the United States, which has been hit particularly hard, of 379 daily titles, circulation between April and December is down 10.6 percent, and digital ad revenues have fallen six quarters in a row. In 2009 in the U.S., estimates by PwC show advertising in newspapers in North America are down by more than 20 percent.

Author

Leah McBride Mensching

Date

2009-12-01 09:46

The Wall Street Journal pointed out today that newspapers are reaching the end of costs they can cut, and need to see increases in ad revenue. However, ad revenues continue to decline or merely stabilise, and Wachovia analyst told the WSJ that "it's increasingly likely that expense cuts, while significant, won't be enough to drive upside earnings."

So what are newspapers to do? Experts are increasingly recommending newspapers find many smaller revenue streams instead of counting on one large revenue stream to come back. These can include charging for premium content, as the Economist or Wall Street Journal does; developing niche print and online products like the Bakersfield Californian's Bakotopia or getting help from non-profit content providers, like ProPublica or Associated Reporters Abroad.

Another revenue stream newspapers are missing is e-mail, ClickZ reported in May. According to A Borrell Associates report, the e-mail market reached US$12.1 billion, but only a small portion of that, $848 million, is local - prime real estate for the newspaper industry.

Author

Leah McBride Mensching

Date

2009-11-04 16:02

The Columbia Journalism Review yesterday published a brief treatise on the future of the newspaper industry which, in failing to mention social networking sites, apparently sparked a firestorm on Twitter, Poynter Online reported today.

"The Reconstruction of American Journalism," by industry veteran Leonard Downie Jr. and Columbia University professor Michael Schudson focuses instead on supplanting subscriber and advertising dollars with government subsidies and philanthropic support, Harvard University's Nieman Journalism Lab reported yesterday. The 39-page report also suggests that, despite the industry's current economic crisis, newspapers are not headed for extinction, but that community newspapers will fare far better than mammoth enterprises as the industry continues to evolve.

Author

Leah McBride Mensching

Date

2009-10-20 18:09

In the first full month since London Lite - a free daily tabloid - faced no direct competition for readers, its circulation barely budged, Newspaper Innovation reported yesterday.

Cream on October 2 predicted that the likely closing of London Lite is foreshadowed by the recent shuttering of thelondonpaper, as well as London Evening Standard's move to a no-fee business model. London Lite, also free, is owned by Associated Newspapers, which has a 75% stake in the London Evening Standard. Much of Lite's editorial content is supplied by the Standard, Brand Republic reported October 2.

In an unrelated story, the Guardian today repeated that the London Lite seems likely to follow in thelondonpaper's footsteps.

Author

Leah McBride Mensching

Date

2009-10-19 16:51

News Corp. CEO Rupert Murdoch has increasingly pushed for paid online content, and last week announced that in the next fiscal year, the media conglomerate will continue to see advertising revenues dwindle. In its place, he said, consumers will be asked to pay for high quality journalism, all while trying to put a stop to "plagiarists and aggregators" of News Corp. content, The Age reported Sunday.

Using the News. Corp.-owned Wall Street Journal, as well as The Times and Sunday Times in the United Kingdom as evidence quality online content can succeed, Murdoch said he believes online subscription-based news "consumers will reward us with their loyalty for years to come and we will ultimately be able to better tailor our offerings to them while building new business models and generating more revenue."

In fiscal year 2010, News Corp.'s advertising revenues will account for "significantly less" of the overall revenue pie, a trend that will accelerate in years to come, he said, the Brisbane Times reported.

According to ABC News, Murdoch recently referred to search engine companies like Yahoo! and Google as "content kleptomaniacs."

Author

Leah McBride Mensching

Date

2009-10-19 15:12

The debate over monetizing online news played out Tuesday at the Paley Center along the carrot versus stick line, paidContent reported Wednesday. Steve Brill, co-founder of startup Journalism Online represented the pro-paid side, while Vivian Schiller, president and CEO of non-profit National Public Radio (NPR), argues that payment should be optional.

At the live event, which was sold out but covered via Twitter, Brill explained that Journalism Online would be supported by a combination of ad and circulation revenue. Brill boasted that 1,200 affiliates have already signed letters of intent. Nevertheless, he maintained his stance that charging a fee would rehabituate news readers to pay for a valuable commodity.

Author

Leah McBride Mensching

Date

2009-10-14 16:39

Two young German businessmen today announced they will launch the first personalised newspaper in Europe in which subscribers can choose the topics they want in their newspaper, and then receive a paper made up of only those types of articles, Agence France-Presse reported. The content will be culled from large German newspapers, such a Bild and Handelsblatt, as well as non-European titles, like The New York Times.

The newspaper, called niiu, will include both English-language and German-language news, said the entrepreneurs, Hendrik Tiedemann, 27, and Wanja Soeren Oberhof, 23.

Subscribers would pay €1.80, while students would receive a discount and pay €1.20, according to Ziare.com. Although most daily newspapers cost much less (Bild is €0.60, for example), the men said at a press conference that young readers would pay for a personalised news service in exchange for not having to spend time searching for it online.

In the next six months, niiu is hoped to have 5,000 clients in Berlin. It will then be launched throughout Germany.

Oberhof and Tiedemann said they hope the venture will also enable them to offer marketers highly targeted advertising, which rakes in higher CPMs than general, non-targeted ads.

Author

Leah McBride Mensching

Date

2009-10-13 20:44

A radical transformation of the newspaper editorial and business models is underway, and it goes far beyond the current "pay wall" debate about charging for on-line content.

These strategies call for reorganising editorial and business departments, focusing on premium content, and above all, good storytelling, according to the Innovation International Media Consulting Group, which will make a major presentation around these ideas at the World Newspaper Congress, World Editors Forum and Info Services Expo 2009, to be held in Hyderabad, India, from 30 November to 3 December next.

Full details of the events can be found at www.wanindia2009.com.

The 2009 Global Report on Innovations in Newspapers is always a major attraction of the Congress, Forum and Expo, the global summit meetings of the world's press, but never more so than this year.

"We outline the content propositions that can make you a lot of money", said Juan Senor, a Partner in Innovations. Innovations is not an advocate of building "pay walls" for current content.

"All this talk about pay walls, we've been here before, we should ban the words," said Senor. "You must create new spaces with new content propositions.

"The newspaper formula that we're still following is the formula that was developed by William Randolph Hearst and Joseph Pulitzer at the turn of the century. We need to reinvent that," he said. "You need to offer different content propositions and different structures."

Author

Larry Kilman

Date

2009-10-08 16:40

The rise of digital around the world won't hurt print in China, where press freedom is scarce, but state-run newspapers have continued to succeed, due to government ownership and media monopolies, the Philippine Daily Inquirer reported today.

The largest newspaper in China, the government owned People's Daily, prints 2.8 million copies per day. The newspaper derives its main revenue from subscriptions and big business advertising, many of which are also state owned.

In a country where the press and many advertisers are run by the government, it's not hard to see why the state is keeping itself in business. Editors at People's Daily in Beijing told visiting Filipino journalists that the paper does not fear the growth of online sources of news. The editors stressed that financially, the newspapers are self-supporting and ideologically, the Chinese people are reliant on the government papers for news.

The editors said they believe their monopolized sources have readers committed to newspapers and cautious of blogs and online news, according to the Inquirer.

The People's Daily publishing group has 30 branches across the country as well as bureaux overseas. The group also publishes two English-language newspapers, China Daily and the Global Times. Each of the English language papers publishes three pages of international news, drawn from Hsinhua, the national news agency, and The Associated Press.

Author

Leah McBride Mensching

Date

2009-09-28 16:14

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