Date

Thu - 21.09.2017


business model

According to Moody's Investors Service, the nature of the newspaper industry's cost structure is causing the field's current woes and will require transformation in order to reduce fixed costs by outsourcing printing, Fitz & Jen reported.

The current cost structure leaves revenue generation sectors well under funded with content creation and advertising sales receiving just 14 percent and 16 percent of the cash operating costs respectively. On the other hand, 70 percent of costs are devoted to print distribution and corporate expenditure. Moody's blames this imbalance for the industry's lack of flexibility.

"This disconnect is a legacy of the industry's vertical integration beyond content creation and into the production and distribution of newspapers," said John Puchalla, Moody's vice president and senior newspaper analyst, according to a report by CoStar Group.

As revenue from advertising continues to decline the large cost of outsourcing printing is causing huge cash flow problems for newspapers.

Author

Leah McBride Mensching

Date

2009-07-09 18:47

In a piece written for paidContent.org, Richard J. Tofel proposes a new way of "remaking" newspapers and "rethinking the role of the print paper."

Formerly the assistant publisher of the Wall Street Journal and now the author of "Restless Genius: Barney Kilgore, The Wall Street Journal, and the Invention of Modern Journalism," Tofel cites Kilgore, a previous Journal publisher, as an example of someone who helped push newspapers into the future. Tofel contends the 32-page format adopted by the WSJ under Kilgore's lead was the optimum amount of content for the busy reader looking for "only essential material."

The truncating of stories to achieve a slimmed-down, 32-page model would result in more streamlined news. Tofel argues that newspapers should cut superflous details and assume that their reader has already somewhat familiarised themselves with the story, having already seen it covered on the television or Internet.

"Today, all print newspapers need to think of themselves as 'second reads,'" Tofel stated in the paidContent piece, posted by the Washington Post.

Another factor of Tofel's restructuring plan is eliminating columnists and reviewers who don't have a "committed, interested following" as another means to cut costs by cutting down content that may not be of interest to the readers.

Author

Leah McBride Mensching

Date

2009-06-09 12:00

After considering all options news Web sites have for monetizing online content, the American Press Institute announced in a white paper released last week that newspapers should embrace all of them, moving from "an advertising-centered to an audience-centered enterprise."

The Newspaper Economic Action Plan, released at a Chicago summit for newspaper executives, supports both subscriptions and micropayments, as well as a combination of the two, as advertising has proven to not be enough to support content creation, especially in the current global financial downturn, Poynter Online reported.

Last Thursday's meeting was not open to members of the press, however, according to an agenda of the meeting obtained by The Associated Press, it was called "Models to Lawfully Monetize Content."

According to Poynter, the report calls on newspaper executives to follow five "doctrines":

Author

Leah McBride Mensching

Date

2009-06-04 13:53

The Wall Street Journal's pay per view online newspaper is set to include a model that will charge nonsubscribers micropayments for one time access to individual articles, CNet news reported Sunday.

Robert Thomson, editor-in-chief of Dow Jones and managing editor of the Journal, told the Financial Times that the newspaper hopes to adopt "a sophisticated micropayments service" by autumn. The service will allow sporadic users of the newspaper's Web site to access articles behind paid walls without having to pay the $100 plus price for an annual subscription.

The move represents the Journal's continued development of its uniquely successful paid for online content model. It is also an attempt to further progress toward helping the Journal make money from the Internet, as traditional models reliant on advertising have proved flawed, and have been exacerbated by the global financial crisis.

New York newspaper Newsday was the most recent newspaper to announce its planned transition into a paid content Web site.

Author

Leah McBride Mensching

Date

2009-05-11 13:33

As new president of the American Society of News Editors, Martin Kaiser has promised to find ways for newspapers to use the Web lucratively, The Associated Press reported. Kaiser, also editor of the Milwaukee Journal Sentinel, told the AP he wants the ASNE to be a "more hands-on, practical organisation where we help leaders in newsrooms either online or print deal with this dramatic change going on."

In another move toward modernisation, the former American Society of Newspaper Editors voted to change its name this year to better represent the industry and include online news sites. The new goal for the ASNE is to fix newspapers' business model, which Kaiser called broken, and to aid newspapers in finding ways to make the Internet profitable for their organisations.

Author

Leah McBride Mensching

Date

2009-04-29 10:47

Regional UK weekly the Shrewsbury Chronicle will offer both paid and free content, Press Gazette reported. The Chronicle will be delivered for free to 30,000 homes in the town centre, while outside of the city, the paper will be sold for 40p per copy.

The Shrewsbury Chronicle, along with its sibling paper the North Shropshire Chronicle, are two of a number of regional papers that are following the example of the Manchester Evening News, a pioneer in adopting the part-paid, part-free format.

Colin Spicer, the managing director for Shropshire Newspapers, said the "response from advertisers has been overwhelmingly positive and we are certain the new paper will meet their changing needs."

Author

Leah McBride Mensching

Date

2009-04-27 13:21

The American version of PRWeek has induced an awkward oxymoron as advertising decline forces it into monthly publication, The New York Times reported Sunday. This week's issue will be the last as a weekly production and the last as a tabloid size magazine. The publication's Web site will also switch to a subscription model.

Regarding the now incongruous title, publishing director Julia Hood said, "We definitely had a debate about that, but the PRWeek brand is very strong and we're very attached to it."

Hood said the title was already unsuitable, given the daily updates of the magazines Web site.

"PRWeek was, to a certain extent, a bit nostalgic long before this change," she told The New York Times. "We might as well have called it PRDaily."

The new monthly print edition will also condense its format from its current tabloid size to that of a regular magazine. The annual subscription price will remain the same at US$198.

PRWeek's online operation will switch to a subscription model. Hood told The New York Times that although the site's traffic continues to grow, "our subscriber base has not, and our subscribers deserve the best content we have.

Author

Leah McBride Mensching

Date

2009-04-27 13:19

Three top U.S. media executives, Court TV founder Steven Brill, former Wall Street Journal publisher Gordon Crovitz, and Leo Hindery, a former chief executive of AT&T Broadband, have started a company aimed to help the newspaper and print industry derive income from the Internet, AFP reported.

The project, Journalism Online, aims to target readers that "will continue to support journalists by paying a modest, fair price for original, independent, professional work distributed online."

Brill said the company has already held talks with most major U.S. newspaper and magazine publishers and they expressed "strong interest" in the venture.

"We think this is a special moment in time when there is an urgent need for a business model that allows quality journalism to be the beneficiary of the Internet's efficient delivery mechanism rather than its victim," he told AFP. "We believe we have developed a strategy and a set of services that will establish that model by restoring a stream of circulation revenue to supplement advertising revenue."

The Wall Street Journal is the only major U.S. paper to currently charge for access to portions of its Web site, but many other newspapers are considering the introduction of different pay for content models.

Journalism Online is set to be a "password-protected Web site with one easy-to-use account through which consumers will be able to purchase annual or monthly subscriptions, day passes, and single articles from multiple publishers," the founders stated, according to AFP.

Author

Leah McBride Mensching

Date

2009-04-15 20:23

In a letter to shareholders yesterday, Washington Post Co. Chairman Donald E. Graham revealed that the loss of "substantial money" in 2009 will involve further cost cutting measures at the Washington Post, the paper reported today. This comes on top of a US$24.9 million operating loss for 2008. However, the company is not prepared to write the newspaper off just yet.

"The familiar problems of the newspaper industry - declining readership and the loss of classified - are now made worse by bankrupt advertisers," Graham stated in the letter. "The newspaper will lose substantial money in 2009. Some will be non-cash accelerated depreciation because we will be closing a printing plant. Most will be real losses."

The Post Co. is prepared to take losses at its two major titles, The Post and Newsweek "as we did at Kaplan from 1994 to 2001," Graham stated. At present, 70 percent of the company's revenue comes from higher education subsidiary Kaplan and cable network Cable One. This is a dramatic shift from 1998 figures in which The Post and Newsweek earned 75 percent of the company's income, The Post reported.

"The Post will get every chance" to become profitable again, Graham wrote. "Ten years from now, it is highly likely that customers will be getting news from profitable institutions staffed by talented reporters and editors," Graham writes, according to The Post. "We're going to try to show a way."

Author

Leah McBride Mensching

Date

2009-03-26 14:54

U.S. newspaper and television company Media General on Monday announced the restructuring of the firm to five geographic regions, replacing its current traditional structure that groups media by division - publishing, broadcast and interactive, Mediaweek reported. The restructure will go into effect in early July.

The five regions are Virginia and Tennessee, Florida, mid-South, North Carolina and Ohio and Rhode Island. The restructuring also includes a sixth business segment, which will hold interactive advertising services, and include the Blockdot, DealTake and NetInformer Web sites.

"The consumer in the marketplace is typically indifferent as to how he gets his information ... if he has a preference, we want to be able to serve the preference, so in each of our markets we want to be able to offer every technology that's available to the customer," said Marshall Morton, president and CEO, in a video on the company's Web site. "We found that the approach that we're using today, the three divisions ... never fully takes advantage of the fact that we've got three product strengths."

Author

Leah McBride Mensching

Date

2009-03-24 19:22

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